RESTRUCTURING ACTIVITIES

12 Months Ended

Dec. 31, 2012

3.	RESTRUCTURING ACTIVITIES

On July 12, 2012, as part of the Company's 2012 Restructuring Program, Bel announced its plan to close its Cinch North American manufacturing facility in Vinita, Oklahoma by the end of 2012, and move the operation to a new facility in McAllen, Texas. The new facility is just across the Mexican border from Bel's existing Reynosa factory, where some of the processing for many of the Vinita parts is currently performed. Management believes that having the facilities closer together will lower transportation and logistics costs and improve service for customers by reducing manufacturing cycle times. The Company accrued the full amount of termination benefits related to the Vinita, Oklahoma employees during 2012, as noted in the table below. During December 2012, the Company donated the Vinita building and land to a local university, and recorded a $1.0 million loss on disposal related to this donation. The Company also recorded a $0.4 million impairment on certain equipment at the Vinita facility. These amounts are classified as restructuring charges in the accompanying 2012 consolidated statement of operations.

In May 2012, the Company entered into a new facility lease in McAllen, Texas in conjunction with this transition. The Company's overall commitment under the terms of the lease is approximately $1.9 million, and will be incurred over the term of the lease, which commenced in September 2012 and is due to expire in March 2023.

The Company also implemented certain overhead cost reductions in Asia during the third quarter of 2012 as part of the Restructuring Program. The Asia portion of the program was completed during the third quarter of 2012.

Activity and liability balances related to restructuring costs for the year ended December 31, 2012 are as follows:

	Liability at		New		Cash Payments and			Liability at
	December 31, 2011		Charges		Other Settlements			December 31, 2012
Termination benefits	$	-	$	3,227	$	(3,105	)	$	122
Transportation of equipment		-		528		(528	)		-
Set-up costs		-		71		(71	)		-
Impairment/loss on disposal of
assets related to restructuring		-		1,389		(1,389	)		-
Other restructuring costs		-		30		(30	)		-
Total	$	-	$	5,245	$	(5,123	)	$	122

The remaining $0.1 million of accrued restructuring costs at December 31, 2012 consist solely of termination benefits associated with the Vinita, Oklahoma employees which will be paid in the first quarter of 2013; accordingly, the Company has classified the $0.1 million of accrued restructuring costs as a current liability in the consolidated balance sheet at December 31, 2012.

During the year ended December 31, 2011, the Company recorded $0.3 million in restructuring charges related primarily to severance costs associated with the reorganization of Cinch operations in the U.K. The Company also settled its remaining lease obligation related to the Westborough, Massachusetts facility during 2011, which resulted in an immaterial gain.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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