UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________

FORM 10-Q

(MARK ONE)

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended ~~March 31,~~September 30, 2014
or
[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ___________ to ____________

Commission File No. 0-11676

_____________________

BEL FUSE INC.

206 Van Vorst Street

Jersey City, NJ 07302

(201) 432-0463

(Address of principal executive offices and zip code)

(~~Registrant’s~~Registrant's telephone number, including area code)

NEW JERSEY		22-1463699
(State of incorporation)		(I.R.S. Employer Identification No.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.	Yes ~~[X]~~[ ]	No ~~[ ]~~[X]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).	Yes [X]	No [ ]

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [X]	Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).				Yes [ ]	No [X]

Title of Each Class	Number of Shares of Common Stock Outstanding as of ~~May~~November 1, 2014
Class A Common Stock ($0.10 par value)		2,174,912
Class B Common Stock ($0.10 par value)		~~9,333,677~~	9,704,877

BEL FUSE INC.

INDEX

			Page
Part I		Financial Information

	Item 1.	Financial Statements (unaudited)	1

		Condensed Consolidated Balance Sheets as of ~~March 31,~~September 30, 2014
		and December 31, 2013 (unaudited)	2

		Condensed Consolidated Statements of Operations for the Three and Nine
		Months Ended ~~March 31,~~September 30, 2014 and 2013 (unaudited)	3

		Condensed Consolidated Statements of Comprehensive Income (Loss) ~~Income~~ for
		the Three and Nine Months Ended ~~March 31,~~September 30, 2014 and 2013 (unaudited)	4

		Condensed Consolidated Statements of Cash Flows for the ~~Three~~Nine
		Months Ended ~~March 31,~~September 30, 2014 and 2013 (unaudited)	5 - 6

		Notes to Condensed Consolidated Financial Statements (unaudited)	7 - 1521

	Item 2.	Management's Discussion and Analysis of
		Financial Condition and Results of Operations	16 22 - 2130

	Item 3.	Quantitative and Qualitative Disclosures About
		Market Risk	22 30

	Item 4.	Controls and Procedures	22 30

Part II		Other Information

	Item 1.	Legal Proceedings	22 30

	Item 6.	Exhibits	23 31

	Signatures		24
			32

Return to Index

PART I.Financial Information

Item 1. �� Financial Statements (Unaudited)

Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America (“("U.S. ~~GAAP”~~GAAP") have been condensed or omitted from the following condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. The following condensed consolidated financial statements should be read in conjunction with the year-end consolidated financial statements and notes thereto included in the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013.

The results of operations for the three and nine months ended ~~March 31,~~September 30, 2014 are not necessarily indicative of the results for the entire fiscal year or for any other period.

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BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share and per share data)
(Unaudited)

March 31, December 31,
2014 2013
ASSETS
Current Assets:
Cash and cash equivalents $ 53,906 $ 62,123
Accounts receivable - less allowance for doubtful accounts of $977
  and $941 at March 31, 2014 and December 31, 2013, respectively 57,363 63,849
Inventories 67,976 70,019
Prepaid expenses and other current assets 4,072 3,519
Refundable income taxes 2,270 1,650
Deferred income taxes 2,518 2,995
    Total Current Assets 188,105 204,155

Property, plant and equipment - net 39,344 40,896
Deferred income taxes 1,990 1,680
Intangible assets - net 28,987 29,472
Goodwill 18,641 18,490
Other assets 13,837 13,448
    TOTAL ASSETS $ 290,904 $ 308,141

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 23,192 $ 29,518
Accrued expenses 16,521 22,442
Short-term borrowings under revolving credit line 4,000 12,000
Notes payable 688 739
Income taxes payable 1,445 1,496
Dividends payable 815 786
    Total Current Liabilities 46,661 66,981

Long-term Liabilities:
Liability for uncertain tax positions 1,527 1,218
Minimum pension obligation and unfunded pension liability 11,103 10,830
Other long-term liabilities 417 410
    Total Long-term Liabilities 13,047 12,458
    Total Liabilities 59,708 79,439

Commitments and Contingencies

Stockholders' Equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued - -
Class A common stock, par value $.10 per share, 10,000,000 shares
    authorized; 2,174,912 shares outstanding at each date (net of
    1,072,769 treasury shares) 217 217
Class B common stock, par value $.10 per share, 30,000,000 shares
     authorized; 9,333,677 and 9,335,677 shares outstanding, respectively
     (net of 3,218,307 treasury shares) 933 933
Additional paid-in capital 19,460 18,914
Retained earnings 209,712 207,993
Accumulated other comprehensive income 874 645
    Total Stockholders' Equity 231,196 228,702
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 290,904 $ 308,141

See notes to unaudited condensed consolidated financial statements.

~~-2-~~

BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
(Unaudited)

Three Months Ended
March 31,
2014 2013

Net Sales $ 82,646 $ 63,028

Costs and expenses:
Cost of sales 68,576 53,932
Selling, general and administrative 11,189 10,399
Restructuring charges - 124
79,765 64,455

Income (loss) from operations 2,881 (1,427 )

Interest expense (30 ) (3 )
Interest income and other, net 51 38

Earnings (loss) before provision (benefit) for income taxes 2,902 (1,392 )
Provision (benefit) for income taxes 399 (834 )

Net earnings (loss) $ 2,503 $ (558 )

Earnings (loss) per share:
Class A common share - basic and diluted $ 0.20 $ (0.05 )
Class B common share - basic and diluted $ 0.22 $ (0.05 )

Weighted-average shares outstanding:
Class A common share - basic and diluted 2,174,912 2,174,912
Class B common share - basic and diluted 9,334,955 9,221,104

Dividends paid per share:
Class A common share $ 0.06 $ 0.06
Class B common share $ 0.07 $ 0.07

See notes to unaudited condensed consolidated financial statements.

~~-3-~~

BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(dollars in thousands)
(Unaudited)

Three Months Ended
March 31,
2014 2013

Net earnings (loss) $ 2,503 $ (558 )

Other comprehensive income:
Currency translation adjustment, net of taxes of $34 and ($221), respectively 169 (1,413 )
Unrealized holding gains on marketable securities arising during the period,
net of taxes of $17 and $52, respectively 28 85
Change in unfunded SERP liability, net of taxes of $14 and ($27), respectively 32 (61 )
Other comprehensive income (loss) 229 (1,389 )

Comprehensive income (loss) $ 2,732 $ (1,947 )

See notes to unaudited condensed consolidated financial statements.

~~-4-~~

BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
2014 2013
Cash flows from operating activities:
Net earnings (loss) $ 2,503 $ (558 )
Adjustments to reconcile net earnings (loss) to net
cash provided by operating activities:
Depreciation and amortization 3,406 2,220
Stock-based compensation 546 470
Other, net 220 255
Deferred income taxes 58 (859 )
Changes in operating assets and liabilities (see page 6) (4,897 ) 222
      Net Cash Provided by Operating Activities 1,836 1,750

Cash flows from investing activities:
Purchase of property, plant and equipment (1,242 ) (1,151 )
Payment for acquisition, net of cash acquired (see page 6) - (14,121 )
Proceeds from disposal of property, plant and equipment 21 6
       Net Cash Used in Investing Activities (1,221 ) (15,266 )

Cash flows from financing activities:
Dividends paid to common shareholders (755 ) (762 )
Repayments under revolving credit line (8,000 ) -
Decrease in notes payable (50 ) (79 )
Purchase and retirement of Class B common stock - (3,356 )
       Net Cash Used In Financing Activities (8,805 ) (4,197 )

Effect of exchange rate changes on cash (27 ) (237 )

Net Decrease in Cash and Cash Equivalents (8,217 ) (17,950 )
Cash and Cash Equivalents - beginning of period 62,123 71,262
Cash and Cash Equivalents - end of period $ 53,906 $ 53,312

(Continued)
See notes to unaudited condensed consolidated financial statements.

~~-5-~~

BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(dollars in thousands)
(Unaudited)
Three Months Ended
March 31,
2014 2013

Changes in operating assets and liabilities consist of:
Decrease in accounts receivable $ 6,490 $ 5,652
Decrease in inventories 2,052 237
Increase in prepaid expenses and other current assets (555 ) (1,494 )
(Increase) decrease in other assets (315 ) 12
Decrease in accounts payable (6,301 ) (2,170 )
Decrease in accrued expenses (5,912 ) (2,104 )
Increase in other liabilities 8 7
Decrease in accrued restructuring costs - (122 )
(Decrease) increase in income taxes payable (364 ) 204
$ (4,897 ) $ 222

Supplementary information:
Cash paid (received) during the period for:
    Income taxes, net of refunds received $ 676 $ (237 )
    Interest 11 3

Details of acquisitions:
   Fair value of identifiable net assets acquired $ - $ 28,108
   Goodwill - 1,240
       Fair value of net assets acquired $ - $ 29,348

   Fair value of net assets acquired $ - $ 29,348
   Less:  Cash acquired in acquisition - (8,388 )
   Deferred consideration - (6,839 )
      Cash paid for acquisitions, net of cash acquired $ - $ 14,121
See notes to unaudited condensed consolidated financial statements.

BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share and per share data)
(Unaudited)

	September 30,			December 31,
	2014			2013
ASSETS
Current Assets:
Cash and cash equivalents	$	83,140		$	62,123
Accounts receivable - less allowance for doubtful accounts of $1,836
and $941 at September 30, 2014 and December 31, 2013, respectively		103,701			63,849
Inventories		113,506			70,019
Prepaid expenses and other current assets		7,548			3,519
Refundable income taxes		6,303			1,650
Deferred income taxes		3,679			2,995
Total Current Assets		317,877			204,155

Property, plant and equipment - net		74,104			40,896
Deferred income taxes		4,688			1,680
Intangible assets - net		84,151			29,472
Goodwill		130,224			18,490
Other assets		32,443			13,448
TOTAL ASSETS	$	643,487		$	308,141

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	63,929		$	29,518
Accrued expenses		44,551			22,442
Short-term borrowings under revolving credit line		-			12,000
Current maturities of long-term debt		12,094			-
Notes payable		163			739
Income taxes payable		2,861			1,496
Dividends payable		894			786
Total Current Liabilities		124,492			66,981

Long-term Liabilities:
Long-term debt, noncurrent		223,219			-
Liability for uncertain tax positions		38,412			1,218
Minimum pension obligation and unfunded pension liability		11,649			10,830
Deferred income taxes		15,887			-
Other long-term liabilities		535			410
Total Long-term Liabilities		289,702			12,458
Total Liabilities		414,194			79,439

Commitments and Contingencies

Stockholders' Equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued		-			-
Class A common stock, par value $.10 per share, 10,000,000 shares
authorized; 2,174,912 shares outstanding at each date (net of
1,072,769 treasury shares)		217			217
Class B common stock, par value $.10 per share, 30,000,000 shares
authorized; 9,704,877 and 9,335,677 shares outstanding, respectively
(net of 3,218,307 treasury shares)		971			933
Additional paid-in capital		20,833			18,914
Retained earnings		212,691			207,993
Accumulated other comprehensive (loss) income		(5,419	)		645
Total Stockholders' Equity		229,293			228,702
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	643,487		$	308,141

See notes to unaudited condensed consolidated financial statements.

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BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013

Net Sales	$	156,341		$	101,164		$	338,426		$	258,173

Costs and expenses:
Cost of sales		128,250			81,132			278,319			213,781
Selling, general and administrative		23,110			12,300			47,475			35,041
Restructuring charges		309			-			1,365			1,387
		151,669			93,432			327,159			250,209

Income from operations		4,672			7,732			11,267			7,964

Gain on sale of investment		-			98			-			98
Interest expense		(1,869	)		(67	)		(2,124	)		(75	)
Interest income and other, net		21			81			121			188

Earnings before provision (benefit) for income taxes		2,824			7,844			9,264			8,175
Provision (benefit) for income taxes		1,317			464			2,189			(336	)

Net earnings	$	1,507		$	7,380		$	7,075		$	8,511


Earnings per share:
Class A common share - basic and diluted	$	0.12		$	0.62		$	0.57		$	0.70
Class B common share - basic and diluted	$	0.13		$	0.65		$	0.62		$	0.76

Weighted-average shares outstanding:
Class A common share - basic and diluted		2,174,912			2,174,912			2,174,912			2,174,912
Class B common share - basic and diluted		9,590,586			9,228,731			9,420,111			9,221,032

Dividends paid per share:
Class A common share	$	0.06		$	0.06		$	0.18		$	0.18
Class B common share	$	0.07		$	0.07		$	0.21		$	0.21


See notes to unaudited condensed consolidated financial statements.

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BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(dollars in thousands)
(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013

Net earnings	$	1,507		$	7,380		$	7,075		$	8,511

Other comprehensive (loss) income:
Currency translation adjustment, net of taxes of ($181), $212, ($57) and ($4), respectively		(6,791	)		1,801			(6,254	)		619
Reclassification adjustment for gain on sale of marketable securities included in
net earnings, net of tax of $0, ($37), $0 and ($37)		-			(61	)		-			(61	)
Unrealized holding (losses) gains on marketable securities arising during the period,
net of taxes of ($7), $28, $58 and $17, respectively		(12	)		46			95			27
Change in unfunded SERP liability, net of taxes of $14, $24, $42 and $20, respectively		32			53			95			46
Other comprehensive (loss) income		(6,771	)		1,839			(6,064	)		631

Comprehensive (loss) income	$	(5,264	)	$	9,219		$	1,011		$	9,142


See notes to unaudited condensed consolidated financial statements.

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BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(Unaudited)
	Nine Months Ended
	September 30,
	2014			2013
Cash flows from operating activities:
Net earnings	$	7,075		$	8,511
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization		12,677			8,676
Stock-based compensation		1,926			1,376
Gain on disposal of property, plant and equipment		19			-
Realized gain on sale of investment		-			(98	)
Amortization of deferred financing costs		348			-
Other, net		(1,520	)		356
Deferred income taxes		(10	)		(519	)
Changes in operating assets and liabilities (see page 6)		(1,580	)		(12,241	)
Net Cash Provided by Operating Activities		18,935			6,061

Cash flows from investing activities:
Increase in cash equivalents within Rabbi Trust		(1,536	)		-
Purchase of company-owned life insurance (COLI)		(2,820	)		(2,820	)
Purchase of SERP investments		(1,400	)		-
Purchase of property, plant and equipment		(5,234	)		(5,127	)
Purchase of intangible asset		-			(1,336	)
Payment for acquisitions, net of cash acquired (see page 6)		(206,536	)		(30,931	)
Proceeds from surrender of COLI		5,756			-
Proceeds from sale of SERP investments		-			2,820
Proceeds from sale of property, plant and equipment		21			-
Net Cash Used in Investing Activities		(211,749	)		(37,394	)

Cash flows from financing activities:
Dividends paid to common shareholders		(2,270	)		(2,264	)
Deferred financing costs		(5,774	)		-
Borrowings under revolving credit line		23,000			12,000
Repayments under revolving credit line		(12,000	)
(Decrease) increase in notes payable		(553	)		314
Proceeds from long-term debt		215,000			-
Repayments of long-term debt		(2,688	)		-
Purchase and retirement of Class B common stock		-			(3,356	)
Net Cash Provided by Financing Activities		214,715			6,694

Effect of exchange rate changes on cash		(884	)		297

Net Increase (Decrease) in Cash and Cash Equivalents		21,017			(24,342	)
Cash and Cash Equivalents - beginning of period		62,123			71,262
Cash and Cash Equivalents - end of period	$	83,140		$	46,920

(Continued)
See notes to unaudited condensed consolidated financial statements.

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BEL FUSE INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(dollars in thousands)
(Unaudited)
	Nine Months Ended
	September 30,
	2014			2013

Changes in operating assets and liabilities consist of:
Increase in accounts receivable	$	(2,034	)	$	(13,015	)
Decrease (increase) in inventories		9,737			(6,746	)
Decrease (increase) in prepaid expenses and other current assets		856			(1,483	)
Increase in other assets		(171	)		(95	)
(Decrease) increase in accounts payable		(2,030	)		6,920
(Decrease) increase in accrued expenses		(7,291	)		2,640
Increase in other liabilities		63			274
Decrease in accrued restructuring costs		-			(122	)
Decrease in income taxes payable		(710	)		(614	)
	$	(1,580	)	$	(12,241	)

Supplementary information:
Cash paid during the period for:
Income taxes, net of refunds received	$	2,536		$	1,152
Interest		1,633			75

Details of acquisitions:
Fair value of identifiable net assets acquired	$	122,041		$	34,541
Goodwill		111,952			4,812
Fair value of net assets acquired	$	233,993		$	39,353

Fair value of net assets acquired	$	233,993		$	39,353
Less: Cash acquired in acquisition		(27,457	)		(8,388	)
Deferred consideration		-			(34	)
Cash paid for acquisitions, net of cash acquired	$	206,536		$	30,931
See notes to unaudited condensed consolidated financial statements.

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BEL FUSE INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.	BASIS OF PRESENTATION AND ACCOUNTING POLICIES

The condensed consolidated balance sheet as of ~~March 31,~~September 30, 2014, and the condensed consolidated statements of operations, comprehensive income and cash flows for the periods presented herein have been prepared by Bel Fuse Inc. (the ~~“Company”~~"Company" or ~~“Bel”~~"Bel") and are unaudited. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The results for the three and nine months ended ~~March 31,~~September 30, 2014 should not be viewed as indicative of the ~~Company’s~~Company's annual results or the ~~Company’s~~Company's results for any other period. The information for the condensed consolidated balance sheet as of December 31, 2013 was derived from audited financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Bel Fuse Annual Report on Form 10-K for the year ended December 31, 2013.

On March 9, 2012, the Company completed its acquisition of 100% of the issued and outstanding capital stock of GigaCom Interconnect AB ~~(“GigaCom”~~("GigaCom"). On July 31, 2012, the Company consummated its acquisition of 100% of the issued and outstanding capital stock of Fibreco Ltd. ~~(“Fibreco”~~("Fibreco"). On September 12, 2012, the Company completed its acquisition of 100% of the issued and outstanding capital stock of Powerbox Italia S.r.L ~~(“Powerbox”~~("Powerbox"). The acquisitions of GigaCom, Fibreco and Powerbox may hereafter be referred to collectively as either the ~~“2012 Acquisitions”~~"2012 Acquisitions" or the ~~“2012~~"2012 Acquired ~~Companies”~~Companies". Accordingly, as of the respective acquisition dates, all of the assets acquired and liabilities assumed were recorded at their preliminary fair values. The accompanying condensed consolidated statement of operations for the three and nine months ended ~~March 31,~~September 30, 2013 ~~has~~have been restated to reflect immaterial measurement period adjustments related to the applicable 2012 Acquisitions.

On March 29, 2013, the Company completed its acquisition of 100% of the issued and outstanding capital stock of Transpower Technologies (HK) Limited ~~(“Transpower”~~("Transpower") and certain other tangible and intangible assets related to the Transpower magnetics business of TE Connectivity ~~(“TRP”~~("TRP"). On August 20, 2013, the Company completed its acquisition of 100% of the issued and outstanding capital stock of Array Connector Corporation ~~(“Array”~~("Array"). The acquisitions of TRP and Array may hereafter be referred to collectively as either the ~~“2013 Acquisitions”~~"2013 Acquisitions" or the ~~“2013~~"2013 Acquired ~~Companies”~~Companies". Accordingly, as of the respective acquisition dates, all of the assets acquired and liabilities assumed were recorded at their preliminary fair values. The Company's condensed consolidated results of operations include the operating results of the 2013 Acquisitions since their respective acquisition dates. The accompanying condensed consolidated financial statements as of December 31, 2013 and for the three and nine months ended ~~March 31,~~September 30, 2013 have been restated to reflect ~~immaterial~~ measurement period adjustments, as further described in Note 3, related to the ~~applicable 2013 Acquisitions. There were no operating activities related to either~~TRP acquisition.

On June 19, 2014, the Company completed its acquisition of 100% of the ~~2013 Acquisitions during~~issued and outstanding capital stock of the ~~three months ended March 31, 2013.~~Power-One Power Solutions business ("Power Solutions") of ABB Ltd. On July 25, 2014, the Company completed its acquisition of 100% of the issued and outstanding capital stock of the U.S. and U.K. Connectivity Solutions businesses from Emerson Electric Co. ("Emerson"). On August 29, 2014, the Company completed its acquisition of the Connectivity Solutions business in China from Emerson (collectively with the U.S. and U.K. portion of the transaction, "Connectivity Solutions"). The ~~Company’s~~acquisitions of Power Solutions and Connectivity Solutions may hereafter be referred to collectively as either the "2014 Acquisitions" or the "2014 Acquired Companies". Accordingly, as of the respective acquisition dates, all of the assets acquired and liabilities assumed were recorded at their preliminary fair values. The Company's condensed consolidated results of operations for the three and nine months ended ~~March 31,~~September 30, 2014 include the operating results of the ~~2013~~2014 Acquisitions ~~for the entire period.~~

~~Recent Accounting Pronouncements~~from their respective acquisition dates through September 30, 2014.

The ~~Company’s~~Company's significant accounting policies are summarized in Note 1 of the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013. There were no significant changes to these accounting policies during the ~~three~~nine months ended ~~March 31,~~September 30, 2014. ~~Recent accounting pronouncements adopted during the first three months of 2014 are as follows:~~

~~Accounting~~Recently Adopted Standards Update No. 2013-11 – Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU No. 2013-11”)

~~ASU No. 2013-11 provides~~In July 2013, the FASB issued revised guidance onto address the diversity in practice related to the financial statement presentation of an unrecognized tax ~~benefit~~benefits when a net operating loss ~~(“NOL”)~~ carryforward, a similar tax loss, or a tax credit carryforward exists. The ~~FASB’s objective in issuing~~Company adopted this ~~ASU is to eliminate diversity in practice resulting from a lack of~~ guidance ~~on this topic in current U.S. GAAP. This ASU applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction~~ as of ~~the reporting date.~~January 1, 2014, on a prospective basis. The ~~guidance in ASU No. 2013-11 was effective for interim and annual periods beginning after December 15, 2013. The~~ adoption ~~of this ASU~~ did not have a material impact on the ~~Company’s~~Company's financial statements.

Standards Issued Not Yet Adopted

In April 2014, the FASB issued guidance for the reporting of discontinued operations, which also contains new disclosure requirements for both discontinued operations and other disposals that do not meet the definition of a discontinued operation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management believes that the adoption of this guidance will not have a material impact on the Company's financial statements.

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In May 2014, the FASB issued guidance on the accounting for revenue from contracts with customers that will supersede most existing revenue recognition guidance, including industry-specific guidance. The core principle requires an entity to recognize revenue to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the guidance requires enhanced disclosures regarding the nature, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Entities can choose to apply the guidance using either the full retrospective approach or a modified retrospective approach. Management is currently evaluating the impact that this guidance will have on the Company's financial statements, if any, including which transition method it will adopt.

In June 2014, the FASB issued guidance on stock compensation. The amendment requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendment is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. Earlier adoption is permitted. Management does not believe that the adoption of this guidance will have any material impact on the Company's financial position or results of ~~operations, financial condition or cash flows.~~operations.

In August 2014, the FASB issued guidance on the presentation of financial statements when there is substantial doubt about an entity's ability to continue as a going concern. The amendment requires that an entity's management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. If conditions or events raise substantial doubt about an entity's ability to continue as a going concern, additional disclosure is required to enable users of the financial statements to understand the conditions or events, management's evaluation of the significance of those conditions and management's plans that are intended to alleviate or management's plans that have alleviated substantial doubt. The amendment is effective for annual periods ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management does not believe that the adoption of this guidance will have any material impact on the Company's financial position or results of operations.

2.	EARNINGS ~~(LOSS)~~ PER SHARE

The Company utilizes the two-class method to report its earnings ~~(loss)~~ per share. The two-class method is an earnings ~~(loss)~~ allocation formula that determines earnings ~~(loss)~~ per share for each class of common stock according to dividends declared and participation rights in undistributed ~~earnings (loss).~~earnings. The ~~Company’s~~Company's Certificate of Incorporation, as amended, states that Class B common shares are entitled to dividends at least 5% greater than dividends paid to Class A common shares, resulting in the two-class method of computing earnings ~~(loss)~~ per share. In computing earnings ~~(loss)~~ per share, the Company has allocated dividends declared to Class A and Class B based on amounts actually declared for each class of stock and 5% more of the undistributed earnings ~~(loss)~~ have been allocated to Class B shares than to the Class A shares on a per share basis. Basic earnings ~~(loss)~~ per common share are computed by dividing net earnings ~~(loss)~~ by the weighted-average number of common shares outstanding during the period. Diluted earnings ~~(loss)~~ per common share, for each class of common stock, are computed by dividing net earnings ~~(loss)~~ by the weighted-average number of common shares and potential common shares outstanding during the period. There were no potential common shares outstanding during the three or nine months ended ~~March 31,~~September 30, 2014 or ~~March 31,~~September 30, 2013 which would have had a dilutive effect on earnings per share.

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~~-7-~~

The earnings and weighted-average shares outstanding used in the computation of basic and diluted earnings per share are as follows (dollars in thousands, except share and per share data):

Three Months Ended
March 31,
2014 2013

Numerator:
Net earnings (loss) $ 2,503 $ (558 )
Less Dividends declared:
     Class A 130 130
     Class B 654 632
Undistributed earnings (loss) $ 1,719 $ (1,320 )

Undistributed earnings (loss) allocation - basic and diluted:
     Class A undistributed earnings (loss) $ 312 $ (242 )
     Class B undistributed earnings (loss) 1,407 (1,078 )
     Total undistributed earnings (loss) $ 1,719 $ (1,320 )

Net earnings (loss) allocation - basic and diluted:
     Class A net earnings (loss) $ 442 $ (112 )
     Class B net earnings (loss) 2,061 (446 )
     Net earnings (loss) $ 2,503 $ (558 )

Denominator:
Weighted-average shares outstanding:
     Class A common share - basic and diluted 2,174,912 2,174,912
     Class B common share - basic and diluted 9,334,955 9,221,104

Earnings (loss) per share:
     Class A common share - basic and diluted $ 0.20 $ (0.05 )
     Class B common share - basic and diluted $ 0.22 $ (0.05 )

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013

Numerator:
Net earnings	$	1,507	$	7,380	$	7,075	$	8,511
Less Dividends declared:
Class A		131		131		391		391
Class B		679		650		1,986		1,925
Undistributed earnings	$	697	$	6,599	$	4,698	$	6,195

Undistributed earnings allocation - basic and diluted:
Class A undistributed earnings	$	124	$	1,209	$	847	$	1,137
Class B undistributed earnings		573		5,390		3,851		5,058
Total undistributed earnings	$	697	$	6,599	$	4,698	$	6,195

Net earnings allocation - basic and diluted:
Class A net earnings	$	255	$	1,340	$	1,238	$	1,528
Class B net earnings		1,252		6,040		5,837	$	6,983
Net earnings	$	1,507	$	7,380	$	7,075	$	8,511

Denominator:
Weighted-average shares outstanding:
Class A common share - basic and diluted		2,174,912		2,174,912		2,174,912		2,174,912
Class B common share - basic and diluted		9,590,586		9,228,731		9,420,111		9,221,032

Earnings per share:
Class A common share - basic and diluted	$	0.12	$	0.62	$	0.57	$	0.70
Class B common share - basic and diluted	$	0.13	$	0.65	$	0.62	$	0.76

3.ACQUISITIONS

2014 Acquisitions:

On June 19, 2014, the Company completed its acquisition of Power Solutions for $110.0 million, net of cash acquired. Power Solutions is a leading provider of high-efficiency and high-density power conversion products for server, storage and networking equipment, industrial applications and power systems. Power Solutions offers a premier line of standard, modified-standard and custom designed AC/DC, DC/DC and other specific power conversion products for a variety of technologies in data centers, telecommunications and industrial applications. The acquisition of Power Solutions brings a complementary, industry-leading power product portfolio to Bel's existing line of power products, expands our current customer base in the areas of server, storage and networking equipment and adds industrial and additional transportation applications to the Company's product offering.

On July 25, 2014, the Company completed its acquisition of the U.S. and U.K. entities of the Emerson Network Power Connectivity Solutions business ("CS") from Emerson Electric Co. with a payment, net of cash acquired and including a working capital adjustment, of $90.7 million. On August 29, 2014, an additional payment of $9 million was made in connection with the closing of the China portion of the transaction. CS is a leading provider of high‑performance RF/Microwave and Harsh Environment Optical Connectors and Assemblies for military, aerospace, wireless communications, data communications, broadcast and industrial applications. CS is headquartered in Bannockburn, Illinois, and has manufacturing facilities in North America, the U.K. and China. CS will become part of Bel's Connectivity Solutions product group under the Cinch Connector business. Management believes the acquisition of CS will enable the Company to further expand into the aerospace and military markets where long-term product reliability resulting from highly engineered solutions is critical. The addition of the CS Stratos brand with our Fibreco/Gigacom Interconnect products will also give the Company a solid position in the expanded beam fiber optic market place. The CS group will also significantly expand the Company's existing copper‑based product offerings with the addition of RF/Microwave components and assemblies.

During the three and nine months ended September 30, 2014, the Company incurred $3.8 million and $5.3 million, respectively, of acquisition-related costs associated with the 2014 Acquisitions. These costs are included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2014.

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While the initial accounting related to the acquisitions of Power Solutions and Connectivity Solutions is not complete as of the filing date of this Quarterly Report on Form 10-Q, the following table depicts the Company's current estimate of the respective acquisition date fair values of the consideration paid and identifiable net assets acquired (in thousands):

	Power Solutions										Connectivity Solutions				2014 Acquisitions
				Measurement			June 19,								Acquisition-Date
	June 19,			Period			2014				July 25/August 29,				Fair Values
	2014			Adjustments			(As adjusted)				2014*				(As adjusted)
Cash	$	20,913		$	-		$	20,913			$	6,544			$	27,457
Accounts receivable		29,388			1			29,389				9,413				38,802
Inventories		33,156			3,273			36,429		(a)		17,601		(a)		54,030
Other current assets		5,387			1,688			7,075				2,634				9,709
Property, plant and equipment		28,176			-			28,176		(b)		10,440		(b)		38,616
Intangible assets		21,188			(9,153	)		12,035		(c)		46,505		(c)		58,540
Other assets		536			18,212			18,748		(d)		2,684				21,432
Total identifiable assets		138,744			14,021			152,765				95,821				248,586

Accounts payable		(26,180	)		-			(26,180	)			(10,682	)			(36,862	)
Accrued expenses		(20,290	)		(4,505	)		(24,795	)	(d)		(4,934	)			(29,729	)
Other current liabilities		223			-			223				(57	)			166
Noncurrent liabilities		761			(39,686	)		(38,925	)	(d)		(21,195	)			(60,120	)
Total liabilities assumed		(45,486	)		(44,191	)		(89,677	)			(36,868	)			(126,545	)
Net identifiable assets acquired		93,258			(30,170	)		63,088				58,953				122,041
Goodwill		37,534			30,170			67,704		(e)		44,248		(e)		111,952
Net assets acquired	$	130,792		$	-		$	130,792			$	103,201			$	233,993


Cash paid	$	130,792		$	-		$	130,792			$	103,201			$	233,993
Assumption of liability		-			-			-				-				-
Fair value of consideration
transferred		130,792			-			130,792				103,201				233,993
Deferred consideration		-			-			-				-				-
Total consideration paid	$	130,792		$	-		$	130,792			$	103,201			$	233,993

* The Company acquired the U.S. and U.K. entities of Connectivity Solutions on July 25, 2014 and the China entity of Connectivity Solutions on August 29, 2014. These values represent the estimated fair values as of the respective acquisition date.

(a)	The inventory amounts noted above for both Power Solutions and Connectivity Solutions include preliminary adjustments to acquisition-date fair value.

(b)

The appraisals related to machinery and equipment acquired were still in progress as of this filing date; however, the amount noted above for Connectivity Solutions includes preliminary adjustments to acquisition-date fair value. The amounts noted above for Power Solutions property, plant and equipment only include the carrying value of those assets on Power Solutions' balance sheet as of the acquisition date.

(c)

The Company has identified certain intangible assets related to the Power Solutions acquisition, including trademarks and trade names, developed technology and potential in-process research and development, license agreements, non-compete agreements, an investment in a 49%-owned joint venture and customer relationships, which are being valued by a third-party appraiser. These appraisals were not complete as of the date of this filing. The Company has also identified certain intangible assets related to the Connectivity Solutions acquisition, including trademarks, developed technology and customer relationships, which are being valued by a third-party appraiser. While these appraisals were still in progress as of the date of this filing, preliminary estimated adjustments to fair value have been reflected in the table above.

(d)

The Company recorded measurement period adjustments related to estimated uncertain tax provisions and other tax liabilities, including an indemnification asset related to certain liabilities. While these estimates were still in progress as of the date of this filing, preliminary estimated adjustments to these liabilities have been reflected in the table above.

(e)

The amount of goodwill is provisional as of the filing date, as the fair value determination of inventory acquired, and appraisals related to property, plant and equipment, various intangible assets and certain liabilities such as lease liabilities are still underway. As the final amount of goodwill has not yet been determined or allocated by segment, the Company is unable to determine at this time the portion of goodwill, if any, that will be deductible for tax purposes.

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The preliminary fair value of identifiable intangible assets related to the 2014 Acquired Companies is shown in the table below (dollars in thousands). For those intangible assets with finite lives, the acquisition-date fair values will be amortized over their respective estimated future lives utilizing the straight-line method.

	Weighted-Average Life	Acquisition-Date Fair Value
Trademarks	Indefinite	$	7,115
Technology	20 years		20,818
Customer relationships	15 years		30,607
Total identifiable intangible assets acquired		$	58,540

~~3. ACQUISITIONS~~

The results of operations of the 2014 Acquired Companies have been included in the Company's consolidated financial statements for the period subsequent to their respective acquisition dates. During the three and nine months ended September 30, 2014, the 2014 Acquired Companies contributed revenue of $63.1 million and $70.3 million, respectively, and net loss of approximately $0.8 million and $1.6 million, respectively, to the Company's consolidated financial results.

The following unaudited pro forma information presents a summary of the combined results of operations of the Company and the aggregate results of TRP, Array, Power Solutions and Connectivity Solutions for the periods presented as if the 2013 Acquisitions had occurred on January 1, 2012 and the 2014 Acquisitions had occurred on January 1, 2013, along with certain pro forma adjustments. These pro forma adjustments give effect to the amortization of certain definite-lived intangible assets, adjusted depreciation based upon estimated fair value of assets acquired, interest expense and amortization of deferred financing costs related to the financing of the business combinations, and related tax effects. The 2014 unaudited pro forma net earnings for the three and nine months ended September 30, 2014 were adjusted to exclude $3.9 million and $5.4 million ($2.4 million and $3.3 million after tax), respectively, of non-recurring expenses which were incurred in connection with the 2013 and 2014 Acquisitions. The 2013 unaudited pro forma net earnings were adjusted to include these charges in addition to an estimated non-recurring expense related to a fair value adjustment to acquisition-date inventory of $4.6 million ($4.4 million after tax) during each of the three and nine months ended September 30, 2013, respectively. The 2013 results reflected below include merger-related charges incurred by Power Solutions in connection with its acquisition by ABB in July 2013. The pro forma results do not reflect the realization of any potential cost savings, or any related integration costs. Certain cost savings may result from these acquisitions; however, there can be no assurance that these cost savings will be achieved. The unaudited pro forma results are presented for illustrative purposes only and are not necessarily indicative of the results that would have actually been obtained if the acquisitions had occurred on the assumed dates, nor is the pro forma data intended to be a projection of results that may be obtained in the future (in thousands):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014		2013			2014		2013

Revenue	$	163,040	$	185,091		$	480,482	$	533,605
Net earnings		8,417		(28,213	)		6,388		(39,714	)
Earnings per Class A common share - basic and diluted		0.68		(2.38	)		0.51		(3.36	)
Earnings per Class B common share - basic and diluted		0.72		(2.50	)		0.56		(3.51	)

2013 Acquisitions:

On March 29, 2013, the Company completed its acquisition of TRP for $21.0 million, net of cash acquired. The ~~Company’s~~Company's purchase of TRP consisted of the integrated connector module ~~(“ICM”~~("ICM") family of products, including RJ45, 10/100 Gigabit, 10G, PoE/PoE+, MRJ21 and RJ.5, a line of modules for smart-grid applications, and discrete magnetics.

On August 20, 2013, the Company completed its acquisition of Array, a manufacturer of aerospace and mil-spec connector products based in Miami, Florida, for $10.0 million in cash. The acquisition of Array expands the ~~Company’s~~Company's portfolio of connector products that can be offered to the combined customer base, and provides an opportunity to sell other products that Bel manufactures to ~~Array’s~~Array's customers. Array has become part of ~~Bel’s~~Bel's Cinch Connector business.

During the three and nine months ended ~~March 31,~~September 30, 2014, ~~and 2013,~~ the Company incurred less than $0.1 million and ~~$0.3~~$0.1 million, respectively, of acquisition-related costs associated with the 2012 and 2013 Acquisitions. During the three and nine months ended September 30, 2013, the Company incurred acquisition costs of $0.1 million and $0.8 million, respectively, related to the 2012 and 2013 Acquisitions. These costs are included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations for the three and nine months ended ~~March 31,~~September 30, 2014 and 2013.

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~~-8-~~

The purchase price allocations for TRP and Array were finalized during the first quarter of 2014. The following table depicts the finalized respective acquisition date fair values of the consideration paid and identifiable net assets acquired (in thousands):

	TRP									Array									2013 Acquisitions
				Measurement			March 29,						Measurement			August 20,			Acquisition-Date
	March 29,			Period			2013			August 20,			Period			2013			Fair Values
	2013			Adjustments			(As finalized)			2013			Adjustments			(As finalized)			(As finalized)
Cash	$	8,388		$	-		$	8,388		$	-		$	-		$	-		$	8,388
Accounts receivable		11,580			(39	)		11,541			994			-			994			12,535
Inventories		6,258			1,097			7,355			2,588			(1,595	)		993			8,348
Other current assets		1,953			(334	)		1,619			83			345			428			2,047
Property, plant and equipment		4,693			1,097			5,790			2,285			1,225			3,510			9,300
Intangible assets		-			6,110			6,110			-			1,470			1,470			7,580
Other assets		1,151			198			1,349			84			1,663			1,747			3,096
Total identifiable assets		34,023			8,129			42,152			6,034			3,108			9,142			51,294

Accounts payable		(8,565	)		331			(8,234	)		(677	)		1			(676	)		(8,910	)
Accrued expenses		(4,003	)		(462	)		(4,465	)		(206	)		(79	)		(285	)		(4,750	)
Other current liabilities		(25	)		(734	)		(759	)		(214	)		214			-			(759	)
Noncurrent liabilities		-			(586	)		(586	)		(643	)		(1,105	)		(1,748	)		(2,334	)
Total liabilities assumed		(12,593	)		(1,451	)		(14,044	)		(1,740	)		(969	)		(2,709	)		(16,753	)
Net identifiable assets acquired		21,430			6,678			28,108			4,294			2,139			6,433			34,541
Goodwill		8,278			(7,038	)		1,240			5,666			(2,094	)		3,572			4,812
Net assets acquired	$	29,708		$	(360	)	$	29,348		$	9,960		$	45		$	10,005		$	39,353


Cash paid	$	22,400		$	6,948		$	29,348		$	9,960		$	45		$	10,005		$	39,353
Assumption of severance payment		109			(109	)		-			-			-			-			-
Fair value of consideration
transferred		22,509			6,839			29,348			9,960			45			10,005			39,353
Deferred consideration		7,199			(7,199	)		-			-			-			-			-
Total consideration paid	$	29,708		$	(360	)	$	29,348		$	9,960		$	45		$	10,005		$	39,353

The measurement period adjustments noted above primarily relate to adjustments to fair value based on the appraisals on inventory, property, plant and equipment, and intangible assets. In addition, various other asset and liability accounts had measurement period adjustments related to deferred taxes.

The results of operations of the 2013 Acquired Companies have been included in the ~~Company’s~~Company's consolidated financial statements for the period subsequent to their respective acquisition dates. During the three and nine months ended ~~March 31,~~September 30, 2014, the 2013 Acquired Companies contributed ~~$17.9~~revenue of $20.7 million ~~of revenue~~ and ~~$1.3~~$58.3 million, ofrespectively, and net earnings of $4.0 million and $8.9 million, respectively, to the ~~Company’s~~Company's consolidated financial results. ~~There was no operating activity related to either of the 2013 Acquisitions during~~During the three and nine months ended ~~March 31, 2013.~~

~~The unaudited pro forma information below presents the combined operating results of the Company and the~~September 30, 2013, Acquired Companies. The unaudited pro forma results are presented for illustrative purposes only. They do not reflect the realization of any potential cost savings, or any related integration costs. Certain cost savings may result from the 2013 Acquisitions; however, there can be no assurance that these cost savings will be achieved. These pro forma results do not purport to be indicative of the results that would have actually been obtained if the 2013 Acquisitions had occurred as of January 1, 2012, nor is the pro forma data intended to be a projection of results that may be obtained in the future. The following unaudited pro forma consolidated results of operations assume that the acquisitions of the 2013 Acquired Companies ~~were completed as~~contributed revenue of ~~January 1, 2012. The 2013 unaudited pro forma~~$26.4 million and $48.6 million, respectively, and net earnings ~~were adjusted~~of $4.2 million and $7.4 million, respectively, to ~~exclude $0.3 million of acquisition-related costs ($0.3 million after tax) incurred during~~ the ~~first quarter of 2013 (dollars in thousands except per share data):~~Company's consolidated financial results.

Three Months Ended
March 31, 2013

Revenue $ 85,291
Net earnings 2,368
Earnings per Class A common share - basic and diluted 0.20
Earnings per Class B common share - basic and diluted 0.21

~~-9-~~

4. FAIR VALUE MEASUREMENTS

~~Fair~~Fair value is defined as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based upon the best use of the asset or liability at the measurement date. Entities are required to use a fair value hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 – Observable inputs such as quoted market prices in active markets

Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable

Level 3 – Unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions

As of ~~March 31,~~September 30, 2014 and December 31, 2013, the Company held certain financial assets that are measured at fair value on a recurring basis. These consisted of securities that are among the ~~Company’s~~Company's investments in a ~~rabbi trust~~Rabbi Trust which are intended to fund the ~~Company’s~~Company's Supplemental Executive Retirement Plan ~~(“SERP”~~("SERP") obligations, and other marketable securities described below. The securities that are held in the ~~rabbi trust~~Rabbi Trust are categorized as available-for-sale securities and are included as other assets in the accompanying condensed consolidated balance sheets at ~~March 31,~~September 30, 2014 and December 31, 2013. The gross unrealized gains associated with the ~~investments~~investment securities held in the ~~rabbi trust~~Rabbi Trust were ~~$0.5~~$0.6 million and $0.4 million at ~~March 31,~~September 30, 2014 and December 31, 2013, respectively. Such unrealized gains are included, net of tax, in accumulated other comprehensive income.

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As of ~~March 31,~~September 30, 2014 and December 31, 2013, the Company had other marketable securities with a combined fair value of less than $0.1 million at each date, and gross unrealized gains of less than $0.1 million at each date. Such unrealized gains are included, net of tax, in accumulated other comprehensive income. The fair value of the equity securities is determined based on quoted market prices in public markets and is categorized as Level 1. The Company does not have any financial assets measured at fair value on a recurring basis categorized as Level 3, and there were no transfers in or out of Level 1, Level 2 or Level 3 during the ~~first quarter of~~nine months ended September 30, 2014. There were no changes to the ~~Company’s~~Company's valuation techniques used to measure asset fair values on a recurring or nonrecurring basis during the ~~first quarter of~~nine months ended September 30, 2014.

The following table sets forth by level, within the fair value hierarchy, the ~~Company’s~~Company's financial assets accounted for at fair value on a recurring basis as of ~~March 31,~~September 30, 2014 and December 31, 2013 (dollars in thousands).

Assets at Fair Value Using
Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)
As of March 31, 2014
Available-for-sale securities:
   Investments held in rabbi trust $ 3,359 $ 3,359 $ - $ -
   Marketable securities 4 4 - -

   Total $ 3,363 $ 3,363 $ - $ -

As of December 31, 2013
Available-for-sale securities:
   Investments held in rabbi trust $ 3,313 $ 3,313 $ - $ -
   Marketable securities 3 3 - -

   Total $ 3,316 $ 3,316 $ - $ -

			Assets at Fair Value Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of September 30, 2014
Available-for-sale securities:
Investments held in Rabbi Trust	$	4,867	$	4,867	$	-	$	-
Marketable securities		4		4		-		-

Total	$	4,871	$	4,871	$	-	$	-

As of December 31, 2013
Available-for-sale securities:
Investments held in Rabbi Trust	$	3,313	$	3,313	$	-	$	-
Marketable securities		3		3		-		-

Total	$	3,316	$	3,316	$	-	$	-

The Company has other financial instruments, such as cash equivalents, cash equivalents held within the Rabbi Trust, accounts receivable, notes receivable, accounts payable, notes payable and accrued expenses, which are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. The fair value of the Company's long-term debt is estimated using a discounted cash flow method based on interest rates that are currently available for debt issuances with similar terms and maturities. At September 30, 2014, the estimated fair value of long-term debt was $234.3 million compared to a carrying amount of $235.3 million. The Company did not have any other financial liabilities within the scope of the fair value disclosure requirements as of ~~March 31,~~September 30, 2014 or December 31, 2013.

Nonfinancial assets and liabilities, such as goodwill, indefinite-lived intangible assets and long-lived assets, are accounted for at fair value on a nonrecurring basis. These items are tested for impairment on the occurrence of a triggering event or, in the case of goodwill and indefinite-lived intangible assets, on at least an annual basis. There were no triggering events that occurred during the ~~three~~nine months ended ~~March 31,~~September 30, 2014 or 2013 that would warrant interim impairment testing.

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5.INVENTORIES

The components of inventories are as follows (dollars in thousands):

March 31, December 31,
2014 2013
Raw materials $ 29,942 $ 29,428
Work in progress 8,636 8,783
Finished goods 29,398 31,808
$ 67,976 $ 70,019

	September 30,		December 31,
	2014		2013
Raw materials	$	55,302	$	29,428
Work in progress		16,964		8,783
Finished goods		41,240		31,808
	$	113,506	$	70,019

At September 30, 2014, $46.2 million of inventory related to the 2014 Acquired Companies.

6.	PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following (dollars in thousands):

	September 30,			December 31,
	2014			2013
Land	$	3,302		$	3,229
Buildings and improvements		31,259			25,216
Machinery and equipment		118,161			82,420
Construction in progress		5,263			4,042
		157,985			114,907
Accumulated depreciation		(83,881	)		(74,011	)
	$	74,104		$	40,896

At September 30, 2014, $36.5 million of property, plant and equipment related to the 2014 Acquired Companies.

7.BUSINESS SEGMENT INFORMATION

The Company operates in one industry with three reportable operating segments, which are geographic in nature. The segments consist of North America, Asia and Europe. The primary criteria by which financial performance is evaluated and resources are allocated are sales and income from operations. The following is a summary of key financial data (dollars in thousands):

Three Months Ended
March 31,
2014 2013
Total segment sales:
     North America $ 31,454 $ 29,222
     Asia 49,891 32,725
     Europe 10,892 10,125
Total segment sales 92,237 72,072
Reconciling item:
     Intersegment sales (9,591 ) (9,044 )
Net sales $ 82,646 $ 63,028

Income (loss) from operations:
     North America $ 882 $ (1,482 )
     Asia 1,673 (666 )
     Europe 326 721
$ 2,881 $ (1,427 )

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Total segment sales:
North America	$	91,556		$	34,273		$	162,415		$	95,796
Asia		87,714			69,602			199,574			166,362
Europe		44,778			9,313			72,220			30,029
Total segment sales		224,048			113,188			434,209			292,187
Reconciling item:
Intersegment sales		(67,707	)		(12,024	)		(95,783	)		(34,014	)
Net sales	$	156,341		$	101,164		$	338,426		$	258,173

Income from operations:
North America	$	(1,964	)	$	(239	)	$	(2,698	)	$	(3,734	)
Asia		3,306			7,915			9,694			11,026
Europe		3,330			56			4,271			672
	$	4,672		$	7,732		$	11,267		$	7,964

	September 30,			December 31,
		2014			2013
Total Assets:
North America	$	205,463		$	117,261
Asia		243,753			148,780
Europe		81,642			42,100
		530,858			308,141
Unallocated Goodwill		112,629			-
	$	643,487		$	308,141

~~The following items~~

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Recent Acquisitions – At September 30, 2014, Power Solutions' total assets of $206.7 million and Connectivity Solutions' total assets of $136.9 million are included in the table above.

The acquisitions of TRP in March 2013, Array in August 2013, Power Solutions in June 2014 and Connectivity Solutions in July and August 2014 contributed to Bel's segment sales, income ~~(loss)~~ from operations ~~presented above:~~and total assets as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Sales to External Customers:
North America:
Array	$	1,758		$	811		$	5,302		$	811
Power Solutions		36,517			-			41,554			-
Connectivity Solutions		11,941			-			11,941			-
		50,216			811			58,797			811
Asia:
TRP		18,228			25,096			51,060			46,885
Power Solutions		1,600			-			1,958			-
Connectivity Solutions		749			-			749			-
		20,577			25,096			53,767			46,885
Europe:
TRP		727			494			1,912			886
Power Solutions		10,963			-			12,802			-
Connectivity Solutions		1,295			-			1,295			-
		12,985			494			16,009			886
Net sales from 2013-2014 acquisitions		83,778			26,401			128,573			48,582

Income from operations:
North America:
Array		(61	)		(135	)		(744	)		(135	)
Power Solutions		1,072			-			(53	)		-
Connectivity Solutions		(1,299	)		-			(1,299	)		-
		(288	)		(135	)		(2,096	)		(135	)
Asia:
TRP		4,200			4,527			9,311			8,115
Power Solutions		(3,201	)		-			(3,363	)		-
Connectivity Solutions		112			-			112			-
		1,111			4,527			6,060			8,115
Europe:
TRP		115			92			343			196
Power Solutions		2,726			-			3,024			-
Connectivity Solutions		73			-			73			-
		2,914			92			3,440			196
Total income from operations from
2013-2014 acquisitions	$	3,737		$	4,484		$	7,404		$	8,176

~~Recent Acquisitions~~ – During the three months ended March 31, 2014, the acquisition of TRP contributed revenues of $15.6 million and income from operations of $1.4 million to the Company’s Asia operating segment and revenues of $0.6 million and income from operations of $0.1 million to the Company’s Europe operating segment. During the three months ended March 31, 2014, the acquisition of Array contributed revenues of $1.6 million and a loss from operations of $0.5 million to the Company’s North America operating segment. There was no operating activity related to either of the 2013 Acquisitions during the three months ended March 31, 2013.

Segment Sales – Segment sales are attributed to individual segments based on the geographic source of the billing for such customer sales. Transfers between geographic areas include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in any one of the ~~United States which are sold~~geographic segments and transferred to ~~Asia~~ any of the other geographic segments for sale or further processing. Income ~~(loss)~~ from operations represents net sales less operating costs and expenses.

~~-11-~~

8.INCOME TAXES

At ~~March 31,~~September 30, 2014 and December 31, 2013, the Company has approximately ~~$2.3~~$38.6 million and $2.2 million, respectively, of liabilities for uncertain tax positions ($~~0.8~~0.2 million and $1.0 million, respectively, included in income taxes payable and ~~$1.5~~$38.4 million and $1.2 million, respectively, included in liability for uncertain tax positions) all of which, if recognized, would reduce the ~~Company’s~~Company's effective tax rate. In connection with the acquisition of Power Solutions, the Company recorded an estimated liability for uncertain tax positions of $35.9 million, including interest and penalties of $11.9 million.

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The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal examinations by tax authorities for years before ~~2010~~2011 and for state examinations before ~~2007.~~2008. Regarding foreign subsidiaries, the Company is no longer subject to examination by tax authorities for years before ~~2008~~2003 in Asia and generally ~~2006~~2007 in Europe.

As a result of the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized benefits for tax positions taken regarding previously filed tax returns may change materially from those recorded as liabilities for uncertain tax positions in the ~~Company’s~~Company's condensed consolidated financial statements at ~~March 31,~~September 30, 2014. A total of ~~$0.8~~$4.8 million of previously recorded liabilities for uncertain tax positions relates principally to the 2011 tax year which expire during the three months ended September 30, 2015. Additionally, a total of $0.8 million of previously recorded liabilities for uncertain tax positions relating to the 2010 tax ~~year. The statute~~year were reversed during the quarter ended September 30, 2014. This was offset in part by an increase to the liability for uncertain tax positions in the amount of ~~limitations related~~$1.4 million which is included in the condensed consolidated statement of operations during the nine months ended September 30, 2014. A total of $0.5 million of previously recorded liabilities for uncertain tax positions relating to ~~these liabilities is scheduled to expire on~~2006 and 2009 tax years were reversed during the quarter ended September ~~15, 2014.~~30, 2013.

The ~~Company’s~~Company's policy is to recognize interest and penalties related to unrecognized tax benefits arising from uncertain tax positions as a component of the current provision for income taxes. During ~~each of~~ the ~~three~~nine months ended ~~March 31,~~September 30, 2014 and 2013, the Company recognized $0.7 million and an immaterial amount, respectively, of interest and penalties in the condensed consolidated statements of operations. The Company has ~~approximately~~$12.6 million and $0.2 million, respectively, accrued for the payment of such interest and penalties at ~~March 31,~~September 30, 2014 and December 31, 2013, a portion of which is included in each of income taxes payable and liability for uncertain tax positions in the accompanying condensed consolidated balance sheets at each date. In connection with the estimated liability for uncertain tax positions, the Company will accrue approximately $2.5 million of interest and penalties annually.

Upon completion of the acquisitions of Power Solutions and Connectivity Solutions, there were net deferred tax assets of $7.1 million and deferred tax liabilities of $19.1 million, respectively, arising from various temporary differences and net operating loss carry forward acquired, which are included in the condensed consolidated balance sheet at September 30, 2014. At September 30, 2014, the fair market value reports have not been completed and therefore the Company had no additional deferred tax amounts relating to the Power Solutions or Connectivity Solutions acquisitions. At September 30, 2014, a net deferred tax liability of $11.0 million remains on the condensed consolidated balance sheet for the 2014 Acquisitions.

The Company intends to make elections to step up the tax basis of the Power Solutions acquisition to fair value under IRC Section 338(g). The Company does not intend to make an election to step-up the tax basis of the Emerson acquisition to fair value under IRC Section 338(g).

Upon the acquisition of TRP, TRP had a deferred tax asset in the amount of $2.2 million arising from various timing differences related to depreciation and accrued expenses. Upon the acquisition of Array, Array had a deferred tax liability of $0.7 million arising from timing differences related to depreciation and a deferred tax asset of $2.1 million arising from the NOL acquired. In connection with the 2013 Acquisitions, the Company was required to complete a fair market value report of property, plant and equipment and intangibles. As a result of that report, the Company established deferred tax liabilities at the date of acquisition in the amount of $0.6 million and $1.0 million respectively for the TRP and Array acquisitions. At ~~March 31,~~September 30, 2014, a net deferred tax asset of ~~$1.9~~$1.7 million remains on the condensed consolidated balance sheet.

The Company does not intend to make any election to step up the tax basis of the 2013 ~~Acquisitions~~acquisitions to fair value under IRC Section 338(g).

On December 31, 2013, under the ~~“American~~"American Taxpayer Relief ~~Act” (“ATRA”~~Act" ("ATRA"), the Research and Experimentation credit (“("R~~&E”~~&E") expired. The Company did not recognize any R&E credits during the ~~three~~nine months ended ~~March 31,~~September 30, 2014. If the R&E credit is extended back to January 1, 2014, the Company will recognize the R&E credit at that time. The annual R&E credit is approximately ~~$0.4~~$0.3 million. During the first quarter of 2013, the Company recognized a $0.4 million R&E credit from 2012 as an increase in the March 31, 2013 quarterly benefit for income taxes.

The Company continues to monitor proposed legislation affecting the taxation of transfers of U.S. intangible property and other potential tax law changes.

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~~-12-~~

8. 9.ACCRUED EXPENSES

Accrued expenses consist of the following (dollars in thousands):

March 31, December 31,
2014 2013
Sales commissions $ 1,378 $ 1,431
Subcontracting labor 2,201 2,406
Salaries, bonuses and related benefits 8,706 13,674
Litigation reserve 724 723
Other 3,512 4,208
$ 16,521 $ 22,442

	September 30,		December 31,
	2014		2013
Sales commissions	$	2,922	$	1,431
Subcontracting labor		2,014		2,406
Salaries, bonuses and related benefits		23,592		13,674
Litigation reserve		-		723
Warranty accrual		3,623		-
Other		12,400		4,208
	$	44,551	$	22,442

Warranty Accrual - Power Solutions generally offers its customers a standard two-year warranty on power products sold, although warranty periods may vary by product type and application. The Company reviews its warranty liability quarterly based on an analysis of actual expenses and failure rates by specific product lines and estimated future costs and projected failure rate trends by specific product lines. Factors taken into consideration when evaluating the Company's warranty reserve are (i) historical claims for each product, (ii) the maturity of the product within its life cycle, (iii) volume increases, (iv) life of warranty, (v) historical warranty repair costs and (vi) other factors. To the extent that actual experience differs from our estimate, the provision for product warranties will be adjusted in future periods. Actual warranty repair costs are charged against the reserve balance as incurred.

A tabular presentation of the activity within the warranty accrual account for the period from the acquisition date of Power Solutions through September 30, 2014 is presented below (in thousands):

	September 30,
	2014
Beginning balance as of June 19, 2014	$	4,111
Charges and costs accrued		859
Adjustments related to pre-existing warranties (including changes in estimates)		(35	)
Less repair costs incurred		(1,377	)
Currency translation		(43	)
Ending balance as of September 30, 2014	$	3,515

9. 10.

DEBT

At ~~March 31, 2014 and~~ December 31, 2013, the Company maintained a $30 million line of credit with Bank of America (the "Credit Agreement"), which ~~expires~~was due to expire on October 14, 2016. ~~The~~At December 31, 2013, the borrowings under the line of credit amounted to ~~$4.0~~$12.0 million and ~~$12.0 million at March 31, 2014 and December 31, 2013, respectively. At March 31, 2014 and December 31, 2013,~~ the balance available under the ~~credit agreement~~Credit Agreement was ~~$26.0 million and~~ $18.0 million, respectively. Amounts outstanding under this line of credit are collateralized with a first priority security interest in 100% of the issued and outstanding shares of the capital stock of the Company's material domestic subsidiaries and 65% of all the issued and outstanding shares of the capital stock of certain of the foreign subsidiaries of the Company. million. The ~~credit agreement bears~~Credit Agreement bore interest at LIBOR plus 1.00% to 1.50% based on certain financial statement ratios maintained by the Company. The interest rate in effect on the borrowings outstanding at ~~March 31, 2014 and~~ December 31, 2013 was 1.4% ~~at each date.~~. The Company incurred interest expense of less than $0.1 million related to the borrowings under the ~~credit agreement~~Credit Agreement during the ~~three~~nine months ended ~~March 31,~~September 30, 2014. There was no interest expense related to the line of credit during the ~~three~~nine months ended ~~March 31,~~September 30, 2013 as there were no borrowings outstanding during that period. Under the terms of the ~~credit agreement,~~Credit Agreement, the Company iswas required to maintain certain financial ratios and comply with other financial conditions. During the nine months ended September 30, 2014, the Company repaid the full $12.0 million balance outstanding and terminated the Credit Agreement.

On June 19, 2014, the Company entered into a senior Credit and Security Agreement with KeyBank National Association ("KeyBank"), as administrative agent and lender, which was amended on June 30, 2014 principally to add a syndicate of additional lenders (as so amended, the "New Secured Credit Agreement"). The maturity date of the New Secured Credit Agreement is June 18, 2019.

The New Secured Credit Agreement consists of (i) a $50 million revolving credit facility ("Revolver"), (ii) a $145 million term loan facility ("Term Loan") and (iii) a $70 million delayed draw term loan ("DDTL"). Under the terms of the New Secured Credit Agreement, the Company is entitled, subject to the satisfaction of certain conditions, to request additional commitments under the revolving credit facility or term loans in the aggregate principal amount of up to $100 million to the extent that existing or new lenders agree to provide such additional commitments and/or term loans.

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The obligations of the Company under the New Secured Credit Agreement are guaranteed by certain of the Company's material U.S. subsidiaries (together with the Company, the "Loan Parties") and are secured by a first priority security interest in substantially all of the existing and future personal property of the Loan Parties, certain material real property of the Loan Parties and certain of the Loan Parties' material U.S. subsidiaries, including 65% of the voting capital stock of certain of the Loan Parties' direct foreign subsidiaries.

The borrowings under the New Secured Credit Agreement will bear interest at a rate equal to, at the Company's option, either (1) LIBOR, plus a margin ranging from 1.75% per annum to 3.00% per annum depending on the Company's leverage ratio, or (2)(a) an "Alternate Base Rate," which is the highest of (i) the federal funds rate plus 0.50%, (ii) KeyBank's prime rate and (iii) the LIBOR rate with a maturity of one month plus 1.00%, plus (b) a margin ranging from 0.75% per annum to 2.00% per annum, depending on the Company's leverage ratio. The interest rate in effect at September 30, 2014 was 2.25%, which consists of LIBOR of 0.25% plus the Company's margin of 2.00%.

The New Secured Credit Agreement contains customary representations and warranties, covenants and events of default and financial covenants that measure (i) the ratio of the Company's total funded indebtedness, on a consolidated basis, to the amount of the Company's consolidated EBITDA, as defined, ("Leverage Ratio") and (ii) the ratio of the amount of the Company's consolidated EBITDA to the Company's consolidated fixed charges ("Fixed Charge Coverage Ratio"). If an event of default occurs, the lenders under the New Secured Credit Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor. At September 30, 2014, the Company was in compliance with its most restrictive covenant, the Leverage Ratio. The unused credit available under the credit facility at September 30, 2014 was $27.0 million, of which we had the ability to borrow the full available balance without violating our Leverage Ratio covenant based on the Company's existing consolidated EBITDA.

Concurrent with its entry into the New Secured Credit Agreement on June 19, 2014, the Company borrowed $145.0 million under the Term Loan to complete its acquisition of Power Solutions. In July 2014, in connection with the acquisition of Connectivity Solutions, the Company borrowed an additional $90.0 million under the New Secured Credit Agreement ($70.0 million through the DDTL and $20.0 million under the Revolver). During the three and nine months ended September 30, 2014, the Company recorded $0.4 million and $5.8 million in deferred financing costs, respectively, which will be amortized over the five-year term, and incurred $1.9 million and $2.1 million of interest expense, respectively. At September 30, 2014, borrowings outstanding related solely to the $145.0 million Term Loan, the $70.0 million DDTL and $23.0 million under the revolver.

Scheduled principal payments of the long-term debt ~~covenants~~outstanding at September 30, 2014 are as ~~of March 31, 2014.~~follows (in thousands):

2014	$	2,687
2015		13,438
2016		16,125
2017		18,812
2018		24,188
Thereafter		160,063
Total long-term debt		235,313
Less: Current maturities of long-term debt		(12,094	)
Noncurrent portion of long-term debt	$	223,219

~~10.~~ 11.RETIREMENT FUND AND PROFIT SHARING PLAN

The Company maintains the Bel Fuse Inc. ~~Employees’~~Employees' Savings Plan (the "U.S. Plan"), a defined contribution plan that is intended to meet the applicable requirements for tax-qualification under sections 401(a) and (k) of the IRC. The ~~Employees’ Savings~~U.S. Plan allows eligible employees to voluntarily contribute a percentage of their eligible compensation, subject to Code limitations, which contributions are matched by the Company. The ~~Company’s~~Company's matching contributions are equal to 100% of the first 1% of compensation contributed by participants, and 50% of the next 5% of compensation contributed by participants. The expense for the three months ended ~~March 31,~~September 30, 2014 and 2013 amounted to approximately ~~$0.2~~$0.3 million and $0.1 million, respectively. The expense for the nine months ended September 30, 2014 and 2013 amounted to approximately $0.6 million and $0.4 million, respectively. Prior to January 1, 2012, the ~~plan’s~~U.S. Plan's structure provided for a Company match and discretionary profit sharing contributions that were made in the form of the ~~Company’s~~Company's common stock. As of ~~March 31,~~September 30, 2014, the ~~plan~~U.S. Plan owned ~~14,899~~14,886 and ~~186,030~~181,831 shares of Bel Fuse Inc. Class A and Class B common stock, respectively.

The Company also has a retirement fund in Asia (the "Asia Plan") which covers substantially all of its Hong Kong-based full-time employees. Eligible employees contribute up to 5% of salary to the fund. In addition, the Company must contribute a minimum of 5% of eligible salary, as determined by Hong Kong government regulations. The Company currently contributes 7% of eligible salary in cash or Company stock. The expense for the three months ended ~~March 31,~~September 30, 2014 and 2013 amounted to approximately $0.1 million in each period. The expense for the nine months ended September 30, 2014 and 2013 amounted to approximately $0.2 million in each period. As of ~~March 31,~~September 30, 2014, the ~~plan~~Asia Plan owned 3,323 and 17,342 shares of Bel Fuse Inc. Class A and Class B common stock, respectively.

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The Company maintains a SERP, ~~plan,~~ which is designed to provide a limited group of key management and highly compensated employees of the Company with supplemental retirement and death benefits.

~~-13-~~

The components of SERP expense are as follows (dollars in thousands):

	Three Months Ended				Three Months Ended				Nine Months Ended
	March 31,				September 30,				September 30,
	2014		2013		2014		2013		2014		2013
Service cost	$	138	$	139	$	138	$	139	$	414	$	417
Interest cost		135		112		135		112		405		337
Amortization of adjustments		46		77		46		77		138		231
Total SERP expense	$	319	$	328	$	319	$	328	$	957	$	985

	March 31,		December 31,		September 30,		December 31,
	2014		2013		2014		2013
Balance sheet amounts:
Minimum pension obligation
and unfunded pension liability	$	11,103	$	10,830	$	11,649	$	10,830

Amounts recognized in accumulated
other comprehensive loss, pretax:
Prior service cost	$	1,184	$	1,230	$	1,094	$	1,230
Net loss		1,004		1,004		1,004		1,004
	$	2,188	$	2,234	$	2,098	$	2,234

~~11.~~ 12.ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The components of accumulated other comprehensive (loss) income at ~~March 31,~~September 30, 2014 and December 31, 2013 are summarized below (dollars in thousands):

March 31, December 31,
2014 2013

Foreign currency translation adjustment, net of taxes of $111 and $77
  at March 31, 2014 and December 31, 2013 $ 2,073 $ 1,904
Unrealized holding gains on available-for-sale
  securities, net of taxes of $186 and $169 as of
  March 31, 2014 and December 31, 2013 310 282
Unfunded SERP liability, net of taxes of ($679) and ($693) as
  of March 31, 2014 and December 31, 2013 (1,509 ) (1,541 )

Accumulated other comprehensive income $ 874 $ 645

	September 30,			December 31,
	2014			2013

Foreign currency translation adjustment, net of taxes of ($20) and $77
at September 30, 2014 and December 31, 2013	$	(4,350	)	$	1,904
Unrealized holding gains on available-for-sale
securities, net of taxes of $227 and $169 as of
September 30, 2014 and December 31, 2013		377			282
Unfunded SERP liability, net of taxes of ($652) and ($693) as
of September 30, 2014 and December 31, 2013		(1,446	)		(1,541	)

Accumulated other comprehensive (loss) income	$	(5,419	)	$	645

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~~-14-~~

Changes in accumulated other comprehensive loss by component during the ~~three~~nine months ended ~~March 31,~~September 30, 2014 are as follows. All amounts are net of tax (dollars in thousands).

				Unrealized Holding													Unrealized Holding
		Foreign Currency		Gains on										Foreign Currency			Gains on
		Translation		Available-for-		Unfunded								Translation			Available-for-		Unfunded
		Adjustment		Sale Securities		SERP Liability					Total			Adjustment			Sale Securities		SERP Liability				Total

Balance at January 1, 2014		$	1,904	$	282	$	(1,541	)			$	645		$	1,904		$	282	$	(1,541	)		$	645
Other comprehensive income (loss) before reclassifications			169		28		-					197			(6,254	)		95		-				(6,159	)
Amounts reclassified from accumulated other
comprehensive income (loss)			-		-		32		(a)			32			-			-		95		(a)		95
Net current period other comprehensive income (loss)			169		28		32			��		229			(6,254	)		95		95				(6,064	)

Balance at March 31, 2014		$	2,073	$	310	$	(1,509	)			$	874
Balance at September 30, 2014														$	(4,350	)	$	377	$	(1,446	)		$	(5,419	)

(a) This reclassification relates to the amortization of prior service costs associated with the Company's SERP plan.
(a) This reclassification relates to the amortization of prior service costs associated with the Company's SERP.													(a) This reclassification relates to the amortization of prior service costs associated with the Company's SERP.
This expense is allocated between cost of sales and selling, general and administrative expense based upon the employment	This expense is allocated between cost of sales and selling, general and administrative expense based upon the employment												This expense is allocated between cost of sales and selling, general and administrative expense based upon the employment
classification of the plan participants.

~~12. LEGAL PROCEEDINGS~~13.COMMITMENTS AND CONTINGENCIES

Leases

The Company leases various facilities under operating leases expiring through March 2023. At December 31, 2013, the Company's total future minimum lease payments for operating leases amounted to $15.3 million. The Company incurred additional lease commitments of approximately $7.3 million upon the acquisitions of Power Solutions and Connectivity Solutions.

Other Commitments

The Company submits purchase orders for raw materials to various vendors throughout the year for current production requirements, as well as forecasted requirements. Certain of these purchase orders relate to special purpose material and, as such, the Company may incur penalties if the order is cancelled. At December 31, 2013, the Company had outstanding purchase orders related to purchases of raw materials in the aggregate amount of $23.4 million and purchase orders related to capital expenditures of $3.0 million. The Company incurred additional commitments upon the acquisitions of Power Solutions and Connectivity Solutions totaling approximately $19.3 million in raw material purchase orders and $0.5 million in capital expenditure commitments.

Legal Proceedings

The Company is party to a number of legal actions and claims, none of which individually or in the aggregate, in the opinion of management, are expected to have a material adverse effect on the ~~Company’s~~Company's results of operations or financial position. See the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013 for the details of all of ~~Bel’s~~Bel's material pending lawsuits. Certain developments that have arisen in legal proceedings subsequent to the filing of the ~~Company’s~~Company's Annual Report on Form 10-K are described below.

The Company was a defendant in a lawsuit captioned SynQor, Inc. v. Artesyn Technologies, Inc., et al. brought in the United States District Court, Eastern District of Texas in November 2007 (“("SynQor I ~~case”~~case"). The plaintiff alleged that eleven defendants, including Bel, infringed its patents covering certain power products. With ~~resp~~ectrespect to the Company, the plaintiff claimed that the Company infringed its patents related to unregulated bus converters and/or point-of-load (POL) converters used in intermediate bus architecture power supply systems. The case initially went to trial in December 2010. A decision was ultimately rendered in November 2013 in favor of the plaintiff, and the Company released a payment to SynQor of $10.9 million. The Company subsequently received a $2.1 million payment from one of its customers related to an indemnification agreement and reimbursement of certain legal fees.

In a related matter, on September 29, 2011, the United States District Court for the Eastern District of Texas ordered SynQor, Inc.’s's continuing causes of action for post-verdict damages to be severed from the original action and assigned to a new case number. The new action captioned SynQor, Inc. v. Artesyn Technologies, Inc., et al. (Case Number 2:11cv444) is a patent infringement action for damages in the form of lost profits and reasonable royalties for the period beginning January 24, 2011 (“("SynQor II ~~case”~~case"). SynQor, Inc. also seeks enhanced damages. The Company has an indemnification agreement in place with one of its customers specifically covering post-verdict damages related to this case. This case went to trial on July 30, 2013. In April 2014, a final judgment was rendered in this case, whereby the Company was assessed an additional $0.7 million in post-verdict damages. This amount was ~~accrued at March 31,~~paid by the Company in July 2014 and ~~is subject to reimbursement~~was subsequently reimbursed by one of its customers under the ~~previously-mentioned~~terms of the indemnification ~~agreement.~~agreement referenced above. SynQor filed an appeal of the final judgment in May 2014, which is currently pending with the CAFC.

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The Company is a plaintiff in a lawsuit captioned Bel Fuse Inc. et al. v. Molex Inc. brought in the United District Court of New Jersey in April 2013. The Company claims that Molex infringed three of the ~~Company’s~~Company's patents related to integrated magnetic connector products. Molex filed a motion to dismiss the complaint on August 6, 2013. The Company filed an amended complaint and response on August 20, 2013. Molex withdrew its original Motion to Dismiss and filed a second, revised Motion to Dismiss on September 6, 2013. The Company filed its response on October 7, 2013. ~~There is no further update~~The Court denied Molex's revised Motion to Dismiss on ~~this case as~~June 16, 2014. In June 2014, Molex initiated an Inter Partes Review (IPR) at the U.S. Patent and Trademark Office for one of the ~~filing date~~three patents associated with this case. The Company and Molex executed an agreement in September 2014 to terminate the IPR and to withdraw one of the patents from the district court litigation. The case continues to proceed in the district court and now involves two of the Company's patents related to integrated magnetic connector products.

In connection with the acquisition of Power Solutions, there is an ongoing claim by the Arezzo Revenue Agency in Italy concerning certain tax matters related to what was then Power-One Asia Pacific Electronics Shenzhen Co. Ltd. (now Bel Power Solutions Asia Pacific Electronics Shenzhen Co. Ltd, or "BPS China") for the years 2004 to 2006. In September 2012, the Tax Court of Arezzo ruled in favor of BPS China and cancelled the claim. In February 2013, the Arezzo Revenue Agency filed an appeal of the Tax Court's ruling. The hearing of the appeal was held on October 2, 2014. On October 13, 2014, BPS China was informed of the Regional Tax Commission of Florence ruling which was in favor of the Arezzo Revenue Agency and against BPS China. The estimated liability related to this ~~Quarterly Report on Form 10-Q.~~matter is approximately $12.0 million and has been included in the accompanying condensed consolidated balance sheet. As Bel is fully indemnified in this matter per the terms of the stock purchase agreement with ABB, an offsetting indemnification asset is also reflected in the accompanying condensed consolidated balance sheet at September 30, 2014.

~~13. SUBSEQUENT EVENT~~

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On April 25, 2014, the Company entered into a Stock and Asset Purchase Agreement with ABB Ltd. (“ABB”) pursuant to which the Company has agreed to acquire the Power-One Power Solutions business from ABB for approximately $117.0 million in cash. This acquisition is expected to close at the end of the second quarter of 2014 and will be funded through bank borrowings and cash on hand.

~~-15-~~

Item 2. ~~Management’s~~Management's Discussion and Analysis of Financial Condition and Results of Operations

The ~~Company’s~~Company's quarterly and annual operating results are impacted by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013. As a result of these and other factors, the Company may experience material fluctuations in future operating results on a quarterly or annual basis, which could materially and adversely affect its business, financial condition, operating results, and stock prices. Furthermore, this document and other documents filed by the Company with the Securities and Exchange Commission (the ~~“SEC”~~"SEC") contain certain forward-looking statements under the Private Securities Litigation Reform Act of 1995 (“("Forward-Looking ~~Statements”~~Statements") with respect to the business of the Company. These Forward-Looking Statements are subject to certain risks and uncertainties, including those detailed in Item 1A of the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013, which could cause actual results to differ materially from these Forward-Looking Statements. The Company undertakes no obligation to publicly release the results of any revisions to these Forward-Looking Statements which may be necessary to reflect events or circumstances after the date such statements are made or to reflect the occurrence of unanticipated events. An investment in the Company involves various risks, including those which are detailed from time to time in the ~~Company’s~~Company's SEC filings.

Overview

Our Company

The Company ~~designs, manufactures~~is primarily engaged in the design, manufacture, and ~~markets a broad array~~sale of ~~magnetics, modules, circuit protection devices and interconnect~~ products ~~as further described below. These products are designed to protect, regulate, connect, isolate or manage the flow of power and data among products primarily~~ used in ~~the networking, telecommunications, computing,~~aerospace, data transmission, military, ~~aerospace,~~ transportation, and ~~broadcasting industries. Bel’s portfolio of products also finds application in the automotive, medical~~consumer electronics. Bel's product groups include Magnetic Solutions (discrete components, power transformers and ~~consumer electronics markets.~~MagJack® connectors with integrated magnetics), Power Solutions and Protection (AC-DC power supplies, DC-DC converters, custom designs, miniature, micro, surface mount and resettable fuses) and Connectivity Solutions (micro, circular, filtered D Sub, fiber optic, RF connectors, microwave components, passive jacks, plugs and cable assemblies).

~~Bel’s~~Bel's business is operated through three geographic segments: North America, Asia and Europe. During the ~~three~~nine months ended ~~March 31,~~September 30, 2014, ~~52%~~44% of the ~~Company’s~~Company's revenues were derived from Asia, ~~35%~~42% from North America and ~~13%~~14% from its Europe operating segment. Sales of the ~~Company’s magnetic~~Company's Magnetic Solutions products represented approximately ~~48%~~38% of its total net sales during the ~~three~~nine months ended ~~March 31,~~September 30, 2014. The remaining revenues related to sales of the ~~Company’s interconnect~~Company's Connectivity Solutions products ~~(36%), module products (13%~~(32%) and ~~circuit protection~~Power Solutions and Protection products ~~(3%~~(30%).

The ~~Company’s~~Company's expenses are driven principally by the cost of labor where the factories that Bel uses are located, the cost of the materials that it uses and its ability to effectively and efficiently manage overhead costs. As labor and material costs vary by product line, any significant shift in the mix of higher- versus lower-margin product ~~mix can~~lines will have an associated impact on the ~~Company’s~~Company's costs of sales. Costs are recorded as incurred for all products manufactured. Such amounts are determined based upon the estimated stage of production and include labor cost and fringes and related allocations of factory overhead. The ~~Company’s~~Company's products are manufactured at various facilities in: the ~~People’s~~People's Republic of China ~~(“PRC”~~("PRC"); Glen Rock, Pennsylvania; Inwood, New York; McAllen, Texas; Miami and Melbourne, Florida; Waseca, Minnesota; Mesa, Arizona; Haina, Dominican Republic; Reynosa and Cananea, Mexico; Louny, Czech Republic; ~~and~~ Worksop, ~~and~~ Great Dunmow ~~England.~~and Chelmsford, England; and Dubnica nad Vahom, Slovakia.

In the PRC, where the Company generally enters into processing arrangements with several independent third-party contractors and also has its own manufacturing facilities, the availability of labor is cyclical and is significantly affected by the migration of workers in relation to the annual Lunar New Year holiday as well as economic conditions in the PRC. In addition, the Company has little visibility into the ordering habits of its customers and can be subjected to large and unpredictable variations in demand for its products. Accordingly, the Company must continually recruit and train new workers to replace those lost to attrition each year and to address peaks in demand that may occur from time to time. These recruiting and training efforts and related inefficiencies, and overtime required in order to meet demand, can add volatility to the costs incurred by the Company for labor in the PRC.

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~~-16-~~

Trends Affecting our Business

The Company believes the key factors affecting ~~Bel’s~~Bel's results for the three and nine months ended ~~March 31,~~September 30, 2014 and/or future results include the following:

Recent Acquisitions – The Company completed its acquisitions of TRP and Array during ~~late-March~~late March and ~~August~~mid-August 2013, ~~respectively.~~respectively, its acquisition of Power Solutions in mid-June 2014, and its acquisition of Connectivity Solutions in late-July 2014 and late-August 2014. During the three and nine months ended ~~March 31,~~September 30, 2014, these acquisitions contributed a combined ~~$17.9~~$83.8 million and $128.6 million of sales, respectively, and a combined ~~$1.0~~$3.7 million and $7.4 million of income from ~~operations. Due to the timing of the acquisition dates, there were no contributions of operating results related to either acquisition during~~operations, respectively. During the three and nine months ended ~~March 31, 2013.~~September 30, 2013, TRP and Array contributed combined sales of $26.4 million and $48.6 million, respectively, and combined income from operations of $4.5 million and $8.2 million, respectively.

~~Revenues~~ – Excluding the revenue contributions from the 2013 Acquisitions described above, the Company’s revenues for the three months ended March 31, 2014 increased by $1.7 million as compared to the same period of 2013. Bel’s magnetic and interconnect product lines had increases in revenue of $1.8 million and $2.4 million, respectively, during the first quarter of 2014 as compared to the first quarter of 2013. These increases were partially offset by a $2.5 million decrease in module sales.

Product Mix – Material and labor costs vary by product line and any significant shift in product mix between higher- and lower-margin product lines will have a corresponding impact on the ~~Company’s~~Company's gross margin percentage. During the ~~three~~nine months ended ~~March 31,~~September 30, 2014, the ~~Company experienced~~addition of Power Solutions and Connectivity Solutions had a favorable ~~shift in~~impact on the ~~mix of products sold as compared to the same period of 2013.~~Company's profit margin percentage.

Pricing and Availability of Materials – Pricing and availability of components that constitute raw materials in our manufacturing processes have been stable for most of the ~~Company’s~~Company's product lines, although lead times on electrical components are still extended. ~~While pricing~~Pricing of electrical components stabilized during the ~~first~~third quarter of ~~2014 was consistent with the same period of 2013, there have been recent pricing pressures in this area which may impact future quarters.~~2014. With regard to commodity pricing, the cost of certain commodities that are contained in components and other raw materials, such as gold and copper, were lower during the first ~~quarter~~nine months of 2014 as compared to the ~~first quarter~~same period of 2013. Any fluctuations in component prices and other commodity prices associated with ~~Bel’s~~Bel's raw materials will have a corresponding impact on ~~Bel’s~~Bel's profit margins.

Labor Costs – Labor costs as a percentage of sales ~~increased~~decreased from ~~12.6%~~14.3% during the ~~first quarter of~~nine months ended September 30, 2013 to ~~14.2%~~12.4% during the ~~first quarter~~comparable period of 2014. ~~Rising~~The primary factor driving the reduction was the addition of the Power Solutions products, which have a lower labor content than most of Bel's other products. Also, during early 2013, the Company incurred higher labor costs due to inefficiencies associated with the Cinch reorganization. These additional costs did not recur in 2014. This decrease in labor costs as a percentage of sales was largely offset by rising labor costs in the PRC and the strengthening of the Chinese Renminbi continue to impact our overall profit margins. With the addition of TRP, approximately half of Bel’s total sales are now generated from labor-intensive magnetic products, which are primarily manufactured in the PRC. In February 2013, the PRC government increased the minimum wage by 19% in regions where the factories that Bel uses are located. This increase was effective May 1, 2013.Renminbi.

Acquisition-Related Costs ~~– Bel continues~~–The Company incurred $3.8 million and $5.4 million in acquisition-related costs during the three and nine months ended September 30, 2014, respectively. These costs primarily related to ~~pursue additional acquisition opportunities that could result~~the audits of the historical financial statements of the acquirees, as well as legal and consulting expenses associated with the 2014 Acquisitions. The Company also recorded purchase accounting adjustments in the third quarter of 2014 related to inventory step-up adjustments. These adjustments resulted in additional ~~legal~~expense during the third quarter of 2014 of $4.6 million in cost of sales. Various purchase accounting adjustments and ~~other~~ professional ~~costs~~fees associated with the valuations of Power Solutions and Connectivity Solutions and related to the completion of audits of the historical financial statements of the acquirees, are also expected in future ~~periods.~~quarters.

Effective Tax Rate – The ~~Company’s~~Company's effective tax rate will fluctuate based on the geographic segment in which the pretax profits are earned. Of the geographic segments in which the Company operates, the U.S. has the highest tax rates; ~~Europe’s~~Europe's tax rates are generally lower than U.S. tax rates; and Asia has the lowest tax rates of the ~~Company’s~~Company's three geographical segments. The change in the effective tax rate during the ~~three~~nine months ended ~~March 31,~~September 30, 2014 compared to the ~~first quarter of~~same period in 2013 is primarily attributed to the increase in US taxes despite a pretax ~~profit~~loss in the North America segment from taxes related to uncertain tax positions, valuation allowances and ~~Asia segments for the three months ended March 31, 2014 compared to~~sub part F related income. This was offset in part by a ~~pretax loss in these geographic segments for the same period in 2013.~~true up of tax accruals. In addition, for the ~~three~~nine months ended ~~March 31,~~September 30, 2013, the Company recognized an additional $0.4 million in ~~Research and Experimentation (“~~R~~&E”)~~&E credits related to the year ended December 31, ~~2012.~~2012 which offset the increase in the effective tax rate for the nine months ended September 30, 2014. See Note 78 of the condensed consolidated financial statements.

~~Bel’s continuing strategy~~Based on third quarter 2014 results of Bel and the recently acquired businesses, the Company is at a current run rate of approximately $650 million in annual sales. The focus going forward continues to ~~leverage its~~be on improving quality at the factory levels, working closely with our large customers and their engineering teams, and continued overhead structure by increasing revenue primarily through acquisitions is generating positive results. The Company added significantly to revenue and earnings through acquisitions in 2013 and additional acquisition opportunities, if consummated, would further expand Bel’s business in 2014. In additioncost containment internally. Management has already implemented annual cost savings of over $5 million related to the ~~acquisition strategy, management remains focused on controlling costs, increasing manufacturing efficiency through integration~~acquisitions of Power Solutions and ~~automation,~~Connectivity Solutions and has identified additional opportunities to streamline the ~~adoption of best practices throughout~~consolidated businesses in the ~~organization.~~future. Statements regarding future results constitute Forward-Looking Statements and could be materially adversely affected by the risk factors identified by the Company in Item 1A of the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013.

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~~-17-~~

Summary by Reportable Operating Segment

Net sales to external customers by reportable operating segment for the three and nine months ended ~~March 31,~~September 30, 2014 and 2013 were as follows (dollars in thousands):

Three Months Ended
March 31,
2014 2013
    North America $ 28,732 35 % $ 26,817 42 %
    Asia 43,048 52 % 26,415 42 %
    Europe 10,866 13 % 9,796 16 %
$ 82,646 100 % $ 63,028 100 %

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2014				2013				2014				2013
North America	$	79,384	51	%	$	31,613	31	%	$	143,180	42	%	$	87,058	34	%
Asia		54,656	35	%		60,751	60	%		148,927	44	%		142,323	55	%
Europe		22,301	14	%		8,800	9	%		46,319	14	%		28,792	11	%
	$	156,341	100	%	$	101,164	100	%	$	338,426	100	%	$	258,173	100	%

Net sales and income ~~(loss)~~ from operations by reportable operating segment for the three and nine months ended ~~March 31,~~September 30, 2014 and 2013 were as follows (dollars in thousands):

Three Months Ended
March 31,
2014 2013
Total segment sales:
     North America $ 31,454 $ 29,222
     Asia 49,891 32,725
     Europe 10,892 10,125
Total segment sales 92,237 72,072
Reconciling item:
     Intersegment sales (9,591 ) (9,044 )
Net sales $ 82,646 $ 63,028

Income (loss) from operations:
    North America $ 882 $ (1,482 )
    Asia 1,673 (666 )
    Europe 326 721
$ 2,881 $ (1,427 )

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Total segment sales:
North America	$	91,556		$	34,273		$	162,415		$	95,796
Asia		87,714			69,602			199,574			166,362
Europe		44,778			9,313			72,220			30,029
Total segment sales		224,048			113,188			434,209			292,187
Reconciling item:
Intersegment sales		(67,707	)		(12,024	)		(95,783	)		(34,014	)
Net sales	$	156,341		$	101,164		$	338,426		$	258,173

Income from operations:
North America	$	(1,964	)	$	(239	)	$	(2,698	)	$	(3,734	)
Asia		3,306			7,915			9,694			11,026
Europe		3,330			56			4,271			672
	$	4,672		$	7,732		$	11,267		$	7,964

During the three and nine months ended ~~March 31,~~September 30, 2014 as compared to the ~~acquisition~~same periods of 2013, the 2013 acquisitions of TRP and Array contributed ~~revenues of $15.6 million~~significantly to Bel's Asia and North America segment sales, and TRP's income from operations ~~of $1.4 million to the Company’s~~in Asia ~~operating segment and revenues of $0.6 million and income~~more than offset Bel's loss from operations ~~of $0.1 million to the Company’s Europe operating segment.~~in North America. The acquisition of ~~Array~~Power Solutions in June 2014 contributed ~~$1.6 million of~~significantly to Bel's North America and Europe segment sales during the three and ~~a loss from operations of $0.5 million~~nine months ended September 30, 2014 as compared to the ~~Company’s~~same periods of 2013. The acquisition of Connectivity Solutions contributed to North America ~~operating segment. The~~and Europe segment sales beginning in August 2014, and to Asia segment sales beginning in September 2014. See Note 7 to the accompanying condensed consolidated financial statements for further details. Within North America, the improvement in income from operations ~~in North America in~~during the ~~first quarter of~~nine months ended September 30, 2014 as compared to the same period of 2013 ~~relates~~was also attributable to the recovery of the Cinch operations. Both sales and income from operations during the ~~first quarter of~~nine months ended September 30, 2013 were negatively impacted by the relocation of ~~Cinch’s~~Cinch's North American manufacturing operations. Manufacturing inefficiencies resulted in reduced production levels and lower overall sales of Cinch products. In addition, various other costs associated with the Cinch reorganization further reduced our income from operations in North America during early 2013. These transition issues were resolved by the end of 2013.

Overview of Financial Results

Sales for the ~~three~~nine months ended ~~March 31,~~September 30, 2014 increased by 31.1% to ~~$82.6~~$338.4 million from ~~$63.0~~$258.2 million for the same period of 2013. Sales were favorably impacted by the contributions made by the ~~acquisitions of TRP~~2013 and ~~Array,~~2014 Acquisitions, and the rebounding of Cinch sales after the relocation of its manufacturing operations in early 2013. Pricing to customers was adjusted during the latter half of 2013 to recover some of the higher labor costs in China and other cost increases resulting from the continued strengthening of the Chinese Renminbi. These increased prices are reflected in the ~~first quarter~~ 2014 sales figures above. Selling, general and administrative expense was ~~$0.8~~$12.4 million higher in the ~~first quarter of~~nine months ended September 30, 2014 as compared to the same period of 2013, primarily due to the inclusion of expenses from the recent ~~acquisitions.~~acquisitions and acquisition-related costs. These factors led to net earnings of ~~$2.5~~$7.1 million for the ~~first quarter of~~nine months ended September 30, 2014 as compared to ~~a net loss of $0.6~~$8.5 million for the same period of 2013. Additional details related to these factors affecting the ~~first quarter~~nine-month results are described in the Results of Operations section below.

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~~-18-~~

Critical Accounting Policies

~~The Company’s~~Management's discussion and analysis of ~~its~~Bel's financial condition and results of operations are based upon the ~~Company’s~~Company's condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, goodwill, intangible assets, investments, warranties, SERP expense, income taxes and contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Recent Accounting Pronouncements

The discussion of new financial accounting standards applicable to the Company is incorporated herein by reference to Note 1 to the ~~Company’s~~Company's Financial Statements, ~~“Basis~~"Basis of Presentation and Accounting Policies,”" included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Results of Operations

The following table sets forth, for the periods presented, the percentage relationship to net sales of certain items included in the ~~Company’s~~Company's condensed consolidated statements of operations.

Percentage of Net Sales
Three Months Ended
March 31,
2014 2013

Net sales          100.0 %          100.0 %
Cost of sales            83.0            85.6
Selling, general and administrative ("SG&A") expenses            13.5            16.5
Restructuring charge                -              0.2
Interest income and other, net                -              0.1
Earnings (loss) before provision (benefit) for income taxes              3.5            (2.2)
Provision (benefit) for income taxes              0.5            (1.3)
Net earnings (loss)              3.0            (0.9)

	Percentage of Net Sales						Percentage of Net Sales
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013

Net sales		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		82.0			80.2			82.2			82.8
Selling, general and administrative ("SG&A") expenses		14.8			12.2			14.0			13.6
Restructuring charges		0.2			-			0.4			0.5
Interest expense		1.2			0.1			0.6			-
Interest income and other, net		-			0.1			-			0.1
Earnings before provision (benefit) for income taxes		1.8			7.8			2.7			3.2
Provision (benefit) for income taxes		0.8			0.5			0.6			(0.1	)
Net earnings		1.0			7.3			2.1			3.3

The following table sets forth the year over year percentage increase of certain items included in the ~~Company’s~~Company's condensed consolidated statements of operations.

	~~Increase from~~
	~~Prior Period~~
	~~Three Months Ended~~
	~~March 31, 2014~~
	~~Compared with~~
	~~Three Months Ended~~
	~~March 31, 2013~~

~~Net sales~~		~~31.1~~	%
~~Cost of sales~~		~~27.2~~
~~SG&A expenses~~		~~7.6~~
~~Net earnings/loss~~		~~548.6~~

	Increase from			Increase from
	Prior Period			Prior Period
	Three Months Ended			Nine Months Ended
	September 30, 2014			September 30, 2014
	Compared with			Compared with
	Three Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2013

Net sales		54.5	%		31.1	%
Cost of sales		58.1			30.2
SG&A expenses		87.9			35.5
Net earnings		(79.6	)		(16.9	)

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~~-19-~~

Sales

Net sales increased ~~31.1%~~54.5% from ~~$63.0~~$101.2 million during the three months ended ~~March 31,~~September 30, 2013 to ~~$82.6~~$156.3 million during the three months ended ~~March 31,~~September 30, 2014. Net sales increased 31.1% from $258.2 million during the nine months ended September 30, 2013 to $338.4 million during the nine months ended September 30, 2014. The ~~Company’s~~Company's net sales by ~~major~~ product ~~line~~group for the three and nine months ended ~~March 31,~~September 30, 2014 and 2013 were as follows (dollars in thousands):

Three Months Ended
March 31,
2014 2013
Interconnect products $ 30,170 36 % $ 26,112 41 %
Magnetic products 39,298 48 % 21,257 34 %
Module products 10,850 13 % 13,370 21 %
Circuit protection products 2,328 3 % 2,289 4 %
$ 82,646 100 % $ 63,028 100 %

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2014				2013				2014				2013
Magnetic solutions (a)	$	46,159	29	%	$	52,943	52	%	$	130,188	38	%	$	122,958	48	%
Connectivity solutions (b)		44,985	29	%		29,976	30	%		107,352	32	%		83,181	32	%
Power solutions and protection (c)		65,197	42	%		18,245	18	%		100,886	30	%		52,034	20	%
	$	156,341	100	%	$	101,164	100	%	$	338,426	100	%	$	258,173	100	%

(a) "Magnetic solutions" consists of Bel's legacy RJ45 connector business, the TRP business and the Company's Signal Transformer business.

(b) "Connectivity solutions" represents the Company's former Interconnect group, consisting of Cinch, the recently acquired Emerson Connectivity Solutions business, Array Connector and the Stewart Connector passive connector lines.

(c) "Power solutions and protection" represents the Company's former Modules group, consisting of Power-One, the Company's legacy DC-DC, modules manufacturing, and circuit protection business.

Magnetic solutions net sales decreased from the third quarter of 2013 to the third quarter of 2014, principally as a result of a reduction in the sale of TRP products. Sales of ~~the Company’s magnetic~~Magnetic solutions products for the first ~~quarter~~nine months of 2014 ~~include $16.2~~increased as compared to the same period of 2013 as $51.1 million of TRP ~~integrated connector module (ICM) products. As TRP~~product sales are included in the 2014 period, as compared to $46.9 million for the same period of 2013 (TRP was acquired in late-March ~~2013, there were no contributions from TRP during the first quarter of 2013.~~ 2013).

The acquisition of Array in August 2013 and Connectivity Solutions in late-July 2014 and late-August 2014 contributed ~~$1.6~~combined sales of $15.7 million ~~of sales~~and $19.3 million, respectively, to the ~~Company’s interconnect~~Company's Connectivity solutions product ~~line~~group during the ~~first quarter~~three and nine months ended September 30, 2014.

The acquisition of ~~2014. During~~Power Solutions in mid-June 2014 contributed sales of $49.1 million and $56.3 million, respectively, to the ~~first quarter of 2013,~~three and nine-month Power solutions and protection sales figures noted above for the ~~Company experienced~~2014 periods. This contribution was partially offset by a reduction in legacy-Bel DC/DC converter sales of ~~Cinch’s interconnect products due~~$3.9 million and $9.3 million, respectively, during the three and nine months ended September 30, 2014 as compared to the ~~relocation~~same periods of ~~its manufacturing operations.~~2013.

Cost of Sales

The ~~Company’s~~Company's cost of sales as a percentage of consolidated net sales for the three and nine months ended ~~March 31,~~September 30, 2014 and 2013 was comprised of the following:

Three Months Ended
March 31,
2014 2013
Material costs 42.3% 46.3%
Labor costs 14.2% 12.6%
Research and development expenses 4.1% 4.7%
Other expenses 22.4% 22.0%
Total cost of sales 83.0% 85.6%

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Material costs		46.8	%		41.4	%		45.0	%		43.7	%
Labor costs		10.7	%		14.7	%		12.4	%		14.3	%
Research and development expenses		4.3	%		3.5	%		4.2	%		4.0	%
Other expenses		20.2	%		20.6	%		20.6	%		20.8	%
Total cost of sales		82.0	%		80.2	%		82.2	%		82.8	%

Material costs as a percentage of sales were ~~lower in~~higher during the ~~first quarter of~~three and nine months ended September 30, 2014 as compared to the ~~first quarter~~same periods of 2013, primarily due to the ~~reduction in sales~~addition of ~~module~~Power Solutions products, which have a higher material content than ~~Bel’s~~Bel's other ~~product lines. An~~products. This increase was partially offset by a reduction in material costs as a percentage of sales associated with Bel's other products, due to lower sales of Bel's DC-DC products which have a higher material content, and an increase in ~~sales of Cinch and Array~~connectivity products, ~~in 2014 also contributed to the decrease, as these products have~~which carry a lower material content than Bel’s other product lines. Material costs during the first quarter of 2013 were also unusually high as the Company experienced operational inefficiencies and other start-up costs related to the relocation of Cinch’s U.S. manufacturing operations.content.

Labor costs during the ~~first quarter of~~periods presented for 2014 ~~increased~~decreased as a percentage of sales as compared to the same ~~period~~periods of ~~2013, primarily~~2013. The most significant factor contributing to the lower labor costs as a percentage of sales was the inclusion of Power Solutions products since the date of acquisition. Power Solutions products have lower-labor content compared to Bel's historical average. There was a further reduction in labor costs as a percentage of sales in the 2014 periods presented due to the addition of TRP and Array in 2013, higher sales of Bel integrated connector module (ICM) and Cinch products, and the shift in product mix away from low-labor content products described above. Government-mandated wage increases in the PRC and the strengthening of the Chinese Renminbi further increased labor costs over the prior year. These increases were partially offset by the non-recurrenceimprovement of manufacturing ~~inefficiencies~~efficiencies associated with the Cinch ~~manufacturing~~ reorganization in ~~early~~ 2013, and the realization of cost savings from that initiative. These reductions in labor costs were partially offset by the continued strengthening of the Chinese Renminbi, which had an unfavorable impact on the Company's labor costs in the PRC.

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Included in cost of sales are research and development (R&D) expenses of ~~$3.4~~$6.7 million and ~~$3.0~~$3.5 million for the three-month periods ended ~~March 31,~~September 30, 2014 and 2013, respectively, and $14.1 million and $10.3 million for the nine-month periods ended September 30, 2014 and 2013, respectively. The majority of ~~the increase relates~~these increases relate to the inclusion of R&D expenses associated with ~~TRP~~the 2013 and ~~Array,~~2014 Acquisitions, which have been included in ~~Bel’s~~Bel's results since their respective acquisition dates.

Selling, General and Administrative Expenses (“("SG~~&A”~~&A")

~~The dollar amount of SG&A expenses was $0.8 million higher during~~For the three months ended ~~March 31,~~September 30, 2014, SG&A expense was $10.8 million higher as compared to the same period of ~~2013, due almost entirely~~2013. Of this increase, $8.2 million related to the inclusion of SG&A expenses of ~~the 2013 Acquisitions.~~2014 Acquisitions and $0.2 million in incremental SG&A expenses associated with a full three months of Array activity in 2014. Other contributing factors included a ~~$0.5~~$3.7 million increase in ~~wages and fringe~~acquisition-related costs, offset by lower incentive compensation expense of $2.0 million and a ~~$0.4 million~~ reduction in ~~acquisition-related costs during~~legal and professional fees of $0.5 million. Other items within SG&A increased by $1.2 million in total.

For the ~~first quarter of~~nine months ended September 30, 2014, SG&A expense was $12.4 million higher as compared to the same period of 2013. Of this increase, $8.2 million related to the inclusion of SG&A expenses of 2014 Acquisitions and $1.0 million in incremental SG&A expenses associated with a full nine months of TRP and Array activity in 2014. Other contributing factors included a $4.6 million increase in acquisition-related costs, offset by lower incentive compensation expense of $2.2 million and a reduction in legal and professional fees of $0.8 million. Other items within SG&A increased by $1.6 million in total.

~~-20-~~

Provision (Benefit) for Income Taxes

The ~~Company’s~~Company's effective tax rate will fluctuate based on the geographic segment in which the pretax profits are earned. Of the geographic segments in which the Company operates, the U.S. has the highest tax rates; ~~Europe’s~~Europe's tax rates are generally lower than U.S. tax rates; and Asia has the lowest tax rates of the ~~Company’s~~Company's three geographical segments.

The provision ~~(benefit)~~ for income taxes for the three months ended ~~March 31,~~September 30, 2014 was ~~$0.4~~$1.3 million compared to ~~a benefit of ($0.8)~~$0.5 million for the three months ended ~~March 31,~~September 30, 2013. The ~~Company’s~~Company's earnings before income taxes for the three months ended ~~March 31,~~September 30, 2014 are approximately ~~$4.3~~$5.0 million ~~higher~~lower than the same period in 2013. The ~~Company’s~~Company's effective tax rate, the income tax provision ~~(benefit)~~ as a percentage of earnings ~~(loss)~~ before provision ~~(benefit)~~ for income taxes, was ~~13.8%~~46.7% and ~~(59.9%)~~5.9% for the three-month periods ended ~~March 31,~~September 30, 2014 and 2013, respectively. The change in the effective tax rate during the three months ended ~~March 31,~~September 30, 2014 compared to the ~~first~~third quarter of 2013 is primarily attributed to the increase in US taxes despite a pretax ~~profit~~loss in the North America segment principally related to increases in the liability for uncertain tax positions, valuation allowances and ~~Asia segments~~sub part F related income. This was offset in part by a true up of tax accruals. Additionally, the increase in the effective tax rate is attributable to the increase in the European segments' profitability for the three months ended ~~March 31,~~September 30, 2014 compared to ~~a pretax loss in these geographic segments for~~ the same period in 2013.

The provision for income taxes for the nine months ended September 30, 2014 was $2.2 million compared to a benefit of $0.3 million for the nine months ended September 30, 2013. The Company's earnings before income taxes for the nine months ended September 30, 2014 are approximately $1.1 million higher than the same period in 2013. The Company's effective tax rate was 23.6% and (4.1%) for the nine-month periods ended September 30, 2014 and 2013, respectively. The change in the effective tax rate during the nine months ended September 30, 2014 compared to the same period in 2013 is primarily attributed to the same reasons as described above. In addition, for the ~~three~~nine months ended ~~March 31,~~September 30, 2013, the Company recognized an additional $0.4 million in R&E credits related to the year ended December 31, ~~2012.~~2012, which offset the increase in the effective tax rate for the nine months ended September 30, 2014. See Note 78 of the condensed consolidated financial statements.

Liquidity and Capital Resources

Historically, the Company has financed its capital expenditures primarily through cash flows from operating activities and has financed acquisitions through cash flows from operating activities, cash reserves, borrowings, and the issuance of Bel Fuse Inc. common stock. Management believes that the cash flow from operations after payments of dividends and mandatory principal payments of long-term debt combined with its existing capital base, the Company's cash reserves and ~~the Company’s~~ available line of credit will be sufficient to fund its operations for at least the next twelve months. Such statement constitutes a Forward-Looking Statement. Factors which could cause the Company to require additional ~~capital~~funding include, among other things, a softening in the demand for the ~~Company’s~~Company's existing ~~products,~~and recently-acquired products; an inability to respond to customer demand for new ~~products, potential~~products; an inability to successfully integrate the recent acquisitions ~~(as~~ discussed ~~below) requiring~~below, which could require substantial ~~capital,~~capital; future expansion of the ~~Company’s~~Company's operations and net losses that would result in net cash being used in operating ~~investing and/or financing~~ activities, ~~which result~~resulting in net decreases in cash and cash equivalents. Net losses may impact availability under our credit facility and preclude the Company from raising debt or equity financing in the capital markets on affordable terms or otherwise.

~~The~~

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On April 25, 2014, the Company ~~has an unsecured credit agreement in~~entered into a Stock and Asset Purchase Agreement with ABB Ltd. ("ABB") pursuant to which the Company agreed to acquire the Power-One Power Solutions business from ABB for approximately $117.0 million, subject to adjustments based on working capital and the amount of cash at closing. On June 19, 2014, the Company completed its acquisition of Power Solutions with a cash payment, net of cash acquired and including a working capital adjustment, of $110.0 million. The Power Solutions acquisition was funded through bank borrowings, as discussed below.

On May 16, 2014, the Company entered into a Stock Purchase Agreement with Emerson Electric Co. ("Emerson") pursuant to which the Company agreed to acquire the Emerson Network Power Connectivity Solutions ("CS") business from Emerson for $98.0 million, subject to adjustments based on working capital and the amount of cash at closing. On July 25, 2014, the Company completed its acquisition of the U.S. and U.K. entities of the CS business from Emerson with a payment, net of cash acquired and including a working capital adjustment, of $90.7 million. This portion of the CS acquisition was funded primarily through additional bank borrowings and with $3.9 million funded from Bel's cash on hand. On August 29, 2014, an additional payment of $9 million, funded from Bel's cash on hand, was made in connection with the closing of the China portion of the acquisition.

At December 31, 2013, the Company maintained a $30 million line of credit with Bank of America (the "Credit Agreement"), which ~~expires~~was due to expire on October 14, 2016. ~~The~~At December 31, 2013, borrowings under the line of credit amounted to ~~$4.0~~$12.0 million and ~~$12.0 million at March 31, 2014 and December 31, 2013, respectively. At March 31, 2014 and December 31, 2013,~~ the balance available under the ~~credit agreement~~Credit Agreement was ~~$26.0 million and~~ $18.0 million, respectively. Amounts outstanding under this line of credit are collateralized with a first priority security interest in 100% of the issued and outstanding shares of the capital stock of the Company's material domestic subsidiaries and 65% of all the issued and outstanding shares of the capital stock of certain of the foreign subsidiaries of the Company. million. The ~~credit agreement bears~~Credit Agreement bore interest at LIBOR plus 1.00% to 1.50% based on certain financial statement ratios maintained by the Company. The interest rate in effect on the borrowings outstanding at ~~March 31, 2014 and~~ December 31, 2013 was 1.4% ~~at each date.~~. The Company incurred interest expense of less than $0.1 million related to the borrowings under the ~~credit agreement~~Credit Agreement during the ~~three~~nine months ended ~~March 31,~~September 30, 2014. There was no interest expense related to the line of credit during the ~~three~~nine months ended ~~March 31,~~September 30, 2013 as there were no borrowings outstanding during that period. Under the terms of the ~~credit agreement,~~Credit Agreement, the Company iswas required to maintain certain financial ratios and comply with other financial conditions. During the nine months ended September 30, 2014, the Company repaid the full $12.0 million balance outstanding and terminated the Credit Agreement.

On June 19, 2014, the Company entered into a senior Credit and Security Agreement with KeyBank National Association ("KeyBank"), as administrative agent, and lender, which was amended on June 30, 2014 principally to add a syndicate of additional lenders (as so amended, the "New Secured Credit Agreement"). The maturity date of the New Secured Credit Agreement is June 18, 2019.

The borrowings under the New Secured Credit Agreement will bear interest at a rate equal to, at the Company's option, either (1) LIBOR, plus a margin ranging from 1.75% per annum to 3.00% per annum depending on the Company's leverage ratio, or (2)(a) an "Alternate Base Rate," which is the highest of (i) the federal funds rate plus 0.50%, (ii) KeyBank's prime rate and (iii) LIBOR with a maturity of one month plus 1.00%, plus (b) a margin ranging from 0.75% per annum to 2.00% per annum, depending on the Company's leverage ratio. The interest rate in effect at September 30, 2014 was 2.25%, which consists of LIBOR of 0.25% plus the Company's margin of 2.00%.

The New Secured Credit Agreement contains customary representations and warranties, covenants and events of default and financial covenants that measure (i) the ratio of the Company's total funded indebtedness, on a consolidated basis to the amount of the Company's consolidated EBITDA, as defined, ("Leverage Ratio") and (ii) the ratio of the amount of the Company's consolidated EBITDA to the Company's consolidated fixed charges ("Fixed Charge Coverage Ratio"). If an event of default occurs, the lenders under the New Secured Credit Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor. At September 30, 2014, the Company was in compliance with its ~~debt covenants as~~most restrictive covenant, the Leverage Ratio. The unused credit available under the credit facility at September 30, 2014 was $27.0 million, of ~~March 31, 2014.~~which we had the ability to borrow the full available balance without violating our Leverage Ratio covenant based on the Company's existing consolidated EBITDA.

KeyBank and certain of the agents and lenders party to the New Secured Credit Agreement (and each of their respective subsidiaries or affiliates) have provided and may in the future provide investment banking, cash management, underwriting, lending, commercial banking, trust, leasing services, foreign exchange and other advisory services to, or engage in transactions with, the Company and its subsidiaries or affiliates. Certain of these parties have received, and these parties may in the future receive, customary compensation from the Company and its subsidiaries or affiliates, for such services.

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Concurrent with its entry into the New Secured Credit Agreement on June 19, 2014, the Company borrowed $145.0 million under the Term Loan to complete its acquisition of Power Solutions. On ~~April~~July 25, 2014, the Company ~~entered into a Stock~~borrowed the full $70.0 million available under the DDTL and ~~Asset Purchase Agreement with ABB Ltd. (“ABB”) pursuant~~$20.0 million of the Revolver in order to ~~which~~fund the acquisition of Connectivity Solutions. During the three and nine months ended September 30, 2014, the Company ~~has agreed to acquire~~recorded deferred financing costs of $0.4 million and $5.8 million, respectively, which will be amortized over the ~~Power-One Power Solutions business from ABB for approximately $117.0~~five-year term, and incurred interest expense of $1.9 million ~~in cash. This acquisition is expected to close at the end~~and $2.1 million, respectively.

Scheduled principal payments of the ~~second quarter of~~long-term debt outstanding at September 30, 2014 ~~and will be funded through bank borrowings and cash on hand.~~are as follows (in thousands):

2014	$	2,687
2015		13,438
2016		16,125
2017		18,812
2018		24,188
Thereafter		160,063
Total long-term debt		235,313
Less: Current maturities of long-term debt		(12,094	)
Noncurrent portion of long-term debt	$	223,219

Cash Flows

During the ~~three~~nine months ended ~~March 31,~~September 30, 2014, the ~~Company’s~~Company's cash and cash equivalents ~~decreased~~increased by ~~$8.2~~$21.0 million. This resulted primarily from ~~$8.0~~$19.1 million provided by operating activities, $215.0 million of proceeds from long-term debt and $23.0 million of proceeds from borrowing under the revolver, partially offset by payments totaling $206.5 million, net of cash acquired, for the acquisitions of Power Solutions and Connectivity Solutions, $12.0 million of repayments under the revolving credit line, ~~$1.2~~$2.7 million of repayments of long-term debt, $5.4 million paid in deferred financing costs, $5.8 million paid for the purchase of property, plant and equipment and ~~$0.8~~$2.3 million for payments of ~~dividends, partially offset by $1.8 million provided by operating activities.~~dividends. As compared to the ~~three~~nine months ended ~~March 31,~~September 30, 2013, cash provided by operating activities increased by ~~$0.1 million. During the three months ended March 31, 2014,~~$13.0 million, partially due to a $5.0 million increase in depreciation and amortization and a $2.0 million increase in accounts receivable ~~decreased by $6.5 million primarily due to lower sales volume in the first quarter of~~during 2014, as compared to ~~the fourth quarter of~~a $13.0 million increase in accounts receivable during 2013. ~~Inventories decreased~~The decrease in inventory during 2014 was mostly offset by ~~$2.1 million~~a reduction in accounts payable and accrued expense balances during the ~~three~~nine months ended ~~March 31, 2014 as, among other factors, production levels during the first quarter of 2014 were lower due to the Chinese New Year holiday.~~September 30, 2014.

Cash and cash equivalents, marketable securities and accounts receivable comprised approximately ~~38.3%~~37.4% and 40.9% of the ~~Company’s~~Company's total assets at ~~March 31,~~September 30, 2014 and December 31, 2013, respectively. The ~~Company’s~~Company's current ratio (i.e., the ratio of current assets to current liabilities) was ~~4.0~~2.6 to 1 and 3.0 to 1 at ~~March 31,~~September 30, 2014 and December 31, 2013, respectively.

Contractual Obligations

The following table sets forth at December 31, 2013 the amounts of payments due under specific types of contractual obligations, aggregated by category of contractual obligation, for the time periods described below. This table excludes $2.2 million of unrecognized tax benefits as of December 31, 2013, as the Company is unable to make reasonably reliable estimates of the period of cash settlements, if any, with the respective taxing authorities.

	Payments due by period (dollars in thousands)
Contractual Obligations	Total		Less than 1 year			1-3 years		3-5 years		More than 5 years
					��
Capital expenditure obligations	$	3,014	$	3,014		$	-	$	-	$	-
Operating leases		15,305		4,522			5,630		2,654		2,499
Raw material purchase obligations		23,376		23,288			88		-		-

Total	$	41,695	$	30,824		$	5,718	$	2,654	$	2,499

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~~-21-~~

During the nine months ended September 30, 2014, in connection with the 2014 Acquisitions and the associated borrowings under the New Secured Credit Agreement, the following additional contractual obligations existed as of September 30, 2014:

	Payments due by period (dollars in thousands)
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years

Long-term debt obligations	$	235,313	$	12,094	$	33,594	$	189,625	$	-
Capital expenditure obligations		530		530		-		-		-
Operating leases		7,342		3,929		2,702		711		-
Raw material purchase obligations		19,325		19,296		29		-		-

Total	$	262,510	$	35,849	$	36,325	$	190,336	$	-

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to market risk primarily from changes in foreign currency exchange rates and ~~there~~changes in interest rates associated with its long-term debt. There have not been any material changes with regard to market risk during the ~~three~~nine months ended ~~March 31,~~September 30, 2014. Refer to Item 7A, ~~“Management’s~~"Management's Discussion and Analysis of Financial Condition and Results of Operations,”" in the ~~Company’s~~Company's Annual Report on Form 10-K for the year ended December 31, 2013 for further discussion of market risks.

Item 4. Controls and Procedures

Disclosure controls and procedures: As of the end of the ~~Company’s~~Company's most recently completed fiscal quarter covered by this report, the Company carried out an evaluation, with the participation of the ~~Company’s~~Company's management, including the ~~Company’s~~Company's Chief Executive Officer and Vice President of Finance, of the effectiveness of the ~~Company’s~~Company's disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15. Based on that evaluation, the ~~Company’s~~Company's Chief Executive Officer and Vice President of Finance concluded that the ~~Company’s~~Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in internal controls over financial reporting: There were no significant changes in the ~~Company’s~~Company's internal controls over financial reporting that occurred during the ~~Company’s~~Company's last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the ~~Company’s~~Company's internal control over financial reporting.

PART II. Other Information

Item 1. Legal Proceedings

The information called for by this Item is incorporated herein by reference to Note 1213 of the ~~Company’s~~Company's Financial Statements, under ~~“Legal Proceedings”~~"Legal Proceedings", as set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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~~-22-~~

Item 6. Exhibits

(a)Exhibits:

2.1*	~~Stock purchase agreement by and among Bel Fuse Inc., Power-One, Inc. and PWO Holdings B.V. dated as of April 25, 2014.~~

31.1*	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*	Certification of the principal accounting and financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**	Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**	Certification of the principal accounting and financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS***	XBRL Instance Document

101.SCH***	XBRL Taxonomy Extension Schema Document

101.CAL***	XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF***	XBRL Taxonomy Extension Definition Linkbase Document

101.LAB***	XBRL Taxonomy Extension Label Linkbase Document

101.PRE***	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

**** Submitted herewith.

***** XBRL (Extensible Business Reporting Language) information is furnished and not filed herewith, is not a part of a registration statement or Prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

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~~-23-~~

~~SIGNATURES~~

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BEL FUSE INC.
~~May 12,~~November 10, 2014
By:	/s/ Daniel Bernstein
	Daniel Bernstein
	President and Chief Executive Officer

By:	/s/ Colin Dunn
	Colin Dunn
	Vice President of Finance and Secretary
	(Principal Financial Officer and Principal Accounting Officer)

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~~-24-~~

~~EXHIBIT INDEX~~

~~Exhibit 2.1* - Stock purchase agreement by and among Bel Fuse Inc., Power-One, Inc. and PWO Holdings B.V. dated as of April 25, 2014.~~

EXHIBIT INDEX

Exhibit 31.1* - Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 31.2* - Certification of the principal accounting and financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1** - Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2** - Certification of the principal accounting and financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 101.INS*** – XBRL Instance Document

Exhibit 101.SCH*** – XBRL Taxonomy Extension Schema Document

Exhibit 101.CAL*** – XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit 101.DEF*** – XBRL Taxonomy Extension Definition Linkbase Document

Exhibit 101.LAB*** – XBRL Taxonomy Extension Label Linkbase Document

Exhibit 101.PRE*** – XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

**** Submitted herewith.

	Three Months Ended
	March 31, 2013

Revenue	$	85,291
Net earnings		2,368
Earnings per Class A common share - basic and diluted		0.20
Earnings per Class B common share - basic and diluted		0.21