Note 12 - Accrued Expenses

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

12. ACCRUED EXPENSES

Accrued expenses consist of the following:

	December 31,
	2023		2022
Salaries, bonuses and related benefits	$	33,566	$	27,422
Deferred revenue		3,046		8,847
Accrued restructuring costs		5,498		6,796
Sales commissions		2,347		2,521
Subcontracting labor		1,622		1,875
Warranty accrual		1,542		1,287
Other		7,036		2,125
	$	54,657	$	50,873

The change in warranty accrual during 2023 primarily related to repair costs incurred and adjustments to pre-existing warranties. There were no new material warranty charges incurred during 2023.

Restructuring Activities:

Activity and liability balances related to restructuring costs for the year ended December 31, 2023 are as follows:

			Year Ended
			December 31, 2023
	Liability at				Cash Payments			Liability at
	December 31,		New		and Other			December 31,
	2022		Charges		Settlements			2023
Severance costs	$	3,390	$	7,590	$	(9,429	)	$	1,551
Disposal of equipment in connection with restructuring		-		1,320		(1,320	)		-
Other restructuring costs		3,406		1,204		(663	)		3,947
Total	$	6,796	$	10,114	$	(11,412	)	$	5,498

During the third quarter of 2022, a series of initiatives were launched to streamline our operational footprint. In a project completed during the fourth quarter of 2023, two of our Magnetic Solutions manufacturing facilities in Zhongshan and Pingguo, China, were largely consolidated into a single centralized site in the Binyang county of Southwestern China (the new Bel Guangxi facility). Further, during the first half of 2023, we completed the transition out of our Tempe, Arizona and Sudbury, UK facilities (both within our Connectivity Solutions segment) into other existing Bel sites. As of December 31, 2023, our Connectivity Solutions Melbourne, Florida site was substantially complete in transitioning its manufacturing operations into our existing site in Waseca, Minnesota. The $10.1 million of restructuring charges incurred the year ended December 31, 2023, and the accrued restructuring costs of $5.5 million at  December 31, 2023, are associated with these collective initiatives.