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Note 13 - Retirement, Savings and Deferred Compensation Plans
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Retirement Benefits [Text Block]

13.

RETIREMENT, SAVINGS AND DEFERRED COMPENSATION PLANS

 

The Company maintains the Bel Fuse Inc. Employees’ Savings Plan, a defined contribution plan that is intended to meet the applicable requirements for tax-qualification under sections 401(a) and (k) of the Internal Revenue Code of 1986, as amended. The expense for the three months ended June 30, 2023 and 2022 amounted to $0.3 million for each period. The expense for the six months ended June 30, 2023 and 2022 amounted to $0.7 million during each period. The Company’s matching contribution is made in the form of Bel Fuse Inc. Class A common stock. As of June 30, 2023, the plan owned 303,429 and 80,737 shares of Bel Fuse Inc. Class A and Class B common stock, respectively.  

 

The Company also maintains a Nonqualified Deferred Compensation Plan (the "DCP").  With certain exceptions, the Company's contributions to the DCP are discretionary and become fully vested by the participants upon reaching age 65.  The expense amounted to less than $0.1 million during each of the three months ended  June 30, 2023 and 2022 and amounted to $0.1 million during each of the six months ended June 30, 2023 and 2022. As the plan is fully funded, the assets and liabilities related to the DCP were in equal amounts of $0.8 million at June 30, 2023 and $0.7 million at December 31, 2022.  These amounts are included in other assets and other liabilities, respectively, on the accompanying condensed consolidated balance sheets as of each date.   

 

The Company's subsidiaries in Asia have a retirement fund covering substantially all of their Hong Kong based full-time employees.  The expense for the three months ended June 30, 2023 and 2022 amounted to $0.3 million and $0.8 million, respectively.  The expense for the six months ended June 30, 2023 and 2022 amounted to $0.9 million and $1.6 million, respectively. As of December 31, 2021, the plan owned 3,323 and 17,342 shares of Bel Fuse Inc. Class A and Class B common stock, respectively. During the second quarter of 2022, the Company repurchased all shares back from the Asia retirement plan and no shares were owned by the plan as of June 30, 2023 or December 31, 2022.

 

The Company maintains a SERP, which is designed to provide a limited group of key management and other key employees of the Company with supplemental retirement and death benefits.  As discussed in Note 6 above, the Company has investments in a rabbi trust which are intended to fund the obligations of the SERP.

 

The components of SERP expense are as follows:

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2023

  

2022

  

2023

  

2022

 

Service cost

 $92  $126  $185  $251 

Interest cost

  221   159   443   318 

Net amortization

  18   78   35   156 

Net periodic benefit cost

 $331  $363  $663  $725 

 

The service cost component of net benefit cost is presented within cost of sales, research and development costs or selling, general and administrative expense on the accompanying condensed consolidated statements of operations, in accordance with where compensation cost for the related associate is reported.  All other components of net benefit cost, including interest cost and net amortization noted above, are presented within other income (expense), net in the accompanying condensed consolidated statements of operations.

 

The following amounts are recognized net of tax in accumulated other comprehensive loss:

 

  

June 30,

  

December 31,

 
  

2023

  

2022

 

Prior service cost

 $273  $334 

Net loss

  (2,190)  (2,216)
  $(1,917) $(1,882)