UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended ~~September 30, 2021~~March 31, 2022
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. 000-11676

BEL FUSE INC.

(Exact name of registrant as specified in its charter)

206 Van Vorst Street
Jersey City, NJ 07302
(201) 432-0463

(Address of principal executive offices and zip code)

(Registrant’s telephone number, including area code)

New Jersey		22-1463699
(State of incorporation)		(I.R.S. Employer Identification No.)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Class A Common Stock ($0.10 par value)	BELFA	Nasdaq Global Select Market
Class B Common Stock ($0.10 par value)	BELFB	Nasdaq Global Select Market

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 ☒	No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).	Yes ☒	No ☐

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

Large accelerated

filer ☐

Accelerated

filer

☒

Non-accelerated

filer ☐

Smaller reporting

company ☒

Emerging growth

company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐

No ☒

Title of Each Class

Number of Shares of Common Stock Outstanding

as of ~~November~~May 1, ~~2021~~2022

Class A Common Stock ($0.10 par value)

2,144,912

Class B Common Stock ($0.10 par value)

~~10,260,602~~10,371,602

The terms the “Company,” “Bel,” “we,” “us,” and “our” as used in this report refer to Bel Fuse Inc. and its consolidated subsidiaries unless otherwise specified.

The Company’s consolidated operating results are affected by a wide variety of factors that could materially and adversely affect revenues and profitability, including the risk factors described in Item 1A of our ~~2020~~2021 Annual Report on Form 10-K and the risk factors described in this or other Quarterly Reports on Form 10-Q filed thereafter, and from time to time in our other filings with the Securities and Exchange Commission (“SEC”). 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, consolidated financial condition, operating results, and common stock prices. Furthermore, this document and other documents filed by the Company with the SEC contain certain forward-looking statements under the Private Securities Litigation Reform Act of 1995 (“Forward-Looking Statements”) with respect to the business of the Company. Forward-Looking Statements are necessarily subject to risks and uncertainties, many of which are outside our control, that could cause actual results to differ materially from these statements. Forward-Looking Statements can be identified by such words as “anticipates,” “believes,” “plan,” “assumes,” “could,” “should,” “estimates,” “expects,” “intends,” “potential,” “seek,” “predict,” “may,” “will” and similar references to future periods. All statements other than statements of historical facts included in this report regarding our strategies, prospects, financial condition, operations, costs, plans and objectives and regarding the anticipated impact of COVID-19 are Forward-Looking Statements. These Forward-Looking Statements are subject to certain risks and uncertainties, including those detailed in Item 1A of our ~~2020~~2021 Annual Report on Form 10-K and in the risk factors described in this or other Quarterly Reports on Form 10-Q filed thereafter, and from time to time in our other filings with the SEC, 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 hereof or to reflect the occurrence of unanticipated events. Any Forward-Looking Statement made by the Company is based only on information currently available to us and speaks only as of the date on which it is made.

	September 30,			December 31,			March 31,			December 31,
	2021			2020			2022			2021
ASSETS
Current Assets:
Cash and cash equivalents	$	61,961		$	84,939		$	51,235		$	61,756
Accounts receivable, net of allowance for doubtful accounts of $1,003 and $1,036, respectively		86,031			71,372
Accounts receivable, net of allowance for doubtful accounts of $1,347 and $1,536, respectively								93,683			87,135
Inventories		128,179			100,133			155,341			139,383
Unbilled receivables		28,093			14,135			20,556			28,275
Assets held for sale		1,626			0			1,626			1,626
Other current assets		9,655			9,637			11,649			10,841
Total current assets		315,545			280,216			334,090			329,016

Property, plant and equipment, net		35,553			34,501			37,569			38,210
Right-of-use assets		11,314			14,217			25,126			21,252
Intangible assets, net		62,698			65,789			58,878			60,995
Goodwill		25,846			23,966			26,272			26,651
Deferred income taxes		5,671			5,705			5,294			4,461
Other assets		30,956			29,472			33,052			31,261
Total assets	$	487,583		$	453,866		$	520,281		$	511,846

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	57,610		$	39,774		$	64,615		$	65,960
Accrued expenses		38,249			28,476			30,116			34,453
Current portion of long-term debt		0			5,286
Operating lease liabilities, current		5,623			6,591			7,063			6,880
Other current liabilities		4,754			7,409			7,646			4,719
Total current liabilities		106,236			87,536			109,440			112,012

Long-term Liabilities:
Long-term debt		112,500			110,294			112,500			112,500
Operating lease liabilities, long-term		5,944			8,064			18,290			14,668
Liability for uncertain tax positions		27,565			26,089			28,740			28,434
Minimum pension obligation and unfunded pension liability		25,193			24,620			24,051			23,909
Deferred income taxes		938			1,030			1,583			1,487
Other liabilities		9,005			10,434			10,321			10,093
Total liabilities		287,381			268,067			304,925			303,103

Commitments and contingencies (see Note 13)
Commitments and contingencies (see Note 14)

Stockholders' Equity:
Preferred stock, no par value, 1,000,000 shares authorized; none issued		0			0			0			0
Class A common stock, par value $.10 per share, 10,000,000 shares authorized; 2,144,912 shares outstanding at each date (net of 1,072,769 treasury shares)		214			214
Class B common stock, par value $.10 per share, 30,000,000 shares authorized; 10,263,102 and 10,208,602 shares outstanding at September 30, 2021 and December 31, 2020, respectively (net of 3,218,307 treasury shares)		1,026			1,021
Class A common stock, par value $.10 per share, 10,000,000 shares authorized; 2,144,912 shares outstanding at each date (net of 1,072,769 treasury shares)								214			214
Class B common stock, par value $.10 per share, 30,000,000 shares authorized; 10,372,602 and 10,377,102 shares outstanding at March 31, 2022 and December 31, 2021, respectively (net of 3,218,307 treasury shares)								1,037			1,038
Additional paid-in capital		37,883			36,136			38,996			38,419
Retained earnings		180,769			166,491			192,143			187,935
Accumulated other comprehensive loss		(19,690	)		(18,063	)		(17,034	)		(18,863	)
Total stockholders' equity		200,202			185,799			215,356			208,743
Total liabilities and stockholders' equity	$	487,583		$	453,866		$	520,281		$	511,846

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Net earnings available to common stockholders
$ 5,734 $ 7,475 $ 16,813 $ 9,244

Other comprehensive (loss) income:

Currency translation adjustment, net of taxes of ($12), $17, ($336) and ($14), respectively
(1,982 ) 3,588 (1,971 ) 2,020
Unrealized gains (losses) on marketable securities arising during the period, net of taxes of $0 in all periods presented
46 0 45 (1 )
Change in unfunded SERP liability, net of taxes of ($28), ($20), ($83) and ($59), respectively
100 66 299 198
Other comprehensive (loss) income
(1,836 ) 3,654 (1,627 ) 2,217

Comprehensive income
$ 3,898 $ 11,129 $ 15,186 $ 11,461

	Three Months Ended
	March 31,					��
	2022			2021

Net earnings available to common stockholders	$	5,064		$	3,199

Other comprehensive income (loss):
Currency translation adjustment, net of taxes of ($12) and $9, respectively		(1,216	)		(2,529	)
Unrealized gains (losses) on interest rate swap cash flow hedge, net of taxes of $0 in all periods presented		2,984			(1	)
Change in unfunded SERP liability, net of taxes of ($17) and ($28), respectively		61			99
Other comprehensive income (loss)		1,829			(2,431	)

Comprehensive income	$	6,893		$	768

							Accumulated																	Accumulated
							Other			Class A		Class B			Additional									Other			Class A		Class B			Additional
				Retained			Comprehensive			Common		Common			Paid-In						Retained			Comprehensive			Common		Common			Paid-In
	Total			Earnings			(Loss) Income			Stock		Stock			Capital			Total			Earnings			(Loss) Income			Stock		Stock			Capital

Balance at December 31, 2020	$	185,799		$	166,491		$	(18,063	)	$	214	$	1,021		$	36,136
Balance at December 31, 2021																		$	208,743		$	187,935		$	(18,863	)	$	214	$	1,038		$	38,419
Net earnings		3,199			3,199			0			0		0			0			5,064			5,064			0			0		0			0
Dividends declared:
Class A Common Stock, $0.06/share		(128	)		(128	)		0			0		0			0
Class B Common Stock, $0.07/share		(716	)		(716	)		0			0		0			0
Class A Common Stock, $0.06/share																			(129	)		(129	)		0			0		0			0
Class B Common Stock, $0.07/share																			(727	)		(727	)		0			0		0			0
Forfeiture of restricted common stock		0			0			0			0		(1	)		1			0			0			0			0		(1	)		1
Foreign currency translation adjustment, net of taxes of $9		(2,529	)		0			(2,529	)		0		0			0
Unrealized holding losses on marketable securities		(1	)		0			(1	)		0		0			0
Foreign currency translation adjustment, net of taxes of ($12)																			(1,216	)		0			(1,216	)		0		0			0
Unrealized gains on interest rate swap cash flow hedge																			2,984			0			2,984			0		0			0
Stock-based compensation expense		600			0			0			0		0			600			576			0			0			0		0			576
Change in unfunded SERP liability, net of taxes of ($28)		99			0			99			0		0			0
Balance at March 31, 2021		186,323			168,846			(20,494	)		214		1,020			36,737
Change in unfunded SERP liability, net of taxes of ($17)																			61			0			61			0		0			0
Balance at March 31, 2022																		$	215,356		$	192,143		$	(17,034	)	$	214	$	1,037		$	38,996

Net earnings		7,880			7,880			0			0		0			0
Dividends declared:
Class A Common Stock, $0.06/share		(129	)		(129	)		0			0		0			0
Class B Common Stock, $0.07/share		(714	)		(714	)		0			0		0			0
Issuance of restricted common stock		0			0			0			0		8			(8	)
Forfeiture of restricted common stock		0			0			0			0		(1	)		1
Foreign currency translation adjustment, net of taxes of ($333)		2,540			0			2,540			0		0			0
Stock-based compensation expense		598			0			0			0		0			598
Change in unfunded SERP liability, net of taxes of ($28)		100			0			100			0		0			0
Balance at June 30, 2021		196,598			175,883			(17,854	)		214		1,027			37,328

Net earnings		5,734			5,734			0			0		0			0
Dividends declared:
Class A Common Stock, $0.06/share		(129	)		(129	)		0			0		0			0
Class B Common Stock, $0.07/share		(719	)		(719	)		0			0		0			0
Forfeiture of restricted common stock		0			0			0			0		(1	)		1
Repurchase of Class A common stock		0			0			0			0		0			0
Foreign currency translation adjustment, net of taxes of ($12)		(1,982	)		0			(1,982	)		0		0			0
Unrealized holding losses on marketable securities		46			0			46			0		0			0
Stock-based compensation expense		554			0			0			0		0			554
Change in unfunded SERP liability, net of taxes of ($28)		100			0			100			0		0			0
Balance at September 30, 2021	$	200,202		$	180,769		$	(19,690	)	$	214	$	1,026		$	37,883

							Accumulated																	Accumulated
							Other			Class A		Class B			Additional									Other			Class A		Class B			Additional
				Retained			Comprehensive			Common		Common			Paid-In						Retained			Comprehensive			Common		Common			Paid-In
	Total			Earnings			(Loss) Income			Stock		Stock			Capital			Total			Earnings			(Loss) Income			Stock		Stock			Capital

Balance at December 31, 2019	$	168,051		$	157,063		$	(24,065	)	$	214	$	1,013		$	33,826
Net loss		(3,804	)		(3,804	)		0			0		0			0
Dividends declared:
Class A Common Stock, $0.06/share		(130	)		(130	)		0			0		0			0
Class B Common Stock, $0.07/share		(709	)		(709	)		0			0		0			0
Forfeiture of restricted common stock		0			0			0			0		(1	)		1
Foreign currency translation adjustment, net of taxes of ($27)		(2,245	)		0			(2,245	)		0		0			0
Stock-based compensation expense		603			0			0			0		0			603
Change in unfunded SERP liability, net of taxes of ($20)		66			0			66			0		0			0
Balance at March 31, 2020		161,832			152,420			(26,244	)		214		1,012			34,430

Balance at December 31, 2020																		$	185,799		$	166,491		$	(18,063	)	$	214	$	1,021		$	36,136
Net earnings		5,573			5,573			0			0		0			0			3,199			3,199			0			0		0			0
Dividends declared:
Class A Common Stock, $0.06/share		(129	)		(129	)		0			0		0			0
Class B Common Stock, $0.07/share		(707	)		(707	)		0			0		0			0
Class A Common Stock, $0.06/share																			(128	)		(128	)		0			0		0			0
Class B Common Stock, $0.07/share																			(716	)		(716	)		0			0		0			0
Forfeiture of restricted common stock		0			0			0			0		11			(11	)		0			0			0			0		(1	)		1
Foreign currency translation adjustment, net of taxes of ($3)		676			0			676			0		0			0
Foreign currency translation adjustment, net of taxes of $9																			(2,529	)		0			(2,529	)		0		0			0
Unrealized holding losses on marketable securities																			(1	)		0			(1	)		0		0			0
Stock-based compensation expense		617			0			0			0		0			617			600			0			0			0		0			600
Change in unfunded SERP liability, net of taxes of ($20)		66			0			66			0		0			0
Balance at June 30, 2020		167,928			157,157			(25,502	)		214		1,023			35,036

Net earnings		7,475			7,475			0			0		0			0
Dividends declared:
Class A Common Stock, $0.06/share		(129	)		(129	)		0			0		0			0
Class B Common Stock, $0.07/share		(717	)		(717	)		0			0		0			0
Forfeiture of restricted common stock		0			0			0			0		(1	)		1
Foreign currency translation adjustment, net of taxes of $17		3,588			0			3,588			0		0			0
Stock-based compensation expense		560			0			0			0		0			560
Change in unfunded SERP liability, net of taxes of ($20)		66			0			66			0		0			0
Balance at September 30, 2020	$	178,771		$	163,786		$	(21,848	)	$	214	$	1,022		$	35,597
Change in unfunded SERP liability, net of taxes of ($28)																			99			0			99			0		0			0
Balance at March 31, 2021																		$	186,323		$	168,846		$	(20,494	)	$	214	$	1,020		$	36,737

	Nine Months Ended						Three Months Ended
	September 30,						March 31,
	2021			2020			2022			2021

Cash flows from operating activities:
Net earnings	$	16,813		$	9,244		$	5,064		$	3,199
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization		12,514			12,322			4,301			4,145
Stock-based compensation		1,752			1,780			576			600
Amortization of deferred financing costs		1,267			485			34			165
Deferred income taxes		(124	)		(1,821	)		(451	)		48
Net unrealized (gains) losses on foreign currency revaluation		(373	)		1,066
Net unrealized gains on foreign currency revaluation								(289	)		(361	)
Gains on sale of property		(6,578	)		(32	)		0			(6,175	)
Other, net		1,355			735			131			(941	)
Changes in operating assets and liabilities:
Accounts receivable, net		(11,893	)		6,517			(6,694	)		174
Unbilled receivables		(13,958	)		(3,065	)		7,719			1,267
Inventories		(22,831	)		4,419			(16,344	)		(1,293	)
Accounts payable		15,800			(4,597	)		(1,194	)		804
Accrued expenses		9,066			3,694			(3,564	)		(263	)
Other operating assets/liabilities, net		(4,524	)		4,022			2,963			397
Net cash (used in) provided by operating activities		(1,714	)		34,769			(7,748	)		1,766

Cash flows from investing activities:
Purchases of property, plant and equipment		(4,154	)		(4,501	)		(2,040	)		(1,203	)
Payments for acquisitions, net of cash acquired		(16,811	)		0			0			(14,759	)
Proceeds from disposal/sale of property, plant and equipment		7,249			54
Proceeds from sale of property, plant and equipment								87			6,724
Net cash used in investing activities		(13,716	)		(4,447	)		(1,953	)		(9,238	)

Cash flows from financing activities:
Dividends paid to common stockholders		(2,447	)		(2,422	)		(823	)		(815	)
Deferred financing costs		(675	)		(600	)
Borrowings under revolving credit line		115,000			0
Repayments of revolving credit line		(14,500	)		(10,000	)
Repayments of long-term debt		(104,846	)		(8,179	)		0			(1,487	)
Net cash used in financing activities		(7,468	)		(21,201	)		(823	)		(2,302	)

Effect of exchange rate changes on cash and cash equivalents		(80	)		(281	)		3			(1,125	)

Net (decrease) increase in cash and cash equivalents		(22,978	)		8,840
Net decrease in cash and cash equivalents								(10,521	)		(10,899	)
Cash and cash equivalents - beginning of period		84,939			72,289			61,756			84,939
Cash and cash equivalents - end of period	$	61,961		$	81,129		$	51,235		$	74,040


Supplementary information:
Cash paid during the period for:
Income taxes, net of refunds received	$	2,024		$	1,571		$	1,152		$	578
Interest payments	$	1,683		$	3,408		$	461		$	627

Details of acquisitions:
Fair value of identifiable net assets acquired	$	18,055		$	0		$	0		$	18,215
Goodwill		2,659			0			0			2,499
Fair value of net assets acquired	$	20,714		$	0		$	0		$	20,714

Fair value of consideration transferred		20,714			0		$	0		$	20,714
Less: Cash acquired in acquisitions		(3,903	)		0			0			(4,677	)
Less: Deferred consideration								0			(1,278	)
Cash paid for acquisitions, net of cash acquired	$	16,811		$	0		$	0		$	14,759

The condensed consolidated balance sheets and statements of operations, comprehensive income, stockholders’ equity and cash flows for the periods presented herein have been prepared by the Company and are unaudited. In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations and cash flows for all periods presented have been made. The results for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 are not necessarily indicative of the results to be expected for the full year. These condensed consolidated 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 fiscal year ended December 31, ~~2020~~2021.

Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted from these condensed consolidated financial statements pursuant to the rules and regulations, including the interim reporting requirements, of the U.S. Securities and Exchange Commission (“SEC”). The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates.

The Company’s significant accounting policies are summarized in Note 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020~~2021. There were no significant changes to these accounting policies during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022, except as discussed in “Recently Adopted Accounting Standards” below.

~~Reclassifications~~ ~~- During the~~ ~~fourth~~ ~~quarter of~~ ~~2020,~~ the Company changed its financial statement presentation related to gain/loss on its Supplemental Executive Retirement Plan ("SERP") investments. These gains/losses were previously included within cost of sales and selling, general and administrative expense. A gain on SERP investment in the amount of $0.7 million has been reclassified from cost of sales ($0.2 million) and selling, general and administrative expenses ($0.5 million), to other (expense) income, net on the accompanying condensed consolidated statement of operations for the ~~three~~ ~~months ended~~ ~~September 30, 2020.~~ A gain on SERP investment in the amount of $0.2 million has been reclassified from cost of sales ($0.1 million) and selling, general and administrative expense ($0.1 million), to other (expense) income, net on the accompanying condensed consolidated statement of operations for the ~~nine~~ ~~months ended~~ ~~September 30, 2020.~~

All amounts included in the tables to these notes to condensed consolidated financial statements, except per share amounts, are in thousands.

In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). This guidance removes certain disclosures that are not considered cost beneficial, clarifies certain required disclosures and adds additional disclosures. The Company adopted amendments in ASU 2018-14 on a retrospective basis effective January 1, 2021. The adoption of this guidance ~~will modify~~modified the Company's annual disclosures for its defined benefit plan, but did not have any impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"), which modifies ASC 740 to reduce complexity while maintaining or improving the usefulness of the information provided to users of financial statements. This guidance was adopted by the Company effective January 1, 2021 and did not have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU~~No.~~ 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), as amended. The new guidance will broaden the information that an entity must consider in developing its expected credit loss estimates related to its financial instruments and adds to U.S. GAAP an impairment model that is based on expected losses rather than incurred losses. The amendment is currently effective for the Company for annual reporting periods beginning after December 15, 2022, with early adoption permitted. Management is currently assessing the impact of ASU 2016-13, but it is not expected to have a material impact on the Company’s consolidated financial statements.

In March 2020, the FASB issued ASU~~No.~~ 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). ASU 2020-04 provides temporary optional guidance on contract modifications and hedging accounting to ease the financial reporting burdens of the expected market transition from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In January 2021, the FASB issued ASU 2021-01, which refines the scope of Topic 848 and clarifies some of its guidance as part of the FASB’s monitoring of global reference rate activities. The new guidance was effective upon issuance, and the Company is allowed to elect to apply the amendments prospectively through December 31, 2022. Management is currently evaluating the impact of this accounting standard update on the Company's consolidated financial statements and related disclosures.

On January 8, 2021, the Company acquired rms Connectors, Inc. (“rms Connectors” or "rms"), from rms Company Inc., a division of Cretex Companies, Inc., for $9.0 million in cash, including a working capital adjustment. rms Connectors is a highly regarded connector manufacturer with over 30 years of experience producing harsh environment circular connectors used in a variety of military and aerospace applications. This acquisition ~~complements~~complemented Bel's existing military and aerospace product portfolio and ~~we anticipate will allow~~enabled us to expand key customer relationships within these end markets and leverage the combined manufacturing resources to improve our operational efficiency. Originally based in Coon Rapids, Minnesota, the rms Connectors business was relocated into Bel's existing facilities during the second quarter of 2021, and is ~~a component~~part of Bel's Connectivity Solutions group. The transaction was funded with cash on hand.

On March 31, 2021, the Company completed the acquisition of EOS Power ("EOS") through a stock purchase agreement for $7.8 million, net of cash acquired, including a working capital adjustment. EOS, located in Mumbai, India, had sales of $12.0 million for the year ended December 31, 2020. EOS ~~is expected~~enhances Bel's position related to ~~play a key role in Bel’s penetration of~~ certain industrial and medical markets ~~currently being~~historically served by EOS, with a strong line of high-power density and low-profile products with high convection ratings. In addition to new products and customers acquired, this acquisition ~~has~~ diversified Bel's manufacturing footprint in Asia. The EOS business is ~~a component~~part of Bel’s Power Solutions and Protection group. The transaction was funded with cash on hand.

The acquisitions of rms Connectors and EOS may hereafter be referred to collectively as either the "2021 Acquisitions" or the "2021 Acquired Companies". As of the respective acquisition dates, all of the assets acquired and liabilities assumed were recorded at their ~~preliminary~~ fair values and the Company's condensed consolidated results of operations for the ~~nine~~three months ended ~~September 30,~~March 31, 2021 include the operating results of the 2021 Acquired Companies from their respective acquisition dates through ~~September~~March 31, 2021. ~~30,~~~~2021.~~During the ~~nine~~three months ended ~~September 30,~~March 31, 2021, the Company incurred ~~$0.5~~$0.2 million of acquisition-related costs related to the 2021 Acquisitions. ~~NaN~~No acquisition-related costs were incurred during the ~~third~~first quarter of ~~2021.~~2022. These costs are included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

~~While the final accounting related to the~~ ~~2021~~ ~~Acquisitions is~~ ~~not~~ ~~complete as of the filing date of this Quarterly Report on Form~~ 10~~-Q, the following table depicts the Company's preliminary acquisition date fair values of the consideration transferred and identifiable net assets acquired in these transactions:~~

~~Measurement period adjustments recorded during the~~ ~~second~~ ~~quarter of~~ ~~2021~~ ~~on the EOS acquisition related to finalization of EOS' pre-acquisition balance sheet. During the~~ ~~third~~ ~~quarter of~~ ~~2021,~~ the Company completed its preliminary valuation of EOS whereby $2.0 million of intangible assets were identified and recorded on the condensed consolidated balance sheet as of the acquisition date. These intangible assets are comprised of customer relationships valued at $1.8 million (to be amortized over an estimated life of 16 years) and the tradename, valued at $0.2 million (to be amortized over an estimated life of 2 years). The preliminary valuations of the ~~2021~~ ~~Acquisitions are still under review and subject to change. The Company expects to finalize these valuations and complete the purchase price allocations as soon as practicable but~~ no ~~later than~~ ~~one~~ ~~year from the respective acquisition dates.~~

~~Based upon the preliminary purchase price allocation above, there is currently~~ no ~~goodwill associated with the rms acquisition. Any goodwill recognized in connection with the EOS acquisition would be allocated to the Company's Power Solutions and Protection segment and would~~ ~~not~~ ~~be deductible for tax purposes.~~

The results of operations of the 2021 Acquired Companies have been included in the Company’s condensed consolidated financial statements for the periods subsequent to their respective acquisition dates. During the three ~~and~~ ~~nine~~months ended ~~September 30,~~March 31, 2021, ~~the~~ ~~2021~~ ~~Acquired Companies~~rms Connectors contributed revenues of ~~$4.3~~$2.1 million ~~and $12.4 million, respectively,~~ and estimated net earnings of $~~0.2~~0.4 million ~~and $1.6 million, respectively,~~ to the Company since ~~their respective~~its acquisition ~~dates.~~date. As EOS was acquired on March 31, 2021, this acquisition did not have any contribution to revenue or net earnings during the first quarter of 2021. The unaudited pro forma information below presents the combined operating results of the Company and the 2021 Acquired Companies assuming that the acquisition of the 2021 Acquired Companies had occurred as of January 1, ~~2020.~~2021. 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. This unaudited pro forma information does not purport to be indicative of the results that would have actually been obtained if the 2021 Acquisitions had occurred as of January 1, ~~2020,~~2021, nor is the pro forma data intended to be a projection of results that may be achieved in the future.

The following unaudited pro forma consolidated results of operations assume that the acquisition of the 2021 Acquired Companies was completed as of January 1, ~~2020:~~2021:

The following table provides information about disaggregated revenue by geographic region and sales channel, and includes a reconciliation of the disaggregated revenue to our reportable segments:

The balances of the Company’s contract assets and contract liabilities at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are as follows:

The change in balance of our unbilled receivables from December 31, ~~2020~~2021 to ~~September 30, 2021~~March 31, 2022 primarily relates to a timing difference between the Company’s performance (i.e. when our product is shipped to a customer-controlled hub) and the point at which the Company can invoice the customer per the terms of the customer contract (i.e. when the customer pulls our product from the customer-controlled hub).

The aggregate amount of transaction price allocated to remaining performance obligations that have not been satisfied as of ~~September 30, 2021~~March 31, 2022 related to contracts that exceed one year in duration amounted to ~~$28.5~~ $61.5 million, with expected contract expiration dates that range from ~~2022~~2023 - 2025. It is expected that ~~59%~~88% of this aggregate amount will be recognized in ~~2022,~~2023, ~~32%~~ 7% will be recognized in ~~2023~~2024 and the remainder will be recognized in years beyond ~~2023.~~2024.

The following table sets forth the calculation of basic and diluted net earnings per common share under the two-class method for the three ~~and~~ ~~nine~~months ended ~~September 30, 2021~~March 31, 2022 and ~~2020~~2021:

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; and

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

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021, our available-for-sale securities primarily consisted of investments held in a rabbi trust which are intended to fund the Company’s ~~SERP~~Supplemental Executive Retirement Plan (“SERP”) obligations. These securities are measured at fair value using quoted prices in active markets for identical assets (Level 1 ~~inputs)~~) inputs and amounted to ~~$0.4~~$0.2 million at ~~September 30, 2021~~March 31, 2022 and ~~$0.7~~$0.3 million at December 31, ~~2020~~2021.

Throughout 2022 and 2021, the Company entered into a series of foreign currency forward contracts, the fair value of which was $0.1 million at March 31, 2022 and less than $0.1 million at December 31, 2021. The estimated fair value of foreign currency forward contracts is based on quotes received from the applicable counterparty, and represents the estimated amount we would receive or pay to settle the contracts, taking into consideration current exchange rates which can be validated through readily observable data from external sources (Level 2).

During the ~~first~~fourth quarter of 2021, the Company entered into ~~foreign exchange forward contracts, the~~two interest rate swap agreements as further described in Note9, "Derivative Instruments and Hedging Activities". The fair value of ~~which~~the interest rate swap agreements was ~~less than~~$2.9 million at March 31, 2022 and $0.1 million at ~~September 30,~~December 31, 2021. , which was based on data received from the counterparty, and represents the estimated amount we would receive or pay to settle the agreements, taking into consideration current and projected future interest rates as well as the creditworthiness of the parties, all of which can be validated through readily observable data from external sources.

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 ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 or ~~September 30, 2020~~March 31, 2021. There were no changes to the Company’s valuation techniques used to measure asset fair values on a recurring or nonrecurring basis during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 or ~~September 30, 2020~~March 31, 2021.

There were no0 financial assets accounted for at fair value on a nonrecurring basis as of ~~September 30, 2021~~March 31, 2022 or December 31, ~~2020~~2021.

The Company has other financial instruments, such as cash and cash equivalents, accounts receivable, ~~unbilled receivables,~~ restricted cash, accounts 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 each ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021, the estimated fair value of total debt was $112.5 million, ~~and $118.4 million, respectively,~~ compared to a carrying amount of ~~$112.0~~$112.5 million ~~and $115.6 million, respectively.~~at each date. The Company did not have any other financial liabilities within the scope of the fair value disclosure requirements as of ~~September 30, 2021~~March 31, 2022.

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 upon the occurrence of a triggering event or in the case of goodwill, on at least an annual basis. ~~The Company considered the impacts of COVID-~~19 ~~on Bel's business and on general economic conditions when making its assessment on whether a triggering event had occurred during the~~ ~~nine~~ ~~months ended~~ ~~September 30, 2021.~~ Based on the Company's assessment, it was concluded that no triggering events occurred during the ~~nine~~three months ended ~~September 30, 2021~~ March 31, 2022or ~~2020~~March 31, 2021 ~~that would warrant interim impairment testing.~~.

Depreciation expense was ~~$2.3~~$2.4 million for each of the three month periods ended ~~September 30, 2021~~March 31, 2022 and ~~2020~~ ~~and $7.2 million and $7.0 million, respectively, for the~~ ~~nine~~ ~~months ended~~ ~~September 30,~~ 2021 ~~and~~ ~~2020.~~. Depreciation expense related to our manufacturing facilities and equipment is included in cost of sales and depreciation expense associated with administrative facilities and office equipment is included in selling, general and administrative expense within the accompanying condensed consolidated statements of operations.

At ~~September 30, 2021,~~ March 31, 2022, a total of $1.6 million of property was classified as assets held for sale on the accompanying condensed consolidated balance sheet related to our corporate headquarters in Jersey City, New Jersey.

The change in warranty accrual during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 primarily related to repair costs incurred and adjustments to pre-existing warranties. There were no new material warranty charges incurred during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022.

Included within other accrued expenses in the table above are costs accrued related to the Company’s restructuring activities. Activity and liability balances related to restructuring costs for the ~~nine~~ ~~months ended~~ ~~September 30, 2021~~ ~~are as follows:~~

Our primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk, when deemed appropriate. We enter into these contracts in the normal course of business to mitigate risks and not for speculative purposes.

Under our risk management strategy, we periodically use foreign currency forward contracts to manage our short-term exposures to fluctuations in operational cash flows resulting from changes in foreign currency exchange rates. These cash flow exposures result from portions of our forecasted operating expenses, primarily compensation and related expenses, which are transacted in currencies other than the U.S. dollar, most notably the Chinese Renminbi and the Mexican Peso. These foreign currency forward contracts generally have maturities of no longer than twelve months, although occasionally we will execute a contract that extends beyond twelve months, depending upon the nature of the underlying risk.

We held outstanding foreign currency forward contracts with notional amounts of $17.3 million and $17.1 million as of March 31, 2022 and December 31, 2021, respectively.

To partially mitigate risks associated with the variable interest rates on the revolver borrowings under the credit agreement (further described in Note 10, "Debt"), in December 2021, we executed a pay-fixed, receive-variable interest rate swap agreement with each of two multinational financial institutions under which we (i) pay interest at a fixed rate of 1.3055% and receive variable interest of one-month LIBOR on a notional amount of $30.0 million and (ii) pay interest at a fixed rate of 1.3180% and receive variable interest of one-month LIBOR on a notional amount of $30.0 million (the “2021 Swaps”). The effective date of the 2021 Swaps was December 31, 2021, and settlements with the counterparties began on January 31, 2022 and occur on a monthly basis. The 2021 Swaps will terminate on August 31, 2026.

The 2021 Swaps are designated as cash flow hedges for accounting purposes and as such, changes in their fair value are recognized in accumulated other comprehensive loss in the condensed consolidated balance sheets and are reclassified into the condensed consolidated statements of operations within interest expense in the period in which the hedged transaction affects earnings.

The fair values of our derivative financial instruments and their classifications in our condensed consolidated balance sheets as of March 31, 2022 and December 31,2021 were as follows:

The effects of derivative financial instruments designated as cash flow hedges on accumulated other comprehensive loss (“AOCL”) and on the condensed consolidated statements of operations for the three months ended March 31, 2022 and March 31, 2021 were as follows:

The gain related to the foreign currency forward contracts is included as a component of currency translation adjustment on the accompanying condensed consolidated statements of comprehensive income at March 31, 2022 and December 31, 2021. The unrealized gains (losses) related to the interest rate swap agreements on the accompanying condensed consolidated statements of comprehensive income at March 31, 2022 and December 31, 2021 includes an immaterial amount of unrealized gain (loss) on marketable securities as of each date. There were no net gains (losses) reclassified from AOCL to the consolidated statements of operations during the three months ended March 31, 2021.

Gains recognized on derivative financial instruments not designated as hedging instruments in our condensed consolidated statements of operations for the three months ended March 31, 2022 and March 31, 2021 were as follows:

At ~~December 31, 2020,~~ ~~the~~The Company ~~had~~has a Credit and Security Agreement with KeyBank National Association ~~and the other lenders party thereto dated as of~~ ~~June 19, 2014~~ ~~and amended and restated as of~~ ~~June 30, 2014 (~~as(as amended, the ~~"Prior Credit Agreement"~~"credit agreement" or the ~~"Prior CSA"~~"CSA"). The ~~Prior~~ CSA ~~consisted of a term loan, with outstanding borrowings of $104.8 million, and a $75 million revolving credit facility, with~~ ~~$12.0~~ ~~million in outstanding borrowings at~~ ~~December 31, 2020.~~ ~~The carrying value of the debt on the condensed consolidated balance sheet at~~ ~~December 31, 2020~~ ~~is reflected net of $1.3 million of deferred financing costs.~~

On ~~September 2, 2021,~~ the Company entered into an Amended and Restated Credit and Security Agreement (the “New Credit Agreement”), by and among the Company, as the borrower, KeyBank National Association (“KeyBank”), as administrative agent, swing line lender and issuing lender, and the other lenders identified therein. The New Credit Agreement amends, restates and supersedes Bel’s Prior Credit Agreement. The New Credit Agreement provides ~~Bel with~~ a $175 million 5-year senior secured revolving credit facility ~~(the “New Revolver”~~("Revolver"), with a sublimit of up to $10 million available for letters of credit and a sublimit of up to $5 million available for swing line loans. The ~~New Revolver replaces and refinances the $75~~Company had $112.5 million ~~revolving credit facility and the $125 million term loan facility that had existed under the Prior Credit Agreement.~~

Concurrent with its entry into the New Credit Agreement, the Company borrowed $115 million under the New Revolver facility, of which approximately $101.9 million and $12.0 million, respectively, was applied to discharge and satisfy in ~~full the remaining obligations~~ outstanding ~~under the former term loan and the previous revolving credit facility that had existed under the Prior Credit Agreement.~~

Under the terms of the New Credit Agreement, the Company is entitled, subject to the satisfaction of certain conditions, to request additional commitments under the New Revolver or the addition of a term loan facility in the aggregate principal amount of up to $100 million for all such increases (revolver and term) to the extent that existing or new lenders agree to provide such additional commitments and/or term loans. In addition to requesting loans denominated in U.S. dollars, the New Credit Agreement provides that up to a U.S. Dollar equivalent principal amount of $15 million of the New Revolver ~~may~~ ~~be borrowed by Bel in alternate foreign currencies including Euros, Pounds Sterling, Japanese Yen and such other currency as requested by Bel and consented to by KeyBank and each lender.~~

In connection with the effectiveness of the New Credit Agreement, the Company and certain of the Company’s material U.S. subsidiaries (together with the Company, the “Loan Parties”) provided to the administrative agent, for the benefit of the lenders, confirmation of the continuing use and effectiveness of each guaranty of payment and each security document executed and delivered by the Loan Parties in connection with the Prior Credit Agreement. As a result, consistent with the Prior Credit Agreement, the obligations of the Company under the New Credit Agreement are guaranteed by the Loan Parties’ material U.S. subsidiaries, and 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 Credit Agreement will bear interest, generally payable quarterly,~~Revolver at ~~a rate equal to, at the Company's option, either (~~1~~) LIBOR, plus a margin ranging from 1.125% per annum to 2.125% per annum depending on the Company’s leverage ratio, or (~~2~~)(a) an alternate “Base Rate,” which is the highest~~each of ~~(i) KeyBank’s prime rate, (ii) the federal funds rate plus 0.50%~~March 31, 2022 and ~~(iii) the LIBOR rate with a maturity of~~ ~~one~~December 31, 2021 month plus 1%, plus (b) a margin ranging from 0.125% per annum to 1.125% per annum, depending on the Company’s leverage ratio. Additionally, the New Credit agreement contains standard provisions and procedures for transition to a benchmark other than the Eurodollar Rate to determine the applicable interest rate (including reference to the secured overnight financing rate (SOFR) published by the Federal Reserve Bank of New York), with provisions applying that alternate benchmark where applicable following the replacement of LIBOR. Pursuant to the terms of the New Credit Agreement, the Company has agreed to pay to KeyBank, as administrative agent for the ratable account of the revolving lenders in consideration for their commitments in respect of the New Revolver, a commitment fee due quarterly in arrears and calculated based on the average unused amount of the facility (exclusive of swing line exposure), at a rate ranging from 0.2% per annum to 0.3% per annum, depending on the Company’s leverage ratio.

. Revolving loans borrowed under the ~~New Credit Agreement~~CSA mature onof September 1, ~~2026,~~2026. ~~and the commitments with respect to the New Revolver will automatically terminate on such date.~~

The ~~New Credit Agreement~~weighted-average interest rate in effect for the variable-rate portion of our outstanding borrowings ($52.5 million at each date) was 1.96% at March 31, 2022 and 1.60% at December 31, 2021 and consisted of LIBOR plus the Company’s credit spread, as determined per the terms of the CSA. In order to manage our interest rate exposure on the remaining borrowings, and as further described in Note 9, "Derivative Instruments and Hedging Activities", the Company is party to the 2021 Swaps, each with an aggregate notional amount of $30 million, or $60 million in the aggregate, the effect of which is to fix the LIBOR portion of the interest rate on a portion of our outstanding debt on our Revolver. The 2021 Swaps require the Company to pay interest on the notional amount at the rate of 1.3055% and 1.3180%, respectively, in exchange for the one-month LIBOR rate. The effective rate of interest for our outstanding borrowings, including the impact of the 2021 Swaps, was 2.41% during the first quarter of 2022. In connection with interest due on its outstanding borrowings under the CSA during each period, the effects of the 2021 Swaps and amortization of deferred financing costs, the Company incurred $0.7 million and $0.8 million of interest expense during the three months ended March 31, 2022 and March 31, 2021, respectively.

The CSA contains customary representations and warranties, covenants and events of default. In addition, the ~~New Credit Agreement~~CSA contains financial covenants that measure (i) the ratio of the Company’s total funded indebtedness, on a consolidated basis, less the aggregate amount of all unencumbered cash and cash equivalents, to the amount of the Company’s consolidated EBITDA (“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 Credit Agreement~~CSA 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, 2021~~March 31, 2022, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Leverage Ratio.

~~The weighted-average interest rate in effect was 1.58% at~~ ~~September 30, 2021~~ ~~and 2.19% at~~ ~~December 31, 2020~~ ~~and consisted of LIBOR plus the Company’s credit spread, as determined per the terms of the CSA. The Company incurred $1.5 million and $1.2 million of interest expense during the~~ ~~three~~ ~~months ended~~ ~~September 30, 2021~~ ~~and~~ ~~September 30, 2020~~~~, respectively, and $3.0 million and $3.8 million of interest expense during the~~ ~~nine~~ ~~months ended~~ ~~September 30, 2021~~ ~~and~~ ~~September 30, 2020,~~ ~~respectively. The interest expense for the~~ ~~three~~ ~~months ended~~ ~~September 30, 2021~~ included the remaining $0.8 million of deferred financing costs associated with the extinguishment of debt under the Prior Credit Agreement. The Company recorded $0.7 million of deferred financing costs associated with the New Credit Agreement, which are included in other current assets and other assets on the accompanying condensed consolidated balance sheet at ~~September 30, 2021~~ ~~and will be amortized to interest expense over the~~ ~~five~~ ~~year term of the New Credit Agreement.~~

The Company's estimated taxable income in future periods is not on a legal entity basis and therefore income tax expense for the interim period is not measured using the annual effective tax rate ("AETR") method. The Company is working on developing reliable estimates for future periods. 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 ~~2017~~2018 and for state examinations before ~~2014.~~2015. Regarding foreign subsidiaries, the Company is no longer subject to examination by tax authorities for years before ~~2010~~2011 in Asia and generally ~~2012~~2013 in Europe.

As a result of the expiration of the statutes 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 ~~condensed~~ consolidated financial statements at ~~September 30, 2021.~~March 31, 2022. The Company’s liabilities for uncertain tax positions totaled ~~$27.6~~$28.7 million and ~~$28.5~~$28.4 million at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, of which ~~$2.4~~$4.1 million ~~is included in other current liabilities at~~ ~~December 31, 2020~~ ~~and was~~are expected to be resolved during ~~2021~~2022 by way of expiration of the related ~~statutes~~statute of limitations. These amounts, if recognized, would reduce the Company’s effective tax rate.

The Company’s policy is to recognize interest and penalties related to uncertain tax positions as a component of the current provision for income taxes. During the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 and ~~2020,~~2021, the Company recognized ~~$0.5~~$0.2 million ~~and $0.4 million, respectively,~~ in interest and penalties in the condensed consolidated statements of operations during each period. The Company has approximately ~~$4.7~~$5.2 million and ~~$5.2~~$5.0 million, respectively, accrued for the payment of interest and penalties at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, which is included in ~~both income taxes payable and~~ liability for uncertain tax positions in the condensed consolidated balance sheets.

The Company maintains the Bel Fuse Inc. Employees’ Savings Plan, a defined contribution plan that is intended to meet the applicable requirements for tax-qualification under sections 401(a) and (k) of the Internal Revenue Code of 1986, as amended. The expense for the three months ended ~~September 30, 2021~~March 31, 2022 and ~~2020~~2021 amounted to $0.4 million and $0.3 ~~million in both periods. The expense for the~~ ~~nine~~ ~~months ended~~ ~~September 30, 2021~~ ~~and~~ ~~2020~~ ~~amounted to $0.9 million and $0.8~~ million, respectively. The Company’s matching contribution is made in the form of Bel Fuse Inc. Class A common stock. As of ~~September 30, 2021~~March 31, 2022, the plan owned ~~292,569~~321,707 and ~~103,511~~ 99,858 shares of Bel Fuse Inc. Class A and Class B common stock, respectively.

The Company also maintains a Nonqualified Deferred Compensation Plan (the "DCP"). With certain exception, the Company's contributions to the DCP are discretionary and become fully vested by the participants upon reaching age 65. The expense for the three months ended March 31,2022 and 2021 amounted less than $0.1 million during each period. As the plan is fully funded, the assets and liabilities related to the DCP were in equal amounts of $0.7 million at March 31, 2022 and $0.8 million at December 31, 2021. These amounts are included in other assets and other liabilities, respectively, on the accompanying condensed consolidated balance sheets as of each date.

The Company's subsidiaries in Asia have a retirement fund covering substantially all of their Hong Kong based full-time employees. The expense for the three months ended ~~September 30, 2021~~March 31, 2022 and ~~2020~~2021 amounted to ~~$0.6~~ $0.8 million and $0.1 million, ~~respectively, and the expense for the~~ ~~nine~~ ~~months ended~~ ~~September 30, 2021~~ ~~and~~ ~~2020~~ ~~amounted to $1.9 million and~~ ~~$0.2~~ m~~illion,~~ respectively. As of ~~September 30, 2021~~March 31, 2022, the plan owned 3,323 and 17,342 shares of Bel Fuse Inc. Class A and Class B common stock, respectively.

The Company maintains a SERP, which is designed to provide a limited group of key management and other key employees of the Company with supplemental retirement and death benefits. As discussed in Note 5 above, the Company has investments in a rabbi trust which are intended to fund the obligations of the SERP.

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

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

The components of accumulated other comprehensive loss at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 are summarized below:

Changes in accumulated other comprehensive loss by component during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 are as follows. All amounts are net of tax.

On June 23, 2021, a patent infringement lawsuit styled Bel Power Solutions, Inc. v. Monolithic Power Systems, Inc., Case Number 6:21cv00655, was filed in the United States District Court for the Western District of Texas (Waco Division) by Bel Power Solutions, Inc. against Monolithic Power Systems, Inc. ("MPS") for infringement of various patents directed towards systems, methods and articles of manufacture that provide a substantial improvement in power control for circuits, including novel and unique point-of-load regulators. ~~A parallel Complaint asserting~~MPS filed a Motion to Dismiss and a Motion to Transfer Venue to the ~~same patents against Monolithic Power Systems, Inc. was also filed~~Northern District of California in September 2021. On May 5, 2022, the Western District of Texas court denied MPS’s motion to dismiss and its efforts to challenge venue. As such, the suit shall remain and continue in the ~~United States District Court for the~~Western District of ~~Delaware in order to safeguard against potential venue challenges.~~Texas. The Company has made a demand for a jury ~~trial in both Complaints.~~trial.

In connection with the Company's 2014 acquisition of the Power-One Power Solutions business ("Power Solutions") of ABB Ltd., 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. An appeal was filed on July 18, 2015 before the Regional Tax Commission of Florence and rejected. On December 5, 2016, the Arezzo Revenue Agency filed an appeal with the Supreme Court and BPS China filed a counter-appeal on January 4, 2017. The Supreme Court has yet to render its judgment. The estimated liability related to this matter is approximately $12.0 million and has been included as a liability for uncertain tax positions on the accompanying condensed consolidated balance sheets. As Bel is fully indemnified in this matter per the terms of the stock purchase agreement with ABB, a corresponding other asset for indemnification is also included in other assets on the accompanying condensed consolidated balance sheets at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021.

The Company is not a party to any other legal proceeding, the adverse outcome of which is likely to have a material adverse effect on the Company's consolidated financial condition or results of operations.

The Company operates in 1 industry with 3 reportable operating segments, which represent the Company's 3 product groups and a corporate segment. The segments consist of ~~Cinch~~ Connectivity Solutions, Power Solutions and Protection, Magnetic Solutions and a Corporate segment. The primary criteria by which financial performance is evaluated and resources are allocated are revenue and gross profit. The following is a summary of key financial data:

~~In the~~ ~~second~~ ~~quarter of~~ ~~2021,~~ ~~the Board of Directors approved the Company to enter into a hedging program related to its exposure to foreign exchange fluctuations between the Chinese Renminbi (CNY) and the U.S. Dollar (USD). On~~ ~~October 26, 2021,~~ the Company entered into multiple forward contracts to hedge a portion of its CNY exposure related to intercompany product purchases. Under these foreign exchange forward contracts, the Company is committed to purchasing CNY 119,812,500 for $18.6 million. These contracts mature at various dates through ~~November 30, 2022.~~

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

The information in this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Company’s condensed consolidated financial statements and the related notes set forth in Item 1 of Part I of this Quarterly Report on Form 10-Q, our MD&A set forth in Item 7 of Part II of our ~~2020~~2021 Annual Report on Form 10-K and our consolidated financial statements and related notes set forth in Item 8 of Part II of our ~~2020~~2021 Annual Report on Form 10-K. See Part II, Item 1A, “Risk Factors,” below and “Cautionary Notice Regarding Forward-Looking Information,” above, and the information referenced therein, for a description of risks that we face and important factors that we believe could cause actual results to differ materially from those in our Forward-Looking Statements. All statements herein regarding the anticipated or likely impact of COVID-19 constitute Forward-Looking Statements. All amounts and percentages are approximate due to rounding and all dollars in the text are in millions, except per share amounts or where otherwise noted. When we cross-reference to a “Note,” we are referring to our “Notes to Condensed Consolidated Financial Statements,” unless the context indicates otherwise. All amounts noted within the tables are in thousands and amounts and percentages are approximate due to rounding.

Bel designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the ~~military, aerospace,~~ networking, telecommunications, computing, high-speed data transmission, military, commercial aerospace, transportation and ~~broadcasting~~e-Mobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets.

The Company operates through three product group segments, in addition to a Corporate segment. In the ~~nine~~three months ended ~~September 30, 2021, 40%~~March 31, 2022, 43% of the Company’s revenues were derived from Power Solutions and Protection, ~~31%~~32% from ~~Cinch~~ Connectivity Solutions and ~~29%~~25% from its Magnetic Solutions operating segment.

Our operating expenses are driven principally by the cost of labor where the factories that Bel uses are located, the cost of the materials that we use and our ability to effectively and efficiently manage overhead costs. As labor and material costs vary by product line and region, any significant shift in product mix can have an associated impact on our 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 materials, labor cost and fringes and related allocations of factory overhead. Our products are manufactured at various facilities in the U.S., Mexico, Dominican Republic, England, Czech Republic, Slovakia, India and the People’s Republic of China (PRC).

We have little visibility into the ordering habits of our customers and we can be subjected to large and unpredictable variations in demand for our products. Accordingly, we must continually recruit and train new workers to replace those lost to attrition and be able 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 any increase in demand, can add volatility to the labor costs incurred by us.

~~In 2021, the~~The Company ~~continued~~continues to be focused on the safety and well-being of its associates around the world in light of COVID-19 and the ~~emergence~~variants of ~~the Delta variant.~~COVID that followed. A significant amount of products manufactured by Bel are utilized in military, medical and networking applications, and are therefore deemed essential by many of the ~~various~~ jurisdictions in which we operate. Our management team closely monitors the situation at each of Bel's facilities and has been able to effectively respond in implementing our business continuity plans around the world. Protective measures, ~~are~~where possible, remain in place throughout our facilities, including employee screenings, physical partitions, social distancing, use of face coverings, travel and visitor restrictions and work from home policies as we continue to service our customers.facilities. The majority of our office staff ~~continues to~~now follow a hybrid work ~~remotely for part of the week to avoid a large number of associates being present in an office setting at any one time.~~schedule. The combination of protective measures at our factories coupled with remote work arrangements have enabled us to maintain operations, including financial reporting systems, internal controls over financial reporting and disclosure controls and procedures.

~~During~~On March 13, 2022, the ~~first nine months of 2020, the Company incurred indirect~~PRC government issued a notice whereby effective immediately, certain regions were temporarily shut down to perform widespread testing in response to a COVID-19 ~~related costs, including operational inefficiencies~~outbreak in those regions and ~~employee retention programs at its~~in accordance with Beijing’s "zero-tolerance" policy. Our Bel Power Solutions manufacturing ~~facilities~~facility in Shenzhen, China ~~which~~and our Magnetics TRP manufacturing facility in Changping, China were ~~offset by $0.9 million and $4.1 million of COVID-19 relief funding received from the Chinese government~~closed for approximately one week during the ~~three~~month of March 2022 while residents underwent testing. Further, certain of Bel’s customers and ~~nine months ended September 30, 2020, respectively.~~

~~All~~suppliers are also located within these regions, which caused a temporary disruption in the related supply chain. Although all of our manufacturing sites are ~~operating~~running at normal workforce levels as of the filing date of this Quarterly Report on Form ~~10-Q. Although~~10-Q, COVID-19 remains a potential supply continuity risk due to the ~~majority~~unknown nature of future outbreaks. Given the general uncertainty regarding the impact of COVID-19 on our ~~factories in North America, Europe~~manufacturing capability, on our customers and ~~Asia are currently at 90+% of their normal workforce levels,~~our suppliers, we are ~~experiencing lower productivity and efficiency rates~~unable to quantify the ultimate impact of COVID-19 on our future results at certain sites in North America and Europe (estimated at 80-90%, depending on the impacted site) due to a reduced workforce at those sites. In addition, in order to comply with social distancing requirements, certain of our factory floors are reconfigured to provide additional spacing in production lines, which has resulted in some inefficiencies related to product flow. Bel has also experienced higher freight costs for products typically shipped by air due to lower cargo capacity with the reduction in commercial air travel. While there are some delays within the supply chain in the movement of products related to border closures, to date such delays have not materially impacted our ability to operate our business or achieve our business goals. To date, we have not seen a significant reduction in demand for our products due to COVID-19, as many of our products support military, medical and networking applications, which generally have not been negatively impacted by COVID-19. However, approximately 5% of our revenue relates to products utilized in end markets that have been impacted by COVID-19, such as commercial aerospace. this time.

Beginning in the third quarter of 2021, pandemic-related issues have created additional port congestion and intermittent supplier shutdowns and delays, resulting in additional expenses to expedite delivery of critical parts. In order to better control our costs, the expediting of raw material deliveries has been generally reserved for customer-specific requests for expedited timing whereby our end customer has agreed to pay the incremental fee. Further, the majority of our product is shipped via air, and we have therefore been minimally impacted by ocean-related logistic constraints.

~~Given~~While there are some delays within the ~~general uncertainty regarding~~supply chain in the ~~impact~~movement of ~~COVID-19 on~~products related to border closures and government monitoring/treatment of goods being transported across borders, to date such delays have not materially impacted our ~~manufacturing capability and on~~ability to operate our ~~customers, we are unable to quantify the ultimate impact of COVID-19 on~~business or achieve our ~~future results at this time.~~business goals.

Based on our analysis of ASC 350 and ASC 360 during the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, we are not aware of any potential triggering events for impairment of our goodwill, indefinite-lived intangible assets or finite-lived assets. The Company will continue to assess the relevant criteria on a quarterly basis based on updated cash flow and market assumptions. Unfavorable changes in cash flow or market assumptions could result in impairment of these assets in future periods.

As our operations have continued, albeit at slightly reduced production and efficiency rates, we have not experienced a negative impact on our liquidity to date. Our balance of cash on hand continues to be strong at ~~$62.0~~$51.2 million at ~~September 30, 2021~~March 31, 2022 as compared to ~~$84.9~~$61.8 million at December 31, ~~2020, despite the utilization of $16.8 million in cash to fund acquisitions in the first quarter of~~ 2021. The Company also has availability under its current revolving credit facility; as of ~~September 30, 2021,~~March 31, 2022, the Company could borrow an additional $~~43.9~~62.5 million while still being in compliance with its debt covenants. However, any further negative impact to our financial results related to COVID-19 would have a related negative impact on our financial covenants outlined in our credit agreement, which would impact the amount available to borrow under our revolving credit facility. In order to assist with maintaining our liquidity position, the Company implemented several measures during the first quarter of 2020, including the deferral of employer social security taxes under the federal CARES Act (through December 31, 2020), restrictions on new hires, suspension of salary reviews, the near elimination of non-essential business travel and restrictions on spending related to capital expenditures. Certain of these restrictions were lifted in the second quarter of 2021. During the nine months ended September 30, 2021, travel expenses incurred by the Company were $0.2 million lower than the same period of 2020. The management team closely monitors the rapidly changing COVID situation and has developed plans which could be implemented to minimize the impact to the Company in the event the situation deteriorates.

Our statements regarding the future impact of COVID-19 represent Forward-Looking Statements. See “Cautionary Notice Regarding Forward-Looking Information.”

The Company believes that, in addition to COVID-19, the key factors affecting Bel’s results for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 and/or future results include the following:

Our strategic initiatives aimed at enhancing Bel's margins and driving continued improvement and operational excellence are showing strong results. We are also seeing the benefits of the implementation of our new pricing policies throughout the sales channels. With ~~almost $750 million in orders received in the last 12 months,~~record backlog and strong bookings going into our second quarter, we remain impacted by material shortages and the worldwide logistics situation which we estimate impacted our net sales by approximately $10 million during the third quarter of 2021. While our margins were pressured given the increase in input costs, including labor and materials, we remain optimisticpositive about the ~~future given~~balance of the ~~various internal initiatives we have in progress.~~year. The preceding sentences represent Forward-Looking Statements. See “Cautionary Notice Regarding Forward-Looking Information.”

The Company’s revenue and gross margin by operating segment for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ were as follows:

Sales of our Connectivity Solutions products increased by ~~$1.8 million and $4.9~~$5.7 million during the ~~three and nine months ended September 30, 2021, respectively,~~first quarter of 2022 as compared to the ~~same periods~~first quarter of ~~2020. These increases were~~2021. This increase was primarily due to a partial rebound in demand from direct and after-market commercial aerospace customers of ~~$1.4~~$2.9 million ~~and $2.5 million~~(89%) during the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022 as compared to the same ~~periods~~period of ~~2020.~~2021. Sales of Connectivity Solutions products through our distribution channels were also ~~higher by $3.1~~$3.2 million ~~and $5.5 million~~(22%) higher during the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022 as compared to the same ~~periods~~period of ~~2020.~~2021. These sales increases were offset by a decline in military sales of ~~$5.2~~$1.6 million ~~and $7.2 million~~(15%) during the three ~~and nine~~ months ended ~~September 30, 2021, respectively,~~March 31, 2022 as compared to the prior year ~~periods.~~period. The ~~shift in product mix in addition to~~gross margin benefits of the higher sales volume were partially offset by higher material and labor costs in the ~~2021 periods offset the benefits of the higher sales volume on the gross margin line.~~2022 period.

Sales of our Magnetic Solutions products improved by ~~$8.2 million and $11.6~~$5.3 million during the three ~~and nine~~ months ended ~~September 30, 2021, respectively.~~March 31, 2022 as compared to the same period of 2021. Demand for our Magnetic Solutions products from our networking customers and through our distribution channels has ~~increased~~been the primary driver of the sales increase, despite the resurgence of COVID-related factory shutdowns at certain of our manufacturing facilities in ~~recent quarters~~China during part of March 2022. The higher sales volume made a meaningful impact on gross margin improvement for this product group from last year's first quarter, and ~~we saw~~outweighed the ~~heightened orders translate into sales in the second and third quarters~~effects of 2021. The labor market in the PRC continues to be competitive, driving wage rates higher. Further, the Chinese Renminbi has appreciated against the U.S. Dollar in the three and nine month periods ended September 30, 2021 as compared to the same periods of 2020, adding to the higher labor ~~burden~~rates in the 2021 periods. During the 2020 period, our ability to manufacture product was temporarily impacted due to the factory closures associated with COVID-19. Bel received $0.9 million and $4.1 million in subsidies from the Chinese government during the three and nine months ended September 30, 2020, respectively, to assist in offsetting COVID-related costs incurred, which aided our gross marginChina for this ~~group in the 2020 periods presented above.~~group.

Sales of our Power Solutions and Protection products were higher by ~~$12.5~~$15.1 million during the ~~third~~first quarter of ~~2021 and by $30.2 million during the nine months ended September 30, 2021~~2022 as compared to the same ~~periods~~quarter of ~~2020.~~2021. The sales increase for the ~~third~~first quarter was led by the inclusion of EOS, acquired in March 2021, which contributed sales of ~~$4.3~~$4.2 million, ~~higher CUI sales of $6.3~~a $4.2 million ~~(58%), a $2.4 million (52%~~(107%) increase in ~~fuse~~circuit protection product sales, a $3.8 million (37%) increase in CUI sales, and a ~~$2.1~~$2.8 million ~~(117%~~(90%) increase in sales of product going into the eMobility end market. The sales increase for the nine months ended September 30, 2021 versus the same period of 2020 was primarily due to growth of $13.3 million from the Bel Power Solutions business (including $5.4 million of higher sales into e-Mobility applications), an $11.6 million increase in CUI sales, $6.1 million of higher fuse sales, and the $7.8 million contribution from the March 2021 acquisition of EOS. Sales growth in ~~both periods presented~~the first quarter of 2022 was offset in part by ~~declines~~a decline in ~~custom module~~DC/DC power product sales of ~~$3.2~~$2.0 million ~~and $7.4 million for the three and nine months ended September 30, 2021, respectively,~~ as compared to the ~~same periods~~first quarter of ~~2020 as the Company has discontinued this product line.~~2021. Gross margin improved in the ~~2021 periods~~2022 period above as compared to the ~~2020 periods~~2021 period as higher sales volume and a favorable shift in product mix offset the impact of increased material and labor costs.

Cost of sales as a percentage of revenue for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ consisted of the following:

~~The increases in material~~Material costs as a percentage of sales during the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 were down compared to the ~~same periods~~first quarter of 2021, due in ~~2020 primarily relate~~part to a ~~higher percentage of our revenue relating to Power Solutions and Protection products, which carry a higher material content. Further, there have been~~favorable shift in product mix coupled with recent pricing actions, despite the continued industry-wide shortages on certain raw materials, such as semiconductors and plastic resin, which has led to an increase in material pricing from our suppliers. Labor costs as a percentage of sales have ~~also~~ increased from the ~~2020 periods~~first quarter of 2021 due to an increase in sales of our labor-intensive ICM products, wage rate increases at our PRC factories, and an unfavorable fluctuation in the Chinese Renminbi ~~Mexican Peso and Euro~~ exchange rate versus the U.S. Dollar. Further, our Connectivity group incurred incremental labor costs in the first quarter of 2022 related to recruiting and training of approximately 300 new factory associates to accommodate the increase in demand from the commercial aerospace end market.

The other expenses noted in the table above include fixed cost items such as support labor and fringe, depreciation and amortization, and facility costs (rent, utilities, insurance). In total, these other expenses increased during the ~~third~~first quarter of ~~2021~~2022 by ~~$3.5 million and in the first nine months of 2021 by $8.9~~$3.3 million as compared to the ~~same periods~~first quarter of 2020, as costs during the three and nine months ended September 30, 2020 were reduced by $0.9 million and $4.1 million, respectively, related to subsidies received from the Chinese government to offset costs and inefficiencies incurred2021 due to a variety of factors. The recent ramp up in commercial aerospace demand has resulted in significant headcount increases at our factories that support this end market, restoring some of the ~~temporary closures~~indirect labor and overhead expenses that had been previously reduced when demand was low. Further, certain of our other factories have started to run additional shifts to accommodate the increase in ~~China~~demand from our customers, resulting in ~~connection with COVID-19.~~ higher overhead costs. In addition to an increase in support labor headcount, wage rate increases, both inflationary and government-mandated increases to minimum wage rates, have led to higher costs in the first quarter of 2022 as compared to the same period of 2021.

R&D expense amounted to ~~$5.9~~$5.0 million, and $5.7 million for the three months ended September 30, 2021 and 2020, respectively and $16.3 million and $17.9 million for the nine months ended September 30, 2021 and 2020, respectively. The lower R&D expense during the nine months ended September 30, 2021 as compared to the same ~~period of 2020 is largely reflective of cost savings related to~~as the ~~closure of our R&D facility in Uster, Switzerland in the third~~first quarter of ~~2020.~~2021.

SG&A expenses were ~~$21.2~~$21.0 million for the ~~third~~first quarter of ~~2021, up from $19.4 million in~~2022, the ~~third~~same as the first quarter of ~~2020.~~2021. Within SG&A, ~~salaries~~increases in sales commissions of $0.5 million and ~~fringe benefits increased~~property insurance of $0.2 million during the first quarter of 2022 were offset in full by a $0.7 million reduction in legal and professional fees ~~increased by $0.4 million, and travel expenses were $0.2 million higher~~ as compared to the ~~third~~first quarter of ~~2020. These costs were partially offset by lower sales commissions of $0.5 million.~~

SG&A expenses were $64.8 million during the nine months ended September 30, 2021, up from $59.1 million during the same period of 2020. SG&A salaries and fringe benefits increased by $3.6 million and legal and professional fees were higher by $1.0 million as compared to the same period of 2020. These costs were partially offset by lower sales commissions of $0.4 million, lower office expenses of $0.3 million and a reduction in travel expenses of $0.2 million.2021.

The Company’s effective tax rate will fluctuate based on the geographic jurisdiction in which the pretax profits are earned. Of the geographic jurisdictions in which the Company operates, the U.S. and Europe’s tax rates are generally equivalent; and Asia has the lowest tax rates of the Company’s three geographical segments. See Note ~~10,~~11, “Income Taxes”.

The provision for ~~(benefit from)~~ income taxes was $1.6 million and $1.0 million for the three months ended ~~September 30,~~March 31, 2022 and March 31, 2021, ~~and 2020 was $1.4 million and ($1.1) million,~~ respectively. The Company’s earnings before income taxes for the three months ended September 30, 2021, were $0.8 million higher as compared to the same period in 2020. The Company’s effective tax rate was 20.2% and (16.9%) for the three months ended September 30, 2021 and 2020, respectively. The change in the effective tax rate during the three months ended September 30, 2021 as compared to the same period in 2020, is primarily attributable to the tax expense relating to the addition of uncertain tax positions, offset by a decrease in U.S. taxes related to income from foreign subsidiaries taxed in the U.S. as part of the Tax Cuts and Jobs Act. Additionally, the effective tax rate in 2020 was favorably impacted by the reversal of uncertain tax positions resulting from the expiration of certain statutes of limitations and the federal tax law changes for the CARES Act. See Note 10, “Income Taxes.”

The provision for (benefit from) income taxes for the nine months ended September 30, 2021 and 2020 was $0.6 million and ($1.4) million, respectively. The Company’s earnings before income taxes for the nine months ended September 30, 2020,March 31, 2022, were approximately ~~$9.6~~$2.4 million higher than the same period in ~~2020,~~2021, primarily attributable to an increase in income in the ~~income from~~Asia and Europe regions, offset by a decrease in the North America ~~segment.~~region. The Company’s effective tax rate was ~~3.4%~~23.6% and ~~(18.3%)~~23.8% for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively. ~~The change in the effective~~Our tax rate ~~during~~for the ~~nine months ended September 30, 2021 as~~first quarter of 2022 remained relatively consistent compared to the same ~~period~~quarter of 2021, affected by tax rates in ~~2020, is primarily attributable the same factors noted above. Additionally, the effective tax rate in 2020 was favorably impacted by the reversal of valuation allowances~~foreign jurisdictions and the ~~federal tax law changes for the CARES Act.~~relative amounts of income earned in those jurisdictions. See Note ~~10,~~11, “Income Taxes.”

Our ~~primary~~principal sources of liquidity include $51.2 million of cash ~~are the collection of trade receivables generated from the sales of our products~~ and ~~services to our customers~~cash equivalents at March 31, 2022, cash provided by operating activities and ~~amounts~~borrowings available under our ~~existing lines of credit, including our~~ credit facility. ~~Our primary uses of cash are payments~~We expect to use this liquidity for operating expenses, investments in working capital, capital expenditures, interest, taxes, dividends, debt obligations and other long-term liabilities. We believe that our current liquidity position and future cash flows from operations will enable us to fund our operations, ~~including all of the items mentioned above~~both in ~~both~~ the next twelve months and in the longer term.

During the three months ended March 31, 2022, the Company’s cash and cash equivalents decreased by $10.5 million. This decrease was primarily due to the following:

During the three months ended March 31, 2022, accounts receivable increased by $6.7 million due to the conversion of unbilled receivables into invoiced receivables during the first quarter related to activity in our customer-controlled hub arrangements. Days sales outstanding (DSO) increased to 62 days at March 31, 2022 as compared to 54 days at December 31, 2021. Inventory increased by $16.3 million at March 31, 2022 compared to December 31, 2021, largely in raw materials and WIP to accommodate the continued increase in product orders. Inventory turns, excluding R&D, decreased to 2.6 at March 31, 2022 from 3.1 at December 31, 2021.

Cash and cash equivalents, marketable securities and accounts receivable comprised approximately 27.9% of the Company’s total assets at March 31, 2022 and 29.1% of total assets at December 31, 2021. The Company’s current ratio (i.e., the ratio of current assets to current liabilities) was 3.1 to 1 at March 31, 2022 and 2.9 to 1 at December 31, 2021. At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020, $44.8~~2021, $37.6 million and ~~$57.5~~$42.0 million, respectively (or ~~72%~~73% and 68%, respectively), of cash and cash equivalents was held by foreign subsidiaries of the Company. During the first ~~nine~~three months of ~~2021,~~2022, the Company ~~repatriated~~ ~~$23.5~~ ~~million~~did not repatriate any funds from outside of the U.S.~~, with minimal incremental tax liability.~~ We continue to analyze our global working capital and cash requirements and the potential tax liabilities attributable to further repatriation, and we have yet to make any further determination regarding repatriation of funds from outside the U.S. to fund the Company’s U.S. operations in the future. In the event these funds were needed for Bel’s U.S. operations, the Company would be required to accrue and pay U.S. state taxes and any applicable foreign withholding taxes to repatriate these funds.

The Company expects foreseeable liquidity and capital resource requirements to be met through existing cash and cash equivalents ~~marketable securities~~ and ~~accounts receivable comprised approximately 30.4%~~anticipated cash flows from operations, as well as borrowings available under its revolving credit facility, if needed. The Company's material cash requirements arising in the normal course of business are outlined in Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s ~~total assets at September 30, 2021 and 34.4% of total assets at~~Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020. The Company’s current ratio (i.e.,~~2021. There were no material changes to the ~~ratio of current assets to current liabilities) was 3.0 to 1 at September 30, 2021 and 3.2 to 1 at December~~Company's future cash requirements during the three months ended March 31, ~~2020.~~2022.

In September 2021, the Company entered into the ~~New Credit Agreement.~~CSA, as further described in Note 10, "Debt". The ~~New Credit Agreement~~CSA contains customary representations and warranties, covenants and events of default. In addition, the ~~New Credit Agreement~~CSA contains financial covenants that measure (i) the ratio of the Company’s total funded indebtedness, on a consolidated basis, less the aggregate amount of all unencumbered cash and cash equivalents, to the amount of the Company’s consolidated EBITDA (“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 Credit Agreement~~CSA 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, 2021,~~March 31, 2022, the Company was in compliance with its debt covenants, including its most restrictive covenant, the Leverage Ratio. The unused credit available under the credit facility at ~~September 30, 2021~~March 31, 2022 was $62.5 million, all of which we had the ability to borrow ~~$43.9 million~~ without violating our Leverage Ratio covenant based on the Company's existing consolidated EBITDA.

We have been engaged in and recently completed a multi-year process of conforming the majority of our operations onto one global Enterprise Resource Planning system (“ERP”). The ERP is designed to improve the efficiency of our supply chain and financial transaction processes, accurately maintain our books and records, and provide information important to the operation of the business to our management team. The implementation of the ERP was conducted by business unit on a three-phase approach through 2021. Since inception of the project, we have incurred costs in a cumulative amount of $7.0 million in connection with this implementation, of which ~~less than $0.1 million of costs were incurred during the nine months ended September 30, 2021 a~~nd no costs were incurred during the nine months ended September 30, 2020. The first phase of the ERP implementation project was completed in the first quarter of 2019 with our Bel Power Solutions subsidiary going live on the new system effective January 1, 2019. The second phase of the project was completed in the first quarter of 2020 with Bel's TRP Connector subsidiary going live on the new system effective January 1, 2020. An additional phase of the project was completed in the first quarter of 2021 with a portion of Bel's legacy businesses going live on the new system effective January 1, 2021 and the final phase of the project was completed in July 2021 with the Company's Stewart Connector subsidiary going live on the new system effective July 1, 2021. To date, we've achieved annual cost savings on ERP licensing fees of approximately $2 million within SG&A expense which were largely realized starting in 2019. This overall project was completed during the third quarter of 2021~~, with no consulting costs anticipated going forward. The preceding sentence represents a Forward-Looking Statement. See "Cautionary Notice Regarding Forward-Looking Information."~~

~~During the nine months ended September 30, 2021, the Company’s cash and cash equivalents decreased by $23.0 million. This decrease was primarily due to the following:~~

During the nine months ended September 30, 2021, accounts receivable increased by $11.9 million due to the increase in sales during the third quarter of 2021 as compared to the fourth quarter of 2020. Days sales outstanding (DSO) ~~were 54 d~~ays at September 30, 2021 as compared to 57 days at December 31, 2020. Inventory increased by $22.8 million at September 30, 2021 compared to December 31, 2020, largely in raw materials to accommodate the recent increase in product orders. Inventory turns, excluding R&D, increased slightly to~~3.5~~ ~~at September 30, 2021 from 3.4 at December 31, 2020.~~

~~Management’s discussion and analysis of Bel’s financial condition and results of operations are based upon the Company’s~~The Company's condensed consolidated financial statements ~~which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires the Company to make~~include certain amounts that are based on management's best 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.judgments. The Company bases its estimates on historical experience and on various other assumptions, including in some cases future projections, that are believed to be reasonable under the ~~circumstances, the~~circumstances. The results of ~~which~~these estimates 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. Different assumptions and judgments could change the estimates used in the preparation of the condensed consolidated financial statements, which, in turn, could change the results from those reported. Management evaluates its estimates, assumptions and judgments on an ongoing basis.

Based on the above, we have determined that our most critical accounting estimates are those related to business combinations, inventory valuation, goodwill and other indefinite-lived intangible assets, and those related to our pension benefit obligations. For a detailed discussion of the Company’s critical accounting estimates, refer to “Critical Accounting Estimates” in Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. There have been no material changes in the Company’s critical accounting policies, judgments and estimates, including assumptions or estimation techniques utilized, as compared to those disclosed in the Company’s 2021 Annual Report on Form 10-K.

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

The Company is ~~exposed~~not required to ~~market risk primarily from changes~~provide the information called for by this Item as it is a "smaller reporting company," as defined in ~~foreign currency exchange rates and changes in interest rates associated with its long-term debt. During the first nine months of 2021, the U.S. Dollar depreciated against certain~~Rule 12b-2 of the other currencies in which the Company pays its expenses. In comparing average exchange rates during the first nine months of 2021 versus those during the same period of 2020, the British Pound appreciated by 8%, the Euro appreciated by 6%, the Chinese Renminbi appreciated by 7%, and the Mexican Peso appreciated by 7% against the U.S. Dollar as compared to the prior year period. The Company estimates that the appreciation of these foreign currencies led to higher operating costs of $1.6 million during the third quarter of 2021 and $4.4 million during the first nine months of 2021 as compared to the same periods of 2020, as the majority of the Company's expenses in the PRC and Mexico are paid in local currency. Foreign exchange gains were also recognized in the first nine months of 2021 of $0.4 million on translation of local currency balance sheet accounts to the U.S. Dollar in consolidation, resulting from foreign currency fluctuations since December 31, 2020. Throughout 2021, the Company entered into forward contracts to secure a favorable exchange rate related to the Mexican Peso for a portion of Bel's expected Peso obligations. The Company monitors changes in foreign currencies and may implement further pricing actions to help mitigate the impact that changes in foreign currencies may have on its consolidated operating results.

Borrowings under the Company's credit facility are at variable rates of interest and expose Bel to interest rate risk. If interest rates increase, the Company's debt service obligations on the variable rate indebtedness would increase even though the amount borrowed remained the same, and the Company's net earnings and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. As of September 30, 2021, the Company had $112.5 million of borrowings under its credit facility at a variable interest rate. A 1% increase or decrease in the assumed interest rates on the senior secured credit facilities would result in a $1.1 million increase or decrease in annual interest expense.

Refer to Item 7A, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 for further discussion of market risks.Exchange Act.

Disclosure controls and procedures: As of the end of the period covered by this report, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the 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 has not been any change in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

The information called for by this Item is incorporated herein by reference to Note ~~13,~~14, "Commitments and Contingencies" of the Company’s Condensed Consolidated Financial Statements, under “Legal Proceedings”, as set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q. We are also involved in various other legal actions incidental to our business. We believe, after consulting with counsel, that the disposition of these other legal proceedings and matters will not have a material effect on our condensed consolidated financial condition or results of operations.

The risk ~~factor described below, in addition to those~~factors described in Part I, Item 1A, "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2020~~2021 should be carefully considered before making an investment decision. These are the risk factors that we consider to be the most significant risk factors, but they are not the only risk factors that should be considered in making an investment decision. This Quarterly Report on Form 10-Q also contains Forward-Looking Statements that involve risks and uncertainties. See the "Cautionary Notice Regarding Forward-Looking Information," above. Our business, consolidated financial condition and consolidated results of operations could be materially adversely affected by any of the risk factors described, under "Cautionary Notice Regarding Forward-Looking Information" or with respect to specific Forward-Looking Statements presented herein. The trading price of our securities could decline due to any of these risks, and investors in our securities may lose all or part of their investment. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also materially adversely affect our business in the future. Except as required by the federal securities law, we undertake no obligation to update or revise any risk factor, whether as a result of new information, future events or otherwise.

A shortage of availability or an increase in the cost of high-quality raw materials, components and other resources may adversely impact our ability to procure these items at cost effective prices and thus may negatively impact profit margins.

Our results of operations may be materially adversely impacted by difficulties in obtaining raw materials, supplies, power, labor, natural resources and any other items needed for the production of our products, as well as by the effects of quality deviations in raw materials and the effects of significant fluctuations in the prices of existing inventories and purchase commitments for these materials. Many of these materials and components are produced by a limited number of suppliers and their availability to us may be constrained by supplier capacity. Beginning in the third quarter of 2021, pandemic-related issues have created additional port congestion and intermittent supplier shutdowns and delays, resulting in additional expenses to expedite delivery of critical parts. Further, a large percentage of Bel's manufacturing capacity and supplier base is located in the PRC where there have been recent power shortages, resulting in the PRC government rationing electricity in a number of provinces during peak production hours. While we have not seen a material impact related to these items as of the time of this filing, any prolonged shutdown of a supplier's factory, or power outages at our factories, or those of our suppliers, could cause significant disruption to our supply chain and/or Bel's ability to manufacture its product. Any material disruption could materially adversely affect our financial results. See "The Effects of COVID-19 on Bel's Business" and "Other Key Factors Affecting our Business" in Item 2 of this Quarterly Report on Form 10-Q for a discussion of how pricing and availability of materials is currently impacting our business.

~~Not applicable.~~On May 6, 2022, we entered into an employment agreement with Farouq Tuweiq, our Chief Financial Officer (the “Employment Agreement”).

The Employment Agreement provides for Mr. Tuweiq to continue to serve as our Chief Financial Officer, reporting to our Chief Executive Officer, with an annual base salary of $270,000, his current rate of base pay, subject to adjustment in the discretion of the compensation committee of our board of directors (the “Compensation Committee”). Under the Employment Agreement, Mr. Tuweiq is eligible for annual bonuses in the discretion of the Compensation Committee. For 2022, however, Mr. Tuweiq’s target bonus will be commensurate with that of our other senior executives, and he will receive an additional incremental bonus for 2022 in an amount equal to eight weeks of base salary. To receive any bonus, Mr. Tuweiq must be employed by us at December 31st of the year to which the bonus relates. Mr. Tuweiq will be provided an $8,400 annual transportation allowance and will be eligible for all employee benefits and perquisites provided to our other employees and senior executives.

Mr. Tuweiq will also be eligible to continue to participate in our Nonqualified Deferred Compensation Plan (“DCP”), to which the Company will credit him with $25,000 per year for each of his first four years of participation. Thereafter, the Company’s credits to the DCP on his behalf will be discretionary, with an annual target of $10,000. Mr. Tuweiq's DCP account attributable to Company credits will vest upon his attainment of age 55 if he is then in employment with the Company. Vesting will also occur in the event of his termination of employment due to death or disability or if a change in control event (as defined in the DCP) occurs during his employment with the Company.

Pursuant to the Employment Agreement, Mr. Tuweiq’s employment with the Company will continue to be at-will. In the event that Mr. Tuweiq’s employment with the Company is involuntarily terminated without cause (as defined in the Employment Agreement) or if he resigns for good reason (as defined in the Employment Agreement), subject to his execution of a release containing customary terms, he will receive severance in a lump sum amount equal to 50% of his then annual base salary and all of the unvested shares of the Company's Class B common stock that are subject to his May 15, 2021 restricted stock award will become fully vested.

By entering into the Employment Agreement, Mr. Tuweiq has reaffirmed his obligations under the Employee Intellectual Property and Confidential Information Agreement he entered into when he commenced employment with us.

The foregoing summary is qualified in its entirety by reference to the full text of the Employment Agreement, a copy of which is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q, and is incorporated by reference into this Item 5.

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.

			Page
Part I		Financial Information

	Item 1.	Financial Statements (unaudited)	2

		Condensed Consolidated Balance Sheets as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 (unaudited)	2

		Condensed Consolidated Statements of Operations for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	3

		Condensed Consolidated Statements of Comprehensive Income for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	4

		Condensed Consolidated Statements of Stockholders' Equity for the Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	5

		Condensed Consolidated Statements of Cash Flows for the ~~Nine~~ Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (unaudited)	6

		Notes to Condensed Consolidated Financial Statements (unaudited)	7 - 1617

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	1718 - 23

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2324

	Item 4.	Controls and Procedures	2324

Part II		Other Information

	Item 1.	Legal Proceedings	2324

	Item 1A.	Risk Factors	2324

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2425

	Item 3.	Defaults Upon Senior Securities	2425

	Item 4.	Mine Safety Disclosures	2425

	Item 5.	Other Information	2425

	Item 6.	Exhibits	2526

	Signatures		2627

	Three Months Ended						Nine Months Ended						Three Months Ended
	September 30,						September 30,						March 31,
	2021			2020			2021			2020			2022			2021

Revenue, net	$	146,966		$	124,492		$	396,351		$	349,642		$	136,718		$	110,643
Cost of sales		110,992			91,183			301,234			259,286			102,594			86,384
Gross profit		35,974			33,309			95,117			90,356			34,124			24,259

Research and development costs		5,918			5,713			16,301			17,889			5,009			4,986
Selling, general and administrative expenses		21,188			19,368			64,757			59,140			21,026			20,995
Restructuring charges		398			111			675			283
Gain on sale of property		(403	)		0			(6,578	)		0			0			(6,175	)
Income from operations		8,873			8,117			19,962			13,044			8,089			4,453

Interest expense		(1,491	)		(1,242	)		(3,014	)		(3,843	)		(688	)		(801	)
Other (expense) income, net		(201	)		(483	)		458			(1,390	)		(773	)		546
Earnings before provision for (benefit from) income taxes		7,181			6,392			17,406			7,811
Earnings before provision for income taxes														6,628			4,198

Provision for (benefit from) income taxes		1,447			(1,083	)		593			(1,433	)
Provision for income taxes														1,564			999
Net earnings available to common stockholders	$	5,734		$	7,475		$	16,813		$	9,244		$	5,064		$	3,199


Net earnings per common share:
Class A common share - basic and diluted	$	0.44		$	0.57		$	1.29		$	0.70		$	0.38		$	0.24
Class B common share - basic and diluted	$	0.47		$	0.61		$	1.37		$	0.76		$	0.41		$	0.26

Weighted-average number of shares outstanding:
Class A common share - basic and diluted		2,145			2,145			2,145			2,145
Class B common share - basic and diluted		10,269			10,223			10,237			10,176
Class A common shares - basic and diluted														2,145			2,145
Class B common shares - basic and diluted														10,374			10,203

	Acquisition Date Fair Values
	rms			EOS			Total
Cash and cash equivalents	$	0		$	3,903		$	3,903
Accounts receivable		1,283			1,805			3,088
Inventories		3,946			1,878			5,824
Other current assets		9			1,340			1,349
Property, plant and equipment		4,035			721			4,756
Intangible assets		0			2,000			2,000
Other assets		0			60			60
Total identifiable assets		9,273			11,707			20,980

Accounts payable		(62	)		(2,148	)		(2,210	)
Accrued expenses		(209	)		(506	)		(715	)
Total liabilities assumed		(271	)		(2,654	)		(2,925	)
Net identifiable assets acquired		9,002			9,053			18,055
Goodwill		0			2,659			2,659
Net assets acquired	$	9,002		$	11,712		$	20,714


Cash paid	$	9,002		$	11,712		$	20,714
Fair value of consideration transferred	$	9,002		$	11,712		$	20,714

	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Three Months Ended
	2021		2020		2021		2020		March 31, 2021
Revenue, net	$	146,966	$	129,782	$	399,372	$	362,918	$	113,665
Net earnings		5,734		7,814		17,043		9,538		3,429
Earnings per Class A common share - basic and diluted		0.44		0.60		1.31		0.72		0.26
Earnings per Class B common share - basic and diluted		0.47		0.64		1.39		0.78		0.28

	*Three Months Ended September 30, 2021*								*Nine Months Ended September 30, 2021*								*Three Months Ended March 31, 2022*
	*Cinch Connectivity Solutions*		*Power Solutions and Protection*		*Magnetic Solutions*		*Consolidated*		*Cinch Connectivity Solutions*		*Power Solutions and Protection*		*Magnetic Solutions*		*Consolidated*		*Connectivity Solutions*		*Power Solutions and Protection*		*Magnetic Solutions*		*Consolidated*

*By Geographic Region:*
North America	$	30,144	$	42,064	$	11,338	$	83,546	$	92,868	$	109,708	$	28,009	$	230,585	$	32,532	$	42,349	$	10,878	$	85,759
Europe		7,916		9,679		2,635		20,230		22,220		29,306		6,126		57,652		9,214		9,385		2,471		21,070
Asia		2,284		8,538		32,368		43,190		6,358		20,298		81,458		108,114		1,967		7,056		20,866		29,889
	$	40,344	$	60,281	$	46,341	$	146,966	$	121,446	$	159,312	$	115,593	$	396,351	$	43,713	$	58,790	$	34,215	$	136,718

*By Sales Channel:*
Direct to customer	$	23,476	$	36,154	$	38,022	$	97,652	$	72,898	$	96,759	$	95,104	$	264,761	$	26,053	$	35,844	$	25,738	$	87,635
Through distribution		16,868		24,127		8,319		49,314		48,548		62,553		20,489		131,590		17,660		22,946		8,477		49,083
	$	40,344	$	60,281	$	46,341	$	146,966	$	121,446	$	159,312	$	115,593	$	396,351	$	43,713	$	58,790	$	34,215	$	136,718

	*Three Months Ended September 30, 2020*								*Nine Months Ended September 30, 2020*								*Three Months Ended March 31, 2021*
	*Cinch Connectivity Solutions*		*Power Solutions and Protection*		*Magnetic Solutions*		*Consolidated*		*Cinch Connectivity Solutions*		*Power Solutions and Protection*		*Magnetic Solutions*		*Consolidated*		*Connectivity Solutions*		*Power Solutions and Protection*		*Magnetic Solutions*		*Consolidated*

*By Geographic Region:*
North America	$	28,933	$	31,770	$	8,111	$	68,814	$	86,244	$	83,522	$	22,315	$	192,081	$	29,542	$	29,777	$	7,077	$	66,396
Europe		7,458		8,714		1,972		18,144		23,576		26,993		4,890		55,459		6,747		9,959		1,248		17,954
Asia		2,144		7,309		28,081		37,534		6,723		18,567		76,812		102,102		1,767		3,905		20,621		26,293
	$	38,535	$	47,793	$	38,164	$	124,492	$	116,543	$	129,082	$	104,017	$	349,642	$	38,056	$	43,641	$	28,946	$	110,643

*By Sales Channel:*
Direct to customer	$	24,806	$	29,648	$	29,927	$	84,381	$	73,459	$	78,119	$	85,290	$	236,868	$	23,637	$	26,489	$	24,335	$	74,461
Through distribution		13,729		18,145		8,237		40,111		43,084		50,963		18,727		112,774		14,419		17,152		4,611		36,182
	$	38,535	$	47,793	$	38,164	$	124,492	$	116,543	$	129,082	$	104,017	$	349,642	$	38,056	$	43,641	$	28,946	$	110,643

	*September 30,*		*December 31,*		*March 31,*		*December 31,*
	*2021*		*2020*		*2022*		*2021*

Contract assets - current (unbilled receivables)	$	28,093	$	14,135	$	20,556	$	28,275
Contract liabilities - current (deferred revenue)	$	1,131	$	2,077	$	3,977	$	2,224

			Nine Months Ended
			September 30, 2021
	Liability at				Cash Payments			Liability at
	December 31,		New		and Other			September 30,
	2020		Charges		Settlements			2021
Severance costs	$	124	$	675	$	(550	)	$	249
Other restructuring costs		0		0		0			0
Total	$	124	$	675	$	(550	)	$	249

	Balance Sheet Classification	March 31, 2022		December 31, 2021
Derivative assets:
Foreign currency forward contracts:
Designated as cash flow hedges	Other current assets	$	67	$	57
Not designated as hedging instruments	Other current assets		43		0
Interest rate swap agreements:
Designated as a cash flow hedge	Other assets		2,868		0
Total derivative assets		$	2,978	$	57

Derivative liabilities:
Foreign currency forward contracts:
Designated as cash flow hedges	Other current liabilities	$	-	$	-
Not designated as hedging instruments	Other current liabilities		0		19
Interest rate swap agreements:
Designated as a cash flow hedge	Other long-term liabilities		0		116
Total derivative liabilities		$	0	$	135

	Three Months Ended March 31,
	2022			2021
Net gains recognized in AOCL:
Foreign currency forward contracts	$	154		$	0
Interest rate swap agreements		2,809			0
	$	2,963		$	0

Net gains (losses) reclassified from AOCL to the condensed consolidated statements of operations:
Foreign currency forward contracts	$	67		$	0
Interest rate swap agreements		(176	)		0
	$	(109	)	$	0

		Three Months Ended March 31,
	Classification in Consolidated Statements of Operations	2022			2021
Foreign currency forward contracts	Other (expense) income, net	$	(7	)	$	10
		$	(7	)	$	10

				Unrealized Holding												Unrealized
	Foreign Currency			Gains on									Foreign Currency			Gains (Losses) on
	Translation			Available-for-		Unfunded							Translation			Interest Rate Swap			Unfunded
	Adjustment			Sale Securities		SERP Liability				Total			Adjustment			Cash Flow Hedge			SERP Liability				Total

Balance at December 31, 2020	$	(13,142	)	$	19	$	(4,940	)		$	(18,063	)
Balance at December 31, 2021													$	(14,911	)	$	(87	)	$	(3,865	)		$	(18,863	)
Other comprehensive (loss) income before reclassifications		(1,971	)		45		43				(1,883	)		(1,216	)		2,984			(6	)			1,762
Amount reclassified from accumulated other comprehensive loss		0			0		256		(a)		256			0			0			67		(a)		67
Net current period other comprehensive (loss) income		(1,971	)		45		299				(1,627	)		(1,216	)		2,984			61				1,829

Balance at September 30, 2021	$	(15,113	)	$	64	$	(4,641	)		$	(19,690	)
Balance at March 31, 2022													$	(16,127	)	$	2,897		$	(3,804	)		$	(17,034	)

	Three Months Ended September 30, 2021															Three Months Ended March 31, 2022
	Cinch Connectivity			Power Solutions			Magnetic			Corporate						Connectivity			Power Solutions			Magnetic			Corporate
	Solutions			and Protection			Solutions			Segment			Total			Solutions			and Protection			Solutions			Segment			Total
Revenue	$	40,344		$	60,281		$	46,341		$	0		$	146,966		$	43,713		$	58,790		$	34,215		$	0		$	136,718
Gross Profit		10,003			15,762			10,722			(513	)		35,974			11,596			15,938			6,890			(300	)		34,124
Gross Profit %		24.8	%		26.1	%		23.1	%		nm			24.5	%		26.5	%		27.1	%		20.1	%		nm			25.0	%

	Three Months Ended September 30, 2020
	Cinch Connectivity			Power Solutions			Magnetic			Corporate
	Solutions			and Protection			Solutions			Segment			Total
Revenue	$	38,535		$	47,793		$	38,164		$	0		$	124,492
Gross Profit		11,219			11,552			10,793			(255	)		33,309
Gross Profit %		29.1	%		24.2	%		28.3	%		nm			26.8	%

	Nine Months Ended September 30, 2021
	Cinch Connectivity			Power Solutions			Magnetic			Corporate
	Solutions			and Protection			Solutions			Segment			Total
Revenue	$	121,446		$	159,312		$	115,593		$	0		$	396,351
Gross Profit		32,826			40,917			24,026			(2,652	)		95,117
Gross Profit %		27.0	%		25.7	%		20.8	%		nm			24.0	%

	Nine Months Ended September 30, 2020															Three Months Ended March 31, 2021
	Cinch Connectivity			Power Solutions			Magnetic			Corporate						Connectivity			Power Solutions			Magnetic			Corporate
	Solutions			and Protection			Solutions			Segment			Total			Solutions			and Protection			Solutions			Segment			Total
Revenue	$	116,543		$	129,082		$	104,017		$	0		$	349,642		$	38,056		$	43,641		$	28,946		$	0		$	110,643
Gross Profit		33,950			31,085			26,198			(877	)		90,356			9,773			10,782			3,961			(257	)		24,259
Gross Profit %		29.1	%		24.1	%		25.2	%		nm			25.8	%		25.7	%		24.7	%		13.7	%		nm			21.9	%

	Three Months Ended										Nine Months Ended										Three Months Ended
	September 30,										September 30,										March 31,
	Revenue				Gross Margin						Revenue				Gross Margin						Revenue				Gross Margin
	2021		2020		2021			2020			2021		2020		2021			2020			2022		2021		2022			2021
Connectivity solutions	$	40,344	$	38,535		24.8	%		29.1	%	$	121,446	$	116,543		27.0	%		29.1	%	$	43,713	$	38,056		26.5	%		25.7	%
Magnetic solutions		46,341		38,164		23.1	%		28.3	%		115,593		104,017		20.8	%		25.2	%		34,215		28,946		20.1	%		13.7	%
Power solutions and protection		60,281		47,793		26.1	%		24.2	%		159,312		129,082		25.7	%		24.1	%		58,790		43,641		27.1	%		24.7	%
	$	146,966	$	124,492		24.5	%		26.8	%	$	396,351	$	349,642		24.0	%		25.8	%	$	136,718	$	110,643		25.0	%		21.9	%

	•	net cash used in operating activities of $7.7 million;
	•	purchases of property, plant and equipment of $2.0 million; and

	•	~~payments for acquisitions, net of cash acquired, of $16.8 million;~~
	•	~~purchases of property, plant and equipment of $4.2 million;~~

	•	~~repayments of long-term debt of $104.8 million; and~~
	•	~~net cash used in operating activities of $1.7 million; partially offset by~~
	•	~~proceeds from the sale of property, plant and equipment of $7.2 million; and~~
	•	~~revolving credit line borrowings of $100.5 million~~

Item 6. Exhibits

(a) Exhibits:

~~10.1~~10.1*†	~~Amended and Restated Credit and Security~~Employment Agreement, dated as of ~~September 2, 2021,~~May 6, 2022, by and ~~among~~between Bel Fuse Inc.~~, as Borrower, KeyBank National Association, as Administrative Agent, Swing Line Lender~~ and ~~Issuing Lender, and the other lenders identified therein (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on September 9, 2021).~~Farouq Tuweiq.

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

31.2*	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

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

32.2**	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*	Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH*	Inline XBRL Taxonomy Extension Schema Document

101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101)

	BEL FUSE INC.
~~November 5, 2021~~May 6, 2022
By:	/s/ Daniel Bernstein
	Daniel Bernstein
	President and Chief Executive Officer (Principal Executive Officer)

By:	/s/ Farouq Tuweiq
	Farouq Tuweiq
	Chief Financial Officer (Principal Financial Officer)