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, 1996
AVX CORPORATION
DEFERRED COMPENSATION PLAN
AVX CORPORATION
P.O. Box 867
Myrtle Beach SC 29577
<PAGE>
AVX CORPORATION
DEFERRED COMPENSATION PLAN
INDEX
Page No.
Report of Independent Accountants 2
Statement of Financial Condition with Fund Information
as of December 31, 1996 and 1995
3
Statement of Income and Changes in Plan Equity with Fund
Information for the years ended December 31, 1996, and 1995
and the period ended December 31, 1994 4-5
Notes to Financial Statements 6-8
Signatures 9
Schedule of Investments
Exhibit:
23.1 Consent of Coopers & Lybrand L.L.P. dated
1
<PAGE>
Coopers
&Lybrand
Coopers & Lybrand L.L.P.
a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Administrative Committee,
AVX Corporation Deferred Compensation Plan:
We have audited the statement of financial condition of the AVX
Corporation Deferred Compensation Plan as of December 31, 1996
and 1995 and the related statement of income and changes in plan
equity for the years ended December 31, 1996 and 1995 and the
period ended December 31, 1994. 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 generally accepted
auditing standards. 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. An
audit also includes 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 financial
condition of the AVX Corporation Deferred Compensation Plan as
of December 31, 1996 and 1995 and its income and changes in plan
equity for the years ended December 31, 1996 and 1995 and the
period ended December 31, 1994, in conformity with generally
accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on
the basic financial statements taken as a whole. The
supplemental schedules and Fund Information in the statement of
financial condition and the statement of income and changes in
plan equity is presented for purposes of additional analysis
rather than to present the financial condition and income and
changes in plan equity of each fund. The supplemental schedules
and Fund Information have been subjected to the auditing
procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as
a whole
COOPERS & LYBRAND L.L.P.
Atlanta, Georgia
March 25, 1997
Coopers & Lybrand L.L.P. is a member of Coopers & Lybrand International,
a limited liability association incorporated in Switzerland.
2
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AVX CORPORATION DEFERRED COMPENSATION PLAN
STATEMENT OF FINANCIAL CONDITION WITH FUND INFORMATION
as of December 31, 1996 and 1995, 1996
<TABLE>
<CAPTION>
Aggressive Intermediate Short Term International
AVX Stock Kyocera Equity Term Fixed Fixed Income Equity
Total Fund Stock Fund Fund Fund Fund Fund
1996
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at Fair Value:
Short-term temporary
investment $ 118,625 $ 4,002 $ 469 $ 46,017 $ - $ 68,137 $ -
Other investments
(cost $1,011,104) 1,080,499 - - 460,374 530,916 - 89,209
AVX Corporation
Common Stock (cost $36,454) 34,830 34,830 - - - - -
Kyocera Corporation American
Depositary Shares
(cost $81,286) 67,588 - 67,588 - - - -
Total investments 1,301,542 38,832 68,057 506,391 530,916 68,137 89,209
Receivables:
Employer contributions 40,775 1,818 3,750 20,817 10,685 2,000 1,705
Dividends 1,247 20 2 1,225 - - -
Plan equity $ 1,343,564 $ 40,670 $ 71,809 $ 528,433 $ 541,601 $ 70,137 $ 90,914
</TABLE>
<TABLE>
<CAPTION>
1995 Aggressive Intermediat Short Term International
AVX Stock Kyocera Equity Term Fixed Fixed Incom Equity
Total Fund Stock Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at Fair Value:
Short-term temporary
investment $ 3,827 $ - $ 280 $ 2,268 $ $ 956 $ 323
Other investments
(cost $516,844) 537,900 - - 220,787 310,534 - 6,579
Kyocera Corporation American
Depositary Shares
(cost $98,072) 95,819 - 95,819 - - - -
Total investments 637,546 - 96,099 223,055 310,534 956 6,902
Receivables:
Employer contributions 43,684 - 9,454 20,713 12,203 - 1,314
Employee contributions 26,341 - 3,568 8,931 13,388 - 454
Unconsummated purchases - - - - - - -
Dividends 202 - 3 193 - 5 1
Plan equity $ 707,773 $ - $ 109,124 $ 252,892 $ 336,125 $ 961 $ 8,671
</TABLE>
The accompanying notes are an integral part
of the financial statements.
3
<PAGE>
AVX CORPORATION DEFERRED COMPENSATION PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
for the year ended December 31, 1996, 1996 and
the period since inception through December 31,1994
<TABLE>
<CAPTION>
Aggressive Intermediate Short Term International
1996 AVX Stock Kyocera Equity Term Fixed Fixed Income Equity
Total Fund Stock Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Dividends on Kyocera AD $ 800 $ - $ 800 $ - $ - $ - $ -
Dividends on AVX Corporation 191 191 - - - - -
Other dividends 39,569 - 12 8,956 27,514 830 2,257
Realized gains and (losses) 36,524 - (2,361) 32,420 5,044 - 1,421
Unrealized appreciation
(depreciation)of investments 35,268 (1,625) (11,445) 40,934 2,216 - 5,188
Contributions:
Employer 100,929 4,754 13,814 49,419 27,743 2,045 3,154
Employee 422,510 4,718 40,959 162,559 199,148 3,844 11,282
Income and change in plan
equity 635,791 8,038 41,779 294,288 261,665 6,719 23,302
Plan equity at beginning
of year 707,773 109,124 252,892 336,125 961 8,671
Transfer of funds
from employee
investment election, net - 32,632 (79,095) (18,747) (56,188) 62,457 58,941
Plan equity at end of year $1,343,564 $ 40,670 $ 71,808 $ 528,433 $ 541,602 $ 70,137 $ 90,914
</TABLE>
<TABLE>
<CAPTION>
Aggressive Intermediate Short Term Internationa
1995 AVX Stock Kyocera Equity Term Fixed Fixed Equity
Total Fund Stock Fund Fund Fund Income Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Dividends on Kyocera ADS $ 429 $ - $ 429 $ - $ $ - $ -
Other dividends 15,514 - 3,788 11,523 39 164
Realized gains and (losses) 5,117 - 3,759 1,127 231
Unrealized appreciation
(depreciation)
of investments 18,663 - (2,393) 10,374 10,920 (238)
Contributions:
Employer 86,308 - 16,289 41,634 26,967 1,418
Employee 376,438 - 61,246 116,091 197,209 1,892
Income and change in plan
equity 502,469 - 75,571 175,646 247,746 39 3,467
Plan equity at beginning
of year 205,304 - 31,012 111,283 62,087 922 -
Transfer of funds from
employee investment
election, net - - 2,541 (34,037) 26,292 5,204
Plan equity at end of year $ 707,773 $ - $ 109,124 $ 252,892 $ 336,125 $ 961 $ 8,671
</TABLE>
The accompanying notes are an integral part
of the financial statements.
4
<PAGE>
<TABLE>
AVX CORPORATION DEFERRED COMPENSATION PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
WITH FUND INFORMATION (continued)
for the year ended December 31, 1996, 1995 and
the period since inception through December 31, 1994
<CAPTION>
Aggressive Intermediate Short Term
1994 Kyocera Equity Term Fixed Fixed Income
Total Stock Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C>
Net investment income:
Dividends on Kyocera ADS $ 17 $ 17 $ $ $
Other dividends 809 561 248
Realized gains and (losses) -
Unrealized appreciation of
investments 140 140
Contributions:
Employer 84,838 15,928 38,023 29,965 922
Employee 119,501 14,927 72,699 31,875 -
Income and change in
plan equity 205,305 31,012 111,283 62,088 922
Plan equity at inception
Plan equity at end of year $ 205,305 $ 31,012 $ 111,283 $ 62,088 $ 922
</TABLE>
The accompanying notes are an integral part
of the financial statements.
5
<PAGE>
AVX CORPORATION
DEFERRED COMPENSATION PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan:
The following brief description of the AVX Corporation
Deferred Compensation Plan as amended (the "Plan") is provided for general
information purposes only. Participants should refer to the Plan agreement
for more complete information.
The Plan was established August 1, 1994 to provide certain
officers and highly compensated managers of AVX Corporation
(the "Company") with supplemental retirement benefits.
The Plan's investments are held by a trust fund administered
by Marine Midland Bank, (the "Trustee").
Eligibility:
An employee with an annual compensation of $150,000 or higher
and selected by the Company (or such other party or committee
as the Company may designate) is eligible to participate in the
Plan.
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. Each participant shall be fully
vested and have a nonforfeitable interest in his account.
Deferred Compensation Amounts:
The deferred amount may range from 1% to 25% of eligible
compensation. The Company makes a matching contribution equal
to 100% of the first 3% of compensation deferred by such
participant on compensation in excess of $150,000 and
an amount equal to the aggregate amount that would have been
contributed on such participant's compensation in excess
of $150,000 under the profit sharing and money purchase
features of the AVX Corporation Retirement Plan had there
been no limit on compensation in said plan. For the purpose
of determining the Company's contribution, a participant's
compensation for 1996 shall not exceed $250,000.
Administrative expenses are paid by the Company.
2. Significant Accounting Policies
The financial statements of the Plan are presented on the
accrual basis of accounting. Contributions include amounts
equal to the aggregate that would have been contributed on
participant's compensation in excess of $150,000 but less than
$250,000 under the money purchase features of the AVX
Corporation Retirement Plan . The contributions associated with
the profit sharing features of the AVX Corporation Retirement
Plan are not readily determinable and will be included in
the plan in the year paid.
6
<PAGE>
Notes To Financial Statements (continued)
Investments in securities traded on a national securities
exchange are valued at the closing sales price on the last
business day of the plan year. Temporary cash investments in money
market funds are valued at par which represents market value
as determined by the Trustee. For purposes of determining
realized gains and losses the Plan uses the average cost
method to determine the cost basis of disposed assets.
Investments:
The investment alternatives are:
Short-Term Fixed Income Fund: This fund consists of
short-term maturities of US. government bonds and
notes and bank certificates of deposit. The short-term fixed
income fund had two and one participant at December 31, 1996
and 1995, respectively.
Intermediate-Term Fixed Income Fund: This fund consists of a
diversified portfolio of quality fixed income
securities of longer term maturities. The intermediate-term
fixed income fund had five and seven participants at December
31, 1996 and 1995, respectively.
Aggressive Equity Fund: This fund consists of a diversified
portfolio of quality equity investments which may
include common or capital stocks, bonds, mutual funds, or
preferred stocks convertible into common or capital
stocks. The aggressive equity fund had twelve participants
at December 31, 1996 and 1995.
Kyocera Stock Fund: The fund consists of American Depositary
Shares ("ADS") of Kyocera Corporation. The Kyocera stock fund had
three and six participants at December 31, 1996 and 1995, respectively.
International Equity Fund: This fund consists of a
diversified portfolio of quality equity investments which funds
are substantially invested outside the U.S and may include
common stocks, bonds or mutual funds.
The international equity fund had six and three participants
at December 31, 1996 and 1995, respectively.
AVX Stock Fund: Effective November 1, 1995 the plan was
amended to include AVX Stock as a investment option. In
accordance with SEC section 16b, initial investments elections
are subject to a six month waiting period before they can be
executed. The AVX stock fund had two participants as of
December 31, 1996.
Realized gains were as follows:
December 31,1996 December 31, 1995 December 31, 1994
Aggregate cost $434,592 $100,517 -
Proceeds 471,116 105,634 -
Realized gains $ 36,524 $ 5,117 -
The Plan's unrealized (depreciation) appreciation of
investments were as follows:
December 31,1996 December 31, 1995 December 31, 1994
AVX Corporation
Common Stock $ (1,625) $ - $ -
Kyocera ADS (13,698) (2,253) 140
Other investments 69,394 21,056 -
Total $ 54,071 $18,803 $140
The Plan's exposure to accounting loss with respect to its
financial instruments is limited to the carrying values.
7
<PAGE>
Notes To Financial Statements (continued)
3. 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.
4. Transactions with Parties-In-Interest
Amounts of Kyocera ADS held by the Plan at December 31, 1996
and 1995 were as following:
December 31, 1996 December 31, 1995
Shares 554 642
Market value per share $122.00 $149.25
Market value $67,588 $95,819
Amounts of AVX Corporation stock held by the Plan at
December 31,1996 and 1995 were as follows:
December 31, 1996 December 31, 1995
Shares 1,620 -
Market value per share $21.50 -
Market value $34,830 -
5. Subsequent Event
Effective January 1, 1997 the plan was amended for the
following:
A participant may defer an amount from 1% to 28% of eligible
compensation. The Company will make a matching contribution
equal to the following:
1.) Stock Bonus feature - provided the participant elects to
have the first 3% of his deferred amount invested in
the AVX Stock Fund, the Company will make a 100%
matching contribution, monthly, based on
compensation between $160,000 and $600,000.
2.) Money Purchase Plan feature - the Company will make a
annual contribution equal to 5% of eligible
compensation between $160,000 and $600,000.
3.) Profit Sharing feature - the Company will make a annual
contribution between 1% - 5% of eligible earnings
for compensation between $160,000 and $300,000. The
contribution is subject to the Company's profits and
approval by the board of directors.
8
<PAGE>
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 CORPORATION DEFERRED COMPENSATION PLAN
(Name of Plan)
/S/ Donald B. Christiansen
Don Christiansen
Member of Administrative Committee
Date: March 27, 1997
9
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AVX CORPORATION DEFERRED COMPENSATION PLAN
SCHEDULE OF INVESTMENTS
As of December 31, 1996
Description Number of Percentage
shares/ units Market Value of net Assets
Rowe T Price Spectrum FD Inc. 47,403 $530,916.00 40%
AVX Corporation Common Stock 1,620 34,830.00 3%
Kyocera ADS 554 67,588.00 5%
Templeton FDS Inc. Foreign FD 8,611 89,209.34 7%
Common Stocks:
Auto Manufacturing & Related
Ford Motor Company 400 12,900.00
General Motors Corporation 300 16,725.00
700 29,625.00 2%
Chemical
Dow Chemical Company 150 11,756.25
Grace W R & Company 200 10,350.00
350 22,106.25 2%
Electrical Equipment - Heavy
General Electric Company 200 19,775.00
Raychem Corporation 200 16,025.00
400 35,800.00 3%
Electrical Equipment & Appliances
Armstrong World Industries Inc. 200 13,900.00
Corning Incorporated 300 13,875.00
500 27,775.00 2%
Financial Services & Realty
Bank New York Inc. 300 10,125.00
Federal National 400 15,050.00
Great Western Financial Corp. 450 13,050.00
Travelers Group Inc. 266 12,069.75
1,416 50,294.75 4%
Hospital Supply
Baxter International Inc. 500 20,500.00
Fresenius Medical Care 209 5,878.12
Humana Inc. 500 9,500.00
Medtronic Inc. 300 20,400.00
1,509 56,278.12 4%
Insurance
Equitable Consolidated Inc. 500 12,312.50
USF&G Corp 600 12,525.00
1,100 24,837.50 2%
Retail Trade
Gap Incorporated 400 12,050.00
May Department Stores Co. 150 7,012.50
J C Penny Incorporated 200 9,750.00
Tandy Corporation 300 13,200.00
1,050 42,012.50 3%
Miscellaneous
Bank America Corporation. 200 19,546.00
Bristol Myers Squibb Company 200 21,800.00
Conrail Incorporated 153 15,242.62
Dial Corporation 500 7,312.50
Owens Corning 300 12,787.50
Kimberly Clark Corporation 200 19,050.00
Philip Morris Companys Inc. 200 22,600.00
Texaco Incorporated 150 14,718.75
United Technologies Corporation 300 19,875.00
Viad Corporation 500 8,187.50
Xerox Corporation 200 10,525.00
Total Common Stocks 9,928 460,373.99 34%
Cash and Cash equivalents 118,625.00 9%
Total Investments $1,301,542.33
11
Coopers
&Lybrand
Coopers & Lybrand L.L.P.
a professional services firm
CONSENT OFINDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration
statement of Kyocera Corporation on Form S-8 (File No. 33-84904)
and the registration statement of AVX Corporation on Form S-8
(File No. 333-890) of our report, dated March 25, 1997, on our
audit of the financial statements of AVX Corporation Deferred
Compensation Plan as of December 31, 1996 and 1995, and for the
years ended December 31, 1996 and 1995 and the period ended
December 31, 1994, which report is included in this Form 11 -K.
COOPERS & LYBRAND L.L.P.
Atlanta, Georgia
March 27, 1997
Coopers & Lybrand
L,L.P., a registered limited liability partnership, is a member
firm of Coopers & Lybrand (International).
