Note 8 - Accrued Expenses

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

8. ACCRUED EXPENSES

Accrued expenses consist of the following:

	March 31,		December 31,
	2023		2022
Salaries, bonuses and related benefits	$	20,749	$	27,422
Deferred revenue		7,145		8,847
Accrued restructuring costs		9,387		6,796
Sales commissions		2,440		2,521
Subcontracting labor		1,864		1,875
Warranty accrual		1,183		1,287
Other		4,850		2,125
	$	47,618	$	50,873

The change in warranty accrual during the three months ended March 31, 2023 primarily related to repair costs incurred and adjustments to pre-existing warranties.  There were no new material warranty charges incurred during the three months ended March 31, 2023.

Restructuring Activities:

Activity and liability balances related to restructuring costs for the three months ended March 31, 2023 are as follows:

			Three Months Ended
			March 31, 2023
	Liability at				Cash Payments			Liability at
	December 31,		New		and Other			March 31,
	2022		Charges		Settlements			2023
Severance costs	$	3,390	$	2,657	$	(917	)	$	5,130
Other restructuring costs		3,406		851		-			4,257
Total	$	6,796	$	3,508	$	(917	)	$	9,387

During the third quarter of 2022, a series of initiatives were launched to streamline our operational footprint. In a project expected to be completed by late-2023, two of our Magnetics sites in Zhongshan and Pingguo, China, are being consolidated into a single centralized site in the Binyang county of Southwestern China (the new Bel Guangxi facility). Further, facility consolidation actions within our Connectivity Solutions group have been underway in both the U.S. and Europe. In the U.S., our Tempe, Arizona and Melbourne, Florida sites are transitioning their manufacturing operations into our existing site in Waseca, Minnesota. In Europe, operations at our facility in Sudbury, UK are being consolidated into our existing site in Chelmsford, UK. The Tempe, Arizona move was completed during the first quarter of 2023, the UK transition is on schedule for completion in the second quarter of 2023 and the Melbourne, Florida transition is expected to be completed in the fourth quarter of 2023. The $3.5 million of restructuring charges incurred during the three months ended March 31, 2023, and the accrued restructuring costs of $9.4 million at March 31, 2023, are associated with these collective initiatives.