10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.20549

FORM 10-K

Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2019

Commission file number 0-31164

Preformed Line Products Company

(Exact name of registrant as specified in its charter)

Ohio	34‑0676895
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

660 Beta Drive Mayfield Village, Ohio	44143
(Address of Principal Executive Office)	(Zip Code)

(440) 461‑5200

(Registrant's telephone number, including area code)

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, $2 par value per share	PLPC	NASDAQ

Securities registered pursuant to Section 12(g) of the Act:   (None)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☐    No  ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ☐    No  ☒

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

The aggregate market value of voting and non-voting common shares held by non-affiliates of the registrant as of June 30, 2019 was $135,299,054 based on the closing price of such common shares, as reported on the NASDAQ National Market System.  As of March 2, 2020, there were 5,023,812 common shares of the Company ($2 par value) outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Definitive Proxy Statement for the Annual Meeting of Shareholders to be held May 5, 2020 are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14.

Table of Contents

			Page
Part I.
	Item 1.	Business	4
	Item 1A.	Risk Factors	11
	Item 1B.	Unresolved Staff Comments	14
	Item 2.	Properties	14
	Item 3.	Legal Proceedings	15
	Item 4.	Mine Safety Disclosures	15
	Item 4A.	Information about our Executive Officers	15
Part II.
	Item 5.	Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	16
	Item 6.	Selected Financial Data	18
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	29
	Item 8.	Financial Statements and Supplementary Data	30
	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	65
	Item 9A.	Controls and Procedures	65
	Item 9B.	Other Information	68
Part III.
	Item 10.	Directors, Executive Officers and Corporate Governance	68
		68
	Item 11.	Executive Compensation	68
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	68
	Item 13.	Certain Relationships, Related Transactions, and Director Independence	68
	Item 14.	Principal Accounting Fees and Services	68
Part IV.
	Item 15.	Exhibits and Financial Statement Schedules	69

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Forward-Looking Statements

This Form 10-K and other documents filed with the Securities and Exchange Commission (“SEC”) contain forward-looking statements regarding Preformed Line Products Company’s (the “Company”) and the Company’s management’s beliefs and expectations.  As a general matter, forward-looking statements are those focused upon future plans, objectives or performance (as opposed to historical items) and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature.  Such forward-looking statements are subject to uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control.  Such uncertainties and factors could cause the Company’s actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

The following factors, among others, could affect the Company’s future performance and cause the Company’s actual results to differ materially from those expressed or implied by forward-looking statements made in this report:

• The overall demand for cable anchoring and control hardware for electrical transmission and distribution lines on a worldwide basis, which has a slow growth rate in mature markets such as the United States (“U.S”), Canada, Australia and Western Europe and may grow slowly or experience prolonged delay in developing regions despite expanding power needs;

• The potential impact of global economic conditions on the Company’s ongoing profitability and future growth opportunities in the Company’s core markets in the U.S. and other foreign countries, which may experience continued or further instability due to political and economic conditions, social unrest, terrorism, changes in diplomatic and trade relationships and public health concerns (including viral outbreaks such as COVID-19);

• The ability of the Company’s customers to raise funds needed to build the facilities their customers require;

• Technological developments that affect longer-term trends for communication lines, such as wireless communication;

• The decreasing demand for product supporting copper-based infrastructure due to the introduction of products using new technologies or adoption of new industry standards;

• The Company’s success at continuing to develop proprietary technology and maintaining high quality products and customer service to meet or exceed new industry performance standards and individual customer expectations;

• The Company’s success in strengthening and retaining relationships with the Company’s customers, growing sales at targeted accounts and expanding geographically;

• The extent to which the Company is successful at expanding the Company’s product line or production facilities into new areas or implementing efficiency measures at existing facilities;

• The effects of fluctuation in currency exchange rates upon the Company’s foreign subsidiaries’ operations and reported results from international operations, together with non-currency risks of investing in and conducting significant operations in foreign countries, including those relating to political, social, economic and regulatory factors;

• The Company’s ability to identify, complete, obtain funding for and integrate acquisitions for profitable growth;

• The potential impact of consolidation, deregulation and bankruptcy among the Company’s suppliers, competitors and customers and of any legal or regulatory claims;

• The relative degree of competitive and customer price pressure on the Company’s products;

• The cost, availability and quality of raw materials required for the manufacture of products and any tariffs that may be associated with the purchase of these products;

• Strikes, labor disruptions and other fluctuations in labor costs;

• Changes in significant government regulations affecting environmental compliances or other litigation matters;

• Security breaches or other disruptions to the Company’s information technology structure;

• The telecommunication market’s continued deployment of Fiber-to-the-Premises; and

• Those factors described under the heading “Risk Factors” on page 11.

In light of these risks and uncertainties, the Company cautions you not to place undue reliance on these forward-looking statements. Any forward-looking statements that the Company makes in this report speaks only as of the date of such statement, and the Company undertakes no obligation to update any forward-looking statement or to publicly announce the results of any revision to any of those statements to reflect future events or developments. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.

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Part I

Item 1.  Business

Background

Preformed Line Products Company together with its subsidiaries (the “Company”) is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication) and other similar industries.  The Company’s primary products support, protect, connect, terminate and secure cables and wires.  The Company also provides solar hardware systems and mounting hardware for a variety of solar power applications.  The Company’s goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets.

The Company serves a worldwide market through strategically located domestic and international manufacturing facilities.  Each of the Company’s domestic and international manufacturing facilities have obtained an International Organization of Standardization (“ISO”) 9001:2015 Certified Management System Certificate. The ISO 9001:2015 certified management system is a globally recognized certified quality standard for manufacturing and assists the Company in marketing its products throughout the world.  The Company’s customers include public and private energy utilities and communication companies, cable operators, financial institutions, governmental agencies, contractors and subcontractors, distributors and value-added resellers.  The Company is not dependent on a single customer or small group of customers.  No single customer accounts for more than 10% of the Company's consolidated revenues.

The Company’s products include:

• Energy Products

• Communications Products

• Special Industries Products

Energy Products are used  to support, protect, terminate and secure both power conductor and communication cables and to control cable dynamics (e.g., vibration).  Formed wire products are based on the principle of forming a variety of stiff wire materials into a helical (spiral) shape.  Advantages of using the Company’s helical formed wire products are that they are economical, dependable and easy to use.  The Company introduced formed wire products to the power industry over 70 years ago and such products enjoy an almost universal acceptance in the Company’s markets. Related hardware products include hardware for supporting and protecting transmission conductors, spacers, spacer-dampers, stockbridge dampers, corona suppression devices and various compression fittings for dead-end applications.  Energy products were approximately 67%, 66% and 69% of the Company’s revenues in 2019, 2018 and 2017, respectively.

Communications Products, including splice cases, are used to protect fixed line communication networks, such as copper cable or fiber optic cable, from moisture, environmental hazards and other potential contaminants.  Communications products were approximately 22%, 21% and 22% of the Company’s revenues in 2019, 2018 and 2017, respectively.

Special Industries Products include data communication cabinets, hardware assemblies, pole line hardware, resale products, underground connectors, solar hardware systems, guy markers, tree guards, fiber optic cable markers, pedestal markers and urethane products.  They are used by energy, renewable energy, communications, cable and special industries (i.e., metal building, tower and antenna industries, the agriculture and arborist industries, and marine systems industry) for various applications and are defined as products that complement the Company’s core line offerings.  Special industries products were approximately 11%, 13% and 9% of the Company’s revenues in 2019, 2018 and 2017, respectively.

Corporate History

The Company was incorporated in Ohio in 1947 to manufacture and sell helically shaped “armor rods” which are sets of stiff helically shaped wires applied on an electrical conductor at the point where they are suspended or held. Thomas F. Peterson, the Company’s founder, developed and patented a unique method to manufacture and apply these armor rods to protect electrical conductors on overhead power lines.  Over the years, Mr. Peterson and the Company developed, tested, patented, manufactured and marketed a variety of helically shaped products for use by the electrical and telephone industries.  Although all of Mr. Peterson’s patents have now expired, those patents served as the nucleus for licensing the Company’s formed wire products abroad.

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The success of the Company’s formed wire products in the U.S. led to expansion abroad.  The first international license agreement was established in the mid-1950s in Canada.  In the late 1950s, the Company’s products were being sold through joint ventures and licensees in Canada, England, Germany, Spain and Australia.  Additionally, the Company began export operations and promoted products into other selected offshore markets.  The Company continued its expansion program, bought out most of the original licensees, and, by the mid-1990s, had complete ownership of operations in Australia, Brazil, Canada, Great Britain, South Africa and Spain.  By 2002, it also had complete ownership of operations in Mexico and China.  The Company’s international subsidiaries have the necessary infrastructure (i.e., manufacturing, engineering, marketing and general management) to support local business activities.  Each is staffed with local personnel to ensure that the Company is well versed in local business and cultural practices, technical requirements and the intricacies of local client relationships.

In 1968, the Company expanded into the underground telecommunications field by its acquisition of the Smith Company located in California.  The Smith Company had a patented line of buried closures and pressurized splice cases.  These closures and splice cases protect copper cable openings from environmental damage and degradation.  The Company continued to build on expertise acquired through the acquisition of the Smith Company and in 1995 introduced the highly successful COYOTE® Closure line of products.  Since 1995, 14 domestic and three international patents have been granted to the Company on the COYOTE Closure.  The earliest COYOTE Closure patent was filed April 1995 and expired in April 2015.

In 2007, the Company acquired 83.74% of Belos SA (Belos), located in Bielsko-Biala, Poland.  Belos is a manufacturer and supplier of fittings for various voltage power networks. This acquisition complemented the Company’s existing line of energy products.  From 2008 to 2010, the Company acquired the remaining outstanding shares of Belos.

In 2009, the Company acquired the Dulmison business from Tyco Electronics Group S.A. (Tyco Electronics), which included both the acquisition of equity of certain Tyco Electronics entities and the acquisition of assets from other Tyco Electronics entities.  Dulmison was a leader in the supply and manufacturer of electrical transmission and distribution products.  Dulmison designed, manufactured and marketed pole line hardware and vibration control products for the global electrical utility industry.  Dulmison had operations in Australia, Thailand, Indonesia, Malaysia, Mexico and the United States.  The Dulmison business has been fully integrated into the Company’s core businesses.

In 2010, the Company acquired Electropar Limited (Electropar), a New Zealand corporation.  Electropar designs, manufactures and markets pole line and substation hardware for the global electrical utility industry.  Electropar is based in New Zealand with a subsidiary operation in Australia. The acquisition has strengthened the Company’s position in the power distribution, transmission and substation hardware markets and expanded the Company’s presence in the Asia-Pacific region.

In 2014, the Company acquired Helix Uniformed Limited (Helix), located in Montreal, Quebec, Canada.  Helix designs, manufacturers and markets helical products and spacer dampers for the electrical utility industry.  The acquisition has diversified the Company’s business in Canada, extended its customers access in Canadian markets, expanded its manufacturing footprint and enhanced its engineering capabilities.

In 2019, the Company acquired SubCon Electrical Fittings GmbH (“SubCon”), headquartered in Dornbirn, Austria with manufacturing operations in Brno, Czech Republic.  The acquisition of SubCon will strengthen the Company’s position in the global substation market and will expand the Company’s operational presence in Europe.    

In 2019, the Company acquired 90% of MICOS Telcom s.r.o (“MICOS Telcom”) headquartered in Prostějov, Czech Republic with the remaining 10% to be acquired over the next three years.  The acquisition of MICOS Telcom will strengthen the Company’s position in the global telecom market and also will expand its operational presence in Europe.

The Company’s World headquarters is located at 660 Beta Drive, Mayfield Village, Ohio, U.S.A. 44143.

Business

The demand for the Company’s products comes primarily from new, maintenance and repair construction for the energy (including solar), telecommunication, data communication and special industries.  The Company’s customers use many of the Company’s products, including formed wire products, to revitalize the aging outside plant infrastructure.  Many of the Company’s products are used on a proactive basis by the Company’s customers to reduce and prevent lost revenue.  A single malfunctioning line could cause the loss of thousands of dollars per hour for a power or communication customer.  A malfunctioning fiber cable could also result in substantial revenue loss to the Company’s customers.  Repair construction by the Company’s customers generally occurs in the case of emergencies or natural disasters, such as hurricanes, tornados, earthquakes, floods or ice storms.  Under these circumstances, the Company quickly provides the repair products to customers.

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The Company has adapted the formed wire products’ helical technology for use in a wide variety of fiber optic cable applications that have special requirements.  The Company’s formed wire products are uniquely qualified for these applications due to the gentle gripping over a greater length of the fiber cable. This is an advantage over traditional pole line hardware clamps that compress the cable to the point of possible fatigue and optical signal deterioration.

The Company’s protective closures and splice cases are used to protect cable from moisture, environmental hazards and other potential contaminants. The Company’s splice cases are easily re-enterable closures that allow utility maintenance workers access to the cables located inside the closure to repair or add communications services.  Over the years, the Company has made many significant improvements in splice cases that have greatly increased its versatility and application in the marketplace.  The Company also designs and markets custom splice cases to satisfy specific customer requirements.  This has allowed the Company to remain a strong partner with several primary customers and has earned the Company the reputation as a responsive and reliable supplier.

Fiber optic cable was first deployed in the outside plant environment in the early 1980s.  Through fiber optic technologies, a much greater amount of both voice and data communication can be transmitted reliably.  In addition, this technology solved the cable congestion problem that the large count copper cable was causing in underground, buried and aerial applications.  The Company developed and adapted copper closures for use in the emerging fiber optic world.  In the late 1980s, the Company developed a series of splice cases designed specifically for fiber optic application.  In the mid-1990s, the Company developed its plastic COYOTE® Closure and has since expanded the product line to address Fiber-to-the-Premise (FTTP) applications.  The COYOTE Closure is an example of the Company developing a new line of proprietary products to meet the changing needs of its customers.

The Company also designs and manufactures data communication cabinets and enclosures for data communication networks, offering a comprehensive line of fiber optic cross-connect systems.  The product line enables reliable, high-speed transmission of data over customers’ local area networks.

In 2007, the Company expanded into the renewable energy sector.  It provides a comprehensive line of mounting hardware for a variety of solar power applications including residential roof mounting, commercial roofing systems, utility scale ground-mount, top of pole mounting and customized solutions.

Markets

The Company markets its products to the energy, telecommunication, cable, data communication and special industries.  While rapid changes in technology have blurred the distinctions between telephone, cable, and data communication, the energy industry is clearly distinct.  The Company’s role in the energy industry is to supply formed wire products and related hardware used with the electrical conductors, cables and wires that transfer power from the generating facility to the ultimate user of that power.  Formed wire products are used to support, protect, terminate and secure both power conductor and communication cables and to control cable dynamics.

Electric Utilities - Transmission. The electric transmission grid is the interconnected network of high voltage aluminum conductors used to transport large blocks of electric power from generating facilities to distribution networks.  Currently, there are three major power grids in the U.S.:  the Eastern Interconnect, the Western Interconnect and the Texas Interconnect.  Virtually all electrical energy utilities are connected with at least one other utility by one of these major grids.  The Company believes that transmission grids are in need of upgrades throughout much of the U.S.  With demand for power now exceeding supply in some areas, the need for the movement of bulk power from the energy-rich areas to the energy-deficient areas means that new transmission lines will likely be built and many existing lines will likely be refurbished.  Connecting renewable energy sources to the grid should also continue to attract new investment to fund transmission infrastructure projects in the future.  The Company believes that this may generate opportunities for the Company’s products in this market over at least the next several years.  In addition, increased construction of international transmission grids is occurring in many regions of the world.  However, consolidations in the markets that the Company services with increased global competition, as well as stagnant or declining economic conditions, limited government funding and lower energy prices, may also have an adverse impact on the Company’s sales.

Electric Utilities - Distribution.  The distribution market includes those utilities that distribute power from a substation where voltage is reduced to levels appropriate for the consumer.  Unlike the transmission market, distribution is still handled primarily by local electric utilities.  These utilities are motivated to reduce cost in order to maintain and enhance their profitability. The Company believes that its growth in the distribution market will be achieved primarily as a result of incremental gains in market share driven by emphasizing the Company’s quality products and service over price.  Internationally, particularly in the developing regions, there is increasing political pressure to extend the availability of electricity to additional populations.  Through its global network of factories and sales offices, the Company is prepared to take advantage of this new growth in construction.

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Renewable Energy.  The renewable energy market includes residential consumers, commercial businesses, off-grid operators, and utility companies that have an interest in alternative energy sources.  Environmental concerns along with federal, state and local utility incentives have fueled demand for renewable energy systems including solar, wind and biofuel.  While low prices of traditional energy sources have slowed or stalled demand in some areas, the industry continues to grow as advancements in technology lead to greater efficiencies which drive down overall system costs.  The Company currently provides hardware solutions and system design for solar power applications.  The Company markets and sells these products and services to end-users, distributors, installers and integrators.

Communication and Cable. Major developments, including growing competition between the cable and communications industries and increasing overall demand for high-speed communication services, have led to a changing regulatory and competitive environment in many markets throughout the world.  The deployment of new access networks and improvements to existing networks for advanced applications continues to gain momentum.

Cable operators, local communication operators and power utilities are building, rebuilding or upgrading signal delivery networks in developed countries.  These networks are designed to deliver video and voice transmissions and provide Internet connectivity to individual residences and businesses.  Operators deploy a variety of network technologies and architectures to carry broadband and narrowband signals.  These architectures are constructed of electronic hardware connected via coaxial cables, copper wires or optical fibers.  The Company manufactures closures that these industries use to securely connect and protect these vital networks.

As critical components of the outdoor infrastructure, closures provide protection against weather and vandalism, and permit technicians who maintain and manage the system ready access to the devices.  Cable operators and local telephone network operators place great reliance on manufacturers of protective closures because any material damage to the signal delivery networks is likely to disrupt communication services.  In addition to closures, the Company supplies the communication and cable industry with its formed wire products to hold, support, protect and terminate the copper wires and cables and the fiber optic cables used by that industry to transfer voice, video or data signals.

The industry has developed technological methods to increase the usage of copper-based products through high-speed digital subscriber lines (DSLs).  The popularity of these services, the regulatory environment and the increasingly fierce competition between communications and cable operators has driven the move toward building out the “last mile” in fiber optic networks. FTTP technology supports the next wave in broadband innovation by carrying fiber optic technology into homes and businesses.  The Company has been actively developing products that address this market.

Data Communication.  The data communication market is driven by the continual demand for increased bandwidth.  Growing Internet Service Providers (ISPs), construction in Wide Area Networks (WANs) and demand for products in the workplace are all key elements to the increased demand for the racking and cabinet products offered by the Company.  The Company’s products are sold to a number of categories of customers including, (i) ISPs, (ii) large companies and organizations which have their own local area network for data communication, and (iii) distributors of structured cabling systems and components for use in the above markets.

Special Industries.  The Company’s formed wire products are also used in other industries which require a method of securing or terminating cables, including the metal building, tower and antenna industries, the agriculture and arborist industries, and various applications within the marine systems industry.  Products other than formed wire products are also marketed to other industries.  For example, the Company’s urethane capabilities allow it to market products to the light rail industry.  The Company continues to explore new and innovative uses of its manufacturing capabilities; however, these markets remain a small portion of overall consolidated sales.

International Operations

The international operations of the Company are essentially the same as its domestic (PLP-USA) business.  The Company manufactures similar types of products in its international plants as are sold domestically, sells to similar types of customers and faces similar types of competition (and in some cases, the same competitors).  Sources of supply of raw materials are not significantly different internationally.  See Note M in the Notes to Consolidated Financial Statements for information and financial data relating to the Company’s international operations that represent reportable segments.

While a number of the Company’s international plants are in developed countries, the Company believes it has strong market opportunities in developing countries where the need for the transmission and distribution of electrical power is significant, although the pace of this development may remain slow.  In addition, as the need arises, the Company is prepared to acquire or establish new manufacturing facilities abroad.

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Sales and Marketing

Domestically and internationally, the Company markets its products through a direct sales force and manufacturing representatives.  The direct sales force is employed by the Company and works with manufacturers’ representatives, as well as key direct accounts and distributors who also buy and resell the Company’s products. The manufacturer’s representatives are independent organizations that represent the Company as well as other complimentary product lines.  These organizations are paid a commission based on the sales amount they generate.

Research and Development

The Company is committed to providing technical leadership through scientific research and product development in order to continue to expand the Company’s position as a supplier to the communications and power industries.  Research is conducted on a continuous basis using internal experience in conjunction with outside professional expertise to develop state-of-the-art materials for several of the Company’s products.  These products capitalize on cost-efficiency while offering exacting mechanical performance that meets or exceeds industry standards.  The Company’s research and development activities have resulted in numerous patents being issued to the Company (see “Patents and Trademarks” below).

Early in its history, the Company recognized the need to understand the performance of its products and the needs of its customers.  To that end, the Company developed a 29,000 square foot Research and Engineering Center located at its corporate headquarters in Mayfield Village, Ohio.  In 2013, the Company expanded its Research and Engineering Center by an additional 8,000 square feet.  Using the Research and Engineering Center, engineers and technicians simulate a wide range of external conditions encountered by the Company’s products to ensure quality, durability and performance.  The work performed in the Research and Engineering Center includes advanced studies and experimentation with various forms of vibration and environmental changes.  This work has contributed significantly to the collective knowledge base of the industries the Company serves and is the subject matter of many papers and seminars presented to these industries, and has led to the expansion and support of 12 research labs located in its facilities around the world.

The Company believes that its Research and Engineering Center is one of the most sophisticated in the world in its specialized field.  The Research and Engineering Center also has an advanced prototyping technology machine on-site to develop models of new designs where intricate part details are studied prior to the construction of expensive production tooling.  Today, the Company’s reputation for vibration testing, tensile testing, fiber optic cable testing, environmental testing, field vibration monitoring and third-party contract testing is a competitive advantage.  In addition to testing, the work performed at the Company’s Research and Development Center continues to fuel product development efforts.  For example, the Company estimates that approximately 18.4% of 2019 revenues were attributed to products developed by the Company in the past five years.  In addition, the Company’s position in the industry is further reinforced by its long-standing leadership role in many key international technical organizations which are charged with the responsibility of establishing industry-wide specifications and performance criteria, including IEEE (Institute of Electrical and Electronics Engineers), CIGRE (Counsiel Internationale des Grands Reseaux Electriques a Haute Tension), and IEC (International Electromechanical Commission). Research and development costs are expensed as incurred.  Research and development costs for new products were $3.0 million in 2019, $2.4 million in 2018 and $2.1 million in 2017.

Patents and Trademarks

The Company applies for patents in the U.S. and other countries, as appropriate, to protect its significant patentable developments.  As of December 31, 2019, the Company had in force 44 U.S. patents and 109 international patents in 21 countries and had 19 pending U.S. patent applications and 48 pending international applications.  While such domestic and international patents expire from time to time, the Company continues to apply for and obtain patent protection on a regular basis. Patents held by the Company in the aggregate are of material importance in the operation of the Company’s business.  The Company, however, does not believe that any single patent, or group of related patents, is essential to the Company’s business as a whole or to any of its businesses.  Additionally, the Company owns and uses a substantial body of proprietary information and numerous trademarks.  The Company relies on nondisclosure agreements to protect trade secrets and other proprietary data and technology.  As of December 31, 2019, the Company had obtained U.S. registration on 36 trademarks and one trademark application remained pending.  International registrations amounted to 234 registrations in 35 countries, with two pending international registrations.

U.S. patents are issued for terms of 20 years beginning with the date of filing of the patent application.  Patents issued by international countries generally expire 20 years after filing.  U.S. and international patents are not renewable after expiration of their initial term.  U.S. and international trademarks are generally perpetual, renewable in 10-year increments upon a showing of continued use.  To the knowledge of management, the Company is not subject to any significant allegation or charges of infringement of intellectual property rights by any organization.

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In the normal course of business, the Company occasionally makes and receives inquiries with regard to possible patent and trademark infringement.  The extent of such inquiries from third parties has been limited generally to verbal remarks to Company representatives.  The Company believes that it is unlikely that the outcome of these inquiries will have a material adverse effect on the Company’s financial position.

Competition

All of the markets that the Company serves are highly competitive.  In each market, the principal methods of competition are price, performance, and service.  The Company believes, however, that several factors (described below) provide the Company with a competitive advantage.

• The Company has a strong and stable workforce. This consistent and continuous knowledge base has afforded the Company the ability to provide superior service to the Company’s customers and representatives.

• The Company’s Research and Engineering Center in Mayfield Village, Ohio and the engineering departments at the Company’s subsidiary operations around the world maintain a strong technical support function to develop unique solutions to customer problems.

• The Company is vertically integrated both in manufacturing and distribution and is continually upgrading equipment and processes.

• The Company is sensitive to the marketplace and provides an extra measure of service in cases of emergency, storm damage and other supply delivery situations. This high level of customer service and customer responsiveness is a hallmark of the Company.

• The Company’s 29 sales and manufacturing locations ensure close support and proximity to customers worldwide.

Domestically, there are several competitors for formed wire products. Although it has other competitors in many of the countries where it has plants, the Company has leveraged its expertise and is very strong in the global market.  The Company believes that it is the world’s largest manufacturer of formed wire products for energy and communications markets.  However, the Company’s formed wire products compete against other pole line hardware products manufactured by other companies.

The Company’s primary domestic competitor for pressurized copper closures is Corning.  Based on its experience in the industry, the Company believes it maintains a strong market share position.

The fiber optic closure market is one of the most competitive product areas for the Company, with the Company competing against, among others, CommScope and Corning.  There are a number of primary competitors and several smaller niche competitors that compete at all levels in the marketplace.  The Company believes that it is one of four leading suppliers of fiber optic closures.

Sources and Availability of Raw Materials

The principal raw materials used by the Company are galvanized wire, stainless steel, aluminum covered steel wire, aluminum rod, plastic resins, glass-filled plastic compounds, neoprene rubbers and aluminum castings.  The Company also uses certain other materials such as fasteners, packaging materials and communications cable. The Company believes that it has adequate sources of supply for the raw materials used in its manufacturing processes and it regularly attempts to develop and maintain sources of supply in order to extend availability and encourage competitive pricing of these products.

Most plastic resins are purchased under contracts to stabilize costs and improve delivery performance and are available from a number of reliable suppliers. Wire and aluminum rods are purchased in standard stock diameters and coils under contracts from a number of reliable suppliers.  Contracts have firm prices except for fluctuations of base metals and petroleum prices, which result in surcharges when global demand is greater than the available supply.

The Company also relies on certain other manufacturers to supply products that complement the Company’s product lines, such as ferrous castings, fiber optic cable and connectors and various metal racks.  The Company believes there are multiple sources of supply for these products.

The Company relies on sole source manufacturers for certain raw materials used in production.  The current state of economic uncertainty presents a risk that existing suppliers could go out of business.  However, there are other potential sources available for these materials, and the Company could relocate the tooling and processes to other manufacturers if necessary.

9

Raw material costs were stable throughout 2019.  The Company expects prices on metals and plastics to remain stable throughout 2020.  

The Company cannot currently predict the impact of COVID-19 on its supply chain or global business operations in general, but does expect some disruption with respect to certain products and materials currently sourced from China.

Backlog Orders

The Company’s backlog was approximately $111.2 million at the end of 2019 and $92.9 million at the end of 2018.  All customer orders entered are firm at the time of entry.  Most orders are shipped within a two to four-week period unless the customer requests an alternative date.

Seasonality

The Company markets products that are used by utility maintenance and construction crews worldwide.  The products are marketed through distributors and directly to end users, who maintain stock to ensure adequate supply for their customers or construction crews.  As a result, the Company does not have a wide variation in sales from quarter to quarter.

Environmental

The Company is subject to extensive and changing federal, state, and local environmental laws, including laws and regulations that (i) relate to air and water quality, (ii) impose limitations on the discharge of pollutants into the environment, (iii) establish standards for the treatment, storage and disposal of toxic and hazardous waste, and (iv) require proper storage, handling, packaging, labeling, and transporting of products and components classified as hazardous materials.  Stringent fines and penalties may be imposed for noncompliance with these environmental laws.  In addition, environmental laws could impose liability for costs associated with investigating and remediating contamination at the Company’s facilities or at third-party facilities at which the Company has arranged for the disposal treatment of hazardous materials.

The Company believes it is in compliance in all material respects, with all applicable environmental laws and the Company is not aware of any noncompliance or obligation to investigate or remediate contamination that could reasonably be expected to result in a material liability.  The Company does not expect to make any material capital expenditures during 2020 for environmental control facilities.  The environmental laws continue to be amended and revised to impose stricter obligations, and compliance with future additional environmental requirements could necessitate capital outlays.  However, the Company does not believe that these expenditures will ultimately result in a material adverse effect on its financial position or results of operations.  The Company cannot predict the precise effect such future requirements, if enacted, would have on the Company.  The Company believes that such regulations would be enacted over time and would affect the industry as a whole.

Employees  

At December 31, 2019, the Company had 2,983 employees.  Approximately 24% of the Company’s employees are located in the U.S.

Available Information

The Company maintains an Internet site at http://www.preformed.com, on which the Company makes available, free of charge, the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the SEC.  The Company’s SEC reports can be accessed through the investor relations section of its Internet site.  The information found on the Company’s Internet site is not part of this or any other report that is filed or furnished to the SEC.

The public may read and copy any materials the Company files with or furnishes to the SEC at the SEC’s Public Reference Room at 100 F. Street, NE., Washington, DC 20549.  Information on the operation of the Public Reference Room is available by calling the SEC at 1-800-SEC-0330.  In addition, the SEC maintains an Internet site that contains reports, proxy and information statements, and other information filed with the SEC by electronic filers.  The SEC’s Internet site is http://www.sec.gov.  The Company also has a link from its Internet site to the SEC’s Internet site.  This link can be found on the investor relations page of the Company’s Internet site.

10

Item 1A. Risk Factors

Due to the Company’s dependency on the energy and telecommunication industries, the Company is susceptible to negative trends relating to those industries that could adversely affect the Company’s operating results.

The Company’s sales to the energy and telecommunication industries represent a substantial portion of the Company’s historical sales. The concentration of revenue in such industries is expected to continue into the foreseeable future.  Demand for products to these industries depends primarily on capital spending by customers for constructing, rebuilding, maintaining or upgrading their systems.  The amount of capital spending and, therefore, the Company’s sales and profitability are affected by a variety of factors, including general economic conditions, access by customers to financing, government regulation, demand for energy and cable services, energy prices and technological factors.  As a result, some customers may significantly reduce or delay their spending or may not continue as going concerns, which could have a material adverse effect on the Company’s business, operating results and financial condition.  In addition, the Company may incur exit-related costs and impairments of goodwill, definite and indefinite-lived intangible assets and property, fixtures and equipment as the Company makes corresponding changes to its business to reflect these changes and uncertainties in the Company’s industries and customer demand, and these costs and impairments could have a significant negative impact on the Company’s operating results for the period in which they are incurred.  Consolidation presents an additional risk to the Company in that merged customers will rely on relationships with a source other than the Company.  Consolidation may also increase the pressure on suppliers, such as the Company, to sell product at lower prices.

The Company’s business will suffer if the Company fails to develop and successfully introduce new and enhanced products that meet the changing needs of the Company’s customers.

The Company’s ability to anticipate changes in technology and industry standards and to successfully develop and introduce new products on a timely basis is a significant factor in the Company’s ability to grow and remain competitive.  New product development often requires long-term forecasting of market trends, development and implementation of new designs and processes and a substantial capital commitment.  The trend toward consolidation of the energy, telecommunication and data communication industries may require the Company to quickly adapt to rapidly changing market conditions and customer requirements.  Any failure by the Company to anticipate or respond in a cost-effective and timely manner to technological developments or changes in industry standards or customer requirements, or any significant delays in product development or introduction or any failure of new products to be widely accepted by the Company’s customers, could have a material adverse effect on the Company’s business, operating results and financial condition as a result of reduced net sales.

The intense competition in the Company’s markets, particularly telecommunication, may lead to a reduction in sales and earnings.

The markets in which the Company operates are highly competitive.  The level of intensity of competition may increase in the foreseeable future due to anticipated growth in the telecommunication and data communication industries.  The Company’s competitors in the telecommunication and data communication markets are larger companies with significant influence over the distribution network.  The Company may not be able to compete successfully against its competitors, many of which may have access to greater financial resources than the Company.  In addition, the pace of technological development in the telecommunication market is rapid and these advances (i.e., wireless, fiber optic network infrastructure, etc.) may adversely affect the Company’s ability to compete in this market.

Competitors’ introduction of products embodying new technologies or the emergence of new industry standards can render existing products or products under development obsolete or unmarketable and result in lost sales.

The energy and telecommunication industries are characterized by rapid technological change.   Satellite, wireless and other communication technologies currently being deployed may represent a threat to copper, coaxial and fiber optic-based systems by reducing the need for wire-line networks.  Future advances or further development of these or other new technologies may have a material adverse effect on the Company’s business, operating results and financial condition as a result of lost sales.

Price increases or decreased or delayed availability of raw materials could result in lower earnings.

The Company’s cost of sales may be materially adversely affected by increases in the market prices of the raw materials used in the Company’s manufacturing processes.  The Company may not be able to pass on price increases in raw materials to the Company’s customers through increases in product prices.  As a result, the Company’s operating results could be adversely affected.  In addition, any decrease or delay in the availability of these materials or interruptions generally in the global supply chain could slow production and delivery to the Company’s customers.  

11

The Company’s international operations subject the Company to additional business risks that may have a material adverse effect on the Company’s business, operating results and financial condition.

International sales account for a substantial portion of the Company’s net sales (60%, 60% and 61% in 2019, 2018 and 2017, respectively) and the Company expects these sales could increase as a percentage of net sales in the future.  Due to its international sales, the Company is subject to the risks of conducting business internationally, including unexpected changes in, or impositions of, legislative or regulatory requirements, which could materially adversely affect U.S. dollar sales or operating expenses, tariffs and other barriers and restrictions, potentially longer payment cycles, greater difficulty in accounts receivable collection, reduced or limited protection of intellectual property rights, potentially adverse taxes and the burdens of complying with a variety of international laws and communications standards.  The Company is subject to foreign currency volatility which could materially impact the Company’s operating results, including the impact of hyper-inflationary conditions in certain economies, particularly where exchange controls limit or eliminate the Company’s ability to convert from local currency.  The Company is also subject to general geopolitical risks, such as political and economic instability, social unrest, terrorism and changes in diplomatic and trade relationships as well as public health concerns (including viral outbreaks such as COVID-19), in connection with its international operations. Any such disruption could cause delays in the production and distribution of our products and the loss of sales and customers. Moreover, these types of events could negatively impact consumer spending or the economy in the impacted regions or depending upon the severity, globally.  These risks of conducting business internationally may have a material adverse effect on the Company’s business, operating results and financial condition.

Additionally, uncertainty relating to the United Kingdom’s departure from the European Union (“Brexit”) could adversely impact the Company.  The UK formally exited the European Union on January 31, 2020 and a transition period is in place until December 31, 2020 during which the UK will maintain access to the European Union single market and to the global trade deals negotiated by the European Union and remain subject to European Union law. The ongoing uncertainty regarding the transition could continue to or have a further adverse impact on global economic conditions, the stability of global financial markets and global market liquidity, including due to the widespread use, including under the Company’s credit facility, of LIBOR as a reference interest rate. Any of these factors could depress economic activity or lead to long-term volatility in the currency markets, which could adversely impact the Company’s business, financial condition and results of operations.

The Company may not be able to successfully integrate businesses that it may acquire in the future or complete acquisitions on satisfactory terms, which could have a material adverse effect on the Company’s business, operating results and financial condition.

A portion of the Company’s growth in sales and earnings has been generated from acquisitions.  The Company expects to continue a strategy of identifying and acquiring businesses with complementary products.  In connection with this growth strategy, the Company faces certain risks and uncertainties in addition to the risks faced in the Company’s day-to-day operations, including the risks pertaining to integrating acquired businesses, realizing the benefits of acquired technology and utilizing new personnel.  In addition, the Company may incur debt to finance future acquisitions, and the Company may issue securities in connection with future acquisitions that may dilute the holdings of current and future shareholders.  Covenant restrictions relating to additional indebtedness could restrict the Company’s ability to pay dividends, fund capital expenditures, consummate additional acquisitions and significantly increase the Company’s interest expense.  Any failure to successfully complete acquisitions or to successfully integrate such strategic acquisitions could have a material adverse effect on the Company’s business, operating results and financial condition.

The Company may have interruptions in or lose business due to the uncertainty of the global economy, specifically related to the lack of available funding for the Company’s customers.

The demand for the Company’s products is significantly affected by the amount of discretionary business and consumer spending, each of which is impacted by the continued uncertainty of the global economy.  The Company’s operations could be adversely affected by global economic conditions such as recession, political or social unrest, economic instability, terrorism and changes in diplomatic and trade relationships, public health concerns or otherwise.  The liquidity and financial position of the Company’s customers could also impact their ability to pay in full and/or on a timely basis.  This lack of funding could have a negative impact on the Company’s operating results and financial condition. 

12

The Company may be adversely impacted by laws, regulation, and litigation.

The Company is subject to various laws and regulation.  For example, extensive environmental regulations related to air and water quality, the discharge of pollutants, the handling of toxic waste and the handling and transport of products and components classified as hazardous impact its daily operations.  The introduction of new laws or regulations, or changes in existing laws or regulations, could increase the costs of doing business.  At any given time, the Company may also be subject to litigation or claims related to its products, suppliers, customers, employees, shareholders, distributors, sales representatives, intellectual property or acquisitions, among other things, the disposition of which may have an adverse effect upon the Company’s business, financial condition, or results of operation. The outcome of litigation is difficult to assess or quantify. Lawsuits can result in the payment of substantial damages by defendants. If the Company is required to pay substantial damages and expenses as a result of these or other types of lawsuits, the Company’s business and results of operations would be adversely affected. Regardless of whether any claims against the Company are valid or whether it is liable, claims may be expensive to defend, may cause reputational harm (particularly where any claims relate to significant harm to persons and property) and may divert time and money away from the Company’s operations. Insurance may not be available at all or in sufficient amounts to cover any liabilities with respect to these or other matters. A judgment or other liability in excess of the Company’s insurance coverage for any claims could adversely affect the Company’s business and operating results.

The Company may not be able to successfully manage its intellectual property and may be subject to infringement claims.

The Company relies on a combination of contractual rights and patent, trademark, copyright and trade secret laws to establish and protect its proprietary technology. Third parties may challenge, invalidate, circumvent, infringe or misappropriate the Company’s intellectual property, or such intellectual property may not be sufficient to permit the Company to take advantage of current market trends or otherwise to provide competitive advantages, which could result in costly redesign efforts, discontinuance of certain product offerings or other competitive harm. Others, including its competitors may independently develop similar technology, duplicate or design around the Company’s intellectual property, and in such cases, it could not assert its intellectual property rights against such parties. The Company may also be subject to costly litigation in the event its technology infringes upon or otherwise violate a third party’s proprietary rights. Any claim from third parties may result in a limitation on its ability to use the intellectual property subject to these claims.  The Company may be forced to litigate to enforce or determine the scope and enforceability of its intellectual property rights, trade secrets and know-how, which is expensive, could cause a diversion of resources and may not prove successful, especially in countries where such rights are more difficult to enforce. The loss of intellectual property protection or the inability to obtain third party intellectual property could harm its business and ability to compete.

Tax matters, including changes in tax rates, disagreements with taxing authorities and imposition of new taxes could impact the Company’s operating results and financial condition.

The Company is subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Tax laws, regulations, and administrative practices in various jurisdictions may be subject to significant change, with or without notice, due to economic, political, and other conditions, and significant judgment is required in evaluating and estimating the provision and accruals for these taxes. There are many transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain. The Company’s effective tax rates could be affected by numerous factors, including but not limited to, intercompany transactions, the relative amount of its foreign earnings, including earnings being lower than anticipated in jurisdictions where the Company has lower statutory rates and higher than anticipated in jurisdictions where the Company has higher statutory rates, losses incurred in jurisdictions for which the Company is not able to realize the related tax benefit, changes in foreign currency exchange rates, changes in its deferred tax assets and liabilities and any related valuation, and changes in the relevant tax, accounting, and other laws, regulations, administrative practices, principles, and interpretations.  In addition, many countries are actively pursuing changes to their tax laws applicable to corporate multinationals, such as the U.S. tax reform legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”). Finally, foreign governments may enact tax laws in response to the Tax Act that could result in further changes to global taxation and materially affect the Company’s financial position and results of operations.

13

The Company employs information technology systems to support its business, and any material breach, interruption or failure may adversely impact the Company’s business.

The Company employs information technology systems to support its business. Security breaches and other disruptions to the Company’s information technology infrastructure could interfere with the Company’s operations, and compromise information belonging to the Company and its customers, suppliers and employees, exposing the Company to liability which could adversely impact the Company’s business and reputation. In the ordinary course of business, the Company relies on information technology networks and systems, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a variety of business processes and activities. Additionally, the Company collects and stores certain data, including proprietary business information, and may have access to confidential or personal information in certain of its businesses that is subject to privacy and security laws, regulations and customer-imposed controls.  Despite the Company’s cybersecurity measures and oversight of such matters by the Board of Directors, which are continuously reviewed and upgraded, the Company’s information technology networks and infrastructure and protected data may still be vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches, employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems failures, service providers including cloud services, natural disasters or other catastrophic events. It is possible for such vulnerabilities to remain undetected for an extended period, up to and including several years.  Any such events could result in legal claims or proceedings, liability or penalties under privacy laws, disruption in operations, and damage to the Company’s reputation, which could adversely affect the Company’s business.

Item 1B. Unresolved Staff Comments

The Company does not have any unresolved staff comments.

Item 2.  Properties

The Company currently owns or leases 29 facilities, which together contain approximately 2.4 million square feet of manufacturing, warehouse, research and development, sales and office space worldwide.  Most of the Company’s international facilities contain space for offices, research and engineering (R&E), warehousing and manufacturing with manufacturing using a majority of the space.  The following table provides information regarding the Company’s principal facilities:

										Total Approximate
		Number of Facilities								Square Feet
Segment	Location	Manufacturing		Warehouse		R&E		Office		Owned		Leased
United States	United States		2		2		1		3		704,900
Americas	Brazil		1		1		1		1		167,600
	Argentina		1		1				1				26,400
	Canada		2		2		1		2		124,400
	Mexico		1		1				2		113,000		1,100
Asia-Pac	Australia		1		1		1		4		122,900		79,200
	China		1		1		1		1		132,100
	Indonesia		2		1				2		197,900
	Malaysia		1		1								18,600
	Thailand		1		3				1		80,000		49,500
	New Zealand		1		2		1		2		34,200		6,200
EMEA	Great Britain		1		1		1		1		90,400
	Austria		1						1				14,100
	Czech Republic		2		1		1		1				66,700
	South Africa		1		1		1		1		68,800
	Spain		1		1		1		1		63,300		10,800
	Poland		1		1		1		1		175,000

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Item 3. Legal Proceedings

In the course of business, the Company is subject to a variety of claims and lawsuits, including, but not limited to, litigation relating to employment, workers’ compensation, products liability, environmental and intellectual property.  The ultimate outcomes of these matters are not predictable with certainty.  The Company has liability insurance to cover many of these claims.  

The Company and its subsidiaries, Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply), “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects.  The Complaint alleges that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project.  The Plaintiffs were initially seeking an estimated $56.0 million Canadian dollars in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.  The Plaintiffs reduced their demand for damages to $29.4 million Canadian dollars on June 1, 2018.  

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. We are unable to predict the outcome of this case and cannot reasonably estimate a potential range of loss.  However, if it is determined adverse to the Company, it could have a material effect on the Company’s operating results.  

The Company is not a party to any other pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, operating results or cash flow.

Item 4. Mine Safety Disclosures

Not applicable

Item 4A. Information about our Executive Officers

Each executive officer is elected by the Board of Directors, serves at its pleasure and holds office until a successor is appointed, or until the earliest of death, resignation or removal.

Name	Age	Position
Robert G. Ruhlman	63	Chairman, President and Chief Executive Officer
Dennis F. McKenna	53	Chief Operating Officer
William H. Haag	56	Vice President - Asia Pacific Region
John M. Hofstetter	55	Vice President - Sales and Global Communications Markets
Tim O'Shaughnessy	49	Vice President - Human Resources
John J. Olenik	49	Vice President - Research and Engineering
J. Ryan Ruhlman	36	Vice President - Marketing and Business Development
David C. Sunkle	61	Vice President - Research and Engineering and Manufacturing
Caroline S. Vaccariello	53	General Counsel and Corporate Secretary
Michael A. Weisbarth	55	Vice President - Finance and Treasurer

The following sets forth the name and recent business experience for each person who is an executive officer of the Company at March 2, 2020:

Robert G. Ruhlman was elected Chairman in July 2004.  Mr. Ruhlman has served as Chief Executive Officer since July 2000 and as President since 1995 (positions he continues to hold). Mr. Ruhlman is the father of J. Ryan Ruhlman, Vice-President – Marketing and Business Development and a Director of the Company, and of Maegan A. R. Cross, also a Director of the Company.

15

Dennis F. McKenna was elected Chief Operating Officer in January 2019.  Prior to that, Mr. McKenna served as Executive Vice President Global Business Development since January 2015 where he expanded his role to include worldwide marketing and business development strategies.  Prior to that, he was elected Vice President - Marketing and Global Business Development in April 2004.

William H. Haag was elected Vice President – Asia Pacific Region in January 2018.  Prior to that, Mr. Haag served as the Company’s Vice President - International Operations since April 1999.

John M. Hofstetter was elected Vice President – Sales and Global Communications Markets and Business Development in April 2012.  

Tim O’Shaughnessy was elected Vice President - Human Resources in January 2019.  Prior to that, Mr. O’Shaughnessy served as the Company’s Director of Human Resources since 2017 where he was promoted from his previous role of International Human Resource Manager which he began in 2013.  Mr. O’Shaughnessy previously held various roles within the Finance organization since joining the Company in 2005.

John J. Olenik was elected Vice President – Research and Engineering in January 2020.  Prior to that, Mr. Olenik was the Company’s Director of Engineering since 2013 where he was promoted from his prior role as Engineering Manager of Power Product Development.  Mr. Olenik has been with the Company since 1997.    

J. Ryan Ruhlman was elected to the Company’s Board of Directors in July 2015 and as Vice President – Marketing and Business Development in December 2015, which expanded his role to include new acquisition and market opportunities.  Prior to that, he was promoted to Director Marketing and Business Development in January 2015 including responsibilities for Special Industries, Distribution and Transmission Markets, as well as Marketing Communications.  Mr. Ruhlman is the son of Robert G. Ruhlman, the Chief Executive Officer and Chairman of the Company, and the brother of Maegan A. R. Cross, a Director of the Company.

David C. Sunkle was elected Vice President - Research and Engineering in January 2007.  In addition, Mr. Sunkle has taken on the role of Vice President – Manufacturing since July 2008.

Caroline S. Vaccariello was elected General Counsel and Corporate Secretary in January 2007.

Michael A. Weisbarth was elected Vice President - Finance and Treasurer in May 2017.  Prior to that, Mr. Weisbarth served as the Company’s Controller and Treasurer since September 2014.  

Part II

Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

The Company’s common shares are traded on NASDAQ under the trading symbol “PLPC”.  As of March 2, 2020, the Company had approximately 2,000 shareholders of record.  The following table sets forth for the periods indicated (i) the high and low closing sale prices per share of the Company’s common shares as reported by the NASDAQ and (ii) the amount per share of cash dividends paid by the Company.

	Year ended December 31
	2019						2018
Quarter	High		Low		Dividend		High		Low		Dividend
First	$	62.98	$	51.52	$	0.20	$	84.40	$	59.95	$	0.20
Second		57.57		46.40		0.20		92.00		61.90		0.20
Third		58.60		47.01		0.20		90.54		70.28		0.20
Fourth		75.01		49.99		0.20		74.50		50.13		0.20

16

While the Company expects to continue to pay dividends of a comparable amount in the near term, the declaration and payment of future dividends will be made at the discretion of the Company’s Board of Directors in light of the current needs of the Company.  Therefore, there can be no assurance that the Company will continue to make such dividend payments in the future.

	(a)		(b)		(c)
	Number of securities to be issued upon exercise of outstanding options, warrants and rights		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a)
Plan Category	(1)		(1)		(2)
Equity compensation plans approved by security holders		243,384	$	58.77		764,401
Equity compensation plans not approved by security holders	0		$	0.00	0
Total		243,384				764,401

(1) Of these shares, 211,634 were issued in the form of restricted stock units, which have no exercise price. Accordingly, such shares were not included in the weighted average exercise price.

(2) The Company’s Long-Term Incentive Plan of 2008 was replaced in May 2016 by the 2016 Incentive Plan.  Up to 900,000 of the 1,000,000 shares initially authorized may be issued in the form of restricted shares or units under the new plan.  See Note H in the Notes to Consolidated Financial Statements for information relating to the Company’s 2016 Incentive Plan.  

Performance Graph

Set forth below is a line graph comparing the cumulative total return of a hypothetical investment in the Company’s common shares with the cumulative total return of hypothetical investments in the NASDAQ Composite Index and the Peer Group Index based on the respective market price of each investment at December 31, 2014, December 31, 2015, December 31, 2016, December 31, 2017, December 31, 2018, and December 31, 2019, assuming in each case an initial investment of $100 on December 31, 2014, and reinvestment of dividends.

	2014		2015		2016		2017		2018		2019
PREFORMED LINE PRODUCTS CO		100.00		78.62		110.55		137.06		105.89		119.48
NASDAQ MARKET INDEX		100.00		106.96		116.45		150.96		146.67		200.49
PEER GROUP INDEX		100.00		95.81		118.19		134.61		110.60		143.19

17

Purchases of Equity Securities

On December 13, 2017, the Board of Directors authorized a plan to repurchase up to an additional 228,138 of Preformed Line Products Company common shares, resulting in a total of 250,000 shares available for repurchase with no expiration date.  The following table includes repurchases for the three months ended December 31, 2019:

Period (2019)	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that may yet be Purchased under the Plans or Programs
October		7,895	$	51.08		145,978		104,022
November		0	$	0.00		145,978		104,022
December		27,188	$	70.71		173,166		76,834
Total		35,083

Item 6. Selected Financial Data

	2019		2018		2017		2016		2015
	(Thousands of dollars, except per share data)
Net Sales and Income
Net sales	$	444,861	$	420,878	$	378,212	$	336,634	$	354,666
Operating income		32,627		32,934		26,108		21,479		12,349
Income before income taxes		31,458		32,588		25,806		20,953		11,706
Net income		23,336		26,581		12,654		15,255		6,675
Net Income attributable to Preformed Line Products Company Shareholders		23,303		26,581		12,654		15,255		6,675
Per Share Amounts
Net income - basic	$	4.63	$	5.28	$	2.48	$	2.95	$	1.25
Net income - diluted		4.58		5.21		2.47		2.95		1.24
Dividends declared		0.80		0.80		0.80		0.80		0.80
Shareholders' equity		53.39		49.56		47.35		43.68		41.94
Other Financial Information
Current assets	$	231,975	$	214,263	$	207,130	$	189,107	$	188,497
Total assets		433,571		358,797		359,785		340,937		324,573
Current liabilities		81,073		69,487		62,833		55,455		51,891
Long-term debt (including current portion)		57,076		26,408		36,046		44,391		31,864
Shareholders' equity		268,568		249,370		238,537		223,543		218,984

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the readers of our financial statements better understand our results of operations, financial condition and present business environment. The MD&A is provided as a supplement to, and should be read in conjunction with, our audited consolidated financial statements and related notes included elsewhere in this report.

The MD&A is organized as follows:

➢ Overview

➢ Recent Developments

➢ Market Overview

➢ Preface

➢ Results of Operations

➢ Working Capital, Liquidity and Capital Resources

➢ Critical Accounting Policies and Estimates

➢ Recently Adopted Accounting Pronouncements

➢ New Accounting Standards to be Adopted

OVERVIEW

Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947.  We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries.  Our primary products support, protect, connect, terminate, and secure cables and wires.  We also provide solar hardware systems, mounting hardware for a variety of solar power applications, and fiber optic and copper splice closures. PLPC is respected around the world for quality, dependability and market-leading customer service.  Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets.  We have 29 sales and manufacturing operations in 20 different countries.

We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America without PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific in accordance with accounting standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, “Segment Reporting”.  Each segment distributes a full range of our primary products.  Our PLP-USA segment is comprised of our U.S. operations manufacturing our traditional products primarily supporting our domestic energy, telecommunications and solar products.  Our other three segments, The Americas, EMEA and Asia-Pacific, support our energy, telecommunications, data communication and solar products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are responsible.  The business components within each segment are managed to maximize the results of the entire operating segment and the Company rather than the results of any individual business component of the segment.

We evaluate segment performance and allocate resources based on several factors primarily based on sales and net income.

RECENT DEVELOPMENTS

On February 28, 2019, the Company acquired SubCon, headquartered in Dornbirn, Austria with manufacturing operations in Brno, Czech Republic.  The acquisition of SubCon will strengthen the Company’s position in the global substation market and will expand its operational presence in Europe.    

On April 1, 2019, the Company acquired 90% of MICOS Telcom,  headquartered in Prostějov, Czech Republic.  The acquisition of MICOS Telcom will strengthen the Company’s position in the global telecom market and also will expand its operational presence in Europe.

See Note O in the notes to Consolidated Financial Statements for more information regarding the aforementioned acquisitions.

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MARKET OVERVIEW

Our business continues to be highly concentrated in the energy and communications markets.  During the past several years, industry consolidation continued as distributor and service provider integrations occurred in our major markets.  The fluctuation of foreign currencies coupled with the varying degrees of recovery throughout the global economy has led to a challenging environment. In addition, low oil prices, increasing commodity prices and changes in governmental leadership in certain markets have affected construction projects worldwide and there has been a historical lack of commitment by developed countries to upgrade and strengthen their electrical grids and communication networks, despite the growing need.  While these factors are likely to continue to provide inherent uncertainty going forward, the Company has increased its sales over the past few years despite the global economic instability.

In 2019, sales in the energy market continued to increase due to the number and scale of transmission projects in North America.  We believe that our leadership position in the market and ability to deliver reliable products quickly will enable us to take advantage of prospects for continued growth as transmission grids are enhanced and extended.  As communication networks continue to be upgraded and expanded, our product offering positions us well to participate in the expansion.

Our international business is more concentrated in the energy and communications markets, which is where we experienced our most significant top line growth in 2019.  Historically, our international sales were primarily related to the medium voltage distribution segment of the energy market but have grown through acquisition and new product development to include a significant contribution from the transmission and telecommunications markets.  We believe that we are well positioned to supply the needs of the world’s diverse energy market requirements as a result of our strategically located operations and array of product designs and technologies. 

As economic conditions evolve, we believe our efforts internationally will lead to growth in our communications business from opportunities where deployment of fixed line and wireless telecommunications services and broadband penetration rates remain low as a percentage of the total population.

PREFACE

Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP).  Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance and operating trends.  

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. As foreign currencies weaken against the U.S. dollar, our sales and costs decrease as the foreign currency-denominated financial statements translate into fewer U.S. dollars.  In total, foreign currencies weakened against the U.S. dollar in both 2019 and 2018.  The fluctuations of foreign currencies during the years ended December 31, 2019 and 2018 had an unfavorable impact on net sales of $14.2 million and $5.7 million, respectively.  On a reportable segment basis, the unfavorable impact of foreign currency translation on net sales and net income for the years ended December 31, 2019 and 2018, respectively, was as follows:

	Foreign Currency Translation Impact
	Net Sales						Net Income (Loss)
(Thousands of dollars)	2019			2018			2019			2018
The Americas	$	(6,752	)	$	(8,173	)	$	(121	)	$	(311	)
EMEA		(4,323	)		2,443			(233	)		157
Asia-Pacific		(3,092	)		75			11			(22	)
Total	$	(14,167	)	$	(5,655	)	$	(343	)	$	(176	)

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The effect of currency translation had an unfavorable impact on net income in the years ended December 31, 2019 and 2018 of $.3 million and $.2 million, respectively.  There were $.4 million in losses on foreign currency translation on operating income for the year ended December 31, 2019.  There were transaction losses of $.2 million and $1.5 million in the years ended December 31, 2019 and 2018, respectively, as summarized in the following table:

	Foreign Currency Translation Impact
	Year Ended December 31
(Thousands of dollars)	2019		2018
Operating income	$	32,627	$	32,934
Translation loss		432		0
Transaction loss		211		1,528
Operating income excluding currency impact	$	33,270	$	34,462

Despite the continued changes in the current global economy, we believe our business fundamentals and our financial position are sound and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity in conjunction with the requirements of local manufacturing in the markets that we serve. If necessary, we will utilize our global manufacturing network to manage costs, while driving sales and delivering value to our customers.  We have continued to invest in the business to expand into new markets for us to improve efficiency, develop new products, increase our capacity and become an even stronger supplier to our current and new customers.  We currently have a bank debt to equity ratio of 24.5% and can borrow needed funds at a competitive interest rate under our credit facility.  A consolidated increase in debt of $30.2 million as of December 31, 2019 in order to fund two acquisitions, acquire certain manufacturing facilities and acquire properties for plant relocations during 2019 drove the increase in our bank debt to equity ratio from 14.2% at December 31, 2018.  See Note E in the Notes to Consolidated Financial Statements for more information related to our debt position.

The following table sets forth a summary of the Company’s consolidated income statements and the percentage of net sales for the years ended December 31, 2019 and 2018.  The Company’s past operating results are not necessarily indicative of future operating results.

	Year Ended December 31
(Thousands of dollars)	2019						2018						Change
Net sales	$	444,861		100.0		%	$	420,878		100.0		%	$	23,983
Cost of products sold		304,266		68.4				288,647		68.6				15,619
GROSS PROFIT		140,595		31.6				132,231		31.4				8,364
Costs and expenses		107,968		24.3				99,297		23.6				8,671
OPERATING INCOME		32,627		7.3				32,934		7.8				(307	)
Other expense, net		(1,169	)	(0.3	)			(346	)	(0.1	)			(823	)
INCOME BEFORE INCOME TAXES		31,458		7.1				32,588		7.7				(1,130	)
Income taxes		8,122		1.8				6,007		1.4				2,115
NET INCOME		23,336		5.2				26,581		6.3				(3,245	)
Less:  Net income attributable to noncontrolling interests		(33	)	(0.0	)			0		0.0				(33	)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	23,303		5.2		%	$	26,581		6.3		%	$	(3,278	)

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2019 RESULTS OF OPERATIONS COMPARED TO 2018

Net sales.  In 2019, net sales were $444.9million, an increase of $24.0 million, or 6%, compared to 2018.  Excluding the unfavorable effect of currency translation, net sales increased 9% as summarized in the following table:

	Year Ended December 31
							Change			Change
(Thousands of dollars)							Due to			Excluding
							Currency			Currency		%
	2019		2018		Change		Translation			Translation		Change
Net sales
PLP-USA	$	178,301	$	169,040	$	9,261	$	0		$	9,261		5	%
The Americas		68,293		66,868		1,425		(6,752	)		8,177		12
EMEA		79,158		69,773		9,385		(4,323	)		13,708		20
Asia-Pacific		119,109		115,197		3,912		(3,092	)		7,004		6
Consolidated	$	444,861	$	420,878	$	23,983	$	(14,167	)	$	38,150		9	%

The increase in PLP-USA net sales of $9.3 million, or 5%, was primarily due to a volume increase in energy product sales.  International net sales for the year ended December 31, 2019 were unfavorably affected by $14.2 million when local currencies were converted to U.S. dollars. The following discussion of changes in net sales excludes the effect of currency translation.  The Americas net sales of $68.3 million increased $8.2 million, or 12%, primarily due to higher volume in energy and communication product sales.  EMEA net sales of $79.2 million increased $13.7 million, or 20%, primarily due to volume increases in energy products in the region as well as incremental sales growth from the newly acquired businesses.  The Asia-Pacific net sales of $119.1 million increased $7.0 million, or 6%, compared to 2018.  The increase in net sales is primarily due to a combined sales volume increase in energy, communication and special industries products.

Gross Profit.  Gross profit of $140.6 million for 2019 increased $8.4 million, or 6%, compared to 2018.  Excluding the unfavorable effect of currency translation, gross profit increased $13.1 million, or 10%, as summarized in the following table:

	Year Ended December 31
								Change			Change
(Thousands of dollars)								Due to			Excluding
								Currency			Currency			%
	2019		2018		Change			Translation			Translation			Change
Gross profit
PLP-USA	$	63,630	$	59,012	$	4,618		$	0		$	4,618			8	%
The Americas		22,912		25,570		(2,658	)		(2,573	)		(85	)		0
EMEA		23,435		19,747		3,688			(1,269	)		4,957			25
Asia-Pacific		30,618		27,902		2,716			(864	)		3,580			13
Consolidated	$	140,595	$	132,231	$	8,364		$	(4,706	)	$	13,070			10	%

PLP-USA gross profit of $63.6 million increased by $4.6 million compared to 2018 mostly due to an increase in sales volume and a shift in mix toward higher margin products.  International gross profit for the year ended December 31, 2019 was unfavorably impacted by $4.7 million when local currencies were translated to U.S. dollars.  The following discussion of gross profit changes excludes the effects of currency translation.  Despite the increase in sales, the Americas gross profit decreased $.1 million, which was primarily the result of a year-over-year product margin decline in the region due to sales mix and increases in raw material costs.  EMEA gross profit increased $5.0 million due to the $13.7 million increase in sales in the region, which includes the incremental growth from newly acquired businesses.  Asia-Pacific’s gross profit increased $3.6 million as sales mix shifted to higher margin products alongside an increase in sales of $7.0 million.

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Costs and expenses. Costs and expenses of $108.0 million for the year ended December 31, 2019 increased $8.7 million, or 9%, compared to 2018.  Excluding the favorable effect of currency translation, costs and expenses increased $12.9 million, or 13%, as summarized in the following table:

	Year Ended December 31
								Change			Change
(Thousands of dollars)								Due to			Excluding
								Currency			Currency		%
	2019		2018		Change			Translation			Translation		Change
Costs and expenses
PLP-USA	$	51,216	$	47,866	$	3,350		$	0		$	3,350		7	%
The Americas		13,807		14,053		(246	)		(2,425	)		2,179		16
EMEA		20,058		15,198		4,860			(1,015	)		5,875		39
Asia-Pacific		22,887		22,180		707			(833	)		1,540		7
Consolidated	$	107,968	$	99,297	$	8,671		$	(4,273	)	$	12,944		13	%

PLP-USA costs and expenses of $51.2 million increased $3.4 million, or 7%.  PLP-USA’s year-over-year increase was attributable to higher personnel related expenses, including benefits, of $1.4 million, increased professional fees of $1.1 million, higher allowance for doubtful accounts of $.6 million, an increase in travel and entertainment expenses of $.3 million combined with a net increase in miscellaneous expenses of $.2 million  The increases were offset by a $.2 million incremental gain in net foreign currency transaction exchange effect.  Foreign currency exchange losses were primarily related to translating into U.S. dollars its foreign currency denominated loans, trade receivables and royalty receivables from its foreign subsidiaries at the December 2019 year-end exchange rates.  International costs and expenses for the year ended December 31, 2019 were favorably impacted by $4.3 million when local currencies were translated to U.S. dollars.  The following discussions of costs and expenses exclude the effect of currency translation.  The Americas costs and expenses increase of $2.2 million was primarily due to higher personnel related costs of $.4 million, higher professional fee expenses of $.2 million, higher facility and maintenance expenses of $.2 million and a combined net loss on foreign currency transactional exchange and loss on sale of assets of $.5 million, along with higher combined travel and miscellaneous expenses of $.9 million, which includes higher expenses related to bank guarantees associated with large projects in the region.  EMEA costs and expenses of $20.1 million increased $5.9 million mainly due to incremental costs incurred with our newly acquired businesses.  Asia-Pacific costs and expenses of $22.9 million increased $1.5 million primarily due to higher personnel related expenses of $.2 million, increased professional fees of $.2 million, a higher allowance for doubtful accounts of $.2 million, increased commissions of $.2 million and a combined increase in travel, plant relocation and maintenance and miscellaneous expenses of $.7 million.

Other income (expense).  Other expense of $1.2 million for the year ended December 31, 2019 increased $.8 million whencompared to the twelve months ended December 31, 2018 mainly due to higher interest expense.  

Income taxes.  Income taxes for the years ended December 31, 2019 and 2018 were $8.1 million and $6.0 million, respectively, based on pre-tax income of $31.5 million and $32.6 million, respectively.  The effective tax rate for the years ended December 31, 2019 and 2018 was 25.8% and 18.4%, respectively, compared to the U.S. federal statutory rate of 21%.  Our effective tax rate is affected by recurring items, such as tax rates in foreign jurisdictions, which differ from the U.S. federal statutory income tax rate, and the relative amount of income earned in those jurisdictions where such earnings are permanently reinvested.  It is also affected by discrete items that may occur in any given period but are not consistent from year to year.  The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0%:

2019

1. A $.9 million, or 3%, net increase resulting from higher U.S. permanent items primarily related to limitations on the deductibility of executive compensation.

2. A $.4 million, or 1.2%, net decrease resulting from losses in certain jurisdictions where no tax benefit was previously recognized.  

3. A $.9 million, or 3%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.

2018

1. A $1.2 million, or 3.6%, net decrease resulting primarily from a final measurement of the provisional amount of the Deemed Repatriation Transition Tax and other U.S. permanent items and state and local income taxes.

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2. A $.7 million, or 2.1%, net decrease resulting from a net increase of the prior year provisional adjustment of our deferred taxes due to the result of U.S. federal statutory rate decrease included in the Tax Act.

3. A $1.1 million, or 3.1%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.

Net income.  As a result of the preceding items, net income for the year ended December 31, 2019 was $23.3 million, compared to $26.6 million for 2018.  Excluding the effect of currency translation, net income decreased $2.9 million as summarized in the following table:

	Year Ended December 31
								Change			Change
(Thousands of dollars)								Due to			Excluding
								Currency			Currency			%
	2019		2018		Change			Translation			Translation			Change
Net income
PLP-USA	$	8,054	$	9,900	$	(1,846	)	$	0		$	(1,846	)		(19	)	%
The Americas		6,657		8,479		(1,822	)		(121	)		(1,701	)		(20	)
EMEA		2,935		3,527		(592	)		(233	)		(359	)		(10	)
Asia-Pacific		5,657		4,675		982			11			971			21
Consolidated	$	23,303	$	26,581	$	(3,278	)	$	(343	)	$	(2,935	)		(11	)	%

PLP-USA’s net income of $8.1 million decreased $1.8 million year over year, mainly due to a year-over-year increase in income tax expense of $3.3 million resulting from favorable prior year adjustments related to the Tax Act, partially offset by a $1.0 million increase in operating income.  International net income for the year ended December 31, 2019 was unfavorably affected by approximately $.3 million when local currencies were converted to U.S. dollars.  The following discussion of net income excludes the effect of currency translation.  The Americas net income of $6.7 million decreased $1.7 million mainly as a result of a $1.9 million decrease in operating income, slightly offset by a $.2 million decrease in income tax expense.  EMEA net income decreased $.4 million as a result of a $.3 million decrease in operating income combined with a year-over-year increase in income taxes of $.1 million.  Asia-Pacific net income improved $1.0 million mainly as a result of a $1.6 million increase in operating income offset by an increase in income tax expense for the region of $.6 million.

WORKING CAPITAL, LIQUIDITY AND CAPITAL RESOURCES

Management Assessment of Liquidity

We measure liquidity on the basis of our ability to meet short-term and long-term operating needs, fund additional investments, including acquisitions, and make dividend payments to shareholders.  Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividends, business acquisitions and access to bank lines of credit.

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives.  In 2019, we used cash of $29.5 million for capital expenditures.  We ended 2019 with $39.3 million of cash, cash equivalents and restricted cash (“Cash”).  Our Cash is held in various locations throughout the world.  At December 31, 2019, the majority of our cash is held outside the U.S.

We expect the majority of accumulated non-U.S. cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future cash flows, use of U.S. cash balances, external borrowings, or some combination of these sources.  

We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk.  We closely monitor payments and developments that may signal possible customer credit issues.  We currently have not identified any potential material impact on our liquidity from customer credit issues.

Our financial position remains strong and our current ratio at December 31, 2019 and 2018 was 2.9 to 1 and 3.1 to 1, respectively.  Total debt at December 31, 2019 was $65.8 million.At December 31, 2019, our unused availability under our line of credit was $31.4 million and our bank debt to equity percentage was 24.5%.  On March 13, 2018, the Company extended the term on its $65.0 million credit facility from June 30, 2019 to June 30, 2021.  All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless its funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, then the LIBOR spread becomes 1.500%.  As of December 31, 2019, the Company’s Polish subsidiary had borrowed $6.5 million at a rate of 1.125% plus the Warsaw Interbank Offer Rate with a term expiring June 30, 2021.  At December 31, 2019, the Company’s Australian subsidiary had borrowed $5.5 million U.S. dollars, also with a term expiring June 30, 2021.  As of December 31, 2019, the interest

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rates on the U.S., Polish and Australian lines of credit agreement were 2.89% and 2.76% and 1.96%, respectively.  Under the credit facility, at December 31, 2019, the Company had utilized $33.6 million with $31.4 million available under the line of credit net of long-term outstanding letters of credit.  The PLP-USA line of credit provides for $20.0 million to be available to the Company’s subsidiaries.  The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability.  At both December 31, 2019 and 2018, the Company was in compliance with all covenants.

On February 28, 2019, the Company acquired its Austrian subsidiary, SubCon.  The Company’s Austrian subsidiary has a 1.0 million euros, or $1.1 million U.S. dollars line of credit with a term expiration of May 31, 2020 with the option to renew for an additional twelve months indefinitely.  At December 31, 2019, the Company’s Austrian subsidiary had borrowed $.6 million, all of which is current, on the line of credit at an interest rate of 1.400%.

On April 25, 2019, the Company borrowed the U.S. equivalent of $8.3 million dollars on behalf of its Indonesian subsidiary at a rate of 3.501% with a term expiring on April 30, 2024.  At December 31, 2019, $7.5 million was outstanding on this debt facility, of which $.8 million is classified as current.

On August 14, 2019, the Company’s New Zealand subsidiary borrowed the U.S. dollar equivalent of $5.3 million at a rate of 3.900% with a term expiring on August 26, 2021.  At December 31, 2019, $5.4 million was outstanding on this facility, of which $.5 million is classified as current.  This loan is secured by the Company’s New Zealand subsidiary’s land and building.

The Company owns a corporate aircraft with a remaining balance due on the loan of $8.1 million, of which $1.4 million is classified as short-term, with a term expiring in 2026.  The loan is secured by the purchased aircraft.

We expect that our major source of funding for 2020 and beyond will be our operating cash flows, our existing cash and cash equivalents as well as our line of credit agreement.  We earn a significant amount of our operating income outside the United States, which, except for current earnings in certain jurisdictions, is deemed to be indefinitely reinvested in foreign jurisdictions.  We currently do not intend nor foresee a need to repatriate these funds.  We believe our future operating cash flows will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next 12 months and thereafter for the foreseeable future.  In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement funding of capital expenditures and/or acquisitions.  We also believe that we can expand our borrowing capacity, if necessary; however, we do not believe we would increase our debt to a level that would have a material adverse impact upon results of operations or financial condition.

Sources and Uses of Cash

Cash at December 31, 2019 decreased $4.6 million compared to December 31, 2018.  Net Cash provided by operating activities was $27.2 million. The most significant net investing and financing uses of Cash were payments of long-term debt of $64.1 million, capital expenditures of $29.5 million, Cash used to fund the acquisition of SubCon and MICOS Telcom of $18.9 million, share repurchases of $6.8 million and dividends paid of $4.2 million, partially offset by net debt and notes payable proceeds of $93.0+ million. Currency had a negative $.8 million impact on Cash when translating foreign denominated financial statements to U.S. dollars.

Net Cash provided by operating activities for the years ended December 31, 2019 and 2018 was $27.2 million and $23.0 million, respectively.  The $4.2 million increase was primarily a result of a prior year, non-recurring, contribution to the pension plan of $5.3 million, partially offset by a decrease in net income and miscellaneous net unfavorable movements in non-cash and cash items.

Net Cash used in investing activities of $48.8 million for the year ended December 31, 2019 represents an increase of $34.8 million when compared to cash used in investing activities for the year ended December 31, 2018.  The increased use of Cash was primarily related to an increase in Cash used for capital expenditures of $29.5 million, cash used for the acquisition of SubCon and MICOS Telcom of $18.9 million, partially offset by a reduction in net Cash used of $4.8 million related to the purchase of marketable securities and company-owned life insurance policies.

Cash from financing activities for the year ended December 31, 2019 was $17.7 million compared to a use of $9.1 million in the year ended December 31, 2018. The $26.8 million increase was primarily a result of a net increase in debt transactions of $29.6 million in 2019 as compared to 2018, partially offset by a net year-over-year increase in cash used in capital stock transactions of $2.7 million combined with an increase in dividends paid of $.1 million.

We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and computer equipment and capital leases primarily for equipment.

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Contractual obligations and other commercial commitments are summarized in the following tables:

	Payments Due by Period
Contractual Obligations	Total		Less than 1 year		1-3 years		4-5 years		After 5 years
(Thousands of dollars)
Notes payable to bank (A)	$	8,696	$	8,696	$	0	$	0	$	0
Long-term debt (B)		57,076		3,353		39,335		5,535		8,853
Financing leases		202		109		93		0		0
Operating leases		16,274		2,462		4,699		340		8,773
Pension contribution and other retirement plans (C)		0		0		0		0		0

	Amount of Commitment Expiration by Period
Other Commercial Commitments	Total		Less than 1 year		1-3 years		4-5 years		After 5 years
(Thousands of dollars)
Letters of credit	$	7,564	$	7,564	$	0	$	0	$	0
Guarantees		11,479		2,952		6,950		1,376		201

(A) Interest on short-term debt is included in the table at interest rates from 1.40% to 9.40% in effect at December 31, 2019.

(B) Interest on long-term debt is included in the table at interest rates from 1.40% to 4.60% based on the variable interest rates in effect at December 31, 2019.

(C) The Company does not expect to make contributions to the Company’s defined benefit pension plan in 2020.  Future expected amounts beyond one year have not been disclosed as such amounts are subject to change based on performance of the assets in the plan as well as the discount rate used to determine the obligation.  

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with GAAP.  The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities at the date of the consolidated financial statements.  Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are defined as those that are reflective of significant judgment and uncertainties, and potentially may result in materially different outcomes under different assumptions and conditions.

Revenue Recognition

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

Receivable Allowances

We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We record estimated allowances for uncollectible accounts receivable based upon the number of days the accounts are past due, the current business environment, and specific information such as bankruptcy or liquidity issues of customers.  If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.  The allowance for doubtful accounts represents approximately less than 3.7% and 3.5% of our trade receivables balance at December 31, 2019 and 2018, respectively.

26

Excess and Obsolescence Reserves

We provide excess and obsolescence reserves to state inventories at the lower of cost or estimated net realizable value.  We identify inventory items that have had no usage or are in excess of the usages over the historical 12 to 24 months.  A management team with representatives from marketing, manufacturing, engineering and finance reviews these inventory items, determines the disposition of the inventory and assesses the net realizable value based on their knowledge of the product and market conditions.  These conditions include, among other things, future demand for product, product utility, unique customer order patterns or unique raw material purchase patterns, changes in customer and quality issues.  The reserve for excess and obsolete inventory was 7.7% and 9.6% of gross inventory for the years ended December 31, 2019 and December 31, 2018, respectively.  If the impact of market conditions deteriorates from those projected by management, additional inventory reserves may be necessary.

Impairment of Long-Lived Assets

We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying value of those items.  Our cash flows are based on historical results adjusted to reflect the best estimate of future market and operating conditions.  The net carrying value of assets not recoverable is then reduced to fair value.  The estimates of fair value represent the best estimate based on industry trends and reference to market rates and transactions.

Goodwill

We perform our annual impairment test for goodwill utilizing a discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit.  We then compare the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired.  Based on the assumptions as to growth, discount rates and the weighting used for each respective valuation methodology, results of the valuations could be significantly changed.  However, we believe that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.

Our measurement date for our annual impairment test is October 1 of each year.  We performed our annual impairment tests for goodwill as of October 1, 2019.  We did not have any impairment for goodwill for the years ended December 31, 2019 or 2018. See Note J for additional information.

Deferred Tax Assets

Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.  We establish a valuation allowance to record our deferred tax assets at an amount that is more-likely-than-not to be realized.  In the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of their recorded amount, an adjustment to the valuation allowance would increase income in the period such determination was made.  Likewise, should we determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made.

Uncertain Tax Positions

We identify tax positions taken on the federal, state, local and foreign income tax returns filed or to be filed.  A tax position can include: a reduction in taxable income reported in a previously filed tax return or expected to be reported on a future tax return that impacts the measurement of current or deferred  income tax assets or liabilities in the period being reported; a decision not to file a tax return; an allocation or a shift of income between jurisdictions; the characterization of income or a decision to exclude reporting taxable income in a tax return; or a decision to classify a transaction, entity or other position in a tax return as tax exempt.  We determine whether a tax position is an uncertain or a routine business transaction tax position that is more-likely-than-not to be sustained at the full amount upon examination.

Under FASB ASC 740 (“ASC 740”), “Tax Benefits from Uncertain Tax Positions” that reduce our current or future income tax liability are reported in our financial statements only to the extent that each benefit is recognized and measured under a two-step approach.  The first step requires us to assess whether each tax position based on its technical merits and facts and circumstances as of the reporting date, is more-likely-than-not to be sustained upon examination.  The second step measures the amount of tax benefit that we would recognize in the financial statements based on a cumulative probability approach.  A tax position that meets the more-likely-than-not threshold that is not highly certain is measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority, assuming that the tax authority has examined the position and has full knowledge of all relevant information.

27

ASC 740 requires subjectivity to identify outcomes and to assign probability in order to estimate the settlement amount.  We provide estimates in order to determine settlement amounts.  During the year ended December 31, 2019, we recorded $.1 millionof reserves for uncertain tax positions.  At December 31, 2018, there was no reserve requirement for uncertain tax positions.

Pensions

We record obligations and expenses related to a pension benefit plan based on actuarial valuations, which include key assumptions on discount rates, expected returns on plan assets and compensation increases.  These actuarial assumptions are reviewed annually and modified as appropriate.  The effect of modifications is generally recorded or amortized over future periods.  The discount rate of 3.50% at December 31, 2019 reflects an analysis of yield curves as of the end of the year and the schedule of expected cash needs of the plan.  The expected long-term return on plan assets of 7.0% reflects the plan’s historical returns and represents our best estimate of the likely future returns on the plan’s asset mix.  We believe the assumptions used in recording obligations under the plans are reasonable based on prior experience, market conditions and the advice of plan actuaries.  However, an increase in the discount rate would decrease the plan obligations and the net periodic benefit cost, while a decrease in the discount rate would increase the plan obligations and the net periodic benefit cost.  In addition, an increase in the expected long-term return on plan assets would decrease the net periodic pension cost, while a decrease in expected long-term return on plan assets would increase the net periodic pension cost. 

28

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The Company operates manufacturing facilities and offices around the world and uses fixed and floating rate debt to finance the Company's global operations.  As a result, the Company is subject to business risks inherent in non-U.S. activities, including political and economic uncertainty, import and export limitations and market risk related to changes in interest rates and foreign currency exchange rates.  The Company believes that the political and economic risks related to the Company's international operations are mitigated due to the geographic diversity in which the Company's international operations are located.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation rate exceeded 100%.  As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar.  Revenue from operations in Argentina represented less than 2% of total consolidated net sales for the years ended December 31, 2019 and 2018.

As of December 31, 2019, the Company had no foreign currency forward exchange contracts outstanding.  The Company does not hold derivatives for trading purposes.

The Company's primary currency rate exposures are related to foreign denominated debt, intercompany debt, forward exchange contracts, foreign denominated receivables and payables and cash and short-term investments.  A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on fair values on such instruments of $6.0 million and on income before tax of $2.3 million.

The Company is exposed to market risk, including changes in interest rates.  The Company is subject to interest rate risk on its variable rate revolving credit facilities and term notes, which consisted of long-term borrowings of $57.1 million at December 31, 2019.  A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately $.5 million for the year ended December 31, 2019.

Included in the Company’s accounting for defined benefit pension plan (“Plan”) are assumptions on future discount rates and the expected return on Plan assets.  The Company considers current market conditions, including changes in interest rates and Plan asset investment returns.  Actuarial assumptions may differ materially from actual results due to changing market and economic conditions or higher or lower withdrawal rates.  These differences may result in a significant impact to the amount of net pension expense or income recorded in the future.

A discount rate is used to determine the present value of future payments.  In general, our liability increases as the discount rate decreases and decreases as the discount rate increases.  The discount rate used to determine the future benefit obligation was 3.50% and 4.25% at December 31, 2019 and 2018, respectively.  The discount rate is a significant factor in determining the amounts reported.  A 50 basis point change in the discount rate of 3.50% used at December 31, 2019 would have a $3.1 million effect on the Plan’s projected benefit obligation.

The Company developed the expected return on Plan assets by considering various factors which include targeted asset allocation percentages, historical returns, and expected future returns.  The Company assumed an expected rate of return of 7.00% and 8.00% at December 31, 2019 and 2018, respectively.  A 50 basis point change in the expected rate of return would have a $.2 million effect on the Plan’s subsequent year’s net periodic pension cost.

29

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

of Preformed Line Products Company

Opinion on the Financial Statements

We have audited the accompanying Consolidated Balance Sheets of Preformed Line Products and subsidiaries (the Company) as of December 31, 2019 and 2018, and the related Statements of Consolidated Income, Comprehensive Income, Cash Flows, and Shareholders' Equity for each of the three years in the period ended December 31, 2019 and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “financial statements”).  In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2019 and 2018, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with U.S. generally accepted accounting principles.  

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 6, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.  

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2008

Cleveland, Ohio

March 6, 2020

30

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

	December 31
	2019			2018
	(Thousands of dollars, except share and per share data)
ASSETS
Cash and cash equivalents	$	38,929		$	43,609
Accounts receivable, less allowances of $3,849 ($3,178 in 2018)		83,517			73,139
Inventories - net		95,718			85,259
Prepaids		6,921			6,205
Prepaid taxes		2,601			3,169
Other current assets		4,289			2,882
TOTAL CURRENT ASSETS		231,975			214,263
Property, plant and equipment - net		124,018			102,955
Operating lease, right-of-use assets		12,453			0
Intangibles - net		15,116			8,458
Goodwill		27,840			15,621
Deferred income taxes		7,564			6,900
Other assets		14,605			10,600
TOTAL ASSETS	$	433,571		$	358,797
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable	$	28,282		$	26,414
Notes payable to banks		8,696			9,042
Operating lease liabilities, current		2,062			0
Current portion of long-term debt		3,354			1,448
Accrued compensation and amounts withheld from employees		11,817			11,153
Accrued expenses and other liabilities		16,718			12,582
Accrued profit-sharing and other benefits		7,213			6,982
Dividends payable		1,173			1,051
Income taxes payable		1,758			815
TOTAL CURRENT LIABILITIES		81,073			69,487
Long-term debt, less current portion		53,722			24,960
Unfunded pension obligation		5,278			5,259
Operating lease liabilities, non-current		8,246			0
Deferred income taxes		3,116			1,711
Other noncurrent liabilities		13,568			8,010
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,992,979 and    5,020,410 issued and outstanding, at December 31, 2019 and December 31, 2018, respectively		12,848			12,662
Common shares issued to rabbi trust, 267,641 and 269,630 shares at December 31,    2019 and December 31, 2018, respectively		(10,981	)		(11,008	)
Deferred compensation liability		10,981			11,008
Paid-in capital		38,854			34,401
Retained earnings		353,292			334,170
Treasury shares, at cost, 1,431,235 and 1,310,387 shares at
December 31, 2019 and December 31, 2018, respectively		(79,106	)		(72,280	)
Accumulated other comprehensive loss		(57,353	)		(59,583	)
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY		268,535			249,370
Noncontrolling interest		33			0
TOTAL SHAREHOLDERS' EQUITY		268,568			249,370
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	433,571		$	358,797

31

See notes to consolidated financial statements.

32

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED INCOME

	Year Ended December 31
	2019			2018			2017
	(In thousands, except per share data)
Net sales	$	444,861		$	420,878		$	378,212
Cost of products sold		304,266			288,647			259,584
GROSS PROFIT		140,595			132,231			118,628
Costs and expenses
Selling		36,609			36,358			34,048
General and administrative		51,806			45,398			43,160
Research and engineering		17,187			15,107			14,327
Other operating expenses - net		2,366			2,434			985
		107,968			99,297			92,520
OPERATING INCOME		32,627			32,934			26,108
Other income (expense)
Interest income		783			486			430
Interest expense		(2,217	)		(1,290	)		(1,061	)
Other income		265			458			329
		(1,169	)		(346	)		(302	)
INCOME BEFORE INCOME TAXES		31,458			32,588			25,806
Income taxes		8,122			6,007			13,152
NET INCOME	$	23,336		$	26,581		$	12,654
Less:  Net income attributable to noncontrolling interests		(33	)		0			0
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	23,303		$	26,581		$	12,654
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic		5,031			5,032			5,102
Diluted		5,087			5,107			5,133
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:
Basic	$	4.63		$	5.28		$	2.48
Diluted	$	4.58		$	5.21		$	2.47

See notes to consolidated financial statements.

33

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

	Year Ended December 31
	2019			2018			2017
	(Thousands of dollars)
Net income	$	23,336		$	26,581		$	12,654
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment		2,028			(12,285	)		10,070
Recognized net actuarial gains		397			386			269
Loss on unfunded pension obligations		(195	)		(244	)		(410	)
Other comprehensive income (loss), net of tax		2,230			(12,143	)		9,929
Less:  Comprehensive income attributable to noncontrolling interests		(33	)		0			0
Comprehensive income attributable to Preformed Line Products Company shareholders	$	25,533		$	14,438		$	22,583

See notes to consolidated financial statements.

34

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED CASH FLOWS

	Year Ended December 31
	2019			2018			2017
	(Thousands of dollars)
OPERATING ACTIVITIES
Net income	$	23,336		$	26,581		$	12,654
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		13,748			12,444			12,790
Provision for accounts receivable allowances		2,132			1,206			1,165
Provision for inventory reserves		1,283			2,402			1,205
Deferred income taxes		(1,274	)		314			2,436
Share-based compensation expense		4,396			4,236			3,055
Loss (gain) on sale of property and equipment		10			(156	)		160
Other - net		292			192			213
Changes in operating assets and liabilities    assets:
Accounts receivable		(9,777	)		(4,499	)		(9,205	)
Inventories		(9,455	)		(13,703	)		(2,208	)
Trade accounts payables and accrued liabilities		6,087			3,048			4,957
Income taxes, net		634			(1,896	)		7,134
Contributions to company pension plan		0			(5,340	)		(225	)
Other - net		(4,195	)		(1,853	)		(301	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		27,217			22,976			33,830
INVESTING ACTIVITIES
Capital expenditures		(29,467	)		(9,528	)		(11,233	)
Proceeds from the sale of property and equipment		54			195			142
Purchase of marketable securities		(496	)		(4,690	)		0
Proceeds from sale of marketable securities		2,309			2,953			0
Purchase of company owned life insurance policies		(2,309	)		(2,953	)		0
Acquisition of businesses, net of cash		(18,894	)		0			0
Fixed-term deposits		0			0			8,527
NET CASH USED IN INVESTING ACTIVITIES		(48,803	)		(14,023	)		(2,564	)
FINANCING ACTIVITIES
(Decrease) increase in notes payable to banks		(355	)		8,446			(537	)
Proceeds from long-term debt		93,036			76,030			55,581
Payments of long-term debt		(64,124	)		(85,496	)		(63,981	)
Dividends paid		(4,230	)		(4,088	)		(4,099	)
Proceeds from issuance of common shares		213			222			1,962
Purchase of common shares for treasury		(2,800	)		(191	)		(2	)
Purchase of common shares for treasury from related parties		(4,026	)		(3,974	)		(8,475	)
NET CASH PROVIDED BY (USED IN) FINANCING    ACTIVITIES		17,714			(9,051	)		(19,551	)
Effects of exchange rate changes on cash and cash equivalents		(775	)		(1,591	)		1,359
Net (decrease) increase in cash, cash equivalents and restricted cash		(4,647	)		(1,689	)		13,074
Cash, cash equivalents and restricted cash at beginning of year		43,910			45,599			32,525
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR(1)	$	39,263		$	43,910		$	45,599

(1) Includes restricted cash of $.3 million, $.3 million and $1.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.  For further information regarding restricted cash, refer to Note E, “Debt Arrangements.”

See notes to consolidated financial statements.

35

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY

																		Accumulated Other Comprehensive Income (Loss)
		Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital		Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests		Total Equity
	(In thousands, except share and per share data)
Balance at January 1, 2017		$	12,508	$	(12,054	)	$	12,054		$	24,629	$	303,415		$	(59,640	)	$	(51,495	)	$	(5,874	)	$	223,543		$	0	$	223,543
Net income													12,654												12,654					12,654
Foreign currency translation adjustment																			10,070						10,070					10,070
Recognized net actuarial loss, net    of tax provision of $199																						269			269					269
(Gain) on unfunded pension obligations,    net of tax provision of $247																						(410	)		(410	)				(410	)
Total comprehensive income																									22,583			0		22,583
Share-based compensation											3,055		(231	)											2,824					2,824
Purchase of 121,626 common shares																(8,475	)								(8,475	)				(8,475	)
Issuance of 42,080 common shares			85								2,050														2,135					2,135
Common shares distributed from rabbi trust of 8,255, net					220			(220	)																0					0
Cash dividends declared - $.80 per share													(4,073	)											(4,073	)				(4,073	)
Balance at December 31, 2017		$	12,593	$	(11,834	)	$	11,834		$	29,734	$	311,765		$	(68,115	)	$	(41,425	)	$	(6,015	)	$	238,537		$	0	$	238,537
Net income													26,581												26,581					26,581
Foreign currency translation adjustment																			(12,285	)					(12,285	)				(12,285	)
Recognized net actuarial gain, net    of tax provision of $139																						386			386					386
Loss on unfunded pension obligations,    net of tax benefit of $77																						(244	)		(244	)				(244	)
Total comprehensive income																									14,438			0		14,438
Share-based compensation											4,236		(152	)											4,084					4,084
Purchase of 52,318 common shares																(4,165	)								(4,165	)				(4,165	)
Issuance of 34,521 common shares			69								431														500					500
Common shares distributed from rabbi trust of 19,396, net					826			(826	)																0					0
Cash dividends declared - $.80 per share													(4,024	)											(4,024	)				(4,024	)
Balance at December 31, 2018		$	12,662	$	(11,008	)	$	11,008		$	34,401	$	334,170		$	(72,280	)	$	(53,710	)	$	(5,873	)	$	249,370		$	0	$	249,370
Net income													23,303												23,303			33		23,336
Foreign currency translation adjustment																			2,028						2,028					2,028
Recognized net actuarial gain, net    of tax provision of $123																						397			397					397
Loss on unfunded pension obligations,    net of tax benefit of $60																						(195	)		(195	)				(195	)
Total comprehensive income																									25,533			33		25,566
Share-based compensation											4,396		(167	)											4,229					4,229
Purchase of 120,848 common shares																(6,826	)								(6,826	)				(6,826	)
Issuance of 88,377 common shares			186								57														243					243
Common shares distributed from rabbi trust of 1,989, net					27			(27	)																0					0
Cash dividends declared - $.80 per share													(4,014	)											(4,014	)				(4,014	)
Balance at December 31, 2019		$	12,848	$	(10,981	)	$	10,981		$	38,854	$	353,292		$	(79,106	)	$	(51,682	)	$	(5,671	)	$	268,535		$	33	$	268,568

See notes to consolidated financial statements.

36

PREFORMED LINE PRODUCTS COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tables in thousands of dollars, except share and per share data, unless specifically noted)

Note A - Significant Accounting Policies

Nature of Operations

Preformed Line Products Company and subsidiaries (the “Company”) is a designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, data communication and other similar industries.  The Company’s primary products support, protect, connect, terminate and secure cables and wires.  The Company also provides solar hardware systems and mounting hardware for a variety of solar power applications.  The Company’s customers include public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors and value-added resellers.  The Company serves its worldwide markets through strategically located domestic and international manufacturing facilities.  

Principles of Consolidation and Noncontrolling Interests

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries for which it has a controlling interest.  All intercompany accounts and transactions have been eliminated upon consolidation.  

Noncontrolling interests are presented in the Company’s Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our Consolidated Financial Statements. Additionally, the Company’s Consolidated Financial Statements include 100% of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

Cash and Cash Equivalents

Cash equivalents are stated at fair value and consist of highly liquid investments with original maturities of three months or less at the time of acquisition.

Receivable Allowances

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The allowances for uncollectible accounts receivable are based upon the number of days the accounts are past due, the current business environment and specific information such as bankruptcy or liquidity issues of customers.  The Company also maintains an allowance for future sales credits related to sales recorded during the year.  The estimated allowance is based on historical sales credits issued in the subsequent year related to the prior year and any significant, preapproved open return good authorizations as of the balance sheet date. 

Inventories

The Company uses the last-in, first-out (“LIFO”) method of determining cost for the majority of its material portion of inventories in PLP-USA.  All other inventories are determined by the first-in, first-out (“FIFO”) or average cost methods.  Inventories are carried at the lower of cost or market.  Reserves are maintained for estimated obsolescence or excess inventory based on past usage and future demand.  

Fair Value of Financial Instruments

Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosures of the fair value of financial instruments.  The estimated fair value of financial instruments was principally based on market prices where such prices were available, and when unavailable, fair values were estimated based on market prices of similar instruments.

37

Property, Plant and Equipment and Depreciation

Property, plant, and equipment is recorded at cost.  Depreciation is computed using the straight-line method over the estimated useful lives.  The estimated useful lives used, when purchased new, are: land improvements, ten years; buildings, forty years; building improvements, five to forty years; machinery and equipment, three to ten years; and aircraft, fifteen years.  Appropriate reductions in estimated useful lives are made for property, plant and equipment purchased in connection with an acquisition of a business or in a used condition when purchased.

Long-Lived Assets

The Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that the carrying value of the assets are impaired and the undiscounted future cash flows estimated to be generated by such assets are less than the carrying value. The Company’s cash flows are based on historical results adjusted to reflect the Company’s best estimate of future market and operating conditions.  The net carrying value of assets not recoverable is then reduced to fair value.  The estimate of fair value represents the Company’s best estimate based on industry trends and reference to market rates and transactions.  The Company did not record any impairment to long-lived assets during the years ended December 31, 2019 and 2018.

Goodwill and Other Intangibles

Goodwill and other intangible assets generally result from business acquisitions. Goodwill is not subject to amortization but is subject to annual impairment testing.  Intangible assets with definite lives, consisting primarily of purchased customer relationships, patents, technology, customer backlogs, trademarks and land use rights, are generally amortized over periods from less than one year to twenty years.  The Company’s intangible assets with finite lives are generally amortized using a projected cash flow basis method over their useful lives unless another method was demonstrated to be more appropriate.  Customer relationships, technology and trademark intangibles acquired in 2014 and 2012 are amortized using a projected cash flow basis method over the period in which the economic benefits of the intangibles are consumed.  Customer relationships, technology and trademarks acquired in 2010 and 2019 are being amortized using the straight-line method over their useful lives.  This straight-line method was more appropriate because it better reflected the pattern in which the economic benefits of the intangible asset are consumed or otherwise expire compared to using a projected cash flow basis method.  An evaluation of the remaining useful life of intangible assets with a determinable life is performed on a periodic basis and when events and circumstances warrant an evaluation. The Company assesses intangible assets with a determinable life for impairment consistent with its policy for assessing other long-lived assets.  Goodwill and intangible assets are also reviewed for impairment annually or more frequently when changes in circumstances indicate the carrying amount may be impaired, or in the case of finite-lived intangible assets, when the carrying amount may not be recoverable.  Events or circumstances that would result in an impairment review primarily include operations reporting losses or a significant change in the use of an asset.  Impairment charges are recognized pursuant to FASB ASC 350-20, “Goodwill.” 

The Company performs the annual impairment test for goodwill utilizing a combination of discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit.  The Company compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired based on assumptions and estimates regarding projected economic and market conditions, growth rates, operating margins and cash expenditures and the weighting used for each respective valuation methodology, results of the valuations could be significantly changed.  The fair value of the reporting unit is based on a number of subjective factors including; the weighting used for each respective valuation methodology, consideration of the Company’s business outlook, and assumptions regarding the weighted average cost of capital (WACC) discount rate applied, growth rates in the discrete and terminal periods and market multiples for estimated cash flows.  The Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.

The Company performed its annual impairment test for goodwill as of October 1, 2019 and 2018 and determined that no adjustment to the carrying value was required for the years ended December 31, 2019 and 2018.

Revenue Recognition

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

Research and Development  

Research and development costs for new products are expensed as incurred and totaled $3.0 million in 2019, $2.4 million in 2018 and $2.1 million in 2017.

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Income Taxes

Income taxes are computed in accordance with the provisions of FASB ASC 740, “Income taxes” and includes U.S. (federal and state) and foreign income taxes. In the Consolidated Financial Statements, the benefits of a consolidated return have been reflected where such returns have or could be filed based on the entities and jurisdictions included in the financial statements. Provisions of the U.S. Tax Cuts and Jobs Act ("U.S. Tax Act") became effective for the Company in 2018. The Foreign-Derived Intangible Income (“FDII”) provision generates a deduction against the Company’s U.S. taxable income for U.S. earnings derived offshore that utilize intangibles held by the Company in the U.S. Conversely, the Global Intangible Low-Taxed Income (“GILTI”) provision requires the Company to subject to U.S. taxation a portion of its foreign subsidiary earnings that exceed an allowable return. The Company elects to treat any Global Intangible Low-Taxed Income (“GILTI”) inclusion as a period expense in the year incurred.

Deferred Tax Assets

Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.  The Company establishes a valuation allowance to record deferred tax assets at an amount that is more-likely-than-not to be realized.  In the event the Company were to determine that it would be able to realize our deferred tax assets in the future in excess of the recorded amount, an adjustment to the valuation allowance would increase income in the period such determination was made.  Likewise, should the Company determine that it would not be able to realize all or part of the net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made.

Uncertain Tax Positions

The Company identifies tax positions taken on the federal, state, local and foreign income tax returns filed or to be filed.  A tax position can include: a reduction in taxable income reported in a previously filed tax return or expected to be reported on a future tax return that impacts the measurement of current or deferred  income tax assets or liabilities in the period being reported; a decision not to file a tax return; an allocation or a shift of income between jurisdictions; the characterization of income or a decision to exclude reporting taxable income in a tax return; or a decision to classify a transaction, entity or other position in a tax return as tax exempt. The Company determines whether a tax position is an uncertain or a routine business transaction tax position that is more-likely-than-not to be sustained at the full amount upon examination.

Under FASB ASC 740, “Tax Benefits from Uncertain Tax Positions” that reduce our current or future income tax liability are reported in our financial statements only to the extent that each benefit is recognized and measured under a two-step approach.  The first step requires us to assess whether each tax position based on its technical merits and facts and circumstances as of the reporting date, is more-likely-than-not to be sustained upon examination.  The second step measures the amount of tax benefit that we would recognize in the financial statements based on a cumulative probability approach.  A tax position that meets the more-likely-than-not threshold that is not highly certain is measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority, assuming that the tax authority has examined the position and has full knowledge of all relevant information.

ASC 740 requires subjectivity to identify outcomes and to assign probability in order to estimate the settlement amount.  The Company provides estimates in order to determine settlement amounts.  During the year ended December 31, 2019, the Company recorded $.1 million of reserves for uncertain tax positions.  At December 31, 2019, there was no reserve requirement for uncertain tax positions.

Advertising

Advertising costs are expensed as incurred and totaled $1.9 million in both 2019 and 2018 and $1.7 million in 2017.

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Foreign Currency Translation

Asset and liability accounts are translated into U.S. dollars using exchange rates in effect at the date of the Consolidated Balance Sheet.  The translation adjustments are recorded in Accumulated other comprehensive income (loss).  Revenues and expenses are translated at weighted average exchange rates in effect during the period.  Transaction gains and losses arising from exchange rate changes on transactions denominated in a currency other than the functional currency are included in income and expense as incurred.  Aggregate transaction gains and losses for the years ended December 31, 2019, 2018 and 2017 were a loss of $.2 million, a loss of $1.5 million and a gain of $.3 million, respectively.  Upon sale or substantially complete liquidation of an investment in a foreign entity, the cumulative translation adjustment for that entity is reclassified from Accumulated other comprehensive income (loss) to earnings.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation rate exceeded 100%.  As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar.  The impact to the Company’s Consolidated financial statements was not material and is included in the December 31, 2019 and 2018 results.  Revenue from operations in Argentina was less than 2% of total consolidated net sales for both years ended December 31, 2019 and 2018.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates.

Business Combinations

Upon acquisition of a business, the Company uses the income, market or cost approach (or a combination thereof) for the valuation as appropriate. The valuation inputs in these models and analyses are based on market participant assumptions.  Market participants are considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability.

The Company used a valuation model to measure the contingent consideration. The significant assumptions used in the simulation included volatility, discount rate, and revenue projections. The Company used a discounted cash flow model to measure the useful lives of intangible assets. The significant assumptions used to estimate the value of the intangible assets (customer relationships and developed technology) included discount rates and certain assumptions that form the basis of future cash flows (such as revenue growth rates in the discrete and terminal periods, attrition rate, royalty rate). These assumptions relate to the future performance of the acquired businesses, are forward-looking and could be affected by future economic and market conditions.

Fair value estimates are based on a series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. Management values property, plant and equipment using the cost approach supported where available by observable market data, which includes consideration of obsolescence.  Acquired inventories are marked to fair value. For certain items, the carrying value is determined to be a reasonable approximation of fair value based on information available to the Company

Derivative Financial Instruments

The Company does not hold derivatives for trading purposes.

Recently Adopted Accounting Pronouncements

In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures.  The new rule requires a presentation of the changes in shareholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods.  The Company adopted the new disclosure requirements for the period ending December 31, 2019.  The additional components of this release did not have a material impact on the Company’s consolidated financial statements.  

In February 2018, the FASB issued ASU 2018-02, “Income Statement (Topic 220), Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”) which gives the entity the option to reclassify to retained earnings the tax effect resulting the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) related items that

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the FASB refers to as having been stranded in accumulated other comprehensive income (“OCI”).  The Company adopted ASU 2018-02 effective January 1, 2019 and did not elect the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in OCI.  The adoption of this new guidance did not have a material effect on the Company’s consolidated financial statements.  

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The amendments in this update require the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements.  Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation for leases classified as operating leases under previous guidance. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease.  Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. For leases with a term of 12 months or less, the lessee is permitted to make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. The lessee is also required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization’s leasing activities.  

This ASU was applied using a modified retrospective adoption method with the option of applying the guidance either retrospectively to each prior comparative reporting period presented or retrospectively at the beginning of the period of adoption, effective January 1, 2019.  The Company applied the transitional package of practical expedients allowed by the standard to not reassess the identification, classification and initial direct costs of leases commencing before this ASU's effective date, however, the Company did not elect the hindsight transitional practical expedient. The Company also applied the practical expedient to not separate lease and non-lease components to new leases as well as existing leases through transition. The Company also elected the practical expedient allowed under “Leases (Topic 842)” to exclude leases with a term of twelve months or less form the calculation of the lease liabilities and right-of-use assets.  

The Company has finalized its policy elections, the discount rate used and data to support recognition and disclosure under the new standard.  The adoption of this ASU resulted in an initial recognition of right-of-use assets and corresponding current and long-term lease obligations, on a discounted basis, of its lease obligations of $10.4 million on the Company’s balance sheet at January 1, 2019.  Refer to Note F “Leases” for additional details regarding the Company’s leases.   

New Accounting Standards To Be Adopted

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) which simplifies certain specific aspects of ASC 740.  ASU 2019-12 addresses the income tax accounting implications of hybrid tax regimes, which includes tax regimes that impose the greater of two taxes, one based on income or one based on items other than income, the treatment of tax basis step-up of goodwill in a transaction that does not qualify as a business combination, the application of the intra-period tax allocation rules in certain situations involving a valuation allowance, the income tax accounting impact on the change of the ownership of an investment from a subsidiary to an equity method investment and a change in an investment from an equity method investment to a subsidiary, income tax accounting related to interim reporting, including the treatment of enacted changes in tax law during interim periods and the treatment of year-to-date loss limitations.  ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods therein.  Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not been issued.  The Company has not yet adopted ASU 2019-12 and does not believe the adoption of this ASU will have a material effect on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” (“ASU 2018-13”) which will modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including the removal of certain disclosure requirements.  The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted.  An entity is permitted to early adopt any removed or modified disclosures upon issuance of the ASU and delay adoption of the additional disclosures until the effective date.  The Company is currently evaluating what impact its adoption, effective January 1, 2020, will have to the presentation of the Company’s consolidated financial statements.  

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326):  Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”).  ASU 2016-13 changes how entities will measure credit losses for most financial assets and other instruments that are not measured at fair value through net income.  This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument.  ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim

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periods within those fiscal years.  The Company is nearing the end of its evaluation process and does not expect the adoption to have a material impact to the Company’s consolidated financial statementsupon its adoption that is effective January 1, 2020.

Note B - Other Financial Statement Information

Inventories – net

	December 31
	2019			2018
Raw materials	$	49,729		$	43,041
Work-in-process		9,352			8,818
Finished products		45,760			42,163
		104,841			94,022
Excess of current cost over LIFO cost		(4,667	)		(4,474	)
Noncurrent portion of inventory		(4,456	)		(4,289	)
	$	95,718		$	85,259

Costs for inventories of certain material are determined using the LIFO method and totaled approximately $32.0 million and $29.5 million at December 31, 2019 and 2018, respectively.

Property and equipment – net

Major classes of property, plant and equipment are as follows:

	December 31
	2019			2018
Land and improvements	$	22,218		$	12,552
Buildings and improvements		82,811			74,743
Machinery, equipment and aircraft		180,221			171,015
Construction in progress		9,460			3,392
		294,710			261,702
Less accumulated depreciation		(170,692	)		(158,747	)
	$	124,018		$	102,955

Depreciation of property and equipment was $12.3 million in 2019, $12.1 million in 2018 and $11.8 million in 2017.  Machinery, equipment and aircraft includes $.2 million and $.1 million of financing leases at the years ended December 31, 2019 and 2018, respectively.

Legal proceedings

The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims.  

Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters.  To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made.

The Company and its subsidiaries Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply, “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

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The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects.  The Complaint alleges that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project.  The Plaintiffs were initially seeking an estimated $56.0 million Canadian dollars in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.  The Plaintiffs reduced their demand for damages to $29.4 million Canadian dollars on June 1, 2018.  

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. The Company is unable to predict the outcome of this case and cannot reasonably estimate a potential range of loss.  However, if the matter is to be in a manner adverse to the Company, it could have a material effect on the Company’s financial results. 

Note C - Pension Plans

PLP-USA hourly employees of the Company who meet specific requirements as to age and length and date of service are covered by a defined benefit pension plan (“Plan”).  On December 12, 2012, the Company approved a freeze on further benefit accruals under the Plan and notified the participants of the freeze on December 19, 2012.  Beginning February 1, 2013, participants ceased earning additional benefits under the Plan and no new participants entered the Plan.  The Company uses a December 31 measurement date for its Plan.

Net periodic pension cost for the Plan consists of the following components for the year ended December 31:

	2019			2018			2017
Service cost	$	299		$	250		$	255
Interest cost		1,411			1,349			1,456
Expected return on plan assets		(1,946	)		(1,985	)		(1,903	)
Recognized net actuarial loss		520			525			468
Net periodic pension cost	$	284		$	139		$	276

The following tables set forth benefit obligations, plan assets and the accrued benefit cost of the Plan at December 31:

	2019			2018
Projected benefit obligation at beginning of the year	$	33,931		$	36,031
Service cost		299			250
Interest cost		1,411			1,349
Actuarial loss (gain)		3,528			(2,409	)
Benefits paid		(1,233	)		(1,290	)
Projected benefit obligation at end of year	$	37,936		$	33,931
Fair value of plan assets at beginning of the year	$	28,672		$	25,367
Actual return on plan assets		5,219			(745	)
Employer contributions		0			5,340
Benefits paid		(1,233	)		(1,290	)
Fair value of plan assets at end of the year	$	32,658		$	28,672
Unfunded pension obligation	$	5,278		$	5,259

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In accordance with ASC 715-20, the Company recognizes the underfunded status of the Plan as a liability.  The amount recognized in Accumulated other comprehensive loss related to the Plan at December 31 is comprised of the following:

	2019			2018
Balance at January 1	$	(5,873	)	$	(6,015	)
Reclassification adjustments:
Pre-tax amortized net actuarial loss		520			525
Tax provision		(123	)		(139	)
		397			386
Adjustment to recognize gain (loss) on unfunded pension obligations:
Pre-tax loss		(255	)		(321	)
Tax provision		60			77
		(195	)		(244	)
Balance at December 31	$	(5,671	)	$	(5,873	)

The 2019 pre-tax unfunded pension obligation loss of 0.2 million included a loss of $4.0 million due to a .75% decrease in the discount rate to 3.50%, a gain of less than $.1 million associated with the industry updates to the mortality table used, a gain of $.2 million due to demographic changes combined with a gain of $3.3 million resulting from asset performance above the 7.00% rate of return assumption and a gain of $.3 million to account for the service cost expense load on the Company’s frozen plan.   The estimated net loss for the Plan that will be amortized from Accumulated other comprehensive income into periodic benefit cost for 2020 is $.5 million.  There is no prior service cost to be amortized in the future.

The Plan had accumulated benefit obligations in excess of Plan assets as follows:

	2019		2018
Accumulated benefit obligation	$	37,936	$	33,931
Fair market value of assets		32,658		28,672

	2019	2018
Discount rate	3.50%	4.25%
Rate of compensation increase	n/a	n/a

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:

	2019		2018		2017
Discount rate	3.50%			4.25%	4.25%
Rate of compensation increase	n/a		n/a		n/a
Expected long-term return on plan assets		7.00		8.00		8.00

The net periodic pension cost for 2019 was based on a long-term asset rate-of-return of 7.00%.  This rate is based upon management’s estimate of future long-term rates of return on similar assets and is consistent with historical returns on such assets.  Using the Plan’s mix of assets and based on the average historical returns and expected future returns for such mix, an expected long-term rate-of-return of 7.00% is justified.

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During the year ended December 31, 2019, the Company changed its Plan asset base from a combined Level 1 and Level 2 allocation to utilize net asset value (“NAV”) as the practical expedient for its pooled investment funds and the assets are no longerclassified in the fair value hierarchy.  At December 31, 2019, the Plan’s pooled investment funds were measured at fair value using the net asset value.  The NAV is based on the value of the assets owned by the plan, less liabilities.  These pooled assets are not quoted on an active exchange.  

At December 31, 2018, the fair value of the Plan assets included inputs in Level 1: Quoted market prices in active markets for identical assets or liabilities and Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. The fair value of the Plan assets as of December 31, 2019 and 2018, by category, are as follows:

	At December 31, 2019
Assets measured at net asset value
Pooled investment fund	$	32,658
Total		32,658

	At December 31, 2018
	Total Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured at fair value
Cash	$	462	$	462	$	0	$	0
Equity Securities		10,470		10,470		0		0
U.S. Treasury Bonds		13,109		13,109		0		0
Corporate Bonds		4,631	0			4,631		0
Total	$	28,672	$	24,041	$	4,631	$	0

The Plan weighted-average asset allocations at December 31, 2019 and 2018, by asset category, are as follows:

	Plan assets
	at December 31
	2019			2018
Asset category
Equity securities		48	%		37	%
Debt securities		51			61
Cash and equivalents		1			2
		100	%		100	%

Management seeks to maximize the long-term total return of financial assets consistent with the fiduciary standards of ERISA.  The ability to achieve these returns is dependent upon the need to accept moderate risk to achieve long-term capital appreciation.

In recognition of the expected returns and volatility from financial assets, Plan assets are invested in the following ranges with the target allocation noted:

	Range	Target
Equities	40-60%	50%
Fixed Income	40-60%	50%
Cash Equivalents	0-10%	0.0%

Investment in these markets is projected to provide performance consistent with expected long-term returns with appropriate diversification.

The Company's policy is to fund amounts deductible for federal income tax purposes.  The Company does not expect to contribute to the Plan in 2020.

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The benefits expected to be paid out of the Plan assets in each of the next five years and the aggregate benefits expected to be paid for the subsequent five years are as follows:

Year	Pension Benefits
2020	$	1,225
2021		1,292
2022		1,382
2023		1,469
2024		1,566
2025-2029		9,077

The Company also provides retirement benefits through various defined contribution plans including PLP-USA’s Profit Sharing Plan.  Expense for these defined contribution plans was $6.0 million in 2019, $5.6 million in 2018 and $5.1 million in 2017.

Further, the Company also provides retirement benefits through the Supplemental Profit Sharing Plan.  To the extent an employee’s award under PLP-USA’s Profit Sharing Plan exceeds the maximum allowable contribution permitted under existing tax laws, the excess is accrued for (but not funded) under a non-qualified Supplemental Profit Sharing Plan.  During January 2018, the Company amended the Supplemental Profit Sharing Plan to allow the participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds.   Expense for the Supplemental Profit Sharing Plan was $1.1 million for 2019, $.2 million for 2018 and $.5 million for 2017.  The Supplemental Profit Sharing Plan unfunded status for the years ended December 31, 2019 and 2018 was $6.1 million and $4.9 million, respectively, and is included in Other noncurrent liabilities.

Note D - Accumulated Other Comprehensive Income (“AOCI”)

The following tables set forth the total changes in AOCI by component, net of tax:

	Year Ended December 31, 2019									Year Ended December 31, 2018
				Cumulative									Cumulative
	Unrecognized			Translation						Unrecognized			Translation
	Benefit Cost			Adjustment			Total			Benefit Cost			Adjustment			Total
Balance at January 1	$	(5,873	)	$	(53,710	)	$	(59,583	)	$	(6,015	)	$	(41,425	)	$	(47,440	)
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment		0			2,028			2,028			0			(12,285	)		(12,285	)
Loss on unfunded pension obligations		(195	)		0			(195	)		(244	)		0			(244	)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss (a)		397			0			397			386			0			386
Net current period other comprehensive income (loss)		202			2,028			2,230			142			(12,285	)		(12,143	)
Balance at December 31	$	(5,671	)	$	(51,682	)	$	(57,353	)	$	(5,873	)	$	(53,710	)	$	(59,583	)

(a) This AOCI component is included in the computation of net periodic pension costs as noted in Note C – Pension Plans.

46

Note E - Debt and Credit Arrangements

	December 31
	2019			2018
Short-term debt
Secured notes
Thailand Bhat denominated at 4.35%		3,670			1,797
Thailand Bhat denominated at 4.08%		1,882			683
Brazil Real denominated at 2.83%		1,152			802
Brazil Real denominated at 5.40%		752			842
Brazil Real denominated at 9.40%		1,240			4,918
Current portion of long-term debt
U.S. dollar denominated at 2.71%		1,448			1,448
Austria Euro denominated at 2.32%		30			0
Austria Euro denominated at 1.40%		560			0
Austria Euro denominated at 3.00%		22			0
Indonesia U.S. Dollar denominated at 3.50%		800			0
New Zealand U.S. Dollar denominated at 3.90%		494			0
Total short-term debt		12,050			10,490
Long-term debt
U.S. Dollar denominated at 2.89%, due 2021		21,552			12,189
U.S. Dollar denominated at 2.71%, due 2026		9,535			10,984
Brazilian Real denominated at 4.60% due 2022		147			214
Poland Zloty denominated at 2.76% due 2021		6,524			904
Australian Dollar denominated at 1.96%, due 2021		5,526			2,117
Austria Euro denominated at 2.32% due 2030		224			0
Austria Euro denominated at 1.40% due 2020		560			0
Austria Euro denominated at 3.00% due 2021		134			0
Indonesia U.S Dollar denominated at 3.50% due 2024		7,467			0
New Zealand Dollar denominated at 3.90% due 2021		5,407			0
Total long-term debt		57,076			26,408
Less current portion		(3,354	)		(1,448	)
Total long-term debt, less current portion		53,722			24,960
Total debt	$	65,772		$	35,450

On March 13, 2018, the Company extended the term on its $65.0 million credit facility from June 30, 2019 to June 30, 2021.  All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless its funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, then the LIBOR spread becomes 1.500%.  As of December 31, 2019, the Company’s Polish subsidiary had borrowed $6.5 million at a rate of 1.125% plus the Warsaw Interbank Offer Rate with a term expiring June 30, 2021.  At December 31, 2019, the Company’s Australian subsidiary had borrowed $5.5 million U.S. dollars, also with a term expiring June 30, 2021.  As of December 31, 2019, the interest rates on the U.S., Polish and Australian lines of credit agreement were 2.89% and 2.76% and 1.96%, respectively.  Under the credit facility, at December 31, 2019, the Company had utilized $33.6 million with $31.4 million available under the line of credit net of long-term outstanding letters of credit.  The PLP-USA line of credit provides for $20.0 million to be available to the Company’s subsidiaries, of which $8.0 million was available to the subsidiaries at December 31, 2019.  The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability.  At both December 31, 2019 and 2018, the Company was in compliance with all covenants.

On February 28, 2019, the Company acquired its Austrian subsidiary, SubCon, headquartered in Dornbirn, Austria.  SubCon has a 1.0 million euros, or $1.1 million U.S. dollars line of credit with a term expiration of May 31, 2020 with the option to renew for an additional twelve months indefinitely.  At December 31, 2019, SubCon had borrowed $.6 million on the line of credit at an interest rate of 1.400%.

On April 25, 2019, the Company borrowed $8.0 million U.S. dollars on behalf of its Indonesian subsidiary at a rate of 3.501% with a term expiring on April 30, 2024.  At December 31, 2019, $7.5 million was outstanding on this debt facility, of which $.8 million is classified as current.

47

On August 14, 2019, the Company’s New Zealand subsidiary borrowed the U.S equivalent dollar of $5.3 million at a rate of 3.900% with a term expiring on August 26, 2021.  At December 31, 2019, $5.4 million was outstanding on this facility, of which $.5 million is classified as current.  This loan is secured by the Company’s New Zealand subsidiary’s land and building.

The Company owns a corporate aircraft with a remaining balance due on the loan of $9.5 million, of which $1.4 million is classified as short-term, with a term expiring in 2026.  The loan is secured by the purchased aircraft.

The Company’s Asia Pacific segment had $.3 million in restricted cash at both periods ended December 31, 2019 and 2018.  The restricted cash is used to secure bank debt and is included in Other assets on the balance sheet.

Aggregate maturities of long-term debt during the next five years are as follows: $3.4 million for 2020, $36.4 million for 2021,  $2.8 million for 2022, $2.8 million for 2023 and $11.7 million thereafter.

Interest paid was $2.0 million in 2019, $1.8 million in 2018 and $1.0 million in 2017.

Guarantees and Letters of Credit

The Company has provided financial guarantees for uncompleted work and financial commitments.  The terms of these guarantees vary with end dates ranging from the current year through the completion of such transactions.  The guarantees would typically be triggered in the event of non-performance.  As of December 31, 2019, the Company had total outstanding guarantees of $11.5 million.  Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order.  As of December 31, 2019, the Company had total outstanding letters of credit of $7.6 million.

Note F - Leases

The Company adopted guidance effective in ASU 2016-02, “Leases (Topic 842)” on January 1, 2019.  Adoption of this guidance did not change the Company’s balance sheet or income statement recognition of finance leases.  As a result of adopting this guidance, the Company recorded short and long-term lease liabilities and corresponding right-of-use assets related to its operating leases.  

The Company regularly enters into leases in the normal course of business.  As of December 31, 2019, the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 99 years.  The Company often has the option to renew lease terms for buildings and other assets.  The exercise of lease renewal options is generally at the Company’s sole discretion.  In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion.  

The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors.  The weighted average remaining lease term for the Company’s operating and financing leases as of December 31, 2019 was 18.2 and 2.5 years, respectively.

Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized in the period those payments are incurred.  The components of operating and finance lease costs are recognized in Costs and expenses and Interest expense, respectively, on the Company’s Consolidated Statements of Income.  The Company’s operating and finance lease costs for the year ended December 31, 2019 were as follows:

	Year Ended December 31, 2019
Components of lease expense
Operating lease cost	$	3,138
Finance lease cost
Amortization of right-of-use assets		67
Interest on lease liabilities		11
Total lease cost	$	3,216

48

The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate based on its incremental borrowing rate.  The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral.  The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of December 31, 2019 was 5.02% and 4.54%, respectively.

For both years ended December 31, 2018 and 2017, prior to the adoption of Topic 842, rental expense for leases was $2.6 million.

Future maturities of the Company’s lease liabilities as of December 31, 2019 are as follows:

	Year Ended December 31, 2019
	Operating Leases		Finance Leases
2020	$	2,462	$	109
2021		2,026		45
2022		1,607		26
2023		1,066		22
2024 and thereafter		9,113		0
Total lease payments	$	16,274	$	202
Less amount of lease payment representing interest		5,966		10
Total present value of lease payments	$	10,308	$	192

Amounts recognized as finance lease obligations are reported in Accrued expense and other liabilities and Other noncurrent liabilities in the Consolidated Balance sheets.  

The total minimum sublease rentals under noncancelable subleases to be received through 2024 is $3.6 million.  

As of December 31, 2018, prior to the adoption of Topic 842, future minimum lease payments under operating leases were $2.2 million in 2019, $1.8 million in 2020, $1.6 million in 2021, $.9 million in 2022, $.2 million in 2023 and $6.3 million thereafter.

Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows:

	Year Ended December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,321
Operating cash flows from finance leases		11
Financing cash flows from finance leases		100

Note G - Income Taxes

The Company recorded net tax provisions of $8.1 million, $6.0 million, and $13.2 million for the years ended December 31, 2019, 2018, and 2017, respectively.  Cash taxes paid net of refunds were $7.8 million, $5.6 million, and $3.4 million for the years ending December 31, 2019, 2018, and 2017, respectively.

As described in Note A, effective January 1, 2019, the Company adopted ASU 2018-02 and has elected not to reclassify the income tax effects of the U.S. Tax Act from Accumulated other comprehensive income to retained earnings.

Income before income taxes was derived from the following sources:

	2019		2018		2017
United States	$	11,353	$	10,268	$	4,774
Foreign		20,105		22,320		21,032
	$	31,458	$	32,588	$	25,806

49

The components of income taxes for the years ended December 31 are as follows:

	2019			2018			2017
Current
Federal	$	2,835		$	(904	)	$	4,592
Foreign		6,170			6,247			5,998
State and local		391			350			126
		9,396			5,693			10,716
Deferred
Federal		(10	)		801			2,316
Foreign		(1,347	)		(608	)		12
State and local		83			121			108
		(1,274	)		314			2,436
Income taxes	$	8,122		$	6,007		$	13,152

The differences between the provision for income taxes at the U.S. federal statutory rate and the tax shown in the Statements of Consolidated Income for the years ended December 31 are summarized as follows:

	2019			2018			2017
U. S. federal statutory tax rate	21%			21%			35%
Federal tax at statutory rate	$	6,606		$	6,843		$	9,033
State and local taxes, net of federal benefit		308			273			82
U.S. federal permanent items		621			240			(60	)
Global intangible low-taxed income		1,738			1,721			(116	)
Foreign tax credits		(1,422	)		(1,707	)		0
Transition tax		0			(1,780	)		2,592
Non-U.S. tax rate variances		929			1,011			(1,491	)
Valuation allowance		(346	)		(57	)		88
Tax credits		(464	)		(295	)		(255	)
Tax act impact, deferred rate		0			(680	)		3,161
Other, net		152			438			118
	$	8,122		$	6,007		$	13,152

50

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their carrying value for financial statement purposes.  The tax effects of temporary differences that give rise to the Company’s deferred tax assets and liabilities at December 31 are as follows:

	2019			2018
Deferred tax assets:
Accrued compensation and benefits	$	1,180		$	1,387
Inventory valuation reserves		2,384			2,256
Allowance for doubtful accounts		473			346
Benefit plan reserves		7,586			7,153
Net operating loss carryforwards		3,003			2,651
Other accrued expenses		3,012			2,830
Unrealized foreign exchange		718			1,217
Gross deferred tax assets		18,356			17,840
Valuation allowance		(3,137	)		(3,495	)
Net deferred tax assets		15,219			14,345
Deferred tax liabilities:
Depreciation and other basis differences		(6,867	)		(6,855	)
Intangibles		(3,742	)		(2,057	)
Undistributed foreign earnings		0			(172	)
Other		(162	)		(72	)
Deferred tax liabilities		(10,771	)		(9,156	)
Net deferred tax assets	$	4,448		$	5,189

	2019			2018
Change in net deferred tax assets:
Deferred income tax expense
Ordinary movement	$	1,275		$	(993	)
Deferred tax balances from business acquisition		(1,883	)		0
Tax impact deferred rate		0			680
Items of other comprehensive income (loss)		(62	)		(62	)
Currency translation		(71	)		(120	)
Total change in net deferred tax assets	$	(741	)	$	(495	)

Deferred taxes are recorded at a rate at which such items are expected to reverse based on currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.

At December 31, 2019, the Company had $10.6 million of foreign net operating loss carryforwards of which $8.7 million have an indefinite carryforward and $1.9 million will expire between the years 2024 and 2029.

The Company assesses the available positive and negative evidence to determine if it is more likely than not sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction.  Based on this evaluation, the Company has established a valuation allowance of $3.1 million at December 31, 2019 in order to measure only the portion of the deferred tax asset that is more likely than not to be realized.  The net decrease in the valuation allowance during the year was $.4 million, of which $.3 million impacts the income tax provision and the remainder relates to currency translation. 

The Company considers the majority of the earnings in our non-U.S. subsidiaries to be permanently reinvested and accordingly did not record any associated deferred income taxes on such earnings.  Accordingly, the Company intends to continue to invest approximately $110.6 million of the approximate $112.2 million of such earnings, as well as our capital in these subsidiaries, indefinitely outside of the U.S.  The Company has recorded a tax liability of $.1 million related to the cost to remit such earnings not permanently reinvested, which is primarily related to local country withholding.

51

The Company is subject to taxation in the U.S. and various state and foreign jurisdictions.  As of December 31, 2019, with few exceptions, the Company is no longer subject to U.S. federal examinations by tax authorities for years before 2015 and state, local or foreign examinations by tax authorities for years before 2013.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits related to uncertain tax positions, excluding interest and penalties, for the year ended December 31:

	2019		2018		2017
Balance at January 1	$	0	$	0	$	0
Additions for tax positions of current year		0		0		0
Additions for tax positions of prior years		118		0		0
Reductions for tax positions of prior years		0		0		0
Expiration of statutes of limitations		0		0		0
Balance at December 31	$	118	$	0	$	0

The Company records accrued interest as well as penalties related to unrecognized tax benefits as part of the provision for income taxes.  During the years ended December 31, 2019, 2018 and 2017, the Company had no significant activity with regard to unrecognized tax benefits.  The Company had less than $.1 million of accrued interest and penalties as of December 31, 2019 and no accrued interest as of December 31, 2018 and 2017.  The Company does not anticipate a change in the unrecognized tax benefits within the next twelve months.

Note H - Share-Based Compensation

The 1999 Stock Option Plan

Activity in the Company’s 1999 Stock Option Plan for the year ended December 31, 2019 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019		750		$	39.10
Exercised		(750	)	$	39.10
Forfeited		0		$	0.00
Outstanding (exercisable and vested) at December 31, 2019		0		$	0.00		0.0	$	0

There were 750, 0 and 4,800 in stock options exercised during the years ended December 31, 2019, 2018 and 2017, respectively.  The total intrinsic value of stock options exercised during the year ended December 31, 2019 was approximately $.1 million.  Less than $.1 million in cash was received for the exercise of stock options during 2019.

The Company recorded no compensation expense related to these stock options for the years ended December 31, 2019, 2018 and 2017, as all options were fully vested as of December 31, 2012.

Long Term Incentive Plan of 2008 and 2016 Incentive Plan

The Company maintains an equity award program to give the Company a competitive advantage in attracting, retaining, and motivating officers, employees and directors and to provide an incentive to those individuals to increase shareholder value through long-term incentives directly linked to the Company’s performance.  Under the Preformed Line Products Company Long Term Incentive Plan of 2008 (the “LTIP”), certain employees, officers, and directors were eligible to receive awards of options, restricted shares and restricted share units (RSUs).  The total number of Company common shares reserved for awards under the LTIP was 900,000, of which 800,000 common shares were reserved for RSUs and 100,000 common shares were reserved for share options.  The Preformed Line Products Company 2016 Incentive Plan (the “Incentive Plan”) was put in place upon approval by the Company’s Shareholders at the 2016 Annual Meeting of Shareholders on May 10, 2016.  No further awards will be made under the LTIP and previously granted awards remain outstanding in accordance with their terms.  Under the Incentive Plan, certain employees, officers, and directors will be eligible to receive awards of options, restricted shares and RSUs.  The total number of Company common shares reserved for awards under the Incentive Plan is 1,000,000 of which 900,000 common shares have been reserved for restricted share awards and 100,000 common shares have been reserved for share options.  As of December 31, 2019, 15,000 options and 235,599 restricted shares have been granted under the Incentive Plan.  The Incentive Plan expires on May 10, 2026.      

52

Restricted Share Units

For the regular annual grants, a portion of the RSUs is subject to time-based cliff vesting and a portion is subject to vesting based upon the Company’s performance over a set period for all participants except the CEO.  All of the CEO’s regular annual RSUs are subject to vesting based upon the Company’s performance over a set-year period.

The RSUs are offered at no cost to the employees, however, the participant must remain employed with the Company until the restrictions on the RSUs lapse.  The fair value of RSUs is based on the market price of a common share on the grant date.  Dividends declared are accrued.

A summary of the RSUs for the year ended December 31, 2019 is as follows:

	Restricted Share Awards
	Performance						Total			Weighted-Average
	and Service			Service			Restricted			Grant-Date
	Required			Required			Awards			Fair Value
Nonvested as of January 1, 2019		213,624			17,298			230,922		$	53.68
Granted		65,392			8,123			73,515			56.22
Vested		(75,921	)		(9,061	)		(84,982	)		36.03
Forfeited		(6,753	)		(1,068	)		(7,821	)		68.95
Nonvested as of December 31, 2019		196,342			15,292			211,634		$	53.68

For time-based RSUs, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award in General and administrative expense in the accompanying Statements of Consolidated Income.  Annual compensation expense related to the time-based RSUs for the years ended December 31, 2019, 2018 and 2017 was $.5 million, $.5 million and $.4 million, respectively.  During the year ended December 31, 2019, retired Officers of the Company forfeited 1,068 RSUs granted during 2018 and 2017.  As of December 31, 2019, there was $.5 million of total unrecognized compensation cost related to time-based RSUs that is expected to be recognized over the weighted-average remaining period of approximately 1.6 years.

For the performance-based RSUs, the number of RSUs in which the participants will vest depends on the Company’s level of performance measured by growth in pre-tax income and sales growth over a requisite performance period.  Depending on the extent to which the performance criteria are satisfied under the LTIP, the participants are eligible to earn common shares over the vesting period.  Performance-based compensation expense for the years ended December 31, 2019, 2018 and 2017 was $3.9 million, $3.7 million and $2.7 million, respectively.  During the year ended December 31, 2019, Company participants and retired Officers of the Company forfeited 6,753 RSUs granted during 2018 and 2017.  As of December 31, 2019, the remaining performance-based RSUs compensation expense of $3.9 million is expected to be recognized over a period of approximately 1.6 years.

The excess tax benefits from service and performance-based RSUs was $.5 million, $.2 million and $.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.  This represents the reduction in income taxes otherwise payable during the period attributable to the actual gross tax benefits in excess of the expected tax benefits for restricted shares vested in the current period.

In the event of a Change in Control (as defined in the LTIP and Incentive Plan), vesting of the RSUs will be accelerated and all restrictions will lapse. Nonvested performance-based awards are based on a maximum target potential payout.  Actual shares awarded at the end of the performance period may be less than the maximum potential payout level depending on achievement of performance-based award objectives.

To satisfy the vesting of its RSUs, the Company has reserved new shares from its authorized but unissued shares.  Any additional granted awards will also be issued from the Company’s authorized but unissued shares.   

53

Deferred Compensation Plan

The Company maintains a trust, commonly referred to as a rabbi trust, in connection with the Company’s deferred compensation plan.  This plan allows for two deferrals.  First, Directors make elective deferrals of Director fees payable and held in the rabbi trust.  The deferred compensation plan allows the Directors to elect to receive Director fees in common shares of the Company at a later date instead of fees paid each quarter in cash.  Second, this plan allows certain Company employees to defer restricted shares or RSUs for future distribution in the form of common shares.  Assets of the rabbi trust are consolidated, and the value of the Company’s stock held in the rabbi trust is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock.  The Company recognizes the original amount of the deferred compensation (fair value of the deferred stock award at the date of grant) as the basis for recognition in common shares issued to the rabbi trust.  Changes in the fair value of amounts owed to certain employees or Directors are not recognized as the Company’s deferred compensation plan does not permit diversification and must be settled by the delivery of a fixed number of the Company’s common shares.  As of December 31, 2019, 267,641 LTIP shares have been deferred and are being held by the rabbi trust.

Share Option Awards

The LTIP permitted and now the Incentive Plan permits the grant of 100,000 options to buy common shares of the Company to certain employees at not less than fair market value of the shares on the date of grant.   Options issued to date under the LTIP and Incentive Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years and expire from five to ten years from the date of grant.  Shares issued as a result of stock option exercises will be funded with the issuance of new shares.

The Company utilizes the Black-Scholes option pricing model for estimating fair values of options.  The Black-Scholes model requires assumptions regarding the volatility of the Company’s stock, the expected life of the stock award and the Company’s dividend yield.  The Company utilizes historical data in determining these assumptions.  The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant.  Forfeitures have been estimated to be zero.

There were 5,000 options granted during each of the years ended December 31, 2019, 2018 and 2017.  The fair values for the stock options granted were estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	2019			2018			2017
Risk-free interest rate		1.8	%		2.8	%		2.0	%
Dividend yield		1.6	%		1.6	%		1.7	%
Expected life (years)	5			5			5
Expected volatility		42.0	%		40.0	%		36.8	%

Activity in the Company’s LTIP and Incentive Plan for the year ended December 31, 2019 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019		30,750		$	56.81
Granted		5,000		$	60.60
Exercised		(4,000	)	$	45.96
Forfeited		0		$	0.00
Outstanding (vested and expected to vest) at December 31, 2019		31,750		$	58.77		6.6	$	169
Exercisable at December 31, 2019		23,000		$	58.68		5.6	$	154

The weighted-average grant-date fair value of options granted during 2019 was $60.60. There were 4,000, 3,500, and 28,500 stock options exercised during the years ended December 31, 2019, 2018 and 2017, respectively.  The total intrinsic value of stock options exercised was $.1 million, $.1 million and $.7 for the years ended December 31, 2019, 2018 and 2017, respectively.  Cash received for the exercise of stock options during 2019 was $.2 million, $.2 million in 2018 and $1.5 million in 2017.

54

For each of the three years ended December 31, 2019, 2018 and 2017, the Company recorded compensation expense related to the stock options currently vested of less than $.1 million.  The total compensation cost related to nonvested awards not yet recognized at December 31, 2019 is expected to be $.2 million over a weighted-average period of approximately 2.5 years.

The excess tax benefits from share-based awards for each of the years ended December 31, 2019, 2018 and 2017 was less than $.1 million.  This represents the reduction in income taxes otherwise payable during the period attributable to the actual gross tax benefits in excess of the expected tax benefits for options exercised in the current period.

Note I - Computation of Earnings Per Share

Basic earnings per share were computed by dividing net income by the weighted-average number of common shares outstanding for each respective period.  Diluted earnings per share were calculated by dividing net income by the weighted-average of all potentially dilutive common shares that were outstanding during the years presented.

The calculation of basic and diluted earnings per share for the year ended December 31 was as follows:

	2019		2018		2017
Numerator
Net income	$	23,303	$	26,581	$	12,654
Denominator
Determination of shares (in thousands)
Weighted-average common shares outstanding		5,031		5,032		5,102
Dilutive effect - share-based awards		56		75		31
Diluted weighted-average common shares outstanding		5,087		5,107		5,133
Earnings per common share
Basic	$	4.63	$	5.28	$	2.48
Diluted	$	4.58	$	5.21	$	2.47

For the year ended December 31, 2019, 2018 and 2017, 15,041, 260 and 13,000 stock options, respectively, were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

Note J - Goodwill and Other Intangibles

The Company’s finite and indefinite-lived intangible assets consist of the following:

	December 31, 2019					December 31, 2018
	GrossCarrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Finite-lived intangible assets
Patents	$	4,806	$	(4,806	)	$	4,806	$	(4,788	)
Land use rights		1,128		(331	)		1,134		(203	)
Trademark		1,718		(1,358	)		1,707		(1,247	)
Technology		7,185		(1,708	)		2,994		(1,334	)
Customer relationships		15,811		(7,329	)		11,804		(6,415	)
	$	30,648	$	(15,532	)	$	22,445	$	(13,987	)
Indefinite-lived intangible assets
Goodwill	$	27,840				$	15,621

55

The Company performs its annual impairment test for goodwill utilizing a combination of discounted cash flow methodology, market comparables and an overall market capitalization reasonableness test in computing fair value by reporting unit.  The Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired.  Based on the assumptions as to growth, discount rates and the weighting used for each respective valuation methodology, results of the valuations could be significantly different. The Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.

The Company performed its annual impairment test for goodwill as of October 1, 2019 and October 1, 2018 and determined that no adjustment to the carrying value was required.  

	USA		The Americas			EMEA			Asia-Pacific			Total
Balance at January 1, 2018	$	3,078	$	4,292		$	1,495		$	7,679		$	16,544
Currency translation and other		0		(295	)		(140	)		(488	)		(923	)
Balance at December 31, 2018		3,078		3,997			1,355			7,191			15,621
Currency translation		0		161			(45	)		(29	)		87
Goodwill acquired during the year		0		0			18,619			0			18,619
Purchase price allocation adjustments		0		0			(6,487	)		0			(6,487	)
Balance at December 31, 2019	$	3,078	$	4,158		$	13,442		$	7,162		$	27,840

The Company’s only intangible asset with an indefinite life is goodwill.  The Company’s goodwill is not deductible for tax purposes.   Of the $6.5 million in purchase price allocation adjustments, $6.3 million represents an allocation to definite lived intangible assets and $.2 million represents an inventory step-up allocation.   Refer to Note O “Business Combinations” for additional details regarding the Company’s purchase price allocations.

The aggregate amortization expense for other intangibles with finite lives, ranging from 4 to 82 years, for the year ended December 31, 2019 was $1.5 million and was $1.0 million for both years ended December 31, 2018 and 2017.  Amortization expense is estimated to be $1.6 million for 2020, and $1.5 million for 2021, 2022, 2023 and 2024. The weighted-average remaining amortization period is approximately 12.9 years.  The weighted-average remaining amortization period by intangible asset class; patents, 6.0 years; land use rights, 56.0 years; trademark, 8.6 years; technology, 11.1 years and customer relationships, 10.3 years.

Note K - Fair Value of Financial Assets and Liabilities

The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs), and the Company’s assumptions (unobservable inputs). The hierarchy consists of the following three levels:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 Inputs other than Level 1 inputs that are either directly or indirectly observable, which may include:

o Quoted prices for similar assets in active markets;

o Quoted prices for identical or similar assets or liabilities in inactive markets;

o Inputs other than quoted prices that are observable for the asset or liability; and

o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 Inputs to the valuation methodology are unobservable and developed using estimates and assumptions developed by the Company which reflect those that a market participant would use.  

56

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the consolidated balance sheets as of December 31, 2019 and 2018:

Description	Balance as of December 31, 2019		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Supplemental profit sharing plan	$	6,059	$	0	$	6,059	$	0
Earn-out		581		0		0		581
Total Liabilities	$	6,640	$	0	$	6,059	$	581
Description	Balance as of December 31, 2018		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Marketable securities	$	1,648	$	1,648	$	0	$	0
Total Assets	$	1,648	$	1,648	$	0	$	0
Liabilities:
Supplemental profit sharing plan		4,946		0		4,946		0
Total Liabilities	$	4,946	$	0	$	4,946	$	0

The Company has a non-qualified Supplemental Profit Sharing Plan for its executives. The liability for this unfunded Supplemental Profit Sharing Plan was $6.1 million at December 31, 2019 and $4.9 million at December 31, 2018.  These amounts are recorded within Other noncurrent liabilities on the Company’s consolidated balance sheets. During January 2018, the Company amended the Supplemental Profit Sharing Plan to allow the participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances based on the investments selected by the participants. The Company measures the fair value of the Supplemental Profit Sharing Plan liability using the market values of the participants’ underlying investment accounts.

In order to mitigate the risk associated with the Supplemental Profit Sharing Plan, the Company had invested in marketable securities, principally equity-based mutual funds, which were all transferred to the Company’s Corporate Owned Life Insurance Policy (“COLI”) in April 2019.  The balance in the marketable securities of $0 million and $1.6 million were reported at fair value within Other current assets on the Company’s consolidated balance sheets as of December 31, 2019 and 2018, respectively.  At December 31, 2019 and 2018, the cash surrender value of the COLI was $5.5 million and $2.8 million, respectively, and is recorded in Other assets on the Company’s consolidated balance sheets.  Changes in the fair value of the marketable securities of $.2 million and $.1 million were recognized within Other income, net within the consolidated statements of income for the twelve-month periods ended December 30, 2019 and 2018, respectively.    

The earn-out represents the estimated fair value of additional cash consideration payable in connection with a recent acquisition that is contingent upon the achievement of certain performance milestones using expected future cash flows over the earn-out period and applied a discount rate that appropriately captures the risk associated with the obligation.  These are considered to be Level 3 inputs.  The contingent liabilities of $.6 million are recorded in Other noncurrent liabilities on the Company’s consolidated balance sheet.   

The carrying value of the Company’s current financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and short-term debt, approximates fair value because of the short-term maturity of these instruments.

57

At December 31, 2019, the fair value of the Company’s long-term debt was estimated using discounted cash flows analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements that are considered to be Level 2 inputs. There have been no transfers in or out of Level 2 for the year ended December 31, 2019.  Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt are as follows:

	December 31, 2019				December 31, 2018
	FairValue		Carrying Value		Fair Value		Carrying Value
Long-term debt and related current maturities	$	56,539	$	57,076	$	27,017	$	26,408

Note L - Revenue

Revenue recognition

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

Disaggregated revenue

The Company’s revenues by segment and product type are as follows:

	Year Ended December 31, 2019
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		62	%		67	%		68	%		72	%		67	%
Communications		30	%		27	%		24	%		6	%		22	%
Special Industries		8	%		6	%		8	%		22	%		11	%
Total		100	%		100	%		100	%		100	%		100	%

	Year Ended December 31, 2018
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		60	%		67	%		73	%		68	%		66	%
Communications		34	%		29	%		12	%		4	%		21	%
Special Industries		6	%		4	%		15	%		28	%		13	%
Total		100	%		100	%		100	%		100	%		100	%

Note M - Segment Information

The Company designs, manufactures and sells hardware employed in the construction and maintenance of telecommunication, energy and other utility networks, data communication products and mounting hardware for solar power applications. Principal products include cable anchoring, control hardware and splice enclosures, which are sold primarily to customers in North and South America, Europe, South Africa and Asia-Pacific.

The Company reports its segments in four geographic regions: PLP-USA, The Americas, EMEA (Europe, Middle East & Africa) and Asia-Pacific in accordance with accounting standards codified in Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 280, “Segment Reporting”.  Each segment distributes a full range of the Company’s primary products.  The PLP-USA segment is comprised of U.S. operations manufacturing the Company’s traditional products primarily supporting domestic energy, telecommunications and solar products.  The other three segments, The Americas, EMEA and Asia-Pacific support the Company’s energy, telecommunications, data communication and solar products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief operating decision maker and are accountable for the financial results and performance of their entire segment for which they are responsible.  The business components within each segment are managed to maximize the results of the entire company rather than the results of any individual business component of the segment.

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The amount of each segment’s performance reported to the chief operating decision maker is for purposes of making decisions about allocating resources to the segment and assessing its performance.  The Company evaluates segment performance and allocates resources based on several factors primarily based on sales and income from continuing operations, net of tax.

The accounting policies of the operating segments are the same as those described in Note A in the Notes to Consolidated Financial Statements. No single customer accounts for more than ten percent of the Company’s consolidated revenue.  U.S. net sales for the year ended December 31, 2019, 2018, and 2017 were $178.3 million, $169.0 million and $147.6 million, respectively.  U.S. long-lived assets as of December 31, 2019 and 2018 were $51.1 million and $51.5 million, respectively.

59

The following table presents a summary of the Company’s reportable segments for the year ended December 31, 2019, 2018 and 2017. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profits in inventory.  

	Year Ended December 31
	2019			2018			2017
Net sales
PLP-USA	$	178,301		$	169,040		$	147,646
The Americas		68,293			66,868			69,764
EMEA		79,158			69,773			63,916
Asia-Pacific		119,109			115,197			96,886
Total net sales	$	444,861		$	420,878		$	378,212
Intersegment sales
PLP-USA	$	10,757		$	11,648		$	12,234
The Americas		7,774			9,480			5,570
EMEA		1,375			1,664			1,120
Asia-Pacific		12,720			11,907			8,596
Total intersegment sales	$	32,626		$	34,699		$	27,520
Interest income
PLP-USA	$	0		$	0		$	0
The Americas		412			273			283
EMEA		192			102			47
Asia-Pacific		179			111			100
Total interest income	$	783		$	486		$	430
Interest expense
PLP-USA	$	(972	)	$	(1,023	)	$	(941	)
The Americas		(466	)		(111	)		(10	)
EMEA		(149	)		(58	)		(31	)
Asia-Pacific		(630	)		(98	)		(79	)
Total interest expense	$	(2,217	)	$	(1,290	)	$	(1,061	)
Income taxes
PLP-USA	$	3,299		$	367		$	7,142
The Americas		2,551			3,349			3,593
EMEA		616			1,204			1,583
Asia-Pacific		1,656			1,087			834
Total income taxes	$	8,122		$	6,007		$	13,152
Net income (loss) attributable to Preformed Line Products Company shareholders
PLP-USA	$	8,054		$	9,900		$	(2,367	)
The Americas		6,657			8,479			8,169
EMEA		2,935			3,527			4,088
Asia-Pacific		5,657			4,675			2,764
Total net income	$	23,303		$	26,581		$	12,654

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	Year Ended December 31
	2019		2018		2017
Expenditure for long-lived assets
PLP-USA	$	4,928	$	3,672	$	4,474
The Americas		2,864		1,746		1,272
EMEA		5,304		1,591		2,329
Asia-Pacific		16,371		2,519		3,158
Total expenditures for long-lived assets	$	29,467	$	9,528	$	11,233
Depreciation and amortization
PLP-USA	$	5,393	$	5,452	$	5,389
The Americas		1,862		1,488		1,985
EMEA		2,528		1,808		1,678
Asia-Pacific		3,965		3,696		3,738
Total depreciation and amortization	$	13,748	$	12,444	$	12,790

	As of December 31
	2019		2018
Identifiable assets
PLP-USA	$	127,428	$	118,171
The Americas		71,908		69,764
EMEA		97,126		57,263
Asia-Pacific		137,109		113,599
Total identifiable assets	$	433,571	$	358,797
Long-lived assets
PLP-USA	$	51,097	$	51,506
The Americas		15,874		14,847
EMEA		16,419		11,768
Asia-Pacific		40,628		24,834
Total long-lived assets	$	124,018	$	102,955

Note N - Related Party Transactions

On February 6, 2019, the Company purchased 36,413 shares of the Company from current and retired Officers at a price per share of $56.44, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On July 2, 2019, the Company purchased 952 shares of the Company from a retired Officer at a price per share of $51.20, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On December 12, 2019, the Company purchased 20,862 shares of the Company from current Officers at a price per share of $70.39, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On December 19, 2019, the Company purchased 6,326 shares of the Company from a retired Officer at a price per share of $71.75, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On February 6, 2018, the Company purchased 7,877 shares of the Company from current Officers and a retired Officer at a price per share of $80.20, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

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On March 15, 2018, the Company purchased 1,430 shares of the Company from a current Officer at a price per share of $63.63, which was calculated from a 30-day average of market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On May 10, 2018, the Company purchased 3,200 shares of the Company from a current Officer at a price per share of $68.10, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On June 1, 2018, the Company purchased 8,800 shares of the Company from a retired Officer at a price per share of $73.53, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On June 15, 2018, the Company purchased 1,500 shares of the Company from current Officers at a price per share of $77.06, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On August 7, 2018, the Company purchased 17,141 shares of the Company from current Officers and a retired officer at a price per share of $87.19, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On August 23, 2018, the Company purchased 2,000 shares of the Company from a current employee at a price per share of $83.53, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On September 14, 2018, the Company purchased 7,500 shares of the Company from a current Officer at a price per share of $80.95, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On December 18, 2018, the Company purchased 35 shares of the Company from a retired Officer at a price per share of $57.85, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On January 3, 2017, the Company purchased 1,834 shares of the Company from current Officers at a price per share of $58.58, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved these transactions.   

On May 9, 2017, the Company purchased 2,500 shares of the Company from a current Officer at a price per share of $52.05, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On August 16, 2017, the Company purchased 24,920 shares of the Company from a trust for the benefit of Barbara P. Ruhlman at a price per share of $50.16, which was calculated from a 30-day average of market price.  Barbara P. Ruhlman is Director Emeritus for the Company’s Board of Directors and the mother of Robert G. Ruhlman and grandmother of J. Ryan Ruhlman and Maegan A. R. Cross, all of whom are also members of the Board of Directors and Messrs. Robert G. Ruhlman and J. Ryan Ruhlman also serve as executive officers of the Company.  The purchase was consummated pursuant to a Share Purchase Agreement dated August 16, 2017, between the Company and the trust.  The Audit Committee of the Board of Directors approved this transaction.

On November 8, 2017, the Company purchased 24,874 shares of the Company from current Officers and other employees, at a price per share of $71.07, which was calculated from a 30-day average market price.  Additionally, on November 8, 2017, the Company purchased 7,000 shares of the Company from Robert G. Ruhlman, at a price per share of $71.07, which was calculated from a 30-day average market price.  Mr. Ruhlman is Chairman, President and Chief Executive Officer (CEO) of the Company, son of Barbara P. Ruhlman, Director Emeritus, and father of J. Ryan Ruhlman and Maegan A. R. Cross, each of whom are also members of the Board of Directors and Mr. J. Ryan Ruhlman is an executive officer of the Company.  The Audit Committee of the Board of Directors approved these transactions.    

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On November 17, 2017, the Company purchased 7,975 shares of the Company from current Officers and other employees, at a price per share of $74.51, which was calculated from a 30-day average market price.  The Audit Committee of the Board of Directors approved these transactions.  

On November 30, 2017, the Company purchased 3,334 shares of the Company from a retired Officer of the Company, at a price per share of $75.37, which was calculated from a 30-day average market price.  The Audit Committee of the Board of Directors approved this transaction.

On December 13, 2017, the Company purchased 21,650 shares of the Company from current Officers and other employees, at a price per share of $78.68, which was calculated from a 30-day average market price.  Additionally, on December 13, 2017, the Company purchased 7,500 shares of the Company from Randall M. Ruhlman at a price per share of $78.68, which was calculated from a 30-day average market price.  Mr. Ruhlman is the son of Barbara P. Ruhlman, Director Emeritus, brother of Robert G. Ruhlman and a former member of the Company’s Board of Directors.  The Audit Committee of the Board of Directors approved these transactions.  

On December 13, 2017, the Company purchased 15,000 shares of the Company from a trust for the benefit of Barbara P. Ruhlman, Director Emeritus, at a price per share of $78.68, which was calculated from a 30-day average of market price.  The purchase was consummated pursuant to a Share Purchase Agreement dated December 13, 2017, between the Company and the trust.  The Audit Committee of the Board of Directors approved this transaction.

The Company’s Australian subsidiary utilizes copper extrusion services from Cast Alloy.  During the years ended December 31, 2019, 2018 and 2017, PLP-Australia incurred a total of $.1 million, $.2 million and $.2 million for these expenses.  Cast Alloy is owned by Simi Almasan, Continuous Improvement Engineer, a current PLP employee.  The Audit Committee of the Board of Directors approved these transactions.

The Company’s New Zealand subsidiary, Electropar previously leased one parcel of property, on which it had its corporate office, manufacturing and warehouse space.  The entities that leased the property to Electropar were owned, in part, by Grant Wallace, a former Director who is no longer with the Company as of March 2017, therefore, no related party expense was incurred in 2019 or 2018.  For the year ended December 31, 2017, Electropar incurred less than $.1 million for such lease expense.

The Company’s Austrian subsidiary currently has a loan due, carrying an interest rate of 3.0%, to one if its current employees which is reflected on the Company’s balance sheet in the amount of $.1 million.  Interest incurred on this loan during the year ended December 31, 2019 was negligible.  This loan is due in December of 2025.

The Company’s Austrian subsidiary leases a portion of its Dornbirn, Austria location from a holding company owned by a current employee.  During the year ended December 31, 2019, the Company paid $.1 million in lease expenses.  The lease is valid for an indefinite period of time and can be terminated if the lessee and lessor provide a six-month notice at the end of any chosen calendar year.

The Company’s Czech Republic subsidiary leases a factory at its Prostějov, Czech Republic location from a company currently owned by two current employees.  During the year ended December 31, 2019, the Company paid $.2 million in lease expenses.  The lease term is for 5 years from its original effective date of April 1, 2019.

During each year ended December 31, 2019, 2018 and 2017, the Company paid approximately $.1 million in legal fees to Baker & Hostetler LLP, of which R. Steven Kestner was the Chairman and the chair of its policy committee.  Mr. Kestner is a Director of the Company.

Note O - Business Combinations

The Company accounts for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the date of acquisition.

63

On February 28, 2019, the Company acquired 100% of SubCon.  Subcon is headquartered in Dornbirn, Austria with manufacturing operations in Brno, Czech Republic.  The acquisition of SubCon will strengthen the Company’s position in the global substation market and will expand its operational presence in Europe.  The total purchase price was $10.1 million in cash, net of $1.9 million in cash acquired.  The purchase price was predominantly allocated to Goodwill of $6.6 million and Intangible assets of $4.7 million with useful lives ranging from 10 to 11 years.  SubCon’s overall purchase price includes an estimated contingent liability of $.6 million for an earn-out consideration with a potential maximum payment of 4.0 million Euros that will be considered for remeasurement during each reporting period as the operating results of SubCon are evaluated during each reporting period based upon operating results over a four year period.  The earn-out of $.6 million is recorded in Other noncurrent liabilities on the Company’s consolidated balance sheet.

On April 1, 2019, the Company acquired 90% of MICOS Telcom s.r.o. (“MICOS Telcom”) headquartered in Prostějov, Czech Republic with the remaining 10% to be acquired over the next three years.  The acquisition of MICOS Telcom will strengthen the Company’s position in the global telecom market and will also expand its operational presence in Europe.  The total purchase price was $8.8 million in cash, net of $.5 million in cash acquired and a hold-back liability of $1.5 million U.S. dollars payable in two years from the date of purchase and $.9 million of deferred consideration for the remaining 10%.  The hold-back liability and deferred consideration are recorded in Other noncurrent liabilities on the Company’s consolidated balance sheet.  The purchase price was predominantly allocated to Goodwill of $5.6 million and Intangible assets of $3.4 million.  The Intangible assets included in the acquisition of MICOS have useful lives of 12 years.    

The operating results and financial position of both SubCon and MICOS Telcom are included in the Company’s EMEA reportable segment as of their respective dates of acquisition.  Pro-forma results of the Company’s consolidated operations for the years ended December 31, 2019 and 2018 would not have been materially different from reported results and are therefore not presented.

There was no material impact on the Company’s Consolidated Statements of Income as a result of the finalization of purchase price accounting.  The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition dates:

Assets acquired
Current assets, net of cash	$	5,976
Property, plant and equipment		1,189
Goodwill		12,132
Finite-lived intangible assets		8,092
Other long-term assets		1,883
Total assets acquired	$	29,272
Liabilities assumed		(10,378	)
Net assets acquired	$	18,894

Note P - Product Warranty Reserve

The Company records an accrual for estimated warranty costs to Costs of products sold in the Statements of Consolidated Income.  These amounts are recorded in Accrued expenses and other liabilities in the Consolidated Balance Sheets.  The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly.  Adjustments are made quarterly to the accruals as claim information changes.

The following is a rollforward of the product warranty reserve:

	2019			2018			2017
Balance at January 1	$	928		$	1,076		$	1,058
Additions charged to costs and expenses		481			97			347
Warranty usage		(317	)		(133	)		(399	)
Currency translation		217			(112	)		70
Balance at December 31	$	1,309		$	928		$	1,076

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Note Q - Quarterly Financial Information (unaudited)

The following table summarizes the Company’s results of operations for each of the quarters in 2019 and 2018:

	Quarter ended
	March 31		June 30		September 30		December 31
2019
Net sales	$	97,153	$	114,842	$	119,217	$	113,649
Gross profit		27,265		37,807		39,343		36,180
Income before income taxes		1,928		10,850		11,257		7,423
Net income		1,824		7,866		8,044		5,602
Net income attributable to Preformed Line Products Company Shareholders		1,824		7,904		7,951		5,624
Net income, basic	$	0.36	$	1.57	$	1.58	$	1.12
Net income, diluted	$	0.36	$	1.56	$	1.55	$	1.09
2018
Net sales	$	98,139	$	108,915	$	108,413	$	105,411
Gross profit		31,518		35,203		33,491		32,019
Income before income taxes		7,629		9,224		7,856		7,879
Net income		5,528		6,735		9,054		5,264
Net income, basic	$	1.10	$	1.34	$	1.80	$	1.05
Net income, diluted	$	1.09	$	1.33	$	1.76	$	1.02

Note R - Subsequent Events

None.    

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s Principal Executive Officer and Principal Financial Officer have concluded based on their review thereof that the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended, were effective as of December 31, 2019.

Management’s Report on Internal Control Over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f).  The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of the consolidated financial statements in accordance with generally accepted accounting principles. 

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements and even when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation.

The Company completed the acquisitions of SubCon Electrical Fittings GmbH (“SubCon”) and 90% of MICOS Telcom s.r.o. (“MICOS Telcom”).  As permitted by SEC guidance, the scope of our evaluation of internal control over financial reporting as of December 31, 2019 did not include the internal control over SubCon and MICOS.  The results of SubCon and MICOS are included in the Company’s consolidated financial statements from the date at which the businesses were acquired.  The combined total assets of SubCon and MICOS represented approximately 7% of the Company’s total assets at December 31, 2019.  The combined Net sales and Net income of SubCon and MICOS represented approximately 3% of the Company’s consolidated Net sales and less than 1% of the Company’s Net income for the year ended December 31, 2019.

65

Management, with the participation of the Company's Chief Executive Officer and Vice President of Finance and Treasurer, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2019.  In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013).

Based upon its assessment, management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2019.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2019 has been audited by Ernst & Young LLP, an independent registered public accounting firm, who expressed an unqualified opinion as stated in their report, a copy of which is included below.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)) during the quarter ended December 31, 2019 that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

66

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

of Preformed Line Products Company

Opinion on Internal Control over Financial Reporting

We have audited Preformed Line Products Company and subsidiaries’ internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Preformed Line Products and subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on the COSO criteria.

As indicated in the accompanying Management’s Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Subcon Electrical Fittings GmbH (SubCon) and MICOS Telecom s.r.o. (MICOS Telcom), which are included in the 2019 consolidated financial statements of the Company and on a combined basis constituted 7% of total assets as of December 31, 2019 and 3% of consolidated net sales and less than 1% of consolidated net income for the year then ended.  Our audit of internal control over financial reporting of Preformed Line Products and subsidiaries also did not include an evaluation of the internal control over financial reporting of SubCon and MICOS Telecom.            

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Consolidated Balance Sheets of Preformed Line Products and subsidiaries as of December 31, 2019 and 2018, and the related Statements of Consolidated Income, Comprehensive Income, Cash Flows, and Shareholders’ Equity for each of the three years in the period ended December 31, 2019 and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “financial statements”) of the Company and our report dated March 6, 2020 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.  

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Cleveland, Ohio

March 6, 2020

67

Item 9B. Other Information

None

Part III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this Item 10 is incorporated by reference to the information under the captions “Corporate Governance – Board Composition”, “Corporate Governance - Election of Directors”, “Section 16(a) Beneficial Ownership Compliance”, “Corporate Governance – Code of Conduct” and “Corporate Governance – Board Committees and Meetings – Audit Committee” in the Company’s Proxy Statement, for the Annual Meeting of Shareholders to be held May 5, 2020 (the “Proxy Statement”).  Information relative to executive officers of the Company is contained in Part I of this Annual Report on Form 10-K.

Item 11. Executive Compensation

The information set forth under the caption “Directors and Executive Officers Compensation” and “Compensation Policies and Risk” in the Proxy Statement is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Other than the information required by Item 201(d) of Regulation S-K the information set forth under the caption “Security Ownership of Certain Beneficial Owners and Management” in the Proxy Statement is incorporated herein by reference.  The information required by Item 201(d) of Regulation S-K is set forth in Item 5 of this report.

Item 13. Certain Relationships, Related Transactions and Director Independence

The information set forth under the captions “Transactions with Related Persons” and “Election of Directors” in the Proxy Statement is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The information set forth under the captions “Independent Registered Public Accounting Firm”, “Audit Fees”, “Audit-Related Fees”, “Tax Fees” and “All Other Fees” in the Proxy Statement is incorporated herein by reference.

68

Part IV

Item 15. Exhibits and Financial Statement Schedules

(a) Financial Statements and Schedule

Page	Financial Statements
31	Consolidated Balance Sheets
32	Statements of Consolidated Income
33	Statements of Consolidated Comprehensive Income
34	Statements of Consolidated Cash Flows
35	Statements of Consolidated Shareholders’ Equity
36	Notes to Consolidated Financial Statements

Page	Schedule
73	II - Valuation and Qualifying Accounts

69

(b) Exhibits

Exhibit Number	Exhibit
3.1	Amended and Restated Articles of Incorporation (incorporated by reference to the Company’s Registration Statement on Form 10).
3.2	Amended and Restated Code of Regulations of Preformed Line Products Company (incorporated by reference to the Company’s Registration Statement on Form 10).
3.3	Amendment to the Amended and Restated Code of Regulations of Preformed Line Products Company, effective May 10, 2016, filed herewith
4	Description of Specimen Share Certificate (incorporated by reference to the Company’s Registration Statement on Form 10).
4.2	Description of the Registrant’s Securities Registered Under Section 12 of the Securities Exchange Act of 1934, filed herewith.
10.1	Preformed Line Products Company 1999 Employee Stock Option Plan (incorporated by reference to the Company’s Registration Statement on Form 10).*
10.2	Preformed Line Products Company Officers Bonus Plan (incorporated by reference to the Company’s 10-K filed for the year ended December 31, 2007).*
10.3	Preformed Line Products Company Executive Life Insurance Plan – Summary (incorporated by reference to the Company’s Registration Statement on Form 10).*
10.4	Preformed Line Products Company Supplemental Profit Sharing Plan (incorporated by reference to the Company’s Registration Statement on Form 10).*
10.5	Revolving Credit Agreement between National City Bank (now, PNC Bank, National Association) and Preformed Line Products Company, dated December 30, 1994 (incorporated by reference to the Company’s Registration Statement on Form 10).
10.6	Amendment to the Revolving Credit Agreement between National City Bank (now, PNC Bank, National Association) and Preformed Line Products Company, dated October 31, 2002 (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2003).
10.7	Line of Credit Note dated February 5, 2010 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s 10-K filing for the fiscal year ended December 31, 2010).
10.8	Amended and Restated Loan Agreement dated September 24, 2015 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).
10.9	Preformed Line Products Company 1999 Employee Stock Option Plan Incentive Stock Option agreement (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2004).*
10.10	Preformed Line Products Company Chief Executive Officer Bonus Plan (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2007).*
10.11	Preformed Line Products Company Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference to Appendix A of the Company’s Definitive Proxy Statement filed on March 11, 2011).*
10.12	Deferred Shares Plan (incorporated by reference to the Company’s 8-K current report filing dated August 21, 2008).
10.13	Form of Restricted Shares Grant Agreement under the Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference to the Company’s 10-Q filing for the quarter ended September 30, 2008).*
10.14	Form of Restricted Stock Unit Award Agreement under the Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2013).*
10.15	Form of Restricted Stock Unit Award Agreement under the Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2014).*
10.16	Shares Purchase Agreement, dated August 16, 2017, between the Company and the trustee under the 2016 Trust Agreement Between Barbara P. Ruhlman and Bernard L. Karr, dated September 21, 2016 (incorporated by reference to the Company’s Form 8-K filed on August 16, 2017).*
10.17	Shares Purchase Agreement, dated December 13, 2017, between the Company and the trustee under the 2016 Trust Agreement Between Barbara P. Ruhlman and Bernard L. Karr, dated September 21, 2016 (incorporated by reference to the Company’s Form 8-K filed on December 14, 2017).*

70

10.18	Shares Purchase Agreement, dated August 23, 2016, between the Company and the Irrevocable Trust Agreement Between Barbara P. Ruhlman and Bernard L. Karr, dated July 29, 2008 (incorporated by reference to the Company’s Form 8-K filed on August 23, 2016).
10.19	Share Purchase Agreement, dated August 23, 2016, between the Company and the Thomas F. Peterson Foundation (incorporated by reference to the Company’s Form 8-K filed on August 23, 2016).
10.20	Form of Restricted Stock Agreement under the Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).*
10.21	Form of Restricted Stock Unit Award Agreement under the Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).*
10.22	Amendment to Amended and Restated Loan Agreement dated November 6, 2015 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).
10.23	Preformed Line Products Company 2016 Incentive Plan (incorporated by reference to Appendix A of the Company’s Definitive Proxy Statement on Schedule 14A filed March 17, 2016).
10.24	Promissory Note dated June 27, 2016, between the Company and PNC Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended September 30, 2016).
10.25	Amendment No. 2 to Amended and Restated Loan Agreement dated August 22, 2016 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended September 30, 2016).
10.26	Amended and Restated Line of Credit Note dated August 22, 2016 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended September 30, 2016).
10.27	Amended and Restated Line of Credit Note dated March 13, 2018 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended March 31, 2018).
10.28	Amendment No. 3 to Amended and Restated Line of Credit Note dated March 13, 2018 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended March 31, 2018).
10.29	Term Note April 25, 2019 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s 10-Q filing for the quarter ended March 31, 2019).
10.30	Joinder and Amendment No. 5 to Amended and Restated Line of Credit Note dated April 25, 2019 between the Company and PNC Bank, National Association (incorporated by reference to the Company’s 10-Q filing for the quarter ended March 31, 2019).
14.1	Preformed Line Products Company Code of Conduct (incorporated by reference to the Company’s 8-K current report filing dated August 6, 2007).
14.2	Preformed Line Products Amended Company Code of Conduct, filed herewith.
21	Subsidiaries of Preformed Line Products Company, filed herewith.
23.1	Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.
31.1	Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
31.2	Certification of the Principal Accounting Officer, Michael A. Weisbarth, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
32.1	Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished.
32.2	Certification of the Principal Accounting Officer, Michael A. Weisbarth, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.

71

101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

* Indicates management contracts or compensatory plan or arrangement.

72

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

	Preformed Line Products Company
March 6, 2020	/s/ Robert G. Ruhlman
	Robert G. Ruhlman
	Chairman, President and Chief Executive Officer
	(principal executive officer)
March 6, 2020	/s/ Michael A. Weisbarth
	Michael A. Weisbarth
	Vice President – Finance and Treasurer
	(principal financial and accounting officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacity and on the dates indicated.

March 6, 2020	/s/ Robert G. Ruhlman
	Robert G. Ruhlman
	Chairman, President and Chief Executive Officer
March 6, 2020	/s/ Glenn E. Corlett
	Glenn E. Corlett
	Director
March 6, 2020	/s/ Matthew E. Frymier
	Matthew E. Frymier
	Director
March 6, 2020	/s/ Michael E. Gibbons
	Michael E. Gibbons
	Director
March 6, 2020	/s/ R. Steven Kestner
	R. Steven Kestner
	Director
March 6, 2020	/s/ Richard R. Gascoigne
	Richard R. Gascoigne
	Director
March 6, 2020	/s/ J. Ryan Ruhlman
	J. Ryan Ruhlman
	Director
March 6, 2020	/s/ Maegan A. R. Cross
	Maegan A. R. Cross
	Director

73

PREFORMED LINE PRODUCTS COMPANY

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Year Ended December 31, 2019, 2018 and 2017

(Thousands of dollars)

For the year ended December 31, 2019:	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other additions or deductions			Balance at end of period
Allowance for doubtful accounts	$	2,652	$	1,294	$	(697	)	$	(25	)	$	3,224
Reserve for credit memos		526		817		(739	)		21			625
Slow-moving and obsolete inventory reserves		8,462		1,283		(1,104	)		236			8,877
Accrued product warranty		928		481		(317	)		217			1,309
Foreign net operating loss tax carryforwards		3,495		153		(499	)		(12	)		3,137
For the year ended December 31, 2018:	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other additions or deductions			Balance at end of period
Allowance for doubtful accounts	$	2,910	$	449	$	(529	)	$	(178	)	$	2,652
Reserve for credit memos		415		802		(688	)		(3	)		526
Slow-moving and obsolete inventory reserves		9,066		1,341		(1,658	)		(287	)		8,462
Accrued product warranty		1,076		97		(133	)		(112	)		928
Foreign net operating loss tax carryforwards		3,965		568		(761	)		(277	)		3,495
For the year ended December 31, 2017:	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other additions or deductions			Balance at end of period
Allowance for doubtful accounts	$	2,815	$	472	$	(432	)	$	55		$	2,910
Reserve for credit memos		395		693		(675	)		2			415
Slow-moving and obsolete inventory reserves		11,560		998		(3,855	)		363			9,066
Accrued product warranty		1,058		347		(399	)		70			1,076
Foreign net operating loss tax carryforwards		3,805		490		(312	)		(18	)		3,965

74

EX-3.3

Exhibit 3.3

AMENDMENT TO THE

AMENDED AND RESTATED CODE OF REGULATIONS

OF PREFORMED LINE PRODUCTS COMPANY

Article VIII of the Amended and Restated Code of Regulations of Preformed Line Products Company is hereby amended and restated, effective as of May 10, 2016, in its entirety as follows:

Article VIII

Amendments

This Code of Regulations may be amended or repealed or new regulations may be adopted: (a) at any meeting of shareholders called for such purpose by the affirmative vote of the holders of shares entitling them to exercise a majority of the voting power of the Corporation on such proposal, except that Sections 1 and 5 (Number and Classification; Removal) of Article III may be amended or repealed only by the affirmative vote of the holders of shares entitling them to exercise at least two-thirds of the voting power on such proposal or (b) by the Board of Directors (to the extent permitted by the Ohio Revised Code).

4839-2153-9976.1

EX-4.2

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED UNDER SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

Preformed Line Products Company’s (the “Company”) Common Shares, par value $2.00 per share (“Common Shares”), are registered under Section 12 of the Securities Exchange Act of 1934, as amended.

The following summarizes briefly some of the general terms of the Common Shares and does not purport to be complete.  It is subject to and qualified in its entirety by reference to applicable provisions of the Amended and Restated Articles of Incorporation of the Company (the “Articles”) and the Amended and Restated Code of Regulations of the Company, as amended (the “Code of Regulations”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part, and the Ohio Revised Code.  We encourage you to read the Articles, the Code of Regulations and the applicable provisions of the Ohio Revised Code.

General

The Company is authorized by its Articles to issue 15,000,000 Common Shares.  The Company has not authorized the issuance of any class of preferred shares.  Common Shares are traded on NASDAQ under the ticker symbol “PLPC”.  All of our outstanding Common Shares are fully paid and non-assessable.  

Dividend Rights

Holders of the Company’s Common Shares are entitled to receive dividends, when, as and if declared by the Board of Directors of the Company, out of legally available funds.

Voting Rights

Common Shares possess ordinary voting rights, and each share is entitled to one vote. Holders of Common Shares do not have cumulative voting rights in the election of directors.  

Liquidation Rights

The holders of Common Shares, upon any liquidation, dissolution or winding-up of the Company are entitled to share ratably in any assets remaining after payment in full of all liabilities of the Company.

Certain Provisions of our Code of Regulations

In accordance with the Code of Regulations, our board of directors (the “Board”) is divided into two classes composed of four members each. Each class of directors is elected for a term of two years. Therefore, at each annual meeting of shareholders, only a portion of the Board is up for election. Furthermore, any amendment to the provisions of the Code of Regulations dealing with

(i) classification of the Board or (ii) the removal of any Board members requires the affirmative vote of at least two-thirds of the voting power of the Company.

The Code of Regulations contains provisions relating to shareholder proposed business at an annual meeting of shareholders. In summary, for a shareholder proposed matter to be properly brought before the annual meeting, shareholders must provide the Secretary of the Company written notice of the matter containing the required information not less than 90 and not more than 120 days prior to the one year anniversary of the date of the annual meeting of the previous year.

Ohio Law Anti-Takeover Provisions

The Company is subject to Chapter 1704 of the Ohio Revised Code (the “Ohio Code”), which may have the effect of delaying, discouraging or preventing a change of control involving the Company.

Chapter 1704 of the Ohio Code prohibits certain Ohio corporations from engaging in certain mergers, dispositions and acquisitions of assets, issuances or purchases of securities, liquidations or dissolutions, or reclassifications of the then outstanding shares of such corporation involving, or for the benefit of, certain holders of shares representing 10% or more of the voting power (other than a current 10% shareholder that does not increase its present proportional interest) (an “Interested Shareholder”), unless (i) the applicable transaction is approved by the Board prior to the shareholder becoming an Interested Shareholder, (ii) the acquisition of 10% of the voting power is approved by the Board prior to the shareholder becoming an Interested Shareholder, or (iii) the transaction involves an Interested Shareholder who has been such for at least three years and the transaction is approved by holders of two-thirds of the voting power of the Company (or a lesser proportion provided in the articles of incorporation) and the holders of a majority of the voting power not held by the Interested Shareholder or certain minimum price and form of consideration requirements are met.

Preemptive or Conversion Rights

Holders of Common Shares do not have preemptive rights to purchase, have offered for purchase or subscribe for any of the Company’s Common Shares or other securities of any class, whether now or hereafter authorized.  There are no conversion rights or redemption or sinking fund provisions with respect to Common Shares.

EX-14.2

Exhibit 14.2

PREFORMED LINE PRODUCTS COMPANY

CODE OF CONDUCT

The Code of Conduct (the “Code”) addresses Preformed Line Products Company’s (the “Company”) commitment to the honesty, integrity and ethical behavior of the Company’s directors, officers and employees.  This Code governs the actions and working relationships of the Company’s directors, officers and employees with current and potential customers, consumers, fellow employees, competitors, government and self-regulatory agencies, investors, the public, the media, and anyone else with whom the Company has or may have contact.  Although the Code does not cover every situation or challenge that arises, it serves as a guide by setting forth the principles governing the behavior of all directors, officers and employees of the Company.  The Company and each of its directors, officers and employees must conduct their business affairs with the highest standards of honesty and integrity, respect the rights of their fellow directors, officers, employees and third parties, and be free from violations of applicable laws.  Each director, officer and employee (as used herein, “you”, or “your”) is always expected to adhere to this Code and the Company’s other policies and procedures.  

If you are ever unsure of the appropriate action, you are encouraged to take advantage of the Company’s open door and informal environment and raise your concerns with appropriate management personnel.  Violation of the standards set forth in this Code will subject you to disciplinary action, including possible dismissal.  Violations of the Code may also be violations of the law and may result in civil and/or criminal penalties for you, your supervisor, and/or the Company.  

A. Introduction

You shall:

1. Act with honesty and integrity and shall ethically handle all actual or apparent conflicts of interest between personal and professional relationships;

2. Provide information that is full, fair, accurate, timely, and understandable in all reports and documents you provide, including documents that the Company files with, or submits to, the Securities and Exchange Commission (the “SEC”) and in other public filings and communications made by the Company, and, if you are involved in the Company’s financial disclosure process, be familiar with and comply with the Company’s disclosure controls and procedures and its internal control over financial reporting;

3. Comply with all laws, rules and regulations of federal, state, and local governments, and all applicable private or public regulatory agencies;

4. Proactively promote ethical behavior among peers and subordinates in the work place;

5. Promptly report any violation or suspected violation of the Code to the Audit Committee of the Board of Directors or other appropriate persons;

6. Act in good faith, responsibly, with due care, competence, and diligence, and not knowingly or recklessly misrepresent facts or allow your independent judgments to be subordinated;

7. Not use confidential information acquired in the course of your work for personal advantage and not buy or sell the Company’s securities in violation of the securities laws or the Company’s insider trading or stock pre-clearance policies (if applicable); and

8. Act responsibly in your use of and control over the Company’s assets and resources.

B.Conflicts of Interest

A “conflict of interest” occurs when your private interest or the interest of a member of your family interferes or appears to interfere in any way with the interests of the Company, and/or that makes it difficult for you to perform your work objectively and effectively.  Any position or interest, financial or otherwise, which (i) could conflict with your performance as an employee, officer or director of the Company, (ii) affects or could reasonably be expected to affect your independence or judgment concerning transactions between the Company, its customers, suppliers or competitors, (iii) allows you to receive improper personal benefits as a result of your position in the Company or (iv) otherwise reflects negatively on the Company, would be considered a conflict of interest. .  

For example, a conflict of interest likely exists if you (i) cause the Company to engage in business transactions with relatives or friends; (ii) use nonpublic, client or vendor information for personal gain by you, relatives or friends (including securities transactions based on or while aware of such information); or (iii) compete, or prepare to compete, with the Company while still employed by the Company or in violation of any other policy.  

You may not exploit your position or relationship with the Company for personal gain and must avoid all situations that might lead to a real or apparent conflict between your self-interest and your duties and responsibilities as an employee, officer or director of the Company, including the following specific examples, unless the process set forth below has been followed:

• Personally benefiting from opportunities that are discovered through the use of the Company’s property, contacts, information or position;

• Accepting employment or engaging in a business (including consulting or similar arrangements) that may conflict with the performance of your duties or the Company’s interest while employed by the Company;

• Soliciting, demanding, accepting or agreeing to accept anything of value (for your personal benefit) from any person in conjunction with the performance of your employment or duties at the Company; and

• Acting on behalf of the Company in any transaction in which you or your immediate family has a significant direct or indirect financial interest.

Further, loans by the Company to, or guarantees by the Company of obligations of, employees or their family members are of special concern and constitute improper personal benefits to the recipients of such loans or guarantees, depending on the facts and circumstances.  Loans by the Company to, or guarantees by the Company of obligations of, any director or executive officer are expressly prohibited.

You should immediately report any situation that presents a potential conflict of interest to the Company’s General Counsel. If the General Counsel determines that the situation does not present a significant risk to the Company, the General Counsel may approve the activity or transaction.  If the activity or transaction involves an executive officer or director of the Company, the General Counsel will refer the matter to the Audit Committee for review and (if it deems appropriate) approval.

Code of Conduct

Adopted August 6, 2007 and amended and restated December 20192

C.Compliance with Laws, Rules and Regulations

You must obey and respect all relevant laws, rules and regulations, both in letter and in spirit, in the cities, states and countries in which the Company operates.  You are not expected to know the details of every law, rule and regulation, but you are expected to know when you need to seek advice or information from your supervisors, managers, the Company’s legal department, or other appropriate persons.

No director, officer or employee may purchase or sell any Company securities while in possession of material non-public information regarding the Company, nor may any director, officer or employee purchase or sell another company's securities while in possession of material non-public information regarding that company. It is against Company policies and illegal for any director, officer or employee to use material non-public information regarding the Company or any other company to:

• Obtain profit for himself or herself; or

• Directly or indirectly “tip” others who might make an investment decision on the basis of that information. (See “Confidential Information” below).

D.Gifts/Entertainment

Personal conflicts of interest must be avoided when making decisions for the Company.  If your job requires that you make decisions for the Company (including purchasing any item, including, for example, raw materials, hotel accommodations, and transportation), it is imperative that such decisions are made with the Company’s best interest in mind.  Building good relationships with our customers and suppliers is important, but you should ensure that you do not inadvertently obligate the Company to an entity.  The purpose of business entertainment and gifts in a commercial setting is to create goodwill and sound working relationships, not to gain unfair advantage with customers.  You should not accept or solicit any benefit from a supplier, or potential supplier, that may compromise – or appear to compromise – your independent and objective assessment.  These benefits may be personal gifts, travel, lodging, services, entertainment, discounts, or anything of value other than nominal value.  

Although the Company generally discourages the offering and accepting of gifts, it is understandable that there are certain limited situations in which you may accept a personal benefit from someone with whom you transact business, such as:

• Accepting gifts of reasonable value (not in excess of $500, absent your supervisor’s approval) from any one individual or entity in recognition of commonly recognized events or occasions (e.g., a promotion, new job, wedding, retirement or holiday).  Awards in recognition of service and accomplishment may also be accepted without violating these guidelines.

• Accepting something of value if the benefit is available to the general public under the same conditions on which it is available to you.

• Accepting meals, refreshments, travel arrangements and accommodations and entertainment (e.g., golf outings, sporting events or meals) of reasonable value (not in excess of $500, absent your supervisor’s approval) in the course of a meeting or other occasion to conduct business or foster business relations.

Code of Conduct

Adopted August 6, 2007 and amended and restated December 20193

These guidelines apply when the gift is to you, your spouse, partner or other family members.  Additionally, these are applicable for both gifts received and gifts won.  If you receive or win a gift that is at or over these amounts, you must report this to your supervisor and the legal department.  

E. Confidential Information

You must maintain the confidentiality of proprietary information entrusted to you by the Company or its customers, suppliers or partners, except where disclosure is expressly authorized or permitted by such party or required by law.  Proprietary information includes all non-public information (regardless of the source) that may be useful to competitors or harmful to the Company or its customers, suppliers or partners if disclosed.  All non-public information about the Company should be considered confidential and you cannot disclose or use any information for your personal benefit.  Additionally, if you are contacted by the media or any government personnel and asked to comment on the Company, you should direct them to an executive officer for a response.  For additional information, please review the Company’s Policy on Insider Trading, which clarifies the Company’s prohibition on using or disclosing nonpublic material information.

F.Fair Dealing and Competition

The Company seeks to outperform our competition, and to obtain advantages through superior performance, not through unethical or illegal business practices.  You may not take unfair advantage of anyone, including the Company’s customers, suppliers, competitors, employees and anyone else with whom you have contact in the course of performing your job.  Further, you may not take advantage of another through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair-dealing practice.  Possessing, stealing, using or disclosing proprietary or trade secret information of another party absent written permission is a violation of this Code.  

Certain activities with respect to customers, such as below-cost pricing, price discrimination, tying arrangements, exclusive dealing or disparagement of others, may raise serious antitrust issues.  The laws governing these interactions with customers and competition are very complex and you are encouraged to speak with the legal department before engaging in any behavior of this nature.  

Additionally, the U.S. Foreign Corrupt Practices Act makes it illegal for any company to bribe a foreign official for the purpose of obtaining or retaining business or securing any improper advantage.  As such:  

• Do not offer or promise to give anything of value to any foreign official.  This includes people working for charitable organizations and non-profits.

• Do not give a payment to a third party (e.g., business partner) if you know, or even suspect, that part or all of the payment will end up in a foreign official’s hands.

• Be very careful when giving, or offering to give, anything (no matter how small) to a person associated with the government or a state-affiliated entity.  This includes cash, cash equivalents, and other things of value, such as information, loans and promises of employment.

Code of Conduct

Adopted August 6, 2007 and amended and restated December 20194

G.Employment Issues

The Company strives to provide its employees with a safe and healthy working environment, as the full value of each employee’s contribution can best be realized when treating each other with respect, dignity and trust.  You have the responsibility to maintain a safe and healthy environment, free from discrimination or harassment based on race, color, religion, sex, national origin or other protected class.  For further information, please review the Company’s Anti-Harassment Policy.

You must disclose prior to, or at your time of hire, the existence of any employment agreement, non-compete or non-solicitation agreement, confidentiality agreement or similar agreement that in any way restricts or prohibits your performance of any duties or responsibilities with the Company.  You should provide copies of such agreements to the Company to permit evaluation of the agreement in light of your position.  In no event shall you use any trade secrets, proprietary information or other similar property acquired in the course of your employment with another employer in the performance of your duties for or on behalf of the Company.  

H.Company Property/Assets

You must protect the Company’s property and assets and ensure their efficient and proper use.  Therefore, you must safeguard the Company’s property and assets from loss or theft and may not take such property for personal use unless such use has been pre-approved by your supervisor.  The Company’s property includes confidential information, intellectual property, software, computers, office equipment, and supplies.  You must appropriately secure the Company’s property within your control to prevent its unauthorized use or theft.  Also, you must report any suspected fraud or theft to your supervisor or to the General Counsel.

I.Record-keeping, Falsifying Records

The Company requires honest, accurate and timely recording and reporting of information.  You must accurately maintain all of the Company’s books, records, accounts and financial statements in reasonable detail, appropriately reflecting the Company’s transactions, with prompt disclosure as required by law and Company policies.  You must cooperate fully with the Company’s accounting and internal audit departments, as well as the Company’s independent public accountants and counsel. Mistakes should never be covered up; they should be immediately and fully disclosed to appropriate members of management.  Falsification of any Company, client or third-party record is prohibited.

J.Reporting of Violations and Wrongdoing; Non-retaliation; Enforcement

You are encouraged to talk with your managers or other appropriate personnel if you believe there has been an actual or potential violation of this Code.  Actions prohibited by this Code involving directors or executive officers must be promptly reported to the Audit Committee (and will be routed to the Audit Committee if reported by other means). Actions prohibited by this Code involving anyone other than a director or executive officer must be promptly reported to your supervisor, your human resources department or the General Counsel.  

Keep in mind that any reports will fall under the Company’s Whistleblower Policy, which provides protection to persons who, if in good faith, report violations or potential violations of this Code.  

Code of Conduct

Adopted August 6, 2007 and amended and restated December 20195

Reports of violations or potential violations shall be investigated in accordance with the Whistleblower Policy.  All directors, officers and employees are expected to cooperate in any internal investigation of misconduct.

Upon receipt of a determination that there has been a violation of this Code, your supervisor, the human resources department, the General Counsel, the Audit Committee or the Board of Directors, as appropriate, will take such preventative or disciplinary action as it deems appropriate, including, but not limited to, reassignment, demotion, dismissal and, in the event of criminal conduct or other serious violations of the law, notification of appropriate governmental authorities.

Any waiver of this Code may only be made by the General Counsel (in the case of persons other than an executive officer or director), the Audit Committee or the Board of Directors, and any waiver for a director or executive officer must be disclosed as required by the SEC and Nasdaq.  

K.Compliance Procedure

You are the guardian of the Company’s ethics and reputation.  You are encouraged to talk to supervisors, managers, your human resources department, the General Counsel or other appropriate personnel when in doubt about the best and ethical course of action in a particular situation.  While there are no universal rules, ask yourself the following questions when in doubt:

• Will my actions be ethical in every respect and fully comply with the law and with the Company’s policies?

• Will my actions have the appearance of impropriety?

• Will my actions be questioned by my supervisors, associates, clients, family or the general public?

• Am I trying to fool anyone, including myself, as to the propriety of my actions?

If you are uncomfortable with your answer to any of the above, you should not take the contemplated actions without first discussing them with appropriate management.  Seek help from the Company’s resources, such as your supervisor, your human resources department or the legal department at the information below:

Carrie Vaccariello

General Counsel and Corporate Secretary

Preformed Line Products Company

660 Beta Drive 

Mayfield Village, Ohio 44143 

Phone:  440.473.9287

Fax:  440.473.9175

E-mail:  cvaccariello@preformed.com

To help ensure compliance with the Code, the Company may require that you review the Code annually, and acknowledge your understanding and adherence.  The Company has the right to modify this Policy at any time.  

Code of Conduct

Adopted August 6, 2007 and amended and restated December 20196

EX-21

Exhibit 21

PREFORMED LINE PRODUCTS COMPANY

SUBSIDIARIES

International Subsidiaries:

Argentina

PLP Argentina SRL

Buenos Aires, Argentina

Australia

Preformed Line Products (Australia) Pty Ltd.

Sydney, Australia

Austria

SubCon Electrical Fittings GmbH

Dornbirn, Austria

Brazil

PLP-Produtos Para Linhas Preformados Ltda.

Sao Paulo, Brazil

Canada

Preformed Line Products (Canada) Ltd.

Cambridge, Ontario, Canada

Helix Uniformed Ltd.

Lachine, Quebec, Canada

China

Beijing PLP Conductor Line Products Co., Ltd.

Beijing, China

Colombia

PLP Colombia S.A.S.

Medellin, Colombia

Czech Republic

MICOS TELCOM s.r.o.

Prostějov, Czech Republic

France

Preformed Line Products (France) SAS

Paris, France

Indonesia

PT Preformed Line Products Indonesia

Bekasi, Indonesia

Malaysia

Preformed Line Products (Malaysia) Sdn. Bhd

Selangor, Malaysia

Mexico

Preformados de Mexico S.A. de C.V.

Queretaro, Mexico

New Zealand

Electropar Ltd.

Auckland, New Zealand

Poland

Belos-PLP SA

Beilsko-Biala, Poland

Russia

PLP Russia Ltd.

Moscow, Russia

South Africa

Preformed Line Products (South Africa) Pty. Ltd.

Pietermaritzburg, Natal

Republic of South Africa

Spain

APRESA – PLP Spain, S. A.

Sevilla, Spain

Thailand

Preformed Line Products (Thailand) Ltd.

Bangkok, Thailand

United Kingdom

Preformed Line Products (Great Britain) Ltd.

Andover, Hampshire, England

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following registration statements:

Registration Statement (Form S-8 No. 333-73692) pertaining to the Salaried Employees’ Profit Sharing Plan of Preformed Line Products Company,

Registration Statement (Form S-8 No. 333-73690) pertaining to the 1999 Employee Stock Option Plan of Preformed Line Products Company,

Registration Statement (Form S-8 No. 333-153263) pertaining to the Long Term Incentive Plan of 2008 of Preformed Line Products Company, and

Registration Statement (Form S-8 No. 333-214443) pertaining to the 2016 Incentive Plan of Preformed Line Products Company;

of our reports dated March 6, 2020, with respect to the consolidated financial statements and schedule of Preformed Line Products Company, and the effectiveness of internal control over financial reporting of Preformed Line Products Company included in this Annual Report (Form 10-K) of Preformed Line Products Company for the year ended December 31, 2019.

/s/ Ernst & Young LLP

Cleveland, Ohio

March 6, 2020

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert G. Ruhlman, certify that:

1. I have reviewed this annual report on Form 10-K of Preformed Line Products Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 6, 2020

/s/ Robert G. Ruhlman

    Robert G. Ruhlman

    Chairman, President and Chief Executive Officer

    (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael A. Weisbarth, certify that:

1. I have reviewed this annual report on Form 10-K of Preformed Line Products Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 6, 2020

/s/ Michael A. Weisbarth

    Michael A. Weisbarth

    Vice President - Finance and Treasurer

    (Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert G. Ruhlman, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Annual Report on Form 10-K of Preformed Line Products Company for the year ended December 31, 2019 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Preformed Line Products Company.

March 6, 2020	/s/ Robert G. Ruhlman
	Robert G. Ruhlman
	Chairman, President and Chief Executive Officer
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Preformed Line Products Company and will be retained by Preformed Line Products Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael A. Weisbarth, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Annual Report on Form 10-K of Preformed Line Products Company for the year ended December 31, 2019 which this certification accompanies fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Preformed Line Products Company.

March 6, 2020	/s / Michael A. Weisbarth
	Michael A. Weisbarth
	Vice President – Finance and Treasurer
	(Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Preformed Line Products Company and will be retained by Preformed Line Products Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Leases - Schedule of Future Maturities of Lease Liabilities (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases
2020	$ 2,462
2021	2,026
2022	1,607
2023	1,066
2024 and thereafter	9,113
Total lease payments	16,274
Less amount of lease payment representing interest	5,966
Total present value of lease payments	10,308
Finance Leases
2020	109
2021	45
2022	26
2023	22
2024 and thereafter	0
Total lease payments	202
Less amount of lease payment representing interest	10
Total present value of lease payments	$ 192

XML

Business Combinations - Summary of Final Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets acquired
Goodwill	$ 27,840	$ 15,621	$ 16,544
SubCon and MICOS Telcom [Member]
Assets acquired
Current assets, net of cash	5,976
Property, plant and equipment	1,189
Goodwill	12,132
Finite-lived intangible assets	8,092
Other long-term assets	1,883
Total assets acquired	29,272
Liabilities assumed	(10,378)
Net assets acquired	$ 18,894

XML

Debt and Credit Arrangements - Debt and Credit Arrangements (Parenthetical) (Detail)	Dec. 31, 2019	Dec. 31, 2018
U.S. Dollar Denominated Long Term Debt at 2.89%, Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.89%	2.89%
U.S. Dollar Denominated Long Term Debt at 2.71%, Due 2026 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.71%	2.71%
Brazilian Real Denominated Long-term Debt at 4.60%, due 2022 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	4.60%	4.60%
Poland Zloty Denominated Long Term Debt at 2.76% Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.76%	2.76%
Australian Dollar Denominated Long Term Debt at 1.96% Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	1.96%	1.96%
Austria Euro Denominated Long Term Debt at 2.32% Due 2030 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.32%	2.32%
Austria Euro Denominated Loan Long Term Debt at 1.40% Due 2020 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	1.40%	1.40%
Austria Euro Denominated Long Term Debt at 3.00% Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	3.00%	3.00%
Indonesia U.S Dollar Denominated Long Term Debt at 3.50% Due 2024 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	3.50%	3.50%
New Zealand Dollar Denominated Long Term Debt at 3.90% Due 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	3.90%	3.90%
Thailand Bhat Denominated Secured Notes Short-term Debt at 4.35% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	4.35%	4.35%
Thailand Bhat Denominated Secured Notes Short-term Debt at 4.08% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	4.08%	4.08%
Brazil Real Denominated Secured Notes Short-term Debt at 2.83% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.83%	2.83%
Brazil Real Denominated Secured Notes Short-term Debt at 5.40% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	5.40%	5.40%
Brazil Real Denominated Secured Notes Short-term Debt at 9.40% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	9.40%	9.40%
U.S. Dollar Denominated Current Portion of Long Term Debt at 2.71% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.71%	2.71%
Austria Euro Denominated Current Portion of Long Term Debt at 2.32% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	2.32%	2.32%
Austria Euro Denominated Current Portion of Long Term Debt at 1.40% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	1.40%	1.40%
Austria Euro Denominated Current Portion of Long Term Debt at 3.00% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	3.00%	3.00%
Indonesia U.S. Dollar Denominated Current Portion of Long Term Debt at 3.50% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	3.50%	3.50%
New Zealand U.S. Dollar Denominated Current Portion of Long Term Debt at 3.90% [Member]
Debt Instrument [Line Items]
Debt instrument interest rate	3.90%	3.90%

XML

Segment Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Summary of Company's Reportable Segments

The following table presents a summary of the Company’s reportable segments for the year ended December 31, 2019, 2018 and 2017. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profits in inventory.  

	Year Ended December 31
	2019			2018			2017
Net sales
PLP-USA	$	178,301		$	169,040		$	147,646
The Americas		68,293			66,868			69,764
EMEA		79,158			69,773			63,916
Asia-Pacific		119,109			115,197			96,886
Total net sales	$	444,861		$	420,878		$	378,212
Intersegment sales
PLP-USA	$	10,757		$	11,648		$	12,234
The Americas		7,774			9,480			5,570
EMEA		1,375			1,664			1,120
Asia-Pacific		12,720			11,907			8,596
Total intersegment sales	$	32,626		$	34,699		$	27,520
Interest income
PLP-USA	$	0		$	0		$	0
The Americas		412			273			283
EMEA		192			102			47
Asia-Pacific		179			111			100
Total interest income	$	783		$	486		$	430
Interest expense
PLP-USA	$	(972	)	$	(1,023	)	$	(941	)
The Americas		(466	)		(111	)		(10	)
EMEA		(149	)		(58	)		(31	)
Asia-Pacific		(630	)		(98	)		(79	)
Total interest expense	$	(2,217	)	$	(1,290	)	$	(1,061	)
Income taxes
PLP-USA	$	3,299		$	367		$	7,142
The Americas		2,551			3,349			3,593
EMEA		616			1,204			1,583
Asia-Pacific		1,656			1,087			834
Total income taxes	$	8,122		$	6,007		$	13,152
Net income (loss) attributable to Preformed Line Products Company shareholders
PLP-USA	$	8,054		$	9,900		$	(2,367	)
The Americas		6,657			8,479			8,169
EMEA		2,935			3,527			4,088
Asia-Pacific		5,657			4,675			2,764
Total net income	$	23,303		$	26,581		$	12,654

	Year Ended December 31
	2019		2018		2017
Expenditure for long-lived assets
PLP-USA	$	4,928	$	3,672	$	4,474
The Americas		2,864		1,746		1,272
EMEA		5,304		1,591		2,329
Asia-Pacific		16,371		2,519		3,158
Total expenditures for long-lived assets	$	29,467	$	9,528	$	11,233
Depreciation and amortization
PLP-USA	$	5,393	$	5,452	$	5,389
The Americas		1,862		1,488		1,985
EMEA		2,528		1,808		1,678
Asia-Pacific		3,965		3,696		3,738
Total depreciation and amortization	$	13,748	$	12,444	$	12,790

	As of December 31
	2019		2018
Identifiable assets
PLP-USA	$	127,428	$	118,171
The Americas		71,908		69,764
EMEA		97,126		57,263
Asia-Pacific		137,109		113,599
Total identifiable assets	$	433,571	$	358,797
Long-lived assets
PLP-USA	$	51,097	$	51,506
The Americas		15,874		14,847
EMEA		16,419		11,768
Asia-Pacific		40,628		24,834
Total long-lived assets	$	124,018	$	102,955

XML

Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands		12 Months Ended
	Jul. 01, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019	Dec. 31, 2016
Significant Accounting Policies [Line Items]
Percentage of ownership in earnings of subsidiary		100.00%
Research and development costs		$ 3,000	$ 2,400	$ 2,100
Uncertain tax positions, settlement amount		118	0	0		$ 0
Advertising cost		1,900	1,900	1,700
Aggregate foreign currency transaction gains and losses		$ (200)	(1,500)	$ 300
Operating lease terms		12 months
Right-of-use assets		$ 12,453	$ 0
Current and long-term lease obligations		$ 10,308
ASU 842 [Member]
Significant Accounting Policies [Line Items]
Right-of-use assets					$ 10,400
Current and long-term lease obligations					$ 10,400
Argentina [Member]
Significant Accounting Policies [Line Items]
Cumulative inflation rate period	3 years
Minimum [Member]
Significant Accounting Policies [Line Items]
Amortization period of intangible assets		1 year
Minimum [Member] | Argentina [Member]
Significant Accounting Policies [Line Items]
Cumulative inflation rate	100.00%
Maximum [Member]
Significant Accounting Policies [Line Items]
Amortization period of intangible assets		20 years
Maximum [Member] | Argentina [Member]
Significant Accounting Policies [Line Items]
Percentage of consolidated net sales from revenue operations		2.00%	2.00%
Land and Improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		10 years
Building [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		40 years
Building Improvements [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		5 years
Building Improvements [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		40 years
Machinery and Equipment [Member] | Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		3 years
Machinery and Equipment [Member] | Maximum [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		10 years
Aircraft [Member]
Significant Accounting Policies [Line Items]
Estimated useful lives of Property, Plant and Equipment		15 years

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Pension Plans - Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Service cost	$ 299	$ 250	$ 255
Interest cost	1,411	1,349	1,456
Expected return on plan assets	(1,946)	(1,985)	(1,903)
Recognized net actuarial loss	520	525	468
Net periodic pension cost	$ 284	$ 139	$ 276

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Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

Valuation And Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

PREFORMED LINE PRODUCTS COMPANY

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Year Ended December 31, 2019, 2018 and 2017

(Thousands of dollars)

For the year ended December 31, 2019:	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other additions or deductions			Balance at end of period
Allowance for doubtful accounts	$	2,652	$	1,294	$	(697	)	$	(25	)	$	3,224
Reserve for credit memos		526		817		(739	)		21			625
Slow-moving and obsolete inventory reserves		8,462		1,283		(1,104	)		236			8,877
Accrued product warranty		928		481		(317	)		217			1,309
Foreign net operating loss tax carryforwards		3,495		153		(499	)		(12	)		3,137
For the year ended December 31, 2018:	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other additions or deductions			Balance at end of period
Allowance for doubtful accounts	$	2,910	$	449	$	(529	)	$	(178	)	$	2,652
Reserve for credit memos		415		802		(688	)		(3	)		526
Slow-moving and obsolete inventory reserves		9,066		1,341		(1,658	)		(287	)		8,462
Accrued product warranty		1,076		97		(133	)		(112	)		928
Foreign net operating loss tax carryforwards		3,965		568		(761	)		(277	)		3,495
For the year ended December 31, 2017:	Balance at beginning of period		Additions charged to costs and expenses		Deductions			Other additions or deductions			Balance at end of period
Allowance for doubtful accounts	$	2,815	$	472	$	(432	)	$	55		$	2,910
Reserve for credit memos		395		693		(675	)		2			415
Slow-moving and obsolete inventory reserves		11,560		998		(3,855	)		363			9,066
Accrued product warranty		1,058		347		(399	)		70			1,076
Foreign net operating loss tax carryforwards		3,805		490		(312	)		(18	)		3,965

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Business Combinations

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combinations

Note O - Business Combinations

The Company accounts for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the date of acquisition.

On February 28, 2019, the Company acquired 100% of SubCon.  Subcon is headquartered in Dornbirn, Austria with manufacturing operations in Brno, Czech Republic.  The acquisition of SubCon will strengthen the Company’s position in the global substation market and will expand its operational presence in Europe.  The total purchase price was $10.1 million in cash, net of $1.9 million in cash acquired.  The purchase price was predominantly allocated to Goodwill of $6.6 million and Intangible assets of $4.7 million with useful lives ranging from 10 to 11 years.  SubCon’s overall purchase price includes an estimated contingent liability of $.6 million for an earn-out consideration with a potential maximum payment of 4.0 million Euros that will be considered for remeasurement during each reporting period as the operating results of SubCon are evaluated during each reporting period based upon operating results over a four year period.  The earn-out of $.6 million is recorded in Other noncurrent liabilities on the Company’s consolidated balance sheet.

On April 1, 2019, the Company acquired 90% of MICOS Telcom s.r.o. (“MICOS Telcom”) headquartered in Prostějov, Czech Republic with the remaining 10% to be acquired over the next three years.  The acquisition of MICOS Telcom will strengthen the Company’s position in the global telecom market and will also expand its operational presence in Europe.  The total purchase price was $8.8 million in cash, net of $.5 million in cash acquired and a hold-back liability of $1.5 million U.S. dollars payable in two years from the date of purchase and $.9 million of deferred consideration for the remaining 10%.  The hold-back liability and deferred consideration are recorded in Other noncurrent liabilities on the Company’s consolidated balance sheet.  The purchase price was predominantly allocated to Goodwill of $5.6 million and Intangible assets of $3.4 million.  The Intangible assets included in the acquisition of MICOS have useful lives of 12 years.    

The operating results and financial position of both SubCon and MICOS Telcom are included in the Company’s EMEA reportable segment as of their respective dates of acquisition.  Pro-forma results of the Company’s consolidated operations for the years ended December 31, 2019 and 2018 would not have been materially different from reported results and are therefore not presented.

There was no material impact on the Company’s Consolidated Statements of Income as a result of the finalization of purchase price accounting.  The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition dates:

Assets acquired
Current assets, net of cash	$	5,976
Property, plant and equipment		1,189
Goodwill		12,132
Finite-lived intangible assets		8,092
Other long-term assets		1,883
Total assets acquired	$	29,272
Liabilities assumed		(10,378	)
Net assets acquired	$	18,894

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Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

Note K - Fair Value of Financial Assets and Liabilities

The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs), and the Company’s assumptions (unobservable inputs). The hierarchy consists of the following three levels:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 Inputs other than Level 1 inputs that are either directly or indirectly observable, which may include:

o Quoted prices for similar assets in active markets;

o Quoted prices for identical or similar assets or liabilities in inactive markets;

o Inputs other than quoted prices that are observable for the asset or liability; and

o Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 Inputs to the valuation methodology are unobservable and developed using estimates and assumptions developed by the Company which reflect those that a market participant would use.  

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the consolidated balance sheets as of December 31, 2019 and 2018:

Description	Balance as of December 31, 2019		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Supplemental profit sharing plan	$	6,059	$	0	$	6,059	$	0
Earn-out		581		0		0		581
Total Liabilities	$	6,640	$	0	$	6,059	$	581
Description	Balance as of December 31, 2018		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Marketable securities	$	1,648	$	1,648	$	0	$	0
Total Assets	$	1,648	$	1,648	$	0	$	0
Liabilities:
Supplemental profit sharing plan		4,946		0		4,946		0
Total Liabilities	$	4,946	$	0	$	4,946	$	0

The Company has a non-qualified Supplemental Profit Sharing Plan for its executives. The liability for this unfunded Supplemental Profit Sharing Plan was $6.1 million at December 31, 2019 and $4.9 million at December 31, 2018.  These amounts are recorded within Other noncurrent liabilities on the Company’s consolidated balance sheets. During January 2018, the Company amended the Supplemental Profit Sharing Plan to allow the participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances based on the investments selected by the participants. The Company measures the fair value of the Supplemental Profit Sharing Plan liability using the market values of the participants’ underlying investment accounts.

In order to mitigate the risk associated with the Supplemental Profit Sharing Plan, the Company had invested in marketable securities, principally equity-based mutual funds, which were all transferred to the Company’s Corporate Owned Life Insurance Policy (“COLI”) in April 2019.  The balance in the marketable securities of $0 million and $1.6 million were reported at fair value within Other current assets on the Company’s consolidated balance sheets as of December 31, 2019 and 2018, respectively.  At December 31, 2019 and 2018, the cash surrender value of the COLI was $5.5 million and $2.8 million, respectively, and is recorded in Other assets on the Company’s consolidated balance sheets.  Changes in the fair value of the marketable securities of $.2 million and $.1 million were recognized within Other income, net within the consolidated statements of income for the twelve-month periods ended December 30, 2019 and 2018, respectively.    

The earn-out represents the estimated fair value of additional cash consideration payable in connection with a recent acquisition that is contingent upon the achievement of certain performance milestones using expected future cash flows over the earn-out period and applied a discount rate that appropriately captures the risk associated with the obligation.  These are considered to be Level 3 inputs.  The contingent liabilities of $.6 million are recorded in Other noncurrent liabilities on the Company’s consolidated balance sheet.   

The carrying value of the Company’s current financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and short-term debt, approximates fair value because of the short-term maturity of these instruments.

At December 31, 2019, the fair value of the Company’s long-term debt was estimated using discounted cash flows analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements that are considered to be Level 2 inputs. There have been no transfers in or out of Level 2 for the year ended December 31, 2019.  Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt are as follows:

	December 31, 2019				December 31, 2018
	FairValue		Carrying Value		Fair Value		Carrying Value
Long-term debt and related current maturities	$	56,539	$	57,076	$	27,017	$	26,408

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 38,929	$ 43,609
Accounts receivable, less allowances of $3,849 ($3,178 in 2018)	83,517	73,139
Inventories - net	95,718	85,259
Prepaids	6,921	6,205
Prepaid taxes	2,601	3,169
Other current assets	4,289	2,882
TOTAL CURRENT ASSETS	231,975	214,263
Property, plant and equipment - net	124,018	102,955
Operating lease, right-of-use assets	12,453	0
Intangibles - net	15,116	8,458
Goodwill	27,840	15,621
Deferred income taxes	7,564	6,900
Other assets	14,605	10,600
TOTAL ASSETS	433,571	358,797
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable	28,282	26,414
Notes payable to banks	8,696	9,042
Operating lease liabilities, current	2,062	0
Current portion of long-term debt	3,354	1,448
Accrued compensation and amounts withheld from employees	11,817	11,153
Accrued expenses and other liabilities	16,718	12,582
Accrued profit-sharing and other benefits	7,213	6,982
Dividends payable	1,173	1,051
Income taxes payable	1,758	815
TOTAL CURRENT LIABILITIES	81,073	69,487
Long-term debt, less current portion	53,722	24,960
Unfunded pension obligation	5,278	5,259
Operating lease liabilities, non-current	8,246	0
Deferred income taxes	3,116	1,711
Other noncurrent liabilities	13,568	8,010
Shareholders' equity:
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,992,979 and 5,020,410 issued and outstanding, at December 31, 2019 and December 31, 2018, respectively	12,848	12,662
Common shares issued to rabbi trust, 267,641 and 269,630 shares at December 31, 2019 and December 31, 2018, respectively	(10,981)	(11,008)
Deferred compensation liability	10,981	11,008
Paid-in capital	38,854	34,401
Retained earnings	353,292	334,170
Treasury shares, at cost, 1,431,235 and 1,310,387 shares at December 31, 2019 and December 31, 2018, respectively	(79,106)	(72,280)
Accumulated other comprehensive loss	(57,353)	(59,583)
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY	268,535	249,370
Noncontrolling interest	33	0
TOTAL SHAREHOLDERS' EQUITY	268,568	249,370
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 433,571	$ 358,797

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Statements of Consolidated Cash Flows - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018		Dec. 31, 2017
OPERATING ACTIVITIES
Net income		$ 23,336		$ 26,581		$ 12,654
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		13,748		12,444		12,790
Provision for accounts receivable allowances		2,132		1,206		1,165
Provision for inventory reserves		1,283		2,402		1,205
Deferred income taxes		(1,274)		314		2,436
Share-based compensation expense		4,396		4,236		3,055
Loss (gain) on sale of property and equipment		10		(156)		160
Other - net		292		192		213
Changes in operating assets and liabilities assets:
Accounts receivable		(9,777)		(4,499)		(9,205)
Inventories		(9,455)		(13,703)		(2,208)
Trade accounts payables and accrued liabilities		6,087		3,048		4,957
Income taxes, net		634		(1,896)		7,134
Contributions to company pension plan		0		(5,340)		(225)
Other - net		(4,195)		(1,853)		(301)
NET CASH PROVIDED BY OPERATING ACTIVITIES		27,217		22,976		33,830
INVESTING ACTIVITIES
Capital expenditures		(29,467)		(9,528)		(11,233)
Proceeds from the sale of property and equipment		54		195		142
Purchase of marketable securities		(496)		(4,690)		0
Proceeds from sale of marketable securities		2,309		2,953		0
Purchase of company owned life insurance policies		(2,309)		(2,953)		0
Acquisition of businesses, net of cash		(18,894)		0		0
Fixed-term deposits		0		0		8,527
NET CASH USED IN INVESTING ACTIVITIES		(48,803)		(14,023)		(2,564)
FINANCING ACTIVITIES
(Decrease) increase in notes payable to banks		(355)		8,446		(537)
Proceeds from long-term debt		93,036		76,030		55,581
Payments of long-term debt		(64,124)		(85,496)		(63,981)
Dividends paid		(4,230)		(4,088)		(4,099)
Proceeds from issuance of common shares		213		222		1,962
Purchase of common shares for treasury		(2,800)		(191)		(2)
Purchase of common shares for treasury from related parties		(4,026)		(3,974)		(8,475)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		17,714		(9,051)		(19,551)
Effects of exchange rate changes on cash and cash equivalents		(775)		(1,591)		1,359
Net (decrease) increase in cash, cash equivalents and restricted cash		(4,647)		(1,689)		13,074
Cash, cash equivalents and restricted cash at beginning of year		43,910	[1]	45,599	[1]	32,525
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR	[1]	$ 39,263		$ 43,910		$ 45,599

[1] Includes restricted cash of $.3 million, $.3 million and $1.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. For further information regarding restricted cash, refer to Note E, “Debt Arrangements.”

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Pension Plans (Tables)

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Pension Cost

Net periodic pension cost for the Plan consists of the following components for the year ended December 31:

	2019			2018			2017
Service cost	$	299		$	250		$	255
Interest cost		1,411			1,349			1,456
Expected return on plan assets		(1,946	)		(1,985	)		(1,903	)
Recognized net actuarial loss		520			525			468
Net periodic pension cost	$	284		$	139		$	276

Projected Benefit Obligation and Fair Value of Plan Assets

The following tables set forth benefit obligations, plan assets and the accrued benefit cost of the Plan at December 31:

	2019			2018
Projected benefit obligation at beginning of the year	$	33,931		$	36,031
Service cost		299			250
Interest cost		1,411			1,349
Actuarial loss (gain)		3,528			(2,409	)
Benefits paid		(1,233	)		(1,290	)
Projected benefit obligation at end of year	$	37,936		$	33,931
Fair value of plan assets at beginning of the year	$	28,672		$	25,367
Actual return on plan assets		5,219			(745	)
Employer contributions		0			5,340
Benefits paid		(1,233	)		(1,290	)
Fair value of plan assets at end of the year	$	32,658		$	28,672
Unfunded pension obligation	$	5,278		$	5,259

Amount Recognized in Accumulated Other Comprehensive Loss Related to Pension Plan

In accordance with ASC 715-20, the Company recognizes the underfunded status of the Plan as a liability.  The amount recognized in Accumulated other comprehensive loss related to the Plan at December 31 is comprised of the following:

	2019			2018
Balance at January 1	$	(5,873	)	$	(6,015	)
Reclassification adjustments:
Pre-tax amortized net actuarial loss		520			525
Tax provision		(123	)		(139	)
		397			386
Adjustment to recognize gain (loss) on unfunded pension obligations:
Pre-tax loss		(255	)		(321	)
Tax provision		60			77
		(195	)		(244	)
Balance at December 31	$	(5,671	)	$	(5,873	)

Accumulated Benefit Obligations in Excess of Plan Assets

The Plan had accumulated benefit obligations in excess of Plan assets as follows:

	2019		2018
Accumulated benefit obligation	$	37,936	$	33,931
Fair market value of assets		32,658		28,672

Weighted-Average Assumptions Used to Determine Benefit Obligations & Net Periodic Benefit Cost

	2019	2018
Discount rate	3.50%	4.25%
Rate of compensation increase	n/a	n/a

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:

	2019		2018		2017
Discount rate	3.50%			4.25%	4.25%
Rate of compensation increase	n/a		n/a		n/a
Expected long-term return on plan assets		7.00		8.00		8.00

Fair Value of the Plan Assets

The fair value of the Plan assets as of December 31, 2019 and 2018, by category, are as follows:

	At December 31, 2019
Assets measured at net asset value
Pooled investment fund	$	32,658
Total		32,658

	At December 31, 2018
	Total Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured at fair value
Cash	$	462	$	462	$	0	$	0
Equity Securities		10,470		10,470		0		0
U.S. Treasury Bonds		13,109		13,109		0		0
Corporate Bonds		4,631	0			4,631		0
Total	$	28,672	$	24,041	$	4,631	$	0

Weighted-Average Asset Allocations of Plan Assets

The Plan weighted-average asset allocations at December 31, 2019 and 2018, by asset category, are as follows:

	Plan assets
	at December 31
	2019			2018
Asset category
Equity securities		48	%		37	%
Debt securities		51			61
Cash and equivalents		1			2
		100	%		100	%

Weighted-Average Target Allocations of Plan Assets

In recognition of the expected returns and volatility from financial assets, Plan assets are invested in the following ranges with the target allocation noted:

	Range	Target
Equities	40-60%	50%
Fixed Income	40-60%	50%
Cash Equivalents	0-10%	0.0%

Aggregate Benefits Expected to be Paid Out of Plan Assets

The benefits expected to be paid out of the Plan assets in each of the next five years and the aggregate benefits expected to be paid for the subsequent five years are as follows:

Year	Pension Benefits
2020	$	1,225
2021		1,292
2022		1,382
2023		1,469
2024		1,566
2025-2029		9,077

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income before income taxes was derived from the following sources:

	2019		2018		2017
United States	$	11,353	$	10,268	$	4,774
Foreign		20,105		22,320		21,032
	$	31,458	$	32,588	$	25,806

Components of Income Taxes

The components of income taxes for the years ended December 31 are as follows:

	2019			2018			2017
Current
Federal	$	2,835		$	(904	)	$	4,592
Foreign		6,170			6,247			5,998
State and local		391			350			126
		9,396			5,693			10,716
Deferred
Federal		(10	)		801			2,316
Foreign		(1,347	)		(608	)		12
State and local		83			121			108
		(1,274	)		314			2,436
Income taxes	$	8,122		$	6,007		$	13,152

Differences Between the Provision for Income Taxes at the U.S. Federal Statutory Rate and the Tax

The differences between the provision for income taxes at the U.S. federal statutory rate and the tax shown in the Statements of Consolidated Income for the years ended December 31 are summarized as follows:

	2019			2018			2017
U. S. federal statutory tax rate	21%			21%			35%
Federal tax at statutory rate	$	6,606		$	6,843		$	9,033
State and local taxes, net of federal benefit		308			273			82
U.S. federal permanent items		621			240			(60	)
Global intangible low-taxed income		1,738			1,721			(116	)
Foreign tax credits		(1,422	)		(1,707	)		0
Transition tax		0			(1,780	)		2,592
Non-U.S. tax rate variances		929			1,011			(1,491	)
Valuation allowance		(346	)		(57	)		88
Tax credits		(464	)		(295	)		(255	)
Tax act impact, deferred rate		0			(680	)		3,161
Other, net		152			438			118
	$	8,122		$	6,007		$	13,152

Tax Effects of Temporary Differences That Give Rise to the Company's Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the Company’s deferred tax assets and liabilities at December 31 are as follows:

	2019			2018
Deferred tax assets:
Accrued compensation and benefits	$	1,180		$	1,387
Inventory valuation reserves		2,384			2,256
Allowance for doubtful accounts		473			346
Benefit plan reserves		7,586			7,153
Net operating loss carryforwards		3,003			2,651
Other accrued expenses		3,012			2,830
Unrealized foreign exchange		718			1,217
Gross deferred tax assets		18,356			17,840
Valuation allowance		(3,137	)		(3,495	)
Net deferred tax assets		15,219			14,345
Deferred tax liabilities:
Depreciation and other basis differences		(6,867	)		(6,855	)
Intangibles		(3,742	)		(2,057	)
Undistributed foreign earnings		0			(172	)
Other		(162	)		(72	)
Deferred tax liabilities		(10,771	)		(9,156	)
Net deferred tax assets	$	4,448		$	5,189

	2019			2018
Change in net deferred tax assets:
Deferred income tax expense
Ordinary movement	$	1,275		$	(993	)
Deferred tax balances from business acquisition		(1,883	)		0
Tax impact deferred rate		0			680
Items of other comprehensive income (loss)		(62	)		(62	)
Currency translation		(71	)		(120	)
Total change in net deferred tax assets	$	(741	)	$	(495	)

Changes in Unrecognized Tax Benefits Excluding Interest and Penalties

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits related to uncertain tax positions, excluding interest and penalties, for the year ended December 31:

	2019		2018		2017
Balance at January 1	$	0	$	0	$	0
Additions for tax positions of current year		0		0		0
Additions for tax positions of prior years		118		0		0
Reductions for tax positions of prior years		0		0		0
Expiration of statutes of limitations		0		0		0
Balance at December 31	$	118	$	0	$	0

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Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Recorded and Measured at Fair Value

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the consolidated balance sheets as of December 31, 2019 and 2018:

Description	Balance as of December 31, 2019		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Supplemental profit sharing plan	$	6,059	$	0	$	6,059	$	0
Earn-out		581		0		0		581
Total Liabilities	$	6,640	$	0	$	6,059	$	581
Description	Balance as of December 31, 2018		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Marketable securities	$	1,648	$	1,648	$	0	$	0
Total Assets	$	1,648	$	1,648	$	0	$	0
Liabilities:
Supplemental profit sharing plan		4,946		0		4,946		0
Total Liabilities	$	4,946	$	0	$	4,946	$	0

Fair Value and Carrying Value of Long-Term Debt

Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt are as follows:

	December 31, 2019				December 31, 2018
	FairValue		Carrying Value		Fair Value		Carrying Value
Long-term debt and related current maturities	$	56,539	$	57,076	$	27,017	$	26,408

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Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note G - Income Taxes

The Company recorded net tax provisions of $8.1 million, $6.0 million, and $13.2 million for the years ended December 31, 2019, 2018, and 2017, respectively.  Cash taxes paid net of refunds were $7.8 million, $5.6 million, and $3.4 million for the years ending December 31, 2019, 2018, and 2017, respectively.

As described in Note A, effective January 1, 2019, the Company adopted ASU 2018-02 and has elected not to reclassify the income tax effects of the U.S. Tax Act from Accumulated other comprehensive income to retained earnings.

Income before income taxes was derived from the following sources:

	2019		2018		2017
United States	$	11,353	$	10,268	$	4,774
Foreign		20,105		22,320		21,032
	$	31,458	$	32,588	$	25,806

The components of income taxes for the years ended December 31 are as follows:

	2019			2018			2017
Current
Federal	$	2,835		$	(904	)	$	4,592
Foreign		6,170			6,247			5,998
State and local		391			350			126
		9,396			5,693			10,716
Deferred
Federal		(10	)		801			2,316
Foreign		(1,347	)		(608	)		12
State and local		83			121			108
		(1,274	)		314			2,436
Income taxes	$	8,122		$	6,007		$	13,152

The differences between the provision for income taxes at the U.S. federal statutory rate and the tax shown in the Statements of Consolidated Income for the years ended December 31 are summarized as follows:

	2019			2018			2017
U. S. federal statutory tax rate	21%			21%			35%
Federal tax at statutory rate	$	6,606		$	6,843		$	9,033
State and local taxes, net of federal benefit		308			273			82
U.S. federal permanent items		621			240			(60	)
Global intangible low-taxed income		1,738			1,721			(116	)
Foreign tax credits		(1,422	)		(1,707	)		0
Transition tax		0			(1,780	)		2,592
Non-U.S. tax rate variances		929			1,011			(1,491	)
Valuation allowance		(346	)		(57	)		88
Tax credits		(464	)		(295	)		(255	)
Tax act impact, deferred rate		0			(680	)		3,161
Other, net		152			438			118
	$	8,122		$	6,007		$	13,152

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their carrying value for financial statement purposes.  The tax effects of temporary differences that give rise to the Company’s deferred tax assets and liabilities at December 31 are as follows:

	2019			2018
Deferred tax assets:
Accrued compensation and benefits	$	1,180		$	1,387
Inventory valuation reserves		2,384			2,256
Allowance for doubtful accounts		473			346
Benefit plan reserves		7,586			7,153
Net operating loss carryforwards		3,003			2,651
Other accrued expenses		3,012			2,830
Unrealized foreign exchange		718			1,217
Gross deferred tax assets		18,356			17,840
Valuation allowance		(3,137	)		(3,495	)
Net deferred tax assets		15,219			14,345
Deferred tax liabilities:
Depreciation and other basis differences		(6,867	)		(6,855	)
Intangibles		(3,742	)		(2,057	)
Undistributed foreign earnings		0			(172	)
Other		(162	)		(72	)
Deferred tax liabilities		(10,771	)		(9,156	)
Net deferred tax assets	$	4,448		$	5,189

	2019			2018
Change in net deferred tax assets:
Deferred income tax expense
Ordinary movement	$	1,275		$	(993	)
Deferred tax balances from business acquisition		(1,883	)		0
Tax impact deferred rate		0			680
Items of other comprehensive income (loss)		(62	)		(62	)
Currency translation		(71	)		(120	)
Total change in net deferred tax assets	$	(741	)	$	(495	)

Deferred taxes are recorded at a rate at which such items are expected to reverse based on currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.

At December 31, 2019, the Company had $10.6 million of foreign net operating loss carryforwards of which $8.7 million have an indefinite carryforward and $1.9 million will expire between the years 2024 and 2029.

The Company assesses the available positive and negative evidence to determine if it is more likely than not sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction.  Based on this evaluation, the Company has established a valuation allowance of $3.1 million at December 31, 2019 in order to measure only the portion of the deferred tax asset that is more likely than not to be realized.  The net decrease in the valuation allowance during the year was $.4 million, of which $.3 million impacts the income tax provision and the remainder relates to currency translation. 

The Company considers the majority of the earnings in our non-U.S. subsidiaries to be permanently reinvested and accordingly did not record any associated deferred income taxes on such earnings.  Accordingly, the Company intends to continue to invest approximately $110.6 million of the approximate $112.2 million of such earnings, as well as our capital in these subsidiaries, indefinitely outside of the U.S.  The Company has recorded a tax liability of $.1 million related to the cost to remit such earnings not permanently reinvested, which is primarily related to local country withholding.

The Company is subject to taxation in the U.S. and various state and foreign jurisdictions.  As of December 31, 2019, with few exceptions, the Company is no longer subject to U.S. federal examinations by tax authorities for years before 2015 and state, local or foreign examinations by tax authorities for years before 2013.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits related to uncertain tax positions, excluding interest and penalties, for the year ended December 31:

	2019		2018		2017
Balance at January 1	$	0	$	0	$	0
Additions for tax positions of current year		0		0		0
Additions for tax positions of prior years		118		0		0
Reductions for tax positions of prior years		0		0		0
Expiration of statutes of limitations		0		0		0
Balance at December 31	$	118	$	0	$	0

The Company records accrued interest as well as penalties related to unrecognized tax benefits as part of the provision for income taxes.  During the years ended December 31, 2019, 2018 and 2017, the Company had no significant activity with regard to unrecognized tax benefits.  The Company had less than $.1 million of accrued interest and penalties as of December 31, 2019 and no accrued interest as of December 31, 2018 and 2017.  The Company does not anticipate a change in the unrecognized tax benefits within the next twelve months.

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Pension Plans

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Pension Plans

Note C - Pension Plans

PLP-USA hourly employees of the Company who meet specific requirements as to age and length and date of service are covered by a defined benefit pension plan (“Plan”).  On December 12, 2012, the Company approved a freeze on further benefit accruals under the Plan and notified the participants of the freeze on December 19, 2012.  Beginning February 1, 2013, participants ceased earning additional benefits under the Plan and no new participants entered the Plan.  The Company uses a December 31 measurement date for its Plan.

Net periodic pension cost for the Plan consists of the following components for the year ended December 31:

	2019			2018			2017
Service cost	$	299		$	250		$	255
Interest cost		1,411			1,349			1,456
Expected return on plan assets		(1,946	)		(1,985	)		(1,903	)
Recognized net actuarial loss		520			525			468
Net periodic pension cost	$	284		$	139		$	276

The following tables set forth benefit obligations, plan assets and the accrued benefit cost of the Plan at December 31:

	2019			2018
Projected benefit obligation at beginning of the year	$	33,931		$	36,031
Service cost		299			250
Interest cost		1,411			1,349
Actuarial loss (gain)		3,528			(2,409	)
Benefits paid		(1,233	)		(1,290	)
Projected benefit obligation at end of year	$	37,936		$	33,931
Fair value of plan assets at beginning of the year	$	28,672		$	25,367
Actual return on plan assets		5,219			(745	)
Employer contributions		0			5,340
Benefits paid		(1,233	)		(1,290	)
Fair value of plan assets at end of the year	$	32,658		$	28,672
Unfunded pension obligation	$	5,278		$	5,259

In accordance with ASC 715-20, the Company recognizes the underfunded status of the Plan as a liability.  The amount recognized in Accumulated other comprehensive loss related to the Plan at December 31 is comprised of the following:

	2019			2018
Balance at January 1	$	(5,873	)	$	(6,015	)
Reclassification adjustments:
Pre-tax amortized net actuarial loss		520			525
Tax provision		(123	)		(139	)
		397			386
Adjustment to recognize gain (loss) on unfunded pension obligations:
Pre-tax loss		(255	)		(321	)
Tax provision		60			77
		(195	)		(244	)
Balance at December 31	$	(5,671	)	$	(5,873	)

The 2019 pre-tax unfunded pension obligation loss of 0.2 million included a loss of $4.0 million due to a .75% decrease in the discount rate to 3.50%, a gain of less than $.1 million associated with the industry updates to the mortality table used, a gain of $.2 million due to demographic changes combined with a gain of $3.3 million resulting from asset performance above the 7.00% rate of return assumption and a gain of $.3 million to account for the service cost expense load on the Company’s frozen plan.   The estimated net loss for the Plan that will be amortized from Accumulated other comprehensive income into periodic benefit cost for 2020 is $.5 million.  There is no prior service cost to be amortized in the future.

The Plan had accumulated benefit obligations in excess of Plan assets as follows:

	2019		2018
Accumulated benefit obligation	$	37,936	$	33,931
Fair market value of assets		32,658		28,672

	2019	2018
Discount rate	3.50%	4.25%
Rate of compensation increase	n/a	n/a

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:

	2019		2018		2017
Discount rate	3.50%			4.25%	4.25%
Rate of compensation increase	n/a		n/a		n/a
Expected long-term return on plan assets		7.00		8.00		8.00

The net periodic pension cost for 2019 was based on a long-term asset rate-of-return of 7.00%.  This rate is based upon management’s estimate of future long-term rates of return on similar assets and is consistent with historical returns on such assets.  Using the Plan’s mix of assets and based on the average historical returns and expected future returns for such mix, an expected long-term rate-of-return of 7.00% is justified.

During the year ended December 31, 2019, the Company changed its Plan asset base from a combined Level 1 and Level 2 allocation to utilize net asset value (“NAV”) as the practical expedient for its pooled investment funds and the assets are no longer   classified in the fair value hierarchy.  At December 31, 2019, the Plan’s pooled investment funds were measured at fair value using the net asset value.  The NAV is based on the value of the assets owned by the plan, less liabilities.  These pooled assets are not quoted on an active exchange.  

At December 31, 2018, the fair value of the Plan assets included inputs in Level 1: Quoted market prices in active markets for identical assets or liabilities and Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. The fair value of the Plan assets as of December 31, 2019 and 2018, by category, are as follows:

	At December 31, 2019
Assets measured at net asset value
Pooled investment fund	$	32,658
Total		32,658

	At December 31, 2018
	Total Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured at fair value
Cash	$	462	$	462	$	0	$	0
Equity Securities		10,470		10,470		0		0
U.S. Treasury Bonds		13,109		13,109		0		0
Corporate Bonds		4,631	0			4,631		0
Total	$	28,672	$	24,041	$	4,631	$	0

The Plan weighted-average asset allocations at December 31, 2019 and 2018, by asset category, are as follows:

	Plan assets
	at December 31
	2019			2018
Asset category
Equity securities		48	%		37	%
Debt securities		51			61
Cash and equivalents		1			2
		100	%		100	%

Management seeks to maximize the long-term total return of financial assets consistent with the fiduciary standards of ERISA.  The ability to achieve these returns is dependent upon the need to accept moderate risk to achieve long-term capital appreciation.

In recognition of the expected returns and volatility from financial assets, Plan assets are invested in the following ranges with the target allocation noted:

	Range	Target
Equities	40-60%	50%
Fixed Income	40-60%	50%
Cash Equivalents	0-10%	0.0%

Investment in these markets is projected to provide performance consistent with expected long-term returns with appropriate diversification.

The Company's policy is to fund amounts deductible for federal income tax purposes.  The Company does not expect to contribute to the Plan in 2020.

The benefits expected to be paid out of the Plan assets in each of the next five years and the aggregate benefits expected to be paid for the subsequent five years are as follows:

Year	Pension Benefits
2020	$	1,225
2021		1,292
2022		1,382
2023		1,469
2024		1,566
2025-2029		9,077

The Company also provides retirement benefits through various defined contribution plans including PLP-USA’s Profit Sharing Plan.  Expense for these defined contribution plans was $6.0 million in 2019, $5.6 million in 2018 and $5.1 million in 2017.

Further, the Company also provides retirement benefits through the Supplemental Profit Sharing Plan.  To the extent an employee’s award under PLP-USA’s Profit Sharing Plan exceeds the maximum allowable contribution permitted under existing tax laws, the excess is accrued for (but not funded) under a non-qualified Supplemental Profit Sharing Plan.  During January 2018, the Company amended the Supplemental Profit Sharing Plan to allow the participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds.   Expense for the Supplemental Profit Sharing Plan was $1.1 million for 2019, $.2 million for 2018 and $.5 million for 2017.  The Supplemental Profit Sharing Plan unfunded status for the years ended December 31, 2019 and 2018 was $6.1 million and $4.9 million, respectively, and is included in Other noncurrent liabilities.

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Income Taxes - Changes in Unrecognized Tax Benefits Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at January 1	$ 0	$ 0	$ 0
Additions for tax positions of current year	0	0	0
Additions for tax positions of prior years	118	0	0
Reductions for tax positions of prior years	0	0	0
Expiration of statutes of limitations	0	0	0
Balance at December 31	$ 118	$ 0	$ 0

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Goodwill and Other Intangibles - Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill [Line Items]
Beginning Balance	$ 15,621	$ 16,544
Currency translation and other		(923)
Currency translation	87
Goodwill acquired during the year	18,619
Purchase price allocation adjustments	(6,487)
Ending Balance	27,840	15,621
USA [Member]
Goodwill [Line Items]
Beginning Balance	3,078	3,078
Currency translation and other		0
Currency translation	0
Goodwill acquired during the year	0
Purchase price allocation adjustments	0
Ending Balance	3,078	3,078
The Americas [Member]
Goodwill [Line Items]
Beginning Balance	3,997	4,292
Currency translation and other		(295)
Currency translation	161
Goodwill acquired during the year	0
Purchase price allocation adjustments	0
Ending Balance	4,158	3,997
EMEA [Member]
Goodwill [Line Items]
Beginning Balance	1,355	1,495
Currency translation and other		(140)
Currency translation	(45)
Goodwill acquired during the year	18,619
Purchase price allocation adjustments	(6,487)
Ending Balance	13,442	1,355
Asia-Pacific [Member]
Goodwill [Line Items]
Beginning Balance	7,191	7,679
Currency translation and other		(488)
Currency translation	(29)
Goodwill acquired during the year	0
Purchase price allocation adjustments	0
Ending Balance	$ 7,162	$ 7,191

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Revenue - Revenues by Segment and Product Type (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	100.00%	100.00%
Energy [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	67.00%	66.00%
Communications [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	22.00%	21.00%
Special Industries [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	11.00%	13.00%
PLP-USA [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	100.00%	100.00%
PLP-USA [Member] | Energy [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	62.00%	60.00%
PLP-USA [Member] | Communications [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	30.00%	34.00%
PLP-USA [Member] | Special Industries [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	8.00%	6.00%
The Americas [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	100.00%	100.00%
The Americas [Member] | Energy [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	67.00%	67.00%
The Americas [Member] | Communications [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	27.00%	29.00%
The Americas [Member] | Special Industries [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	6.00%	4.00%
EMEA [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	100.00%	100.00%
EMEA [Member] | Energy [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	68.00%	73.00%
EMEA [Member] | Communications [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	24.00%	12.00%
EMEA [Member] | Special Industries [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	8.00%	15.00%
Asia-Pacific [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	100.00%	100.00%
Asia-Pacific [Member] | Energy [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	72.00%	68.00%
Asia-Pacific [Member] | Communications [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	6.00%	4.00%
Asia-Pacific [Member] | Special Industries [Member]
Disaggregation Of Revenue [Line Items]
Percentage of disaggregated revenue	22.00%	28.00%

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Share-Based Compensation - Weighted-Average Assumptions for Estimating Fair Values (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rate	1.80%	2.80%	2.00%
Dividend yield	1.60%	1.60%	1.70%
Expected life (years)	5 years	5 years	5 years
Expected volatility	42.00%	40.00%	36.80%

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Pension Plans - Weighted-Average Target Allocations of Plan Assets (Detail)	Dec. 31, 2019
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	50.00%
Equity Securities [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	40.00%
Equity Securities [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	60.00%
Fixed Income [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	50.00%
Fixed Income [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	40.00%
Fixed Income [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	60.00%
Cash and Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	0.00%
Cash and Equivalents [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	0.00%
Cash and Equivalents [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target plan asset allocations	10.00%

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Pension Plans - Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail)	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Benefit Obligation [Abstract]
Discount rate	3.50%	4.25%
Rate of compensation increase	0.00%	0.00%

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Pension Plans - Projected Benefit Obligation and Fair Value of Plan Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Funded Status Of Plan [Abstract]
Projected benefit obligation at beginning of the year	$ 33,931	$ 36,031
Service cost	299	250	$ 255
Interest cost	1,411	1,349	1,456
Actuarial loss (gain)	3,528	(2,409)
Benefits paid	(1,233)	(1,290)
Projected benefit obligation at end of year	37,936	33,931	36,031
Fair value of plan assets at beginning of the year	28,672	25,367
Actual return on plan assets	5,219	(745)
Employer contributions	0	5,340
Benefits paid	(1,233)	(1,290)
Fair value of plan assets at end of the year	32,658	28,672	$ 25,367
Unfunded pension obligation	$ 5,278	$ 5,259

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Goodwill and Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Finite and Indefinite-Lived Intangible Assets

The Company’s finite and indefinite-lived intangible assets consist of the following:

	December 31, 2019					December 31, 2018
	GrossCarrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Finite-lived intangible assets
Patents	$	4,806	$	(4,806	)	$	4,806	$	(4,788	)
Land use rights		1,128		(331	)		1,134		(203	)
Trademark		1,718		(1,358	)		1,707		(1,247	)
Technology		7,185		(1,708	)		2,994		(1,334	)
Customer relationships		15,811		(7,329	)		11,804		(6,415	)
	$	30,648	$	(15,532	)	$	22,445	$	(13,987	)
Indefinite-lived intangible assets
Goodwill	$	27,840				$	15,621

Changes in Carrying Amount of Goodwill by Segment

	USA		The Americas			EMEA			Asia-Pacific			Total
Balance at January 1, 2018	$	3,078	$	4,292		$	1,495		$	7,679		$	16,544
Currency translation and other		0		(295	)		(140	)		(488	)		(923	)
Balance at December 31, 2018		3,078		3,997			1,355			7,191			15,621
Currency translation		0		161			(45	)		(29	)		87
Goodwill acquired during the year		0		0			18,619			0			18,619
Purchase price allocation adjustments		0		0			(6,487	)		0			(6,487	)
Balance at December 31, 2019	$	3,078	$	4,158		$	13,442		$	7,162		$	27,840

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Other Financial Statement Information (Tables)

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Inventories - Net

Inventories – net

	December 31
	2019			2018
Raw materials	$	49,729		$	43,041
Work-in-process		9,352			8,818
Finished products		45,760			42,163
		104,841			94,022
Excess of current cost over LIFO cost		(4,667	)		(4,474	)
Noncurrent portion of inventory		(4,456	)		(4,289	)
	$	95,718		$	85,259

Property, Plant and Equipment - Net

Major classes of property, plant and equipment are as follows:

	December 31
	2019			2018
Land and improvements	$	22,218		$	12,552
Buildings and improvements		82,811			74,743
Machinery, equipment and aircraft		180,221			171,015
Construction in progress		9,460			3,392
		294,710			261,702
Less accumulated depreciation		(170,692	)		(158,747	)
	$	124,018		$	102,955

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Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of Components of Lease Expense

The Company’s operating and finance lease costs for the year ended December 31, 2019 were as follows:

	Year Ended December 31, 2019
Components of lease expense
Operating lease cost	$	3,138
Finance lease cost
Amortization of right-of-use assets		67
Interest on lease liabilities		11
Total lease cost	$	3,216

Schedule of Future Maturities of Lease Liabilities

Future maturities of the Company’s lease liabilities as of December 31, 2019 are as follows:

	Year Ended December 31, 2019
	Operating Leases		Finance Leases
2020	$	2,462	$	109
2021		2,026		45
2022		1,607		26
2023		1,066		22
2024 and thereafter		9,113		0
Total lease payments	$	16,274	$	202
Less amount of lease payment representing interest		5,966		10
Total present value of lease payments	$	10,308	$	192

Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows:

	Year Ended December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,321
Operating cash flows from finance leases		11
Financing cash flows from finance leases		100

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Share-Based Compensation

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note H - Share-Based Compensation

The 1999 Stock Option Plan

Activity in the Company’s 1999 Stock Option Plan for the year ended December 31, 2019 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019		750		$	39.10
Exercised		(750	)	$	39.10
Forfeited		0		$	0.00
Outstanding (exercisable and vested) at December 31, 2019		0		$	0.00		0.0	$	0

There were 750, 0 and 4,800 in stock options exercised during the years ended December 31, 2019, 2018 and 2017, respectively.  The total intrinsic value of stock options exercised during the year ended December 31, 2019 was approximately $.1 million.  Less than $.1 million in cash was received for the exercise of stock options during 2019.

The Company recorded no compensation expense related to these stock options for the years ended December 31, 2019, 2018 and 2017, as all options were fully vested as of December 31, 2012.

Long Term Incentive Plan of 2008 and 2016 Incentive Plan

The Company maintains an equity award program to give the Company a competitive advantage in attracting, retaining, and motivating officers, employees and directors and to provide an incentive to those individuals to increase shareholder value through long-term incentives directly linked to the Company’s performance.  Under the Preformed Line Products Company Long Term Incentive Plan of 2008 (the “LTIP”), certain employees, officers, and directors were eligible to receive awards of options, restricted shares and restricted share units (RSUs).  The total number of Company common shares reserved for awards under the LTIP was 900,000, of which 800,000 common shares were reserved for RSUs and 100,000 common shares were reserved for share options.  The Preformed Line Products Company 2016 Incentive Plan (the “Incentive Plan”) was put in place upon approval by the Company’s Shareholders at the 2016 Annual Meeting of Shareholders on May 10, 2016.  No further awards will be made under the LTIP and previously granted awards remain outstanding in accordance with their terms.  Under the Incentive Plan, certain employees, officers, and directors will be eligible to receive awards of options, restricted shares and RSUs.  The total number of Company common shares reserved for awards under the Incentive Plan is 1,000,000 of which 900,000 common shares have been reserved for restricted share awards and 100,000 common shares have been reserved for share options.  As of December 31, 2019, 15,000 options and 235,599 restricted shares have been granted under the Incentive Plan.  The Incentive Plan expires on May 10, 2026.      

Restricted Share Units

For the regular annual grants, a portion of the RSUs is subject to time-based cliff vesting and a portion is subject to vesting based upon the Company’s performance over a set period for all participants except the CEO.  All of the CEO’s regular annual RSUs are subject to vesting based upon the Company’s performance over a set-year period.

The RSUs are offered at no cost to the employees, however, the participant must remain employed with the Company until the restrictions on the RSUs lapse.  The fair value of RSUs is based on the market price of a common share on the grant date.  Dividends declared are accrued.

A summary of the RSUs for the year ended December 31, 2019 is as follows:

	Restricted Share Awards
	Performance						Total			Weighted-Average
	and Service			Service			Restricted			Grant-Date
	Required			Required			Awards			Fair Value
Nonvested as of January 1, 2019		213,624			17,298			230,922		$	53.68
Granted		65,392			8,123			73,515			56.22
Vested		(75,921	)		(9,061	)		(84,982	)		36.03
Forfeited		(6,753	)		(1,068	)		(7,821	)		68.95
Nonvested as of December 31, 2019		196,342			15,292			211,634		$	53.68

For time-based RSUs, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award in General and administrative expense in the accompanying Statements of Consolidated Income.  Annual compensation expense related to the time-based RSUs for the years ended December 31, 2019, 2018 and 2017 was $.5 million, $.5 million and $.4 million, respectively.  During the year ended December 31, 2019, retired Officers of the Company forfeited 1,068 RSUs granted during 2018 and 2017.  As of December 31, 2019, there was $.5 million of total unrecognized compensation cost related to time-based RSUs that is expected to be recognized over the weighted-average remaining period of approximately 1.6 years.

For the performance-based RSUs, the number of RSUs in which the participants will vest depends on the Company’s level of performance measured by growth in pre-tax income and sales growth over a requisite performance period.  Depending on the extent to which the performance criteria are satisfied under the LTIP, the participants are eligible to earn common shares over the vesting period.  Performance-based compensation expense for the years ended December 31, 2019, 2018 and 2017 was $3.9 million, $3.7 million and $2.7 million, respectively.  During the year ended December 31, 2019, Company participants and retired Officers of the Company forfeited 6,753 RSUs granted during 2018 and 2017.  As of December 31, 2019, the remaining performance-based RSUs compensation expense of $3.9 million is expected to be recognized over a period of approximately 1.6 years.

The excess tax benefits from service and performance-based RSUs was $.5 million, $.2 million and $.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.  This represents the reduction in income taxes otherwise payable during the period attributable to the actual gross tax benefits in excess of the expected tax benefits for restricted shares vested in the current period.

In the event of a Change in Control (as defined in the LTIP and Incentive Plan), vesting of the RSUs will be accelerated and all restrictions will lapse. Nonvested performance-based awards are based on a maximum target potential payout.  Actual shares awarded at the end of the performance period may be less than the maximum potential payout level depending on achievement of performance-based award objectives.

To satisfy the vesting of its RSUs, the Company has reserved new shares from its authorized but unissued shares.  Any additional granted awards will also be issued from the Company’s authorized but unissued shares.   

Deferred Compensation Plan

The Company maintains a trust, commonly referred to as a rabbi trust, in connection with the Company’s deferred compensation plan.  This plan allows for two deferrals.  First, Directors make elective deferrals of Director fees payable and held in the rabbi trust.  The deferred compensation plan allows the Directors to elect to receive Director fees in common shares of the Company at a later date instead of fees paid each quarter in cash.  Second, this plan allows certain Company employees to defer restricted shares or RSUs for future distribution in the form of common shares.  Assets of the rabbi trust are consolidated, and the value of the Company’s stock held in the rabbi trust is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock.  The Company recognizes the original amount of the deferred compensation (fair value of the deferred stock award at the date of grant) as the basis for recognition in common shares issued to the rabbi trust.  Changes in the fair value of amounts owed to certain employees or Directors are not recognized as the Company’s deferred compensation plan does not permit diversification and must be settled by the delivery of a fixed number of the Company’s common shares.  As of December 31, 2019, 267,641 LTIP shares have been deferred and are being held by the rabbi trust.

Share Option Awards

The LTIP permitted and now the Incentive Plan permits the grant of 100,000 options to buy common shares of the Company to certain employees at not less than fair market value of the shares on the date of grant.   Options issued to date under the LTIP and Incentive Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years and expire from five to ten years from the date of grant.  Shares issued as a result of stock option exercises will be funded with the issuance of new shares.

The Company utilizes the Black-Scholes option pricing model for estimating fair values of options.  The Black-Scholes model requires assumptions regarding the volatility of the Company’s stock, the expected life of the stock award and the Company’s dividend yield.  The Company utilizes historical data in determining these assumptions.  The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant.  Forfeitures have been estimated to be zero.

There were 5,000 options granted during each of the years ended December 31, 2019, 2018 and 2017.  The fair values for the stock options granted were estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	2019			2018			2017
Risk-free interest rate		1.8	%		2.8	%		2.0	%
Dividend yield		1.6	%		1.6	%		1.7	%
Expected life (years)	5			5			5
Expected volatility		42.0	%		40.0	%		36.8	%

Activity in the Company’s LTIP and Incentive Plan for the year ended December 31, 2019 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019		30,750		$	56.81
Granted		5,000		$	60.60
Exercised		(4,000	)	$	45.96
Forfeited		0		$	0.00
Outstanding (vested and expected to vest) at December 31, 2019		31,750		$	58.77		6.6	$	169
Exercisable at December 31, 2019		23,000		$	58.68		5.6	$	154

The weighted-average grant-date fair value of options granted during 2019 was $60.60. There were 4,000, 3,500, and 28,500 stock options exercised during the years ended December 31, 2019, 2018 and 2017, respectively.  The total intrinsic value of stock options exercised was $.1 million, $.1 million and $.7 for the years ended December 31, 2019, 2018 and 2017, respectively.  Cash received for the exercise of stock options during 2019 was $.2 million, $.2 million in 2018 and $1.5 million in 2017.

For each of the three years ended December 31, 2019, 2018 and 2017, the Company recorded compensation expense related to the stock options currently vested of less than $.1 million.  The total compensation cost related to nonvested awards not yet recognized at December 31, 2019 is expected to be $.2 million over a weighted-average period of approximately 2.5 years.     

The excess tax benefits from share-based awards for each of the years ended December 31, 2019, 2018 and 2017 was less than $.1 million.  This represents the reduction in income taxes otherwise payable during the period attributable to the actual gross tax benefits in excess of the expected tax benefits for options exercised in the current period.

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Accumulated Other Comprehensive Income ("AOCI")

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income ("AOCI")

Note D - Accumulated Other Comprehensive Income (“AOCI”)

The following tables set forth the total changes in AOCI by component, net of tax:

	Year Ended December 31, 2019									Year Ended December 31, 2018
				Cumulative									Cumulative
	Unrecognized			Translation						Unrecognized			Translation
	Benefit Cost			Adjustment			Total			Benefit Cost			Adjustment			Total
Balance at January 1	$	(5,873	)	$	(53,710	)	$	(59,583	)	$	(6,015	)	$	(41,425	)	$	(47,440	)
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment		0			2,028			2,028			0			(12,285	)		(12,285	)
Loss on unfunded pension obligations		(195	)		0			(195	)		(244	)		0			(244	)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss (a)		397			0			397			386			0			386
Net current period other comprehensive income (loss)		202			2,028			2,230			142			(12,285	)		(12,143	)
Balance at December 31	$	(5,671	)	$	(51,682	)	$	(57,353	)	$	(5,873	)	$	(53,710	)	$	(59,583	)

(a) This AOCI component is included in the computation of net periodic pension costs as noted in Note C – Pension Plans.

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Income Taxes - Tax Effects of Temporary Differences That Give Rise to the Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Accrued compensation and benefits	$ 1,180	$ 1,387
Inventory valuation reserves	2,384	2,256
Allowance for doubtful accounts	473	346
Benefit plan reserves	7,586	7,153
Net operating loss carryforwards	3,003	2,651
Other accrued expenses	3,012	2,830
Unrealized foreign exchange	718	1,217
Gross deferred tax assets	18,356	17,840
Valuation allowance	(3,137)	(3,495)
Net deferred tax assets	15,219	14,345
Deferred tax liabilities:
Depreciation and other basis differences	(6,867)	(6,855)
Intangibles	(3,742)	(2,057)
Undistributed foreign earnings	0	(172)
Other	(162)	(72)
Deferred tax liabilities	(10,771)	(9,156)
Net deferred tax assets	4,448	5,189
Deferred income tax expense
Ordinary movement	1,275	(993)
Deferred tax balances from business acquisition	(1,883)	0
Tax impact deferred rate	0	680
Items of other comprehensive income (loss)	(62)	(62)
Currency translation	(71)	(120)
Total change in net deferred tax assets	$ (741)	$ (495)

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Goodwill and Other Intangibles - Additional Information (Detail) - USD ($)			12 Months Ended
	Oct. 02, 2018	Oct. 02, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
Goodwill impairment adjustment	$ 0	$ 0
Purchase price allocation adjustments			$ (6,487,000)
Definite lived intangible assets			15,116,000	$ 8,458,000
Amortization of Intangible Assets			1,500,000	$ 1,000,000	$ 1,000,000
2020			1,600,000
2021			1,500,000
2022			1,500,000
2023			1,500,000
2024			$ 1,500,000
Remaining amortization period			12 years 10 months 24 days
Patents [Member]
Finite Lived Intangible Assets [Line Items]
Remaining amortization period			6 years
Land Use Rights [Member]
Finite Lived Intangible Assets [Line Items]
Remaining amortization period			56 years
Trademark [Member]
Finite Lived Intangible Assets [Line Items]
Remaining amortization period			8 years 7 months 6 days
Technology [Member]
Finite Lived Intangible Assets [Line Items]
Remaining amortization period			11 years 1 month 6 days
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Remaining amortization period			10 years 3 months 18 days
Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Amortization period of intangible assets			1 year
Minimum [Member] | Actual [Member]
Finite Lived Intangible Assets [Line Items]
Amortization period of intangible assets			4 years
Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Amortization period of intangible assets			20 years
Maximum [Member] | Actual [Member]
Finite Lived Intangible Assets [Line Items]
Amortization period of intangible assets			82 years
EMEA [Member]
Finite Lived Intangible Assets [Line Items]
Purchase price allocation adjustments			$ (6,487,000)
Definite lived intangible assets			6,300,000
Inventory step-up allocation			$ 200,000

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Fair Value of Financial Assets and Liabilities - Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Long-term debt and related current maturities, Fair Value	$ 56,539	$ 27,017
Long-term debt and related current maturities, Carrying Value	$ 57,076	$ 26,408

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Share-Based Compensation - Summary of RSUs (Detail)	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested as of January 1, 2019	230,922
Granted	73,515
Vested	(84,982)
Forfeited	(7,821)
Nonvested as of December 31, 2019	211,634
Nonvested as of January 1, 2019, Weighted-Average Grant-Date Fair Value | $ / shares	$ 53.68
Weighted-Average Grant-Date Fair Value, Granted | $ / shares	56.22
Weighted-Average Grant-Date Fair Value, Vested | $ / shares	36.03
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares	68.95
Nonvested as of December 31, 2019, Weighted-Average Grant- Date Fair Value | $ / shares	$ 53.68
Performance and Service Required [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested as of January 1, 2019	213,624
Granted	65,392
Vested	(75,921)
Forfeited	(6,753)
Nonvested as of December 31, 2019	196,342
Service Required [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested as of January 1, 2019	17,298
Granted	8,123
Vested	(9,061)
Forfeited	(1,068)
Nonvested as of December 31, 2019	15,292

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Pension Plans - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Abstract]
Discount rate	3.50%	4.25%	4.25%
Rate of compensation increase	0.00%	0.00%	0.00%
Expected long-term return on plan assets	7.00%	8.00%	8.00%

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Pension Plans - Amount Recognized in Accumulated Other Comprehensive Loss Related to Pension Plan (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Compensation Income Net Of Tax [Abstract]
Beginning Balance	$ (5,873)	$ (6,015)
Pre-tax amortized net actuarial loss	520	525
Tax provision	(123)	(139)
Net of reclassification adjustments	397	386	$ 269
Pre-tax loss	(255)	(321)
Tax provision	60	77
Net of tax adjustment to recognize (loss) gain on unfunded pension obligations	(195)	(244)	(410)
Ending Balance	$ (5,671)	$ (5,873)	$ (6,015)

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Pension Plans - Aggregate Benefits Expected to be Paid Out of Plan Assets (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Compensation And Retirement Disclosure [Abstract]
2020	$ 1,225
2021	1,292
2022	1,382
2023	1,469
2024	1,566
2025-2029	$ 9,077

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Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 5,321
Operating cash flows from finance leases	11
Financing cash flows from finance leases	$ 100

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Product Warranty Reserve - Roll Forward of Product Warranty Reserve (Detail) - Warranty Reserves [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning of period balance	$ 928	$ 1,076	$ 1,058
Additions charged to costs and expenses	481	97	347
Warranty usage	(317)	(133)	(399)
Currency translation	217	(112)	70
End of period balance	$ 1,309	$ 928	$ 1,076

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Debt and Credit Arrangements - Additional Information (Detail) € in Millions					12 Months Ended
	Aug. 14, 2019 USD ($)	Apr. 25, 2019 USD ($)	Mar. 13, 2018 USD ($)	Aug. 22, 2016	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 EUR (€)
Debt Instrument [Line Items]
Increased borrowing capacity			$ 65,000,000
Extended debt instrument date			Jun. 30, 2021	Jun. 30, 2019
Debt to earnings before Interest, Taxes and Depreciation ratio			225.00%
Line of credit utilized borrowing capacity					$ 33,600,000
Line of credit remaining borrowing capacity					31,400,000
Proceeds from long-term debt					93,036,000	$ 76,030,000	$ 55,581,000
Remaining balance due on loan for purchased corporate aircraft					57,076,000	26,408,000
Remaining balance due on loan for purchased corporate aircraft classified as short-term					12,050,000	10,490,000
Aggregate maturities of long-term debt for 2020					3,400,000
Aggregate maturities of long-term debt for 2021					36,400,000
Aggregate maturities of long-term debt for 2022					2,800,000
Aggregate maturities of long-term debt for 2023					2,800,000
Aggregate maturities of long-term debt there after					11,700,000
Interest paid					2,000,000	1,800,000	$ 1,000,000
Total outstanding guarantees					11,500,000
Letter of credit outstanding					7,600,000
Aircraft [Member]
Debt Instrument [Line Items]
Remaining balance due on loan for purchased corporate aircraft					9,500,000
Remaining balance due on loan for purchased corporate aircraft classified as short-term					$ 1,400,000
Debt instrument expiration year					2026
Subsidiaries [Member]
Debt Instrument [Line Items]
Line of credit utilized borrowing capacity					$ 20,000,000
Line of credit remaining borrowing capacity					$ 8,000,000
U.S. [Member]
Debt Instrument [Line Items]
Interest rate for Line of credit					2.89%			2.89%
Asia Pacific [Member]
Debt Instrument [Line Items]
Restricted cash used to secure bank debt					$ 300,000	$ 300,000
LIBOR [Member]
Debt Instrument [Line Items]
Interest rate of LIBOR plus			1.125%
LIBOR [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate of LIBOR plus			1.50%
Polish Subsidiary [Member]
Debt Instrument [Line Items]
Borrowings					$ 6,500,000
Interest rate for Line of credit					2.76%			2.76%
Polish Subsidiary [Member] | Warsaw Interbank Offer Rate [Member]
Debt Instrument [Line Items]
Interest rate of LIBOR plus					1.125%
Expiration date					Jun. 30, 2021
Australian subsidiary [Member]
Debt Instrument [Line Items]
Borrowings					$ 5,500,000
Expiration date					Jun. 30, 2021
Interest rate for Line of credit					1.96%			1.96%
Austrian Subsidiary [Member]
Debt Instrument [Line Items]
Line of credit utilized borrowing capacity					$ 1,100,000			€ 1.0
Expiration date					May 31, 2020
Interest rate					3.00%			3.00%
Remaining balance due on loan for purchased corporate aircraft					$ 100,000
Debt instrument expiration year					2025
Austrian Subsidiary [Member] | Line Credit [Member]
Debt Instrument [Line Items]
Proceeds from long-term debt					$ 600,000
Interest rate					1.40%			1.40%
Indonesian Subsidiary [Member]
Debt Instrument [Line Items]
Line of credit utilized borrowing capacity					$ 7,500,000
Expiration date		Apr. 30, 2024
Proceeds from long-term debt		$ 8,000,000
Interest rate		3.501%
Outstanding letters of credit, current					800,000
New Zealand Subsidiary {Member}
Debt Instrument [Line Items]
Line of credit utilized borrowing capacity					5,400,000
Expiration date	Aug. 26, 2021
Proceeds from long-term debt	$ 5,300,000
Interest rate	3.90%
Outstanding letters of credit, current					$ 500,000

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Other Financial Statement Information - Property, Plant and Equipment - Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, plant and equipment - Gross	$ 294,710	$ 261,702
Less accumulated depreciation	(170,692)	(158,747)
Property, plant and equipment - Net	124,018	102,955
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment - Gross	22,218	12,552
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment - Gross	82,811	74,743
Machinery, Equipment and Aircraft [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment - Gross	180,221	171,015
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment - Gross	$ 9,460	$ 3,392

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Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenues by Segment and Product Type

The Company’s revenues by segment and product type are as follows:

	Year Ended December 31, 2019
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		62	%		67	%		68	%		72	%		67	%
Communications		30	%		27	%		24	%		6	%		22	%
Special Industries		8	%		6	%		8	%		22	%		11	%
Total		100	%		100	%		100	%		100	%		100	%

	Year Ended December 31, 2018
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		60	%		67	%		73	%		68	%		66	%
Communications		34	%		29	%		12	%		4	%		21	%
Special Industries		6	%		4	%		15	%		28	%		13	%
Total		100	%		100	%		100	%		100	%		100	%

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Quarterly Financial Information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations

The following table summarizes the Company’s results of operations for each of the quarters in 2019 and 2018:

	Quarter ended
	March 31		June 30		September 30		December 31
2019
Net sales	$	97,153	$	114,842	$	119,217	$	113,649
Gross profit		27,265		37,807		39,343		36,180
Income before income taxes		1,928		10,850		11,257		7,423
Net income		1,824		7,866		8,044		5,602
Net income attributable to Preformed Line Products Company Shareholders		1,824		7,904		7,951		5,624
Net income, basic	$	0.36	$	1.57	$	1.58	$	1.12
Net income, diluted	$	0.36	$	1.56	$	1.55	$	1.09
2018
Net sales	$	98,139	$	108,915	$	108,413	$	105,411
Gross profit		31,518		35,203		33,491		32,019
Income before income taxes		7,629		9,224		7,856		7,879
Net income		5,528		6,735		9,054		5,264
Net income, basic	$	1.10	$	1.34	$	1.80	$	1.05
Net income, diluted	$	1.09	$	1.33	$	1.76	$	1.02

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Product Warranty Reserve

12 Months Ended

Dec. 31, 2019

Guarantees [Abstract]

Product Warranty Reserve

Note P - Product Warranty Reserve

The Company records an accrual for estimated warranty costs to Costs of products sold in the Statements of Consolidated Income.  These amounts are recorded in Accrued expenses and other liabilities in the Consolidated Balance Sheets.  The Company records and accounts for its warranty reserve based on specific claim incidents.  Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly.  Adjustments are made quarterly to the accruals as claim information changes.

The following is a rollforward of the product warranty reserve:

	2019			2018			2017
Balance at January 1	$	928		$	1,076		$	1,058
Additions charged to costs and expenses		481			97			347
Warranty usage		(317	)		(133	)		(399	)
Currency translation		217			(112	)		70
Balance at December 31	$	1,309		$	928		$	1,076

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Revenue

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue

Note L - Revenue

Revenue recognition

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

Disaggregated revenue

The Company’s revenues by segment and product type are as follows:

	Year Ended December 31, 2019
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		62	%		67	%		68	%		72	%		67	%
Communications		30	%		27	%		24	%		6	%		22	%
Special Industries		8	%		6	%		8	%		22	%		11	%
Total		100	%		100	%		100	%		100	%		100	%

	Year Ended December 31, 2018
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		60	%		67	%		73	%		68	%		66	%
Communications		34	%		29	%		12	%		4	%		21	%
Special Industries		6	%		4	%		15	%		28	%		13	%
Total		100	%		100	%		100	%		100	%		100	%

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Preformed Line Products Company and subsidiaries (the “Company”) is a designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, data communication and other similar industries.  The Company’s primary products support, protect, connect, terminate and secure cables and wires.  The Company also provides solar hardware systems and mounting hardware for a variety of solar power applications.  The Company’s customers include public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors and value-added resellers.  The Company serves its worldwide markets through strategically located domestic and international manufacturing facilities.  

Principles of Consolidation and Noncontrolling Interests

Principles of Consolidation and Noncontrolling Interests

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries for which it has a controlling interest.  All intercompany accounts and transactions have been eliminated upon consolidation.  

Noncontrolling interests are presented in the Company’s Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our Consolidated Financial Statements. Additionally, the Company’s Consolidated Financial Statements include 100% of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents are stated at fair value and consist of highly liquid investments with original maturities of three months or less at the time of acquisition.

Receivable Allowances

Receivable Allowances

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The allowances for uncollectible accounts receivable are based upon the number of days the accounts are past due, the current business environment and specific information such as bankruptcy or liquidity issues of customers.  The Company also maintains an allowance for future sales credits related to sales recorded during the year.  The estimated allowance is based on historical sales credits issued in the subsequent year related to the prior year and any significant, preapproved open return good authorizations as of the balance sheet date. 

Inventories

Inventories

The Company uses the last-in, first-out (“LIFO”) method of determining cost for the majority of its material portion of inventories in PLP-USA.  All other inventories are determined by the first-in, first-out (“FIFO”) or average cost methods.  Inventories are carried at the lower of cost or market.  Reserves are maintained for estimated obsolescence or excess inventory based on past usage and future demand.  

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosures of the fair value of financial instruments.  The estimated fair value of financial instruments was principally based on market prices where such prices were available, and when unavailable, fair values were estimated based on market prices of similar instruments.

Property, Plant and Equipment and Depreciation

Property, Plant and Equipment and Depreciation

Property, plant, and equipment is recorded at cost.  Depreciation is computed using the straight-line method over the estimated useful lives.  The estimated useful lives used, when purchased new, are: land improvements, ten years; buildings, forty years; building improvements, five to forty years; machinery and equipment, three to ten years; and aircraft, fifteen years.  Appropriate reductions in estimated useful lives are made for property, plant and equipment purchased in connection with an acquisition of a business or in a used condition when purchased.

Long-Lived Assets

Long-Lived Assets

The Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that the carrying value of the assets are impaired and the undiscounted future cash flows estimated to be generated by such assets are less than the carrying value. The Company’s cash flows are based on historical results adjusted to reflect the Company’s best estimate of future market and operating conditions.  The net carrying value of assets not recoverable is then reduced to fair value.  The estimate of fair value represents the Company’s best estimate based on industry trends and reference to market rates and transactions.  The Company did not record any impairment to long-lived assets during the years ended December 31, 2019 and 2018.

Goodwill and Other Intangibles

Goodwill and Other Intangibles

Goodwill and other intangible assets generally result from business acquisitions. Goodwill is not subject to amortization but is subject to annual impairment testing.  Intangible assets with definite lives, consisting primarily of purchased customer relationships, patents, technology, customer backlogs, trademarks and land use rights, are generally amortized over periods from less than one year to twenty years.  The Company’s intangible assets with finite lives are generally amortized using a projected cash flow basis method over their useful lives unless another method was demonstrated to be more appropriate.  Customer relationships, technology and trademark intangibles acquired in 2014 and 2012 are amortized using a projected cash flow basis method over the period in which the economic benefits of the intangibles are consumed.  Customer relationships, technology and trademarks acquired in 2010 and 2019 are being amortized using the straight-line method over their useful lives.  This straight-line method was more appropriate because it better reflected the pattern in which the economic benefits of the intangible asset are consumed or otherwise expire compared to using a projected cash flow basis method.  An evaluation of the remaining useful life of intangible assets with a determinable life is performed on a periodic basis and when events and circumstances warrant an evaluation. The Company assesses intangible assets with a determinable life for impairment consistent with its policy for assessing other long-lived assets.  Goodwill and intangible assets are also reviewed for impairment annually or more frequently when changes in circumstances indicate the carrying amount may be impaired, or in the case of finite-lived intangible assets, when the carrying amount may not be recoverable.  Events or circumstances that would result in an impairment review primarily include operations reporting losses or a significant change in the use of an asset.  Impairment charges are recognized pursuant to FASB ASC 350-20, “Goodwill.” 

The Company performs the annual impairment test for goodwill utilizing a combination of discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit.  The Company compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired based on assumptions and estimates regarding projected economic and market conditions, growth rates, operating margins and cash expenditures and the weighting used for each respective valuation methodology, results of the valuations could be significantly changed.  The fair value of the reporting unit is based on a number of subjective factors including; the weighting used for each respective valuation methodology, consideration of the Company’s business outlook, and assumptions regarding the weighted average cost of capital (WACC) discount rate applied, growth rates in the discrete and terminal periods and market multiples for estimated cash flows.  The Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.

The Company performed its annual impairment test for goodwill as of October 1, 2019 and 2018 and determined that no adjustment to the carrying value was required for the years ended December 31, 2019 and 2018.

Revenue Recognition

Revenue Recognition

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

Research and Development

Research and Development  

Research and development costs for new products are expensed as incurred and totaled $3.0 million in 2019, $2.4 million in 2018 and $2.1 million in 2017.

Income Taxes

Income Taxes

Income taxes are computed in accordance with the provisions of FASB ASC 740, “Income taxes” and includes U.S. (federal and state) and foreign income taxes. In the Consolidated Financial Statements, the benefits of a consolidated return have been reflected where such returns have or could be filed based on the entities and jurisdictions included in the financial statements. Provisions of the U.S. Tax Cuts and Jobs Act ("U.S. Tax Act") became effective for the Company in 2018. The Foreign-Derived Intangible Income (“FDII”) provision generates a deduction against the Company’s U.S. taxable income for U.S. earnings derived offshore that utilize intangibles held by the Company in the U.S. Conversely, the Global Intangible Low-Taxed Income (“GILTI”) provision requires the Company to subject to U.S. taxation a portion of its foreign subsidiary earnings that exceed an allowable return. The Company elects to treat any Global Intangible Low-Taxed Income (“GILTI”) inclusion as a period expense in the year incurred.

Deferred Tax Assets

Deferred Tax Assets

Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.  The Company establishes a valuation allowance to record deferred tax assets at an amount that is more-likely-than-not to be realized.  In the event the Company were to determine that it would be able to realize our deferred tax assets in the future in excess of the recorded amount, an adjustment to the valuation allowance would increase income in the period such determination was made.  Likewise, should the Company determine that it would not be able to realize all or part of the net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made.

Uncertain Tax Positions

Uncertain Tax Positions

The Company identifies tax positions taken on the federal, state, local and foreign income tax returns filed or to be filed.  A tax position can include: a reduction in taxable income reported in a previously filed tax return or expected to be reported on a future tax return that impacts the measurement of current or deferred  income tax assets or liabilities in the period being reported; a decision not to file a tax return; an allocation or a shift of income between jurisdictions; the characterization of income or a decision to exclude reporting taxable income in a tax return; or a decision to classify a transaction, entity or other position in a tax return as tax exempt. The Company determines whether a tax position is an uncertain or a routine business transaction tax position that is more-likely-than-not to be sustained at the full amount upon examination.

Under FASB ASC 740, “Tax Benefits from Uncertain Tax Positions” that reduce our current or future income tax liability are reported in our financial statements only to the extent that each benefit is recognized and measured under a two-step approach.  The first step requires us to assess whether each tax position based on its technical merits and facts and circumstances as of the reporting date, is more-likely-than-not to be sustained upon examination.  The second step measures the amount of tax benefit that we would recognize in the financial statements based on a cumulative probability approach.  A tax position that meets the more-likely-than-not threshold that is not highly certain is measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority, assuming that the tax authority has examined the position and has full knowledge of all relevant information.

ASC 740 requires subjectivity to identify outcomes and to assign probability in order to estimate the settlement amount.  The Company provides estimates in order to determine settlement amounts.  During the year ended December 31, 2019, the Company recorded $.1 million of reserves for uncertain tax positions.  At December 31, 2019, there was no reserve requirement for uncertain tax positions.

Advertising

Advertising

Advertising costs are expensed as incurred and totaled $1.9 million in both 2019 and 2018 and $1.7 million in 2017.

Foreign Currency Translation

Foreign Currency Translation

Asset and liability accounts are translated into U.S. dollars using exchange rates in effect at the date of the Consolidated Balance Sheet.  The translation adjustments are recorded in Accumulated other comprehensive income (loss).  Revenues and expenses are translated at weighted average exchange rates in effect during the period.  Transaction gains and losses arising from exchange rate changes on transactions denominated in a currency other than the functional currency are included in income and expense as incurred.  Aggregate transaction gains and losses for the years ended December 31, 2019, 2018 and 2017 were a loss of $.2 million, a loss of $1.5 million and a gain of $.3 million, respectively.  Upon sale or substantially complete liquidation of an investment in a foreign entity, the cumulative translation adjustment for that entity is reclassified from Accumulated other comprehensive income (loss) to earnings.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation rate exceeded 100%.  As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar.  The impact to the Company’s Consolidated financial statements was not material and is included in the December 31, 2019 and 2018 results.  Revenue from operations in Argentina was less than 2% of total consolidated net sales for both years ended December 31, 2019 and 2018.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates.

Business Combinations

Business Combinations

Upon acquisition of a business, the Company uses the income, market or cost approach (or a combination thereof) for the valuation as appropriate. The valuation inputs in these models and analyses are based on market participant assumptions.  Market participants are considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability.

The Company used a valuation model to measure the contingent consideration. The significant assumptions used in the simulation included volatility, discount rate, and revenue projections. The Company used a discounted cash flow model to measure the useful lives of intangible assets. The significant assumptions used to estimate the value of the intangible assets (customer relationships and developed technology) included discount rates and certain assumptions that form the basis of future cash flows (such as revenue growth rates in the discrete and terminal periods, attrition rate, royalty rate). These assumptions relate to the future performance of the acquired businesses, are forward-looking and could be affected by future economic and market conditions.

Fair value estimates are based on a series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. Management values property, plant and equipment using the cost approach supported where available by observable market data, which includes consideration of obsolescence.  Acquired inventories are marked to fair value. For certain items, the carrying value is determined to be a reasonable approximation of fair value based on information available to the Company

Derivative Financial Instruments

Derivative Financial Instruments

The Company does not hold derivatives for trading purposes.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures.  The new rule requires a presentation of the changes in shareholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods.  The Company adopted the new disclosure requirements for the period ending December 31, 2019.  The additional components of this release did not have a material impact on the Company’s consolidated financial statements.  

In February 2018, the FASB issued ASU 2018-02, “Income Statement (Topic 220), Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”) which gives the entity the option to reclassify to retained earnings the tax effect resulting the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) related items that the FASB refers to as having been stranded in accumulated other comprehensive income (“OCI”).  The Company adopted ASU 2018-02 effective January 1, 2019 and did not elect the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in OCI.  The adoption of this new guidance did not have a material effect on the Company’s consolidated financial statements.  

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).”  The amendments in this update require the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements.  Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation for leases classified as operating leases under previous guidance. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease.  Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. For leases with a term of 12 months or less, the lessee is permitted to make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. The lessee is also required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization’s leasing activities.  

This ASU was applied using a modified retrospective adoption method with the option of applying the guidance either retrospectively to each prior comparative reporting period presented or retrospectively at the beginning of the period of adoption, effective January 1, 2019.  The Company applied the transitional package of practical expedients allowed by the standard to not reassess the identification, classification and initial direct costs of leases commencing before this ASU's effective date, however, the Company did not elect the hindsight transitional practical expedient. The Company also applied the practical expedient to not separate lease and non-lease components to new leases as well as existing leases through transition. The Company also elected the practical expedient allowed under “Leases (Topic 842)” to exclude leases with a term of twelve months or less form the calculation of the lease liabilities and right-of-use assets.  

The Company has finalized its policy elections, the discount rate used and data to support recognition and disclosure under the new standard.  The adoption of this ASU resulted in an initial recognition of right-of-use assets and corresponding current and long-term lease obligations, on a discounted basis, of its lease obligations of $10.4 million on the Company’s balance sheet at January 1, 2019.  Refer to Note F “Leases” for additional details regarding the Company’s leases.   

New Accounting Standards to be Adopted

New Accounting Standards To Be Adopted

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) which simplifies certain specific aspects of ASC 740.  ASU 2019-12 addresses the income tax accounting implications of hybrid tax regimes, which includes tax regimes that impose the greater of two taxes, one based on income or one based on items other than income, the treatment of tax basis step-up of goodwill in a transaction that does not qualify as a business combination, the application of the intra-period tax allocation rules in certain situations involving a valuation allowance, the income tax accounting impact on the change of the ownership of an investment from a subsidiary to an equity method investment and a change in an investment from an equity method investment to a subsidiary, income tax accounting related to interim reporting, including the treatment of enacted changes in tax law during interim periods and the treatment of year-to-date loss limitations.  ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods therein.  Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not been issued.  The Company has not yet adopted ASU 2019-12 and does not believe the adoption of this ASU will have a material effect on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” (“ASU 2018-13”) which will modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including the removal of certain disclosure requirements.  The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted.  An entity is permitted to early adopt any removed or modified disclosures upon issuance of the ASU and delay adoption of the additional disclosures until the effective date.  The Company is currently evaluating what impact its adoption, effective January 1, 2020, will have to the presentation of the Company’s consolidated financial statements.  

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326):  Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”).  ASU 2016-13 changes how entities will measure credit losses for most financial assets and other instruments that are not measured at fair value through net income.  This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument.  ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.  The Company is nearing the end of its evaluation process and does not expect the adoption to have a material impact to the Company’s consolidated financial statements upon its adoption that is effective January 1, 2020.

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Accounts receivable, less allowances	$ 3,849	$ 3,178
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	4,992,979	5,020,410
Common stock, shares outstanding	4,992,979	5,020,410
Common stock, shares issued to rabbi trust	267,641	269,630
Treasury stock shares	1,431,235	1,310,387

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Statements of Consolidated Cash Flows (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Asia Pacific [Member]
Restricted cash	$ 0.3	$ 0.3	$ 1.2

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Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Note J - Goodwill and Other Intangibles

The Company’s finite and indefinite-lived intangible assets consist of the following:

	December 31, 2019					December 31, 2018
	GrossCarrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Finite-lived intangible assets
Patents	$	4,806	$	(4,806	)	$	4,806	$	(4,788	)
Land use rights		1,128		(331	)		1,134		(203	)
Trademark		1,718		(1,358	)		1,707		(1,247	)
Technology		7,185		(1,708	)		2,994		(1,334	)
Customer relationships		15,811		(7,329	)		11,804		(6,415	)
	$	30,648	$	(15,532	)	$	22,445	$	(13,987	)
Indefinite-lived intangible assets
Goodwill	$	27,840				$	15,621

The Company performs its annual impairment test for goodwill utilizing a combination of discounted cash flow methodology, market comparables and an overall market capitalization reasonableness test in computing fair value by reporting unit.  The Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired.  Based on the assumptions as to growth, discount rates and the weighting used for each respective valuation methodology, results of the valuations could be significantly different. The Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.

The Company performed its annual impairment test for goodwill as of October 1, 2019 and October 1, 2018 and determined that no adjustment to the carrying value was required.  

	USA		The Americas			EMEA			Asia-Pacific			Total
Balance at January 1, 2018	$	3,078	$	4,292		$	1,495		$	7,679		$	16,544
Currency translation and other		0		(295	)		(140	)		(488	)		(923	)
Balance at December 31, 2018		3,078		3,997			1,355			7,191			15,621
Currency translation		0		161			(45	)		(29	)		87
Goodwill acquired during the year		0		0			18,619			0			18,619
Purchase price allocation adjustments		0		0			(6,487	)		0			(6,487	)
Balance at December 31, 2019	$	3,078	$	4,158		$	13,442		$	7,162		$	27,840

The Company’s only intangible asset with an indefinite life is goodwill.  The Company’s goodwill is not deductible for tax purposes.   Of the $6.5 million in purchase price allocation adjustments, $6.3 million represents an allocation to definite lived intangible assets and $.2 million represents an inventory step-up allocation.   Refer to Note O “Business Combinations” for additional details regarding the Company’s purchase price allocations.

The aggregate amortization expense for other intangibles with finite lives, ranging from 4 to 82 years, for the year ended December 31, 2019 was $1.5 million and was $1.0 million for both years ended December 31, 2018 and 2017.  Amortization expense is estimated to be $1.6 million for 2020, and $1.5 million for 2021, 2022, 2023 and 2024. The weighted-average remaining amortization period is approximately 12.9 years.  The weighted-average remaining amortization period by intangible asset class; patents, 6.0 years; land use rights, 56.0 years; trademark, 8.6 years; technology, 11.1 years and customer relationships, 10.3 years.

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Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Note F - Leases

The Company adopted guidance effective in ASU 2016-02, “Leases (Topic 842)” on January 1, 2019.  Adoption of this guidance did not change the Company’s balance sheet or income statement recognition of finance leases.  As a result of adopting this guidance, the Company recorded short and long-term lease liabilities and corresponding right-of-use assets related to its operating leases.  

The Company regularly enters into leases in the normal course of business.  As of December 31, 2019, the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 99 years.  The Company often has the option to renew lease terms for buildings and other assets.  The exercise of lease renewal options is generally at the Company’s sole discretion.  In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion.  

The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors.  The weighted average remaining lease term for the Company’s operating and financing leases as of December 31, 2019 was 18.2 and 2.5 years, respectively.

Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized in the period those payments are incurred.  The components of operating and finance lease costs are recognized in Costs and expenses and Interest expense, respectively, on the Company’s Consolidated Statements of Income.  The Company’s operating and finance lease costs for the year ended December 31, 2019 were as follows:

	Year Ended December 31, 2019
Components of lease expense
Operating lease cost	$	3,138
Finance lease cost
Amortization of right-of-use assets		67
Interest on lease liabilities		11
Total lease cost	$	3,216

The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate based on its incremental borrowing rate.  The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral.  The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of December 31, 2019 was 5.02% and 4.54%, respectively.  

For both years ended December 31, 2018 and 2017, prior to the adoption of Topic 842, rental expense for leases was $2.6 million.

Future maturities of the Company’s lease liabilities as of December 31, 2019 are as follows:

	Year Ended December 31, 2019
	Operating Leases		Finance Leases
2020	$	2,462	$	109
2021		2,026		45
2022		1,607		26
2023		1,066		22
2024 and thereafter		9,113		0
Total lease payments	$	16,274	$	202
Less amount of lease payment representing interest		5,966		10
Total present value of lease payments	$	10,308	$	192

Amounts recognized as finance lease obligations are reported in Accrued expense and other liabilities and Other noncurrent liabilities in the Consolidated Balance sheets.  

The total minimum sublease rentals under noncancelable subleases to be received through 2024 is $3.6 million.  

As of December 31, 2018, prior to the adoption of Topic 842, future minimum lease payments under operating leases were $2.2 million in 2019, $1.8 million in 2020, $1.6 million in 2021, $.9 million in 2022, $.2 million in 2023 and $6.3 million thereafter.

Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows:

	Year Ended December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,321
Operating cash flows from finance leases		11
Financing cash flows from finance leases		100

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Other Financial Statement Information

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Other Financial Statement Information

Note B - Other Financial Statement Information

Inventories – net

	December 31
	2019			2018
Raw materials	$	49,729		$	43,041
Work-in-process		9,352			8,818
Finished products		45,760			42,163
		104,841			94,022
Excess of current cost over LIFO cost		(4,667	)		(4,474	)
Noncurrent portion of inventory		(4,456	)		(4,289	)
	$	95,718		$	85,259

Costs for inventories of certain material are determined using the LIFO method and totaled approximately $32.0 million and $29.5 million at December 31, 2019 and 2018, respectively.

Property and equipment – net

Major classes of property, plant and equipment are as follows:

	December 31
	2019			2018
Land and improvements	$	22,218		$	12,552
Buildings and improvements		82,811			74,743
Machinery, equipment and aircraft		180,221			171,015
Construction in progress		9,460			3,392
		294,710			261,702
Less accumulated depreciation		(170,692	)		(158,747	)
	$	124,018		$	102,955

Depreciation of property and equipment was $12.3 million in 2019, $12.1 million in 2018 and $11.8 million in 2017.  Machinery, equipment and aircraft includes $.2 million and $.1 million of financing leases at the years ended December 31, 2019 and 2018, respectively.

Legal proceedings

The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims.  

Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters.  To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made.

The Company and its subsidiaries Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply, “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects.  The Complaint alleges that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project.  The Plaintiffs were initially seeking an estimated $56.0 million Canadian dollars in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.  The Plaintiffs reduced their demand for damages to $29.4 million Canadian dollars on June 1, 2018.  

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. The Company is unable to predict the outcome of this case and cannot reasonably estimate a potential range of loss.  However, if the matter is to be in a manner adverse to the Company, it could have a material effect on the Company’s financial results. 

XML

Accumulated Other Comprehensive Income ("AOCI") (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Summary of Total Changes in AOCI by Component, Net of Tax

The following tables set forth the total changes in AOCI by component, net of tax:

	Year Ended December 31, 2019									Year Ended December 31, 2018
				Cumulative									Cumulative
	Unrecognized			Translation						Unrecognized			Translation
	Benefit Cost			Adjustment			Total			Benefit Cost			Adjustment			Total
Balance at January 1	$	(5,873	)	$	(53,710	)	$	(59,583	)	$	(6,015	)	$	(41,425	)	$	(47,440	)
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment		0			2,028			2,028			0			(12,285	)		(12,285	)
Loss on unfunded pension obligations		(195	)		0			(195	)		(244	)		0			(244	)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss (a)		397			0			397			386			0			386
Net current period other comprehensive income (loss)		202			2,028			2,230			142			(12,285	)		(12,143	)
Balance at December 31	$	(5,671	)	$	(51,682	)	$	(57,353	)	$	(5,873	)	$	(53,710	)	$	(59,583	)

(a) This AOCI component is included in the computation of net periodic pension costs as noted in Note C – Pension Plans.

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Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Summary of RSUs

A summary of the RSUs for the year ended December 31, 2019 is as follows:

	Restricted Share Awards
	Performance						Total			Weighted-Average
	and Service			Service			Restricted			Grant-Date
	Required			Required			Awards			Fair Value
Nonvested as of January 1, 2019		213,624			17,298			230,922		$	53.68
Granted		65,392			8,123			73,515			56.22
Vested		(75,921	)		(9,061	)		(84,982	)		36.03
Forfeited		(6,753	)		(1,068	)		(7,821	)		68.95
Nonvested as of December 31, 2019		196,342			15,292			211,634		$	53.68

Weighted-Average Assumptions for Estimating Fair Values

The fair values for the stock options granted were estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	2019			2018			2017
Risk-free interest rate		1.8	%		2.8	%		2.0	%
Dividend yield		1.6	%		1.6	%		1.7	%
Expected life (years)	5			5			5
Expected volatility		42.0	%		40.0	%		36.8	%

Long Term Incentive Plan [Member]

Stock Option Activity in Company's Plan

Activity in the Company’s LTIP and Incentive Plan for the year ended December 31, 2019 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019		30,750		$	56.81
Granted		5,000		$	60.60
Exercised		(4,000	)	$	45.96
Forfeited		0		$	0.00
Outstanding (vested and expected to vest) at December 31, 2019		31,750		$	58.77		6.6	$	169
Exercisable at December 31, 2019		23,000		$	58.68		5.6	$	154

Stock Options [Member]

Stock Option Activity in Company's Plan

Activity in the Company’s 1999 Stock Option Plan for the year ended December 31, 2019 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2019		750		$	39.10
Exercised		(750	)	$	39.10
Forfeited		0		$	0.00
Outstanding (exercisable and vested) at December 31, 2019		0		$	0.00		0.0	$	0

XML

Pension Plans - Weighted-Average Asset Allocations of Plan Assets (Detail)	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of pension plan assets	100.00%	100.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of pension plan assets	48.00%	37.00%
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of pension plan assets	51.00%	61.00%
Cash and Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Weighted-average asset allocations of pension plan assets	1.00%	2.00%

XML

Pension Plans - Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Plans With Benefit Obligations In Excess Of Plan Assets [Abstract]
Accumulated benefit obligation	$ 37,936	$ 33,931
Fair market value of assets	$ 32,658	$ 28,672

XML

Income Taxes - Components of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current
Federal	$ 2,835	$ (904)	$ 4,592
Foreign	6,170	6,247	5,998
State and local	391	350	126
Current, Total	9,396	5,693	10,716
Deferred
Federal	(10)	801	2,316
Foreign	(1,347)	(608)	12
State and local	83	121	108
Deferred Total	(1,274)	314	2,436
Income taxes	$ 8,122	$ 6,007	$ 13,152

XML

Computation of Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from calculation of earnings per share	15,041	260	13,000

XML

Fair Value of Financial Assets and Liabilities - Summary of Assets and Liabilities Recorded and Measured at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 1,648
Total Assets		1,648
Supplemental profit sharing plan	6,059	4,946
Earn-out	581
Total Liabilities	6,640	4,946
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities		1,648
Total Assets		1,648
Supplemental profit sharing plan	0	0
Earn-out	0
Total Liabilities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities		0
Total Assets		0
Supplemental profit sharing plan	6,059	4,946
Earn-out	0
Total Liabilities	6,059	4,946
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities		0
Total Assets		0
Supplemental profit sharing plan	0	0
Earn-out	581
Total Liabilities	$ 581	$ 0

XML

Share-Based Compensation - Activity in Company's Plan (Detail) - 1999 Stock Option Plan [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at January 1, 2019, Number of Shares	750
Exercised, Number of Shares	(750)	0	(4,800)
Forfeited, Number of Shares	0
Outstanding (exercisable and vested) at December 31, 2019, Number of Shares	0
Outstanding at January 1, 2019, Weighted Average Exercise Price per Share	$ 39.10
Exercised, Weighted Average Exercise Price per Share	39.10
Forfeited, Weighted Average Exercise Price per Share	0.00
Outstanding (exercisable and vested) at December 31, 2019, Weighted Average Exercise Price per Share	$ 0.00
Outstanding (exercisable and vested), Weighted Average Remaining Contractual Term	0 years
Outstanding (exercisable and vested) Aggregate Intrinsic Value	$ 0

XML

Share-Based Compensation - Activity in Company's Plan - Long Term Incentive Plan (Detail) - Long Term Incentive Plan Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding at January 1, 2019, Number of Shares	30,750
Granted, Number of Shares	5,000	5,000	5,000
Exercised, Number of Shares	(4,000)	(3,500)	(28,500)
Forfeited, Number of Shares	0
Outstanding (vested and expected to vest) at December 31, 2019, Number of Shares	31,750
Exercisable at December 31, 2019, Number of Shares	23,000
Outstanding at January 1, 2019, Weighted Average Exercise Price per Share	$ 56.81
Granted, Weighted Average Exercise Price per Share	60.60
Exercised, Weighted Average Exercise Price per Share	45.96
Forfeited, Weighted Average Exercise Price per Share	0.00
Outstanding (vested and expected to vest) at December 31, 2019, Weighted Average Exercise Price per Share	58.77
Exercisable at December 31, 2019, Weighted Average Exercise Price per Share	$ 58.68
Outstanding (vested and expected to vest) at December 31, 2019, Weighted Average Remaining Contractual Term	6 years 7 months 6 days
Exercisable at December 31, 2019, Weighted Average Remaining Contractual Term	5 years 7 months 6 days
Outstanding (vested and expected to vest) at December 31, 2019, Aggregate Intrinsic Value	$ 169
Exercisable at December 31, 2019, Aggregate Intrinsic Value	$ 154

XML

Segment Information - Additional Information (Detail) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Segment Customer	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segment | Segment									4
Number of major customers accounted for revenue | Customer									0
Net sales	$ 113,649	$ 119,217	$ 114,842	$ 97,153	$ 105,411	$ 108,413	$ 108,915	$ 98,139	$ 444,861	$ 420,878	$ 378,212
Long-lived assets	124,018				102,955				124,018	102,955
USA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales									178,300	169,000	$ 147,600
Long-lived assets	$ 51,100				$ 51,500				$ 51,100	$ 51,500

XML

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Summary of Final Fair Values of Assets Acquired and Liabilities Assumed

There was no material impact on the Company’s Consolidated Statements of Income as a result of the finalization of purchase price accounting.  The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition dates:

Assets acquired
Current assets, net of cash	$	5,976
Property, plant and equipment		1,189
Goodwill		12,132
Finite-lived intangible assets		8,092
Other long-term assets		1,883
Total assets acquired	$	29,272
Liabilities assumed		(10,378	)
Net assets acquired	$	18,894

XML

Other Financial Statement Information - Inventories - Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 49,729	$ 43,041
Work-in-process	9,352	8,818
Finished products	45,760	42,163
Inventory, gross	104,841	94,022
Excess of current cost over LIFO cost	(4,667)	(4,474)
Noncurrent portion of inventory	(4,456)	(4,289)
Inventories - net	$ 95,718	$ 85,259

XML

Income Taxes - Income Before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
United States									$ 11,353	$ 10,268	$ 4,774
Foreign									20,105	22,320	21,032
INCOME BEFORE INCOME TAXES	$ 7,423	$ 11,257	$ 10,850	$ 1,928	$ 7,879	$ 7,856	$ 9,224	$ 7,629	$ 31,458	$ 32,588	$ 25,806

XML

Leases - Summary of Components of Lease Expense (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Components of lease expense
Operating lease cost	$ 3,138
Finance lease cost
Amortization of right-of-use assets	67
Interest on lease liabilities	11
Total lease cost	$ 3,216

XML

Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 2,652	$ 2,910	$ 2,815
Additions charged to costs and expenses	1,294	449	472
Deductions	(697)	(529)	(432)
Other additions or deductions	(25)	(178)	55
Balance at end of period	3,224	2,652	2,910
Reserve for Credit Memos [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	526	415	395
Additions charged to costs and expenses	817	802	693
Deductions	(739)	(688)	(675)
Other additions or deductions	21	(3)	2
Balance at end of period	625	526	415
Slow-Moving and Obsolete Inventory Reserve [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	8,462	9,066	11,560
Additions charged to costs and expenses	1,283	1,341	998
Deductions	(1,104)	(1,658)	(3,855)
Other additions or deductions	236	(287)	363
Balance at end of period	8,877	8,462	9,066
Accrued Product Warranty [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	928	1,076	1,058
Additions charged to costs and expenses	481	97	347
Deductions	(317)	(133)	(399)
Other additions or deductions	217	(112)	70
Balance at end of period	1,309	928	1,076
Foreign Net Operating Loss Tax Carryforwards [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	3,495	3,965	3,805
Additions charged to costs and expenses	153	568	490
Deductions	(499)	(761)	(312)
Other additions or deductions	(12)	(277)	(18)
Balance at end of period	$ 3,137	$ 3,495	$ 3,965

XML

Business Combinations - Additional Information (Detail) $ in Thousands, € in Millions				12 Months Ended
	Apr. 01, 2019 USD ($)	Feb. 28, 2019 USD ($)	Feb. 28, 2019 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Payments of business, net of cash acquired				$ 18,894	$ 0	$ 0
Goodwill				27,840	15,621	$ 16,544
Intangibles - net				$ 15,116	$ 8,458
SubCon [Member]
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired		100.00%
Total purchase price		$ 10,100
Payments of business, net of cash acquired		1,900
Goodwill		6,600
Intangibles - net		4,700
Purchase price estimated contingent liability		$ 600
Potential maximum payment | €			€ 4.0
Remeasurement period		4 years	4 years
SubCon [Member] | Other Noncurrent Liabilities [Member]
Business Acquisition [Line Items]
Business combination earn-out liability		$ 600
MICOS Telecom [Member]
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired	90.00%
Total purchase price	$ 8,800
Payments of business, net of cash acquired	500
Goodwill	5,600
Intangibles - net	$ 3,400
Useful lives	12 years
Business acquisition, percentage of remaining voting interests to be acquired	10.00%
Business acquisition, maximum period, remaining voting interests to be acquired	3 years
Percentage of remaining voting interests deferred consideration payable	10.00%
MICOS Telecom [Member] | Other Noncurrent Liabilities [Member]
Business Acquisition [Line Items]
Business combination hold-back liability	$ 1,500
Business combination hold-back liability payable term	2 years
Business combination deferred consideration	$ 900
Maximum [Member]
Business Acquisition [Line Items]
Useful lives				20 years
Maximum [Member] | SubCon [Member]
Business Acquisition [Line Items]
Useful lives		11 years	11 years
Minimum [Member]
Business Acquisition [Line Items]
Useful lives				1 year
Minimum [Member] | SubCon [Member]
Business Acquisition [Line Items]
Useful lives		10 years	10 years

XML

Debt and Credit Arrangements - Debt and Credit Arrangements (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Short-term debt
Current portion of long-term debt	$ 3,354	$ 1,448
Short-term debt	12,050	10,490
Long-term debt
Total long-term debt	57,076	26,408
Total long-term debt, less current portion	53,722	24,960
Total debt	65,772	35,450
Thailand Bhat Denominated Secured Notes Short-term Debt at 4.35% [Member]
Short-term debt
Short-term debt	3,670	1,797
Thailand Bhat Denominated Secured Notes Short-term Debt at 4.08% [Member]
Short-term debt
Short-term debt	1,882	683
Brazil Real Denominated Secured Notes Short-term Debt at 2.83% [Member]
Short-term debt
Short-term debt	1,152	802
Brazil Real Denominated Secured Notes Short-term Debt at 5.40% [Member]
Short-term debt
Short-term debt	752	842
Brazil Real Denominated Secured Notes Short-term Debt at 9.40% [Member]
Short-term debt
Short-term debt	1,240	4,918
U.S. Dollar Denominated Current Portion of Long Term Debt at 2.71% [Member]
Short-term debt
Current portion of long-term debt	1,448	1,448
Austria Euro Denominated Current Portion of Long Term Debt at 2.32% [Member]
Short-term debt
Current portion of long-term debt	30	0
Indonesia U.S. Dollar Denominated Current Portion of Long Term Debt at 3.50% [Member]
Short-term debt
Current portion of long-term debt	800	0
New Zealand U.S. Dollar Denominated Current Portion of Long Term Debt at 3.90% [Member]
Short-term debt
Current portion of long-term debt	494	0
Austria Euro Denominated Current Portion of Long Term Debt at 1.40% [Member]
Short-term debt
Current portion of long-term debt	560	0
Austria Euro Denominated Current Portion of Long Term Debt at 3.00% [Member]
Short-term debt
Current portion of long-term debt	22	0
Australian Dollar Denominated Long Term Debt at 1.96% Due 2021 [Member]
Long-term debt
Total long-term debt	5,526	2,117
Brazilian Real Denominated Long-term Debt at 4.60%, due 2022 [Member]
Long-term debt
Total long-term debt	147	214
U.S. Dollar Denominated Long Term Debt at 2.89%, Due 2021 [Member]
Long-term debt
Total long-term debt	21,552	12,189
U.S. Dollar Denominated Long Term Debt at 2.71%, Due 2026 [Member]
Long-term debt
Total long-term debt	9,535	10,984
Poland Zloty Denominated Long Term Debt at 2.76% Due 2021 [Member]
Long-term debt
Total long-term debt	6,524	904
Austria Euro Denominated Long Term Debt at 2.32% Due 2030 [Member]
Long-term debt
Total long-term debt	224	0
Austria Euro Denominated Loan Long Term Debt at 1.40% Due 2020 [Member]
Long-term debt
Total long-term debt	560	0
Austria Euro Denominated Long Term Debt at 3.00% Due 2021 [Member]
Long-term debt
Total long-term debt	134	0
Indonesia U.S Dollar Denominated Long Term Debt at 3.50% Due 2024 [Member]
Long-term debt
Total long-term debt	7,467	0
New Zealand Dollar Denominated Long Term Debt at 3.90% Due 2021 [Member]
Long-term debt
Total long-term debt	$ 5,407	$ 0

XML

Document and Entity Information - USD ($)

12 Months Ended

Dec. 31, 2019

Mar. 02, 2020

Jun. 30, 2019

Cover [Abstract]

Document Type

10-K

Amendment Flag

false

Document Period End Date

Dec. 31, 2019

Document Fiscal Year Focus

2019

Document Fiscal Period Focus

FY

Trading Symbol

PLPC

Entity Registrant Name

PREFORMED LINE PRODUCTS CO

Entity Central Index Key

0000080035

Current Fiscal Year End Date

--12-31

Entity Well-known Seasoned Issuer

No

Entity Current Reporting Status

Yes

Entity Voluntary Filers

No

Entity Filer Category

Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

Entity Shell company

false

Entity Common Stock, Shares Outstanding

5,023,812

Entity Public Float

$ 135,299,054

Entity File Number

0-31164

Entity Tax Identification Number

34-0676895

Entity Address, Address Line One

660 Beta Drive

Entity Address, City or Town

Mayfield Village

Entity Address, State or Province

OH

Entity Address, Postal Zip Code

44143

City Area Code

440

Local Phone Number

4615200

Document Annual Report

true

Title of 12(b) Security

Common Shares, $2 par value per share

Security Exchange Name

NASDAQ

Entity Incorporation, State or Country Code

OH

Entity Interactive Data Current

Yes

Documents Incorporated by Reference

Portions of the Definitive Proxy Statement for the Annual Meeting of Shareholders to be held May 5, 2020 are incorporated by reference into Part III, Items 10, 11, 12, 13 and 14.

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Statements of Consolidated Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Comprehensive Income Net Of Tax [Abstract]
Net income	$ 23,336	$ 26,581	$ 12,654
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	2,028	(12,285)	10,070
Recognized net actuarial gains	397	386	269
Loss on unfunded pension obligations	(195)	(244)	(410)
Other comprehensive income (loss), net of tax	2,230	(12,143)	9,929
Less: Comprehensive income attributable to noncontrolling interests	(33)	0	0
Comprehensive income attributable to Preformed Line Products Company shareholders	$ 25,533	$ 14,438	$ 22,583

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Statements of Consolidated Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Tax provision (benefit) for recognized net actuarial loss (gain)	$ 123	$ 139
Tax provision (benefit)	$ (60)	$ (77)
Common Shares [Member]
Issuance of common shares	88,377	34,521	42,080
Common Shares Issued to Rabbi Trust [Member]
Common shares distributed from rabbi trust	1,989	19,396	8,255
Deferred Compensation Liability [Member]
Common shares distributed from rabbi trust	1,989	19,396	8,255
Paid In Capital [Member]
Issuance of common shares	88,377	34,521	42,080
Retained Earnings [Member]
Cash dividends declared per share	$ 0.80	$ 0.80	$ 0.80
Treasury Stock [Member]
Purchase of common shares	120,848	52,318	121,626
Unrecognized Pension Benefit Cost [Member]
Tax provision (benefit) for recognized net actuarial loss (gain)	$ 123	$ 139	$ 199
Tax provision (benefit)	$ (60)	$ (77)	$ 247

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Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Note R - Subsequent Events

None.    

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Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Note N - Related Party Transactions

On February 6, 2019, the Company purchased 36,413 shares of the Company from current and retired Officers at a price per share of $56.44, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On July 2, 2019, the Company purchased 952 shares of the Company from a retired Officer at a price per share of $51.20, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On December 12, 2019, the Company purchased 20,862 shares of the Company from current Officers at a price per share of $70.39, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On December 19, 2019, the Company purchased 6,326 shares of the Company from a retired Officer at a price per share of $71.75, which was calculated from a 30-day average market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On February 6, 2018, the Company purchased 7,877 shares of the Company from current Officers and a retired Officer at a price per share of $80.20, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On March 15, 2018, the Company purchased 1,430 shares of the Company from a current Officer at a price per share of $63.63, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On May 10, 2018, the Company purchased 3,200 shares of the Company from a current Officer at a price per share of $68.10, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On June 1, 2018, the Company purchased 8,800 shares of the Company from a retired Officer at a price per share of $73.53, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On June 15, 2018, the Company purchased 1,500 shares of the Company from current Officers at a price per share of $77.06, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On August 7, 2018, the Company purchased 17,141 shares of the Company from current Officers and a retired officer at a price per share of $87.19, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On August 23, 2018, the Company purchased 2,000 shares of the Company from a current employee at a price per share of $83.53, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On September 14, 2018, the Company purchased 7,500 shares of the Company from a current Officer at a price per share of $80.95, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On December 18, 2018, the Company purchased 35 shares of the Company from a retired Officer at a price per share of $57.85, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.

On January 3, 2017, the Company purchased 1,834 shares of the Company from current Officers at a price per share of $58.58, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved these transactions.   

On May 9, 2017, the Company purchased 2,500 shares of the Company from a current Officer at a price per share of $52.05, which was calculated from a 30-day average of market price in connection with the vesting of equity awards.  The Audit Committee of the Board of Directors approved this transaction.   

On August 16, 2017, the Company purchased 24,920 shares of the Company from a trust for the benefit of Barbara P. Ruhlman at a price per share of $50.16, which was calculated from a 30-day average of market price.  Barbara P. Ruhlman is Director Emeritus for the Company’s Board of Directors and the mother of Robert G. Ruhlman and grandmother of J. Ryan Ruhlman and Maegan A. R. Cross, all of whom are also members of the Board of Directors and Messrs. Robert G. Ruhlman and J. Ryan Ruhlman also serve as executive officers of the Company.  The purchase was consummated pursuant to a Share Purchase Agreement dated August 16, 2017, between the Company and the trust.  The Audit Committee of the Board of Directors approved this transaction.

On November 8, 2017, the Company purchased 24,874 shares of the Company from current Officers and other employees, at a price per share of $71.07, which was calculated from a 30-day average market price.  Additionally, on November 8, 2017, the Company purchased 7,000 shares of the Company from Robert G. Ruhlman, at a price per share of $71.07, which was calculated from a 30-day average market price.  Mr. Ruhlman is Chairman, President and Chief Executive Officer (CEO) of the Company, son of Barbara P. Ruhlman, Director Emeritus, and father of J. Ryan Ruhlman and Maegan A. R. Cross, each of whom are also members of the Board of Directors and Mr. J. Ryan Ruhlman is an executive officer of the Company.  The Audit Committee of the Board of Directors approved these transactions.    

On November 17, 2017, the Company purchased 7,975 shares of the Company from current Officers and other employees, at a price per share of $74.51, which was calculated from a 30-day average market price.  The Audit Committee of the Board of Directors approved these transactions.  

On November 30, 2017, the Company purchased 3,334 shares of the Company from a retired Officer of the Company, at a price per share of $75.37, which was calculated from a 30-day average market price.  The Audit Committee of the Board of Directors approved this transaction.

On December 13, 2017, the Company purchased 21,650 shares of the Company from current Officers and other employees, at a price per share of $78.68, which was calculated from a 30-day average market price.  Additionally, on December 13, 2017, the Company purchased 7,500 shares of the Company from Randall M. Ruhlman at a price per share of $78.68, which was calculated from a 30-day average market price.  Mr. Ruhlman is the son of Barbara P. Ruhlman, Director Emeritus, brother of Robert G. Ruhlman and a former member of the Company’s Board of Directors.  The Audit Committee of the Board of Directors approved these transactions.  

On December 13, 2017, the Company purchased 15,000 shares of the Company from a trust for the benefit of Barbara P. Ruhlman, Director Emeritus, at a price per share of $78.68, which was calculated from a 30-day average of market price.  The purchase was consummated pursuant to a Share Purchase Agreement dated December 13, 2017, between the Company and the trust.  The Audit Committee of the Board of Directors approved this transaction.

The Company’s Australian subsidiary utilizes copper extrusion services from Cast Alloy.  During the years ended December 31, 2019, 2018 and 2017, PLP-Australia incurred a total of $.1 million, $.2 million and $.2 million for these expenses.  Cast Alloy is owned by Simi Almasan, Continuous Improvement Engineer, a current PLP employee.  The Audit Committee of the Board of Directors approved these transactions.

The Company’s New Zealand subsidiary, Electropar previously leased one parcel of property, on which it had its corporate office, manufacturing and warehouse space.  The entities that leased the property to Electropar were owned, in part, by Grant Wallace, a former Director who is no longer with the Company as of March 2017, therefore, no related party expense was incurred in 2019 or 2018.  For the year ended December 31, 2017, Electropar incurred less than $.1 million for such lease expense.

The Company’s Austrian subsidiary currently has a loan due, carrying an interest rate of 3.0%, to one if its current employees which is reflected on the Company’s balance sheet in the amount of $.1 million.  Interest incurred on this loan during the year ended December 31, 2019 was negligible.  This loan is due in December of 2025.

The Company’s Austrian subsidiary leases a portion of its Dornbirn, Austria location from a holding company owned by a current employee.  During the year ended December 31, 2019, the Company paid $.1 million in lease expenses.  The lease is valid for an indefinite period of time and can be terminated if the lessee and lessor provide a six-month notice at the end of any chosen calendar year.

The Company’s Czech Republic subsidiary leases a factory at its Prostějov, Czech Republic location from a company currently owned by two current employees.  During the year ended December 31, 2019, the Company paid $.2 million in lease expenses.  The lease term is for 5 years from its original effective date of April 1, 2019.

During each year ended December 31, 2019, 2018 and 2017, the Company paid approximately $.1 million in legal fees to Baker & Hostetler LLP, of which R. Steven Kestner was the Chairman and the chair of its policy committee.  Mr. Kestner is a Director of the Company.

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Product Warranty Reserve (Tables)

12 Months Ended

Dec. 31, 2019

Guarantees [Abstract]

Roll Forward of Product Warranty Reserve

The following is a rollforward of the product warranty reserve:

	2019			2018			2017
Balance at January 1	$	928		$	1,076		$	1,058
Additions charged to costs and expenses		481			97			347
Warranty usage		(317	)		(133	)		(399	)
Currency translation		217			(112	)		70
Balance at December 31	$	1,309		$	928		$	1,076

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Other Financial Statement Information - Additional Information (Detail) - USD ($) $ in Millions			12 Months Ended
	Jun. 01, 2018	Nov. 02, 2016	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Cost of inventories for certain materials using LIFO method			$ 32.0	$ 29.5
Depreciation of property and equipment			12.3	12.1	$ 11.8
Financing leases of machinery, equipment and aircraft			$ 0.2	$ 0.1
Name of plaintiff			Altalink, L.P.
Complaint filling date			November 2016
Estimated damages from defendants	$ 29.4	$ 56.0

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Leases - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Line Items]
Leases, term of description	the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 99 years.
Finance lease, weighted average remaining lease term	2 years 6 months
Operating lease, weighted average remaining lease term	18 years 2 months 12 days
Operating lease, weighted average discount rate, percent	5.02%
Finance lease, weighted average discount rate, percent	4.54%
Rental expense for leases		$ 2.6	$ 2.6
Total minimum sublease rentals under noncancelable subleases	$ 3.6
Future minimum lease payments, 2019		2.2
Future minimum lease payments, 2020		1.8
Future minimum lease payments, 2021		1.6
Future minimum lease payments, 2022		0.9
Future minimum lease payments, 2023		0.2
Future minimum lease payments, Thereafter		$ 6.3
Maximum [Member]
Leases [Line Items]
Leases, term of contract	99 years

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Quarterly Financial Information - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Selected Quarterly Financial Information [Abstract]
Net sales	$ 113,649	$ 119,217	$ 114,842	$ 97,153	$ 105,411	$ 108,413	$ 108,915	$ 98,139	$ 444,861	$ 420,878	$ 378,212
Gross profit	36,180	39,343	37,807	27,265	32,019	33,491	35,203	31,518	140,595	132,231	118,628
Income before income taxes	7,423	11,257	10,850	1,928	7,879	7,856	9,224	7,629	31,458	32,588	25,806
Net income	5,602	8,044	7,866	1,824					23,336	26,581	12,654
Net income	$ 5,624	$ 7,951	$ 7,904	$ 1,824	$ 5,264	$ 9,054	$ 6,735	$ 5,528	$ 23,303	$ 26,581	$ 12,654
Net income, basic	$ 1.12	$ 1.58	$ 1.57	$ 0.36	$ 1.05	$ 1.80	$ 1.34	$ 1.10	$ 4.63	$ 5.28	$ 2.48
Net income, diluted	$ 1.09	$ 1.55	$ 1.56	$ 0.36	$ 1.02	$ 1.76	$ 1.33	$ 1.09	$ 4.58	$ 5.21	$ 2.47

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Related Party Transactions - Additional Information (Detail)																					12 Months Ended
	Dec. 19, 2019 $ / shares shares	Dec. 12, 2019 $ / shares shares	Jul. 02, 2019 $ / shares shares	Feb. 06, 2019 $ / shares shares	Dec. 18, 2018 $ / shares shares	Sep. 14, 2018 $ / shares shares	Aug. 23, 2018 $ / shares shares	Aug. 07, 2018 $ / shares shares	Jun. 15, 2018 $ / shares shares	Jun. 01, 2018 $ / shares shares	May 10, 2018 $ / shares shares	Mar. 15, 2018 $ / shares shares	Feb. 06, 2018 $ / shares shares	Dec. 13, 2017 $ / shares shares	Nov. 30, 2017 $ / shares shares	Nov. 17, 2017 $ / shares shares	Nov. 08, 2017 $ / shares shares	Aug. 16, 2017 $ / shares shares	May 09, 2017 $ / shares shares	Jan. 03, 2017 $ / shares shares	Dec. 31, 2019 USD ($) Lease Employee	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Related Party Transaction [Line Items]
Related party transactions number of property leased | Lease																					1
Related party transaction lease expenses | $																					$ 0	$ 0
Loan amount due | $																					$ 57,076,000	26,408,000
Austrian Subsidiary [Member]
Related Party Transaction [Line Items]
Interest rate																					3.00%
Loan amount due | $																					$ 100,000
Debt instrument expiration year																					2025
Related party transaction lease expenses paid | $																					$ 100,000
Czech Republic Subsidiary [Member]
Related Party Transaction [Line Items]
Related party transaction lease expenses paid | $																					$ 200,000
Related party transaction lease expiration term																					5 years
Number of employees | Employee																					2
Maximum [Member]
Related Party Transaction [Line Items]
Related party transaction lease expenses | $																							$ 100,000
Officers and Other Employees [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares														21,650		7,975	24,874
Shares price per share | $ / shares														$ 78.68		$ 74.51	$ 71.07
Number of trading days to be considered for average price of stock repurchased														30 days		30 days	30 days
Retired Officer [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares															3,334
Shares price per share | $ / shares															$ 75.37
Number of trading days to be considered for average price of stock repurchased															30 days
Randall M. Ruhlman [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares														7,500
Shares price per share | $ / shares														$ 78.68
Number of trading days to be considered for average price of stock repurchased														30 days
Current Officers and Retired Officer [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares				36,413				17,141					7,877
Shares price per share | $ / shares				$ 56.44				$ 87.19					$ 80.20
Number of trading days to be considered for average price of stock repurchased				30 days				30 days					30 days
Retired Officer [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares	6,326		952		35					8,800
Shares price per share | $ / shares	$ 71.75		$ 51.20		$ 57.85					$ 73.53
Number of trading days to be considered for average price of stock repurchased	30 days		30 days		30 days					30 days
Officer [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares		20,862				7,500			1,500		3,200	1,430							2,500	1,834
Shares price per share | $ / shares		$ 70.39				$ 80.95			$ 77.06		$ 68.10	$ 63.63							$ 52.05	$ 58.58
Number of trading days to be considered for average price of stock repurchased		30 days				30 days			30 days		30 days	30 days							30 days	30 days
Employee [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares							2,000
Shares price per share | $ / shares							$ 83.53
Number of trading days to be considered for average price of stock repurchased							30 days
Trust [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares														15,000				24,920
Shares price per share | $ / shares														$ 78.68				$ 50.16
Number of trading days to be considered for average price of stock repurchased														30 days				30 days
Robert G Ruhlman [Member]
Related Party Transaction [Line Items]
Purchase of shares | shares																	7,000
Shares price per share | $ / shares																	$ 71.07
Number of trading days to be considered for average price of stock repurchased																	30 days
X Information Technology [Member]
Related Party Transaction [Line Items]
Service expense | $																					$ 100,000	200,000	200,000
Baker & Hostetler LLP [Member]
Related Party Transaction [Line Items]
Legal fees | $																					$ 100,000	$ 100,000	$ 100,000

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Accumulated Other Comprehensive Income ("AOCI") - Summary of Total Changes in AOCI by Component, Net of Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 249,370
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment	2,028	$ (12,285)
Loss on unfunded pension obligations	(195)	(244)	$ (410)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss	397	386
Other comprehensive income (loss), net of tax	2,230	(12,143)	9,929
Ending Balance	268,535	249,370
Unrecognized Benefit Cost [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(5,873)	(6,015)
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment	0	0
Loss on unfunded pension obligations	(195)	(244)	(410)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss	397	386
Other comprehensive income (loss), net of tax	202	142
Ending Balance	(5,671)	(5,873)	(6,015)
Cumulative Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(53,710)	(41,425)
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment	2,028	(12,285)
Loss on unfunded pension obligations	0	0
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss	0	0
Other comprehensive income (loss), net of tax	2,028	(12,285)
Ending Balance	(51,682)	(53,710)	(41,425)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(59,583)	(47,440)
Amounts reclassified from AOCI:
Ending Balance	$ (57,353)	$ (59,583)	$ (47,440)

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Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Reconciliation [Line Items]
Net tax provision	$ 8,122,000	$ 6,007,000	$ 13,152,000
Cash taxes paid net of refunds	7,800,000	5,600,000	3,400,000
Net operating loss carryforwards, indefinite	$ 8,700,000
Foreign net operating loss carryforwards expiration period start year	2024
Foreign net operating loss carryforwards expiration period end year	2029
Valuation allowance	$ 3,137,000	3,495,000
Net decrease in valuation allowance from the prior year	(400,000)
Tax liability, undistributed earnings of foreign subsidiaries	110,600,000
Deferred tax liabilities undistributed earnings of subsidiaries	112,200,000
Deferred tax liabilities withholding cost related to earnings	100,000
Accrued interest		$ 0	$ 0
Maximum [Member]
Income Tax Reconciliation [Line Items]
Accrued interest	100,000
Accrued penalties	100,000
Income Tax Provision [Member]
Income Tax Reconciliation [Line Items]
Net decrease in valuation allowance from the prior year	(300,000)
Foreign Country [Member]
Income Tax Reconciliation [Line Items]
Net operating loss carryforwards	10,600,000
Net operating loss carryforwards, definite	$ 1,900,000

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Statements of Consolidated Shareholders' Equity - USD ($) $ in Thousands	Total	Common Shares [Member]	Common Shares Issued to Rabbi Trust [Member]	Deferred Compensation Liability [Member]	Paid In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Cumulative Translation Adjustment [Member]	Unrecognized Pension Benefit Cost [Member]	Total Preformed Line Products, Company Equity [Member]	Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2016	$ 223,543	$ 12,508	$ (12,054)	$ 12,054	$ 24,629	$ 303,415	$ (59,640)	$ (51,495)	$ (5,874)	$ 223,543	$ 0
Net income	12,654					12,654				12,654
Foreign currency translation adjustment	10,070							10,070		10,070
Recognized net actuarial loss (gain), net of tax provision of $199, $139 and $123 for 2017, 2018 and 2019 respectively	269								269	269
(Gain) loss on unfunded pension obligations, net of tax provision (benefit) of $247, $77 and $60 for 2017, 2018 and 2019 respectively	(410)								(410)	(410)
Total comprehensive income	22,583									22,583	0
Share-based compensation	2,824				3,055	(231)				2,824
Purchase of 121,626, 52,318 and 120,848 common shares for 2017, 2018 and 2019 respectively	(8,475)						(8,475)			(8,475)
Issuance of 42,080, 34,521 and 88,377 common shares for 2017, 2018 and 2019 respectively	2,135	85			2,050					2,135
Common shares distributed from rabbi trust of 8,255, 19,396 and 1,989 for 2017, 2018 and 2019 net	0		220	(220)						0
Cash dividends declared $.80, $.80 and $.80 per share for 2017, 2018 and 2019 respectively	(4,073)					(4,073)				(4,073)
Ending Balance at Dec. 31, 2017	238,537	12,593	(11,834)	11,834	29,734	311,765	(68,115)	(41,425)	(6,015)	238,537	0
Net income	26,581					26,581				26,581
Foreign currency translation adjustment	(12,285)							(12,285)		(12,285)
Recognized net actuarial loss (gain), net of tax provision of $199, $139 and $123 for 2017, 2018 and 2019 respectively	386								386	386
(Gain) loss on unfunded pension obligations, net of tax provision (benefit) of $247, $77 and $60 for 2017, 2018 and 2019 respectively	(244)							0	(244)	(244)
Total comprehensive income	14,438									14,438	0
Share-based compensation	4,084				4,236	(152)				4,084
Purchase of 121,626, 52,318 and 120,848 common shares for 2017, 2018 and 2019 respectively	(4,165)						(4,165)			(4,165)
Issuance of 42,080, 34,521 and 88,377 common shares for 2017, 2018 and 2019 respectively	500	69			431					500
Common shares distributed from rabbi trust of 8,255, 19,396 and 1,989 for 2017, 2018 and 2019 net	0		826	(826)						0
Cash dividends declared $.80, $.80 and $.80 per share for 2017, 2018 and 2019 respectively	(4,024)					(4,024)				(4,024)
Ending Balance at Dec. 31, 2018	249,370	12,662	(11,008)	11,008	34,401	334,170	(72,280)	(53,710)	(5,873)	249,370	0
Net income	23,336					23,303				23,303	33
Foreign currency translation adjustment	2,028							2,028		2,028
Recognized net actuarial loss (gain), net of tax provision of $199, $139 and $123 for 2017, 2018 and 2019 respectively	397								397	397
(Gain) loss on unfunded pension obligations, net of tax provision (benefit) of $247, $77 and $60 for 2017, 2018 and 2019 respectively	(195)							0	(195)	(195)
Total comprehensive income	25,566									25,533	33
Share-based compensation	4,229				4,396	(167)				4,229
Purchase of 121,626, 52,318 and 120,848 common shares for 2017, 2018 and 2019 respectively	(6,826)						(6,826)			(6,826)
Issuance of 42,080, 34,521 and 88,377 common shares for 2017, 2018 and 2019 respectively	243	186			57					243
Common shares distributed from rabbi trust of 8,255, 19,396 and 1,989 for 2017, 2018 and 2019 net	0		27	(27)						0
Cash dividends declared $.80, $.80 and $.80 per share for 2017, 2018 and 2019 respectively	(4,014)					(4,014)				(4,014)
Ending Balance at Dec. 31, 2019	$ 268,568	$ 12,848	$ (10,981)	$ 10,981	$ 38,854	$ 353,292	$ (79,106)	$ (51,682)	$ (5,671)	$ 268,535	$ 33

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Statements of Consolidated Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Net sales	$ 444,861	$ 420,878	$ 378,212
Cost of products sold	304,266	288,647	259,584
GROSS PROFIT	140,595	132,231	118,628
Costs and expenses
Selling	36,609	36,358	34,048
General and administrative	51,806	45,398	43,160
Research and engineering	17,187	15,107	14,327
Other operating expenses - net	2,366	2,434	985
Total costs and expenses	107,968	99,297	92,520
OPERATING INCOME	32,627	32,934	26,108
Other income (expense)
Interest income	783	486	430
Interest expense	(2,217)	(1,290)	(1,061)
Other income	265	458	329
Total other income (expense)	(1,169)	(346)	(302)
INCOME BEFORE INCOME TAXES	31,458	32,588	25,806
Income taxes	8,122	6,007	13,152
NET INCOME	23,336	26,581	12,654
Less: Net income attributable to noncontrolling interests	(33)	0	0
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$ 23,303	$ 26,581	$ 12,654
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic	5,031	5,032	5,102
Diluted	5,087	5,107	5,133
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:
Basic	$ 4.63	$ 5.28	$ 2.48
Diluted	$ 4.58	$ 5.21	$ 2.47

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Quarterly Financial Information (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (unaudited)

Note Q - Quarterly Financial Information (unaudited)

The following table summarizes the Company’s results of operations for each of the quarters in 2019 and 2018:

	Quarter ended
	March 31		June 30		September 30		December 31
2019
Net sales	$	97,153	$	114,842	$	119,217	$	113,649
Gross profit		27,265		37,807		39,343		36,180
Income before income taxes		1,928		10,850		11,257		7,423
Net income		1,824		7,866		8,044		5,602
Net income attributable to Preformed Line Products Company Shareholders		1,824		7,904		7,951		5,624
Net income, basic	$	0.36	$	1.57	$	1.58	$	1.12
Net income, diluted	$	0.36	$	1.56	$	1.55	$	1.09
2018
Net sales	$	98,139	$	108,915	$	108,413	$	105,411
Gross profit		31,518		35,203		33,491		32,019
Income before income taxes		7,629		9,224		7,856		7,879
Net income		5,528		6,735		9,054		5,264
Net income, basic	$	1.10	$	1.34	$	1.80	$	1.05
Net income, diluted	$	1.09	$	1.33	$	1.76	$	1.02

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Segment Information

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segment Information

Note M - Segment Information

The Company designs, manufactures and sells hardware employed in the construction and maintenance of telecommunication, energy and other utility networks, data communication products and mounting hardware for solar power applications. Principal products include cable anchoring, control hardware and splice enclosures, which are sold primarily to customers in North and South America, Europe, South Africa and Asia-Pacific.

The Company reports its segments in four geographic regions: PLP-USA, The Americas, EMEA (Europe, Middle East & Africa) and Asia-Pacific in accordance with accounting standards codified in Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 280, “Segment Reporting”.  Each segment distributes a full range of the Company’s primary products.  The PLP-USA segment is comprised of U.S. operations manufacturing the Company’s traditional products primarily supporting domestic energy, telecommunications and solar products.  The other three segments, The Americas, EMEA and Asia-Pacific support the Company’s energy, telecommunications, data communication and solar products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief operating decision maker and are accountable for the financial results and performance of their entire segment for which they are responsible.  The business components within each segment are managed to maximize the results of the entire company rather than the results of any individual business component of the segment.

The amount of each segment’s performance reported to the chief operating decision maker is for purposes of making decisions about allocating resources to the segment and assessing its performance.  The Company evaluates segment performance and allocates resources based on several factors primarily based on sales and income from continuing operations, net of tax.

The accounting policies of the operating segments are the same as those described in Note A in the Notes to Consolidated Financial Statements. No single customer accounts for more than ten percent of the Company’s consolidated revenue.  U.S. net sales for the year ended December 31, 2019, 2018, and 2017 were $178.3 million, $169.0 million and $147.6 million, respectively.  U.S. long-lived assets as of December 31, 2019 and 2018 were $51.1 million and $51.5 million, respectively.

The following table presents a summary of the Company’s reportable segments for the year ended December 31, 2019, 2018 and 2017. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profits in inventory.  

	Year Ended December 31
	2019			2018			2017
Net sales
PLP-USA	$	178,301		$	169,040		$	147,646
The Americas		68,293			66,868			69,764
EMEA		79,158			69,773			63,916
Asia-Pacific		119,109			115,197			96,886
Total net sales	$	444,861		$	420,878		$	378,212
Intersegment sales
PLP-USA	$	10,757		$	11,648		$	12,234
The Americas		7,774			9,480			5,570
EMEA		1,375			1,664			1,120
Asia-Pacific		12,720			11,907			8,596
Total intersegment sales	$	32,626		$	34,699		$	27,520
Interest income
PLP-USA	$	0		$	0		$	0
The Americas		412			273			283
EMEA		192			102			47
Asia-Pacific		179			111			100
Total interest income	$	783		$	486		$	430
Interest expense
PLP-USA	$	(972	)	$	(1,023	)	$	(941	)
The Americas		(466	)		(111	)		(10	)
EMEA		(149	)		(58	)		(31	)
Asia-Pacific		(630	)		(98	)		(79	)
Total interest expense	$	(2,217	)	$	(1,290	)	$	(1,061	)
Income taxes
PLP-USA	$	3,299		$	367		$	7,142
The Americas		2,551			3,349			3,593
EMEA		616			1,204			1,583
Asia-Pacific		1,656			1,087			834
Total income taxes	$	8,122		$	6,007		$	13,152
Net income (loss) attributable to Preformed Line Products Company shareholders
PLP-USA	$	8,054		$	9,900		$	(2,367	)
The Americas		6,657			8,479			8,169
EMEA		2,935			3,527			4,088
Asia-Pacific		5,657			4,675			2,764
Total net income	$	23,303		$	26,581		$	12,654

	Year Ended December 31
	2019		2018		2017
Expenditure for long-lived assets
PLP-USA	$	4,928	$	3,672	$	4,474
The Americas		2,864		1,746		1,272
EMEA		5,304		1,591		2,329
Asia-Pacific		16,371		2,519		3,158
Total expenditures for long-lived assets	$	29,467	$	9,528	$	11,233
Depreciation and amortization
PLP-USA	$	5,393	$	5,452	$	5,389
The Americas		1,862		1,488		1,985
EMEA		2,528		1,808		1,678
Asia-Pacific		3,965		3,696		3,738
Total depreciation and amortization	$	13,748	$	12,444	$	12,790

	As of December 31
	2019		2018
Identifiable assets
PLP-USA	$	127,428	$	118,171
The Americas		71,908		69,764
EMEA		97,126		57,263
Asia-Pacific		137,109		113,599
Total identifiable assets	$	433,571	$	358,797
Long-lived assets
PLP-USA	$	51,097	$	51,506
The Americas		15,874		14,847
EMEA		16,419		11,768
Asia-Pacific		40,628		24,834
Total long-lived assets	$	124,018	$	102,955

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Debt and Credit Arrangements

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt and Credit Arrangements

Note E - Debt and Credit Arrangements

	December 31
	2019			2018
Short-term debt
Secured notes
Thailand Bhat denominated at 4.35%		3,670			1,797
Thailand Bhat denominated at 4.08%		1,882			683
Brazil Real denominated at 2.83%		1,152			802
Brazil Real denominated at 5.40%		752			842
Brazil Real denominated at 9.40%		1,240			4,918
Current portion of long-term debt
U.S. dollar denominated at 2.71%		1,448			1,448
Austria Euro denominated at 2.32%		30			0
Austria Euro denominated at 1.40%		560			0
Austria Euro denominated at 3.00%		22			0
Indonesia U.S. Dollar denominated at 3.50%		800			0
New Zealand U.S. Dollar denominated at 3.90%		494			0
Total short-term debt		12,050			10,490
Long-term debt
U.S. Dollar denominated at 2.89%, due 2021		21,552			12,189
U.S. Dollar denominated at 2.71%, due 2026		9,535			10,984
Brazilian Real denominated at 4.60% due 2022		147			214
Poland Zloty denominated at 2.76% due 2021		6,524			904
Australian Dollar denominated at 1.96%, due 2021		5,526			2,117
Austria Euro denominated at 2.32% due 2030		224			0
Austria Euro denominated at 1.40% due 2020		560			0
Austria Euro denominated at 3.00% due 2021		134			0
Indonesia U.S Dollar denominated at 3.50% due 2024		7,467			0
New Zealand Dollar denominated at 3.90% due 2021		5,407			0
Total long-term debt		57,076			26,408
Less current portion		(3,354	)		(1,448	)
Total long-term debt, less current portion		53,722			24,960
Total debt	$	65,772		$	35,450

On March 13, 2018, the Company extended the term on its $65.0 million credit facility from June 30, 2019 to June 30, 2021.  All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless its funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, then the LIBOR spread becomes 1.500%.  As of December 31, 2019, the Company’s Polish subsidiary had borrowed $6.5 million at a rate of 1.125% plus the Warsaw Interbank Offer Rate with a term expiring June 30, 2021.  At December 31, 2019, the Company’s Australian subsidiary had borrowed $5.5 million U.S. dollars, also with a term expiring June 30, 2021.  As of December 31, 2019, the interest rates on the U.S., Polish and Australian lines of credit agreement were 2.89% and 2.76% and 1.96%, respectively.  Under the credit facility, at December 31, 2019, the Company had utilized $33.6 million with $31.4 million available under the line of credit net of long-term outstanding letters of credit.  The PLP-USA line of credit provides for $20.0 million to be available to the Company’s subsidiaries, of which $8.0 million was available to the subsidiaries at December 31, 2019.  The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability.  At both December 31, 2019 and 2018, the Company was in compliance with all covenants.

On February 28, 2019, the Company acquired its Austrian subsidiary, SubCon, headquartered in Dornbirn, Austria.  SubCon has a 1.0 million euros, or $1.1 million U.S. dollars line of credit with a term expiration of May 31, 2020 with the option to renew for an additional twelve months indefinitely.  At December 31, 2019, SubCon had borrowed $.6 million on the line of credit at an interest rate of 1.400%.

On April 25, 2019, the Company borrowed $8.0 million U.S. dollars on behalf of its Indonesian subsidiary at a rate of 3.501% with a term expiring on April 30, 2024.  At December 31, 2019, $7.5 million was outstanding on this debt facility, of which $.8 million is classified as current.

On August 14, 2019, the Company’s New Zealand subsidiary borrowed the U.S equivalent dollar of $5.3 million at a rate of 3.900% with a term expiring on August 26, 2021.  At December 31, 2019, $5.4 million was outstanding on this facility, of which $.5 million is classified as current.  This loan is secured by the Company’s New Zealand subsidiary’s land and building.

The Company owns a corporate aircraft with a remaining balance due on the loan of $9.5 million, of which $1.4 million is classified as short-term, with a term expiring in 2026.  The loan is secured by the purchased aircraft.

The Company’s Asia Pacific segment had $.3 million in restricted cash at both periods ended December 31, 2019 and 2018.  The restricted cash is used to secure bank debt and is included in Other assets on the balance sheet.

Aggregate maturities of long-term debt during the next five years are as follows: $3.4 million for 2020, $36.4 million for 2021,  $2.8 million for 2022, $2.8 million for 2023 and $11.7 million thereafter.

Interest paid was $2.0 million in 2019, $1.8 million in 2018 and $1.0 million in 2017.

Guarantees and Letters of Credit

The Company has provided financial guarantees for uncompleted work and financial commitments.  The terms of these guarantees vary with end dates ranging from the current year through the completion of such transactions.  The guarantees would typically be triggered in the event of non-performance.  As of December 31, 2019, the Company had total outstanding guarantees of $11.5 million.  Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order.  As of December 31, 2019, the Company had total outstanding letters of credit of $7.6 million.

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Significant Accounting Policies

Note A - Significant Accounting Policies

Nature of Operations

Preformed Line Products Company and subsidiaries (the “Company”) is a designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, data communication and other similar industries.  The Company’s primary products support, protect, connect, terminate and secure cables and wires.  The Company also provides solar hardware systems and mounting hardware for a variety of solar power applications.  The Company’s customers include public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors and value-added resellers.  The Company serves its worldwide markets through strategically located domestic and international manufacturing facilities.  

Principles of Consolidation and Noncontrolling Interests

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries for which it has a controlling interest.  All intercompany accounts and transactions have been eliminated upon consolidation.  

Noncontrolling interests are presented in the Company’s Consolidated Financial Statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our Consolidated Financial Statements. Additionally, the Company’s Consolidated Financial Statements include 100% of a controlled subsidiary’s earnings, rather than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

Cash and Cash Equivalents

Cash equivalents are stated at fair value and consist of highly liquid investments with original maturities of three months or less at the time of acquisition.

Receivable Allowances

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The allowances for uncollectible accounts receivable are based upon the number of days the accounts are past due, the current business environment and specific information such as bankruptcy or liquidity issues of customers.  The Company also maintains an allowance for future sales credits related to sales recorded during the year.  The estimated allowance is based on historical sales credits issued in the subsequent year related to the prior year and any significant, preapproved open return good authorizations as of the balance sheet date. 

Inventories

The Company uses the last-in, first-out (“LIFO”) method of determining cost for the majority of its material portion of inventories in PLP-USA.  All other inventories are determined by the first-in, first-out (“FIFO”) or average cost methods.  Inventories are carried at the lower of cost or market.  Reserves are maintained for estimated obsolescence or excess inventory based on past usage and future demand.  

Fair Value of Financial Instruments

Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosures of the fair value of financial instruments.  The estimated fair value of financial instruments was principally based on market prices where such prices were available, and when unavailable, fair values were estimated based on market prices of similar instruments.

Property, Plant and Equipment and Depreciation

Property, plant, and equipment is recorded at cost.  Depreciation is computed using the straight-line method over the estimated useful lives.  The estimated useful lives used, when purchased new, are: land improvements, ten years; buildings, forty years; building improvements, five to forty years; machinery and equipment, three to ten years; and aircraft, fifteen years.  Appropriate reductions in estimated useful lives are made for property, plant and equipment purchased in connection with an acquisition of a business or in a used condition when purchased.

Long-Lived Assets

The Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that the carrying value of the assets are impaired and the undiscounted future cash flows estimated to be generated by such assets are less than the carrying value. The Company’s cash flows are based on historical results adjusted to reflect the Company’s best estimate of future market and operating conditions.  The net carrying value of assets not recoverable is then reduced to fair value.  The estimate of fair value represents the Company’s best estimate based on industry trends and reference to market rates and transactions.  The Company did not record any impairment to long-lived assets during the years ended December 31, 2019 and 2018.

Goodwill and Other Intangibles

Goodwill and other intangible assets generally result from business acquisitions. Goodwill is not subject to amortization but is subject to annual impairment testing.  Intangible assets with definite lives, consisting primarily of purchased customer relationships, patents, technology, customer backlogs, trademarks and land use rights, are generally amortized over periods from less than one year to twenty years.  The Company’s intangible assets with finite lives are generally amortized using a projected cash flow basis method over their useful lives unless another method was demonstrated to be more appropriate.  Customer relationships, technology and trademark intangibles acquired in 2014 and 2012 are amortized using a projected cash flow basis method over the period in which the economic benefits of the intangibles are consumed.  Customer relationships, technology and trademarks acquired in 2010 and 2019 are being amortized using the straight-line method over their useful lives.  This straight-line method was more appropriate because it better reflected the pattern in which the economic benefits of the intangible asset are consumed or otherwise expire compared to using a projected cash flow basis method.  An evaluation of the remaining useful life of intangible assets with a determinable life is performed on a periodic basis and when events and circumstances warrant an evaluation. The Company assesses intangible assets with a determinable life for impairment consistent with its policy for assessing other long-lived assets.  Goodwill and intangible assets are also reviewed for impairment annually or more frequently when changes in circumstances indicate the carrying amount may be impaired, or in the case of finite-lived intangible assets, when the carrying amount may not be recoverable.  Events or circumstances that would result in an impairment review primarily include operations reporting losses or a significant change in the use of an asset.  Impairment charges are recognized pursuant to FASB ASC 350-20, “Goodwill.” 

The Company performs the annual impairment test for goodwill utilizing a combination of discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit.  The Company compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired based on assumptions and estimates regarding projected economic and market conditions, growth rates, operating margins and cash expenditures and the weighting used for each respective valuation methodology, results of the valuations could be significantly changed.  The fair value of the reporting unit is based on a number of subjective factors including; the weighting used for each respective valuation methodology, consideration of the Company’s business outlook, and assumptions regarding the weighted average cost of capital (WACC) discount rate applied, growth rates in the discrete and terminal periods and market multiples for estimated cash flows.  The Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units.

The Company performed its annual impairment test for goodwill as of October 1, 2019 and 2018 and determined that no adjustment to the carrying value was required for the years ended December 31, 2019 and 2018.

Revenue Recognition

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

Research and Development  

Research and development costs for new products are expensed as incurred and totaled $3.0 million in 2019, $2.4 million in 2018 and $2.1 million in 2017.

Income Taxes

Income taxes are computed in accordance with the provisions of FASB ASC 740, “Income taxes” and includes U.S. (federal and state) and foreign income taxes. In the Consolidated Financial Statements, the benefits of a consolidated return have been reflected where such returns have or could be filed based on the entities and jurisdictions included in the financial statements. Provisions of the U.S. Tax Cuts and Jobs Act ("U.S. Tax Act") became effective for the Company in 2018. The Foreign-Derived Intangible Income (“FDII”) provision generates a deduction against the Company’s U.S. taxable income for U.S. earnings derived offshore that utilize intangibles held by the Company in the U.S. Conversely, the Global Intangible Low-Taxed Income (“GILTI”) provision requires the Company to subject to U.S. taxation a portion of its foreign subsidiary earnings that exceed an allowable return. The Company elects to treat any Global Intangible Low-Taxed Income (“GILTI”) inclusion as a period expense in the year incurred.

Deferred Tax Assets

Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.  The Company establishes a valuation allowance to record deferred tax assets at an amount that is more-likely-than-not to be realized.  In the event the Company were to determine that it would be able to realize our deferred tax assets in the future in excess of the recorded amount, an adjustment to the valuation allowance would increase income in the period such determination was made.  Likewise, should the Company determine that it would not be able to realize all or part of the net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such determination was made.

Uncertain Tax Positions

The Company identifies tax positions taken on the federal, state, local and foreign income tax returns filed or to be filed.  A tax position can include: a reduction in taxable income reported in a previously filed tax return or expected to be reported on a future tax return that impacts the measurement of current or deferred  income tax assets or liabilities in the period being reported; a decision not to file a tax return; an allocation or a shift of income between jurisdictions; the characterization of income or a decision to exclude reporting taxable income in a tax return; or a decision to classify a transaction, entity or other position in a tax return as tax exempt. The Company determines whether a tax position is an uncertain or a routine business transaction tax position that is more-likely-than-not to be sustained at the full amount upon examination.

Under FASB ASC 740, “Tax Benefits from Uncertain Tax Positions” that reduce our current or future income tax liability are reported in our financial statements only to the extent that each benefit is recognized and measured under a two-step approach.  The first step requires us to assess whether each tax position based on its technical merits and facts and circumstances as of the reporting date, is more-likely-than-not to be sustained upon examination.  The second step measures the amount of tax benefit that we would recognize in the financial statements based on a cumulative probability approach.  A tax position that meets the more-likely-than-not threshold that is not highly certain is measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority, assuming that the tax authority has examined the position and has full knowledge of all relevant information.

ASC 740 requires subjectivity to identify outcomes and to assign probability in order to estimate the settlement amount.  The Company provides estimates in order to determine settlement amounts.  During the year ended December 31, 2019, the Company recorded $.1 million of reserves for uncertain tax positions.  At December 31, 2019, there was no reserve requirement for uncertain tax positions.

Advertising

Advertising costs are expensed as incurred and totaled $1.9 million in both 2019 and 2018 and $1.7 million in 2017.

Foreign Currency Translation

Asset and liability accounts are translated into U.S. dollars using exchange rates in effect at the date of the Consolidated Balance Sheet.  The translation adjustments are recorded in Accumulated other comprehensive income (loss).  Revenues and expenses are translated at weighted average exchange rates in effect during the period.  Transaction gains and losses arising from exchange rate changes on transactions denominated in a currency other than the functional currency are included in income and expense as incurred.  Aggregate transaction gains and losses for the years ended December 31, 2019, 2018 and 2017 were a loss of $.2 million, a loss of $1.5 million and a gain of $.3 million, respectively.  Upon sale or substantially complete liquidation of an investment in a foreign entity, the cumulative translation adjustment for that entity is reclassified from Accumulated other comprehensive income (loss) to earnings.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation rate exceeded 100%.  As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar.  The impact to the Company’s Consolidated financial statements was not material and is included in the December 31, 2019 and 2018 results.  Revenue from operations in Argentina was less than 2% of total consolidated net sales for both years ended December 31, 2019 and 2018.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates.

Business Combinations

Upon acquisition of a business, the Company uses the income, market or cost approach (or a combination thereof) for the valuation as appropriate. The valuation inputs in these models and analyses are based on market participant assumptions.  Market participants are considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability.

The Company used a valuation model to measure the contingent consideration. The significant assumptions used in the simulation included volatility, discount rate, and revenue projections. The Company used a discounted cash flow model to measure the useful lives of intangible assets. The significant assumptions used to estimate the value of the intangible assets (customer relationships and developed technology) included discount rates and certain assumptions that form the basis of future cash flows (such as revenue growth rates in the discrete and terminal periods, attrition rate, royalty rate). These assumptions relate to the future performance of the acquired businesses, are forward-looking and could be affected by future economic and market conditions.

Fair value estimates are based on a series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. Management values property, plant and equipment using the cost approach supported where available by observable market data, which includes consideration of obsolescence.  Acquired inventories are marked to fair value. For certain items, the carrying value is determined to be a reasonable approximation of fair value based on information available to the Company

Derivative Financial Instruments

The Company does not hold derivatives for trading purposes.

Recently Adopted Accounting Pronouncements

In August 2018, the SEC issued Final Rule Release No. 33-10532, “Disclosure Update and Simplification,” which makes a number of changes meant to simplify interim disclosures.  The new rule requires a presentation of the changes in shareholders’ equity and noncontrolling interest in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods.  The Company adopted the new disclosure requirements for the period ending December 31, 2019.  The additional components of this release did not have a material impact on the Company’s consolidated financial statements.  

In February 2018, the FASB issued ASU 2018-02, “Income Statement (Topic 220), Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”) which gives the entity the option to reclassify to retained earnings the tax effect resulting the U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act”) related items that the FASB refers to as having been stranded in accumulated other comprehensive income (“OCI”).  The Company adopted ASU 2018-02 effective January 1, 2019 and did not elect the option to reclassify to retained earnings the tax effects resulting from the Tax Act that are stranded in OCI.  The adoption of this new guidance did not have a material effect on the Company’s consolidated financial statements.  

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).”  The amendments in this update require the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements.  Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation for leases classified as operating leases under previous guidance. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease.  Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. For leases with a term of 12 months or less, the lessee is permitted to make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. The lessee is also required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization’s leasing activities.  

This ASU was applied using a modified retrospective adoption method with the option of applying the guidance either retrospectively to each prior comparative reporting period presented or retrospectively at the beginning of the period of adoption, effective January 1, 2019.  The Company applied the transitional package of practical expedients allowed by the standard to not reassess the identification, classification and initial direct costs of leases commencing before this ASU's effective date, however, the Company did not elect the hindsight transitional practical expedient. The Company also applied the practical expedient to not separate lease and non-lease components to new leases as well as existing leases through transition. The Company also elected the practical expedient allowed under “Leases (Topic 842)” to exclude leases with a term of twelve months or less form the calculation of the lease liabilities and right-of-use assets.  

The Company has finalized its policy elections, the discount rate used and data to support recognition and disclosure under the new standard.  The adoption of this ASU resulted in an initial recognition of right-of-use assets and corresponding current and long-term lease obligations, on a discounted basis, of its lease obligations of $10.4 million on the Company’s balance sheet at January 1, 2019.  Refer to Note F “Leases” for additional details regarding the Company’s leases.   

New Accounting Standards To Be Adopted

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes” (“ASU 2019-12”) which simplifies certain specific aspects of ASC 740.  ASU 2019-12 addresses the income tax accounting implications of hybrid tax regimes, which includes tax regimes that impose the greater of two taxes, one based on income or one based on items other than income, the treatment of tax basis step-up of goodwill in a transaction that does not qualify as a business combination, the application of the intra-period tax allocation rules in certain situations involving a valuation allowance, the income tax accounting impact on the change of the ownership of an investment from a subsidiary to an equity method investment and a change in an investment from an equity method investment to a subsidiary, income tax accounting related to interim reporting, including the treatment of enacted changes in tax law during interim periods and the treatment of year-to-date loss limitations.  ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods therein.  Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not been issued.  The Company has not yet adopted ASU 2019-12 and does not believe the adoption of this ASU will have a material effect on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” (“ASU 2018-13”) which will modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including the removal of certain disclosure requirements.  The amendments in ASU 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted.  An entity is permitted to early adopt any removed or modified disclosures upon issuance of the ASU and delay adoption of the additional disclosures until the effective date.  The Company is currently evaluating what impact its adoption, effective January 1, 2020, will have to the presentation of the Company’s consolidated financial statements.  

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326):  Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”).  ASU 2016-13 changes how entities will measure credit losses for most financial assets and other instruments that are not measured at fair value through net income.  This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument.  ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.  The Company is nearing the end of its evaluation process and does not expect the adoption to have a material impact to the Company’s consolidated financial statements upon its adoption that is effective January 1, 2020.

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Computation of Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Computation of Earnings Per Share

Note I - Computation of Earnings Per Share

Basic earnings per share were computed by dividing net income by the weighted-average number of common shares outstanding for each respective period.  Diluted earnings per share were calculated by dividing net income by the weighted-average of all potentially dilutive common shares that were outstanding during the years presented.

The calculation of basic and diluted earnings per share for the year ended December 31 was as follows:

	2019		2018		2017
Numerator
Net income	$	23,303	$	26,581	$	12,654
Denominator
Determination of shares (in thousands)
Weighted-average common shares outstanding		5,031		5,032		5,102
Dilutive effect - share-based awards		56		75		31
Diluted weighted-average common shares outstanding		5,087		5,107		5,133
Earnings per common share
Basic	$	4.63	$	5.28	$	2.48
Diluted	$	4.58	$	5.21	$	2.47

For the year ended December 31, 2019, 2018 and 2017, 15,041, 260 and 13,000 stock options, respectively, were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

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Debt and Credit Arrangements (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt and Credit Arrangements

	December 31
	2019			2018
Short-term debt
Secured notes
Thailand Bhat denominated at 4.35%		3,670			1,797
Thailand Bhat denominated at 4.08%		1,882			683
Brazil Real denominated at 2.83%		1,152			802
Brazil Real denominated at 5.40%		752			842
Brazil Real denominated at 9.40%		1,240			4,918
Current portion of long-term debt
U.S. dollar denominated at 2.71%		1,448			1,448
Austria Euro denominated at 2.32%		30			0
Austria Euro denominated at 1.40%		560			0
Austria Euro denominated at 3.00%		22			0
Indonesia U.S. Dollar denominated at 3.50%		800			0
New Zealand U.S. Dollar denominated at 3.90%		494			0
Total short-term debt		12,050			10,490
Long-term debt
U.S. Dollar denominated at 2.89%, due 2021		21,552			12,189
U.S. Dollar denominated at 2.71%, due 2026		9,535			10,984
Brazilian Real denominated at 4.60% due 2022		147			214
Poland Zloty denominated at 2.76% due 2021		6,524			904
Australian Dollar denominated at 1.96%, due 2021		5,526			2,117
Austria Euro denominated at 2.32% due 2030		224			0
Austria Euro denominated at 1.40% due 2020		560			0
Austria Euro denominated at 3.00% due 2021		134			0
Indonesia U.S Dollar denominated at 3.50% due 2024		7,467			0
New Zealand Dollar denominated at 3.90% due 2021		5,407			0
Total long-term debt		57,076			26,408
Less current portion		(3,354	)		(1,448	)
Total long-term debt, less current portion		53,722			24,960
Total debt	$	65,772		$	35,450

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Computation of Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Earnings Per Share

The calculation of basic and diluted earnings per share for the year ended December 31 was as follows:

	2019		2018		2017
Numerator
Net income	$	23,303	$	26,581	$	12,654
Denominator
Determination of shares (in thousands)
Weighted-average common shares outstanding		5,031		5,032		5,102
Dilutive effect - share-based awards		56		75		31
Diluted weighted-average common shares outstanding		5,087		5,107		5,133
Earnings per common share
Basic	$	4.63	$	5.28	$	2.48
Diluted	$	4.58	$	5.21	$	2.47

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Pension Plans - Fair Value of the Company's Plan Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Assets measured at net asset value	$ 32,658
Fair market value of assets	32,658	$ 28,672	$ 25,367
Quoted Prices in Active Markets for Identical Assets (Level1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		24,041
Significant Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		4,631
Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
Pooled Investment Fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Assets measured at net asset value	$ 32,658
Cash [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		462
Cash [Member] | Quoted Prices in Active Markets for Identical Assets (Level1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		462
Cash [Member] | Significant Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
Cash [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		10,470
Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		10,470
Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
U.S. Treasury Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		13,109
U.S. Treasury Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		13,109
U.S. Treasury Bonds [Member] | Significant Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
U.S. Treasury Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		4,631
Corporate Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		0
Corporate Bonds [Member] | Significant Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		4,631
Corporate Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair market value of assets		$ 0

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Pension Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension And Other Employee Benefit Plans [Line Items]
Estimated net loss for the PLP-USA pension plan in 2019	$ 500,000
Prior service cost	0
Pre-tax unfunded pension obligation gain (loss)	$ (200,000)
Discount rate	3.50%	4.25%
Asset performance rate of return assumption	7.00%
Expected long-term return on plan assets	7.00%	8.00%	8.00%
Contribution to pension plan	$ 0
Expense for contribution plan	6,000,000	$ 5,600,000	$ 5,100,000
Expense for the supplemental profit sharing plan	1,100,000	200,000	$ 500,000
Supplemental profit sharing plan unfunded status	6,100,000	$ 4,900,000
Decrease in Discount Rate [Member]
Pension And Other Employee Benefit Plans [Line Items]
Pre-tax unfunded pension obligation gain (loss)	$ (4,000,000)
Discount rate	0.75%
Gain on Industry Updates to Mortality Table [Member] | Maximum [Member]
Pension And Other Employee Benefit Plans [Line Items]
Pre-tax unfunded pension obligation gain (loss)	$ 100,000
Demographic Changes [Member]
Pension And Other Employee Benefit Plans [Line Items]
Pre-tax unfunded pension obligation gain (loss)	200,000
Asset Performance [Member]
Pension And Other Employee Benefit Plans [Line Items]
Pre-tax unfunded pension obligation gain (loss)	3,300,000
Service Cost Expense Load [Member]
Pension And Other Employee Benefit Plans [Line Items]
Pre-tax unfunded pension obligation gain (loss)	$ 300,000

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Computation of Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator
Net income	$ 5,624	$ 7,951	$ 7,904	$ 1,824	$ 5,264	$ 9,054	$ 6,735	$ 5,528	$ 23,303	$ 26,581	$ 12,654
Determination of shares (in thousands)
Weighted-average common shares outstanding									5,031	5,032	5,102
Dilutive effect - share-based awards									56	75	31
Diluted weighted-average common shares outstanding									5,087	5,107	5,133
Earnings per common share
Basic	$ 1.12	$ 1.58	$ 1.57	$ 0.36	$ 1.05	$ 1.80	$ 1.34	$ 1.10	$ 4.63	$ 5.28	$ 2.48
Diluted	$ 1.09	$ 1.55	$ 1.56	$ 0.36	$ 1.02	$ 1.76	$ 1.33	$ 1.09	$ 4.58	$ 5.21	$ 2.47

XML

Segment Information - Summary of Company's Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net sales
Net sales	$ 113,649	$ 119,217	$ 114,842	$ 97,153	$ 105,411	$ 108,413	$ 108,915	$ 98,139	$ 444,861	$ 420,878	$ 378,212
Interest income
Interest income									783	486	430
Interest expense
Interest expense									(2,217)	(1,290)	(1,061)
Income taxes
Income taxes									8,122	6,007	13,152
Net income (loss) attributable to Preformed Line Products Company shareholders
Net income (loss)	5,624	$ 7,951	$ 7,904	$ 1,824	5,264	$ 9,054	$ 6,735	$ 5,528	23,303	26,581	12,654
Expenditure for long-lived assets
Expenditure for long-lived assets									29,467	9,528	11,233
Depreciation and amortization
Depreciation and amortization									13,748	12,444	12,790
Identifiable assets
Identifiable assets	433,571				358,797				433,571	358,797
Long-lived assets
Long-lived assets	124,018				102,955				124,018	102,955
PLP-USA [Member]
Net sales
Net sales									178,301	169,040	147,646
Interest income
Interest income									0	0	0
Interest expense
Interest expense									(972)	(1,023)	(941)
Income taxes
Income taxes									3,299	367	7,142
Net income (loss) attributable to Preformed Line Products Company shareholders
Net income (loss)									8,054	9,900	(2,367)
Expenditure for long-lived assets
Expenditure for long-lived assets									4,928	3,672	4,474
Depreciation and amortization
Depreciation and amortization									5,393	5,452	5,389
Identifiable assets
Identifiable assets	127,428				118,171				127,428	118,171
Long-lived assets
Long-lived assets	51,097				51,506				51,097	51,506
The Americas [Member]
Net sales
Net sales									68,293	66,868	69,764
Interest income
Interest income									412	273	283
Interest expense
Interest expense									(466)	(111)	(10)
Income taxes
Income taxes									2,551	3,349	3,593
Net income (loss) attributable to Preformed Line Products Company shareholders
Net income (loss)									6,657	8,479	8,169
Expenditure for long-lived assets
Expenditure for long-lived assets									2,864	1,746	1,272
Depreciation and amortization
Depreciation and amortization									1,862	1,488	1,985
Identifiable assets
Identifiable assets	71,908				69,764				71,908	69,764
Long-lived assets
Long-lived assets	15,874				14,847				15,874	14,847
EMEA [Member]
Net sales
Net sales									79,158	69,773	63,916
Interest income
Interest income									192	102	47
Interest expense
Interest expense									(149)	(58)	(31)
Income taxes
Income taxes									616	1,204	1,583
Net income (loss) attributable to Preformed Line Products Company shareholders
Net income (loss)									2,935	3,527	4,088
Expenditure for long-lived assets
Expenditure for long-lived assets									5,304	1,591	2,329
Depreciation and amortization
Depreciation and amortization									2,528	1,808	1,678
Identifiable assets
Identifiable assets	97,126				57,263				97,126	57,263
Long-lived assets
Long-lived assets	16,419				11,768				16,419	11,768
Asia-Pacific [Member]
Net sales
Net sales									119,109	115,197	96,886
Interest income
Interest income									179	111	100
Interest expense
Interest expense									(630)	(98)	(79)
Income taxes
Income taxes									1,656	1,087	834
Net income (loss) attributable to Preformed Line Products Company shareholders
Net income (loss)									5,657	4,675	2,764
Expenditure for long-lived assets
Expenditure for long-lived assets									16,371	2,519	3,158
Depreciation and amortization
Depreciation and amortization									3,965	3,696	3,738
Identifiable assets
Identifiable assets	137,109				113,599				137,109	113,599
Long-lived assets
Long-lived assets	$ 40,628				$ 24,834				40,628	24,834
Intersegment Eliminations [Member]
Net sales
Net sales									(32,626)	(34,699)	(27,520)
Intersegment Eliminations [Member] | PLP-USA [Member]
Net sales
Net sales									(10,757)	(11,648)	(12,234)
Intersegment Eliminations [Member] | The Americas [Member]
Net sales
Net sales									(7,774)	(9,480)	(5,570)
Intersegment Eliminations [Member] | EMEA [Member]
Net sales
Net sales									(1,375)	(1,664)	(1,120)
Intersegment Eliminations [Member] | Asia-Pacific [Member]
Net sales
Net sales									$ (12,720)	$ (11,907)	$ (8,596)

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Income Taxes - Differences Between the Provision for Income Taxes at the U.S. Federal Statutory Rate and the Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
U. S. federal statutory tax rate	21.00%	21.00%	35.00%
Federal tax at statutory rate	$ 6,606	$ 6,843	$ 9,033
State and local taxes, net of federal benefit	308	273	82
U.S. federal permanent items	621	240	(60)
Global intangible low-taxed income	1,738	1,721	(116)
Foreign tax credits	(1,422)	(1,707)	0
Transition tax	0	(1,780)	2,592
Non-U.S. tax rate variances	929	1,011	(1,491)
Valuation allowance	(346)	(57)	88
Tax credits	(464)	(295)	(255)
Tax act impact, deferred rate	0	(680)	3,161
Other, net	152	438	118
Income taxes	$ 8,122	$ 6,007	$ 13,152

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Goodwill and Other Intangibles - Finite and Indefinite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-lived intangible assets
Gross Carrying Amount	$ 30,648	$ 22,445
Accumulated Amortization	(15,532)	(13,987)
Indefinite-lived intangible assets Goodwill	27,840	15,621	$ 16,544
Patents [Member]
Finite-lived intangible assets
Gross Carrying Amount	4,806	4,806
Accumulated Amortization	(4,806)	(4,788)
Land Use Rights [Member]
Finite-lived intangible assets
Gross Carrying Amount	1,128	1,134
Accumulated Amortization	(331)	(203)
Trademark [Member]
Finite-lived intangible assets
Gross Carrying Amount	1,718	1,707
Accumulated Amortization	(1,358)	(1,247)
Technology [Member]
Finite-lived intangible assets
Gross Carrying Amount	7,185	2,994
Accumulated Amortization	(1,708)	(1,334)
Customer Relationships [Member]
Finite-lived intangible assets
Gross Carrying Amount	15,811	11,804
Accumulated Amortization	$ (7,329)	$ (6,415)

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Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Supplemental profit sharing plan	$ 6,059,000	$ 4,946,000
Marketable securities	0	1,648,000
Contingent liabilities	581,000
Fair value liabilities Level 2	0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Supplemental profit sharing plan	0	0
Marketable securities		0
Contingent liabilities	581,000
Other Income [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Gain loss on change in fair value of marketable securities	2,000,000	1,000,000
Other Assets [Member] | Corporate Owned Life Insurance Policy [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash surrender value	5,500,000	2,800,000
Other Noncurrent Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent liabilities	600,000
Profit Sharing Plan [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Supplemental profit sharing plan	$ 6,100,000	$ 4,900,000

XML

Share-Based Compensation - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($) Deferral $ / shares shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares	May 10, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted under incentive plan	73,515
Forfeiture of restricted stock based unit	7,821
Deferred shares and held by the rabbi trust	267,641	269,630
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for awards	800,000
Long Term Incentive Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for awards	100,000
Time-Based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expenses | $	$ 500,000	$ 500,000	$ 400,000
Compensation cost expected to be recognized over period | $	$ 500,000
Weighted-average period	1 year 7 months 6 days
Time-Based RSUs [Member] | Retired Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture of restricted stock based unit	1,068
Performance-Based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average period	1 year 7 months 6 days
Performance-based compensation expense (income) | $	$ 3,900,000	3,700,000	2,700,000
Performance-Based RSUs [Member] | Grant 2018 and 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture of restricted stock based unit	6,753
Remaining compensation expense | $	$ 3,900,000
Service and Performance-based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefits from restricted share awards | $	$ 500,000	$ 200,000	$ 200,000
1999 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised, Number of Shares	750	0	4,800
1999 Stock Option Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of stock options | $	$ 100,000
Compensation expenses | $	0	$ 0	$ 0
1999 Stock Option Plan [Member] | Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash received for the exercise of stock options | $	$ 100,000
Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for awards	900,000
2016 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for awards				1,000,000
Incentive plan expiry date	May 10, 2026
2016 Incentive Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for awards				100,000
Granted, Number of Shares	15,000
2016 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for awards				900,000
Restricted shares granted under incentive plan	235,599
Deferred Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of deferrals | Deferral	2
Long Term Incentive Plan and 2016 Incentive Plan [Member] | After One Year [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards vesting percentage	50.00%
Long Term Incentive Plan and 2016 Incentive Plan [Member] | After Two Years [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards vesting percentage	75.00%
Long Term Incentive Plan and 2016 Incentive Plan [Member] | After Three Years [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards vesting percentage	100.00%
Long Term Incentive Plan and 2016 Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option issued under plan vest and expire	10 years
Long Term Incentive Plan and 2016 Incentive Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option issued under plan vest and expire	5 years
Long Term Incentive Plan Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised, Number of Shares	4,000	3,500	28,500
Total intrinsic value of stock options | $	$ 100,000	$ 100,000	$ 700,000
Cash received for the exercise of stock options | $	$ 200,000	$ 200,000	$ 1,500,000
Granted, Number of Shares	5,000	5,000	5,000
Weighted-average period	2 years 6 months
Estimated Forfeitures | $	$ 0
Weighted average grant date fair value options granted | $ / shares	$ 60.60
Expected compensation cost related to unvested awards not yet recognized | $	$ 200,000
Long Term Incentive Plan Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expenses | $	1,000,000	$ 1,000,000	$ 1,000,000
Excess tax benefits | $	$ 100,000	$ 100,000	$ 100,000