RETIREMENT FUND AND PROFIT SHARING PLAN

6 Months Ended

Jun. 30, 2017

RETIREMENT FUND AND PROFIT SHARING PLAN [Abstract]

9. RETIREMENT FUND AND PROFIT SHARING PLAN

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 "Code"). The expense for the three months ended June 30, 2017 and 2016 amounted to $0.3 million in both periods. The expense for the six months ended June 30, 2017 and 2016 amounted to $0.6 million in both periods. As of June 30, 2017, the plan owned 42,642 and 145,524 shares of Bel Fuse Inc. Class A and Class B common stock, respectively. Effective January 1, 2017, the Company's matching contribution will be made in the form of Bel Fuse Inc. Class A common stock. During 2016, the employer match was made in cash.

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, 2017 and 2016 amounted to $0.1 million in both periods. The expense for the six months ended June 30, 2017 and 2016 amounted to $0.2 million and $0.1 million, respectively. As of June 30, 2017, the plan owned 3,323 and 17,342 shares of Bel Fuse Inc. Class A and Class B common stock, respectively.

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 3 above, the Company has investments in a rabbi trust which are intended to fund the obligations of the SERP. The SERP expense for the periods and amounts presented below is allocated between cost of sales and selling, general and administrative expense in the condensed consolidated statements of operations based upon the classification of plan participants.

The components of SERP expense are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Service cost	$	175	$	148	$	350	$	296
Interest cost		168		165		337		330
Net amortization		94		98		187		196
Net periodic benefit cost	$	437	$	411	$	874	$	822

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

	June 30,		December 31,
	2017		2016
Prior service cost	$	1,055	$	1,172
Net loss		2,900		2,970
	$	3,955	$	4,142