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

☐Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Transition Period From ________To _______

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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K~~ ~~(§229.405 of this chapter)~~ is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐

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.

~~Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes~~ ☐ No ☒

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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

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, ~~2018~~2021 was ~~$219,388,500~~$169,834,006 based on the closing price of such common shares, as reported on the NASDAQ National Market System. As of March ~~4, 2019,~~1, 2022, there were ~~5,062,324~~4,909,855 common shares of the Company ($2 par value) outstanding.

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:

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.

Preformed Line Products Company ~~and~~together with its subsidiaries (the “Company”) is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead, ground-mounted 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.

Energy Products are used ~~in the energy, communications, cable and special industries (i.e., metal building, tower and antenna industries, the agriculture and arborist industries, and marine systems industry)~~ to support, protect, terminate and secure both power conductor and fiber 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 ~~66%~~61%, ~~69%~~66% and 67% of the Company’s revenues in ~~2018, 2017~~2021, 2020 and ~~2016,~~2019, respectively.

Communications Products, including ~~splice cases,~~protective closures, are used to protect fixed line communication networks, such as ~~copper~~fiber optic cable or ~~fiber optic~~copper cable, from moisture, environmental hazards and other potential contaminants. The protective closures also support Fiber-to-the-Premises ("FTTP") applications by carrying fiber optic technology into homes and businesses. In addition to closures, the Company supplies the communication industry with 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. Communications products were approximately ~~21%~~30%, ~~22%~~24% and ~~21%~~22% of the Company’s revenues in ~~2018, 2017~~2021, 2020 and ~~2016,~~2019, 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 ~~13%~~9%, 9%10% and ~~12%~~11% of the Company’s revenues in ~~2018, 2017~~2021, 2020 and ~~2016,~~2019, respectively.

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.

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 practices, cultural constraints, 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.

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

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.

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 market place. 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.

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 have been neglected 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 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.

~~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.

The international operations of the Company are essentially the same as its domestic ~~(PLP-USA)~~("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.5

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.

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~~38,000 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.~~

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 ~~14.8%~~17.9% of ~~2018~~2021 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 ~~$2.4~~$3.3 million in ~~2018, $2.1~~2021, $2.8 million in ~~2017~~2020 and ~~$2.7~~$3.0 million in ~~2016.~~2019.

The Company applies for patents in the U.S. and other countries, as appropriate, to protect its significant patentable developments. As of December 31, ~~2018,~~2021, the Company had in force 4049 U.S. patents and ~~109~~131 international patents in 21 countries and had 1337 pending U.S. patent applications and 3447 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, ~~2018,~~2021, the Company had obtained U.S. registration on 3732 trademarks and ~~one~~4 trademark application remained pending. International registrations amounted to ~~242~~240 registrations in 3635 countries, with ~~two~~25 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.

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 or letters 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.

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.

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 ~~Electronics~~ and ~~Corning Cable Systems.~~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.

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 fiber communications ~~cable.~~devices. 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.~~business or be unable to meet customer demand. However, there are other potential sources available for these materials, and the Company believes that it could relocate the tooling and processes to other manufacturers if necessary.

Raw material costs ~~trended up~~increased throughout ~~2018.~~2021, partially as a result of supply chain constraints. The Company expects ~~stable~~ prices on metals and plastics to continue to increase throughout ~~2019.~~ 2022. Throughout 2021, the Company experienced significant raw material and transportation cost inflation that negatively affected its earnings. To offset these increased costs, the Company implemented several price increases in the U.S. and internationally in 2021. Due to the large volume in the Company's backlog, tailwinds from these increases are expected in 2022, however, continued cost inflation in these areas may require further price adjustments in future periods to maintain profit margin. Any price increases could have a negative effect on demand.

The Company’s order backlog is incredibly strong and was approximately ~~$92.9~~$242.9 million at the end of ~~2018~~2021 and ~~$93.8~~$115.1 million at the end of ~~2017.~~2020. All customer orders entered are firm at the time of entry. Substantially all ~~orders are~~of the backlog existing at December 31, 2021 is expected to be shipped ~~within a two~~ to ~~four-week period unless the customer requests an alternative date.~~customers in 2022.

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.

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 ~~2019~~2022 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~~Climate change may impact the Company’s business by increasing operating costs due to damage to its facilities and distribution systems and disruptions to its manufacturing processes due to the increased frequency and severity of storms, floods, fires, fog, mist, freezing conditions, sea-level rise and other climate-related events. As discussed above, climate change-related regulatory activity and developments may adversely affect the Company’s business and financial results by requiring the Company to reduce its emissions, make capital investments to modernize certain aspects of its operations, purchase carbon offsets, or otherwise pay for its emissions. The Company seeks to address these potential risks in its business continuity planning; however, such events could make it difficult for the Company to deliver products and services to its customers and cause it to incur substantial expense.

The Company is committed to supporting environmental, social and governance ("ESG") initiatives and to its efforts to being a responsible and sustainable contributor to the environment, its employees, and the communities in which it operates. The Company is committed to reducing harmful air emissions, improving gas, electric and water usage efficiency while implementing alternative energy sources. The Company’s locations are also focused on efforts to reduce its waste, water and energy consumption through the implementation of such programs as pollution prevention, recycling waste materials in both manufacturing and office facilities, reducing solid waste disposal, reducing harmful air emissions, and implementing alternative energy sources. An example of this commitment is through solar power installations at some of the Company’s locations around the globe which are currently generating 1.4 megawatts of power. The Company has also installed more efficient LED lighting at many of its operations to further reduce energy usage. Some locations have also achieved the ISO-14001: Environmental Management Systems Certification. The Company has adopted several policies, including the Code of Conduct, which stresses the importance of adhering to the laws and contributing to society.

In addition to monitoring and managing compliance with environmental regulations, the Company is also committed to sustainability and environmental protection initiatives. For example, the Company is committed to protecting wildlife by working with utility companies to design and manufacture wildlife protection products that aid in reducing wildlife mortalities from interaction with electric power distribution lines, structures, and equipment. Its Wildlife Protection line of products includes the BIRD-FLIGHT™ Diverter, RAPTOR PROTECTOR™ Platform and a Squirrel Deterrent System. The Company is also committed to partnering with its customers to develop innovative products, technologies, and services that meet their needs while mitigating risk to the environment and natural resources.

Additionally, the Company's product offerings further enhance global climate sustainability by bolstering grid reliability and efficiency, strengthening resilience to climate events, enabling transitions to renewable energy and upgrading aging infrastructure. The Company also quickly provides repair products to customers in the event of emergencies or natural disasters such as hurricanes, tornadoes, earthquakes, floods or ice storms.

The Company has always supported numerous charitable organizations and promotes community involvement. It makes donations to various organizations and encourages employees to do the same by offering matching donations. The Company shares its successes with the communities in which it operates at both a corporate and local level. Donations and investments in enhancing the lives of the people within the communities it impacts are an integral part of who the Company is and how it intends to represent its values.

At December 31, ~~2018,~~2021, the Company had ~~2,650~~2,927 employees, the overwhelming majority of which are full-time employees. Approximately ~~27%~~28% of the Company’s employees are located in the U.S.

The Company views its employees and culture as keys to its success and believes that its employees are its greatest asset. The Company aims to attract and retain employees who will be empowered to have the freedom to make decisions and take actions in the best interest of the Company, while being recognized and accountable for those decisions and actions. The Company focuses on innovation, inclusion and diversity, safety and engagement to develop the best talent.

The Company’s goal is to create a work environment that enables employees to perform in an environment where they feel respected and valued. As a global company with employees in over 20 countries, the Company values its broad diversity of cultures, ethnicities, races, languages, religions, sexual and gender orientations and is committed to cultivating a diverse, open and inclusive work environment. Workplace satisfaction is a key to attracting and retaining employees. The Company has built a culture where integrity and honesty guide the decision-making process, while promoting a culture of learning and talent development through tuition reimbursement, training, wellness programs, flexible benefits, and competitive compensation.

The Company has always had safety as a core value and promotes a health and safety culture that engages and empowers its employees to take responsibility for the health and safety of themselves and their co-workers. Further, throughout the COVID-19 pandemic, the Company has been successful with proactive measures to protect the health and safety of its employees and to maintain business continuity. The Company has established several safety protocols in its production and office areas, including, but not limited to, schedule rotations, face coverings, barriers, physical distance requirements, enhanced cleaning procedures, body temperature monitoring, vaccination clinics and employer-sponsored COVID-19 testing. The Company continues to assess all challenges related to COVID-19 and regularly updates its employees.

For more information on the risks related to the Company’s human capital resources, see Item 1A – Risk Factors.

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.

The Company’s business, operating results, financial condition and cash flows may be affected by a number of factors including, but not limited to those discussed below. Any of these factors could cause the Company’s actual results to vary material from recent results of future anticipated results.

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 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. During 2021, the Company implemented several price increases in the U.S. and internationally to mitigate rising material costs. This may have impacted or could continue to impact the Company's demand for its products. The Company may not be able to pass on further 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. The impact of the COVID-19 pandemic and recent inflation, which is expected to continue, has disrupted and may continue to disrupt the global supply chain and could have a material, adverse effect on the ability to secure raw materials and supplies.

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 (50%, 57% and 60% in 2021, 2020 and 2019, respectively). 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, acts of war, military conflict, international hostilities or the perception that hostilities may be imminent, terrorism and changes in diplomatic and trade relationships, including any retaliatory measures, sanctions or tariffs imposed in response to any acts of war or military conflicts in connection with its international operations. Any such disruption could cause delays in the production and distribution of the Company’s 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, in 2016, the United Kingdom held a referendum in which voters approved an exit from the European Union (“Brexit”). Continued uncertainty relating to Brexit could adversely impact the Company. The United Kingdom formally exited the European Union on January 31, 2020 and had a transition period that ended on December 31, 2020. Since January 1, 2021, the European Union – United Kingdom Trade and Cooperative Agreement has provisionally been in effect and entered into force on May 21, 2021. Due to the lack of comparable precedent, the ultimate effect of Brexit and the trade and cooperative agreement are difficult to predict and could continue to have a further adverse impact on global economic conditions, the stability of global financial markets and global market liquidity, including effects on the discontinuation, reform or replacement of LIBOR as a reference interest rate included under the Company’s credit facility. 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's financial results could be adversely affected by the change in interest rates.

Any period of interest rate increases may adversely affect the Company’s profitability. As of December 31, 2021, 38% of the Company's indebtedness bears interest at rates that float with the market. A higher level of floating rate debt would increase the exposure to changes in interest rates. Additionally, the interest rates on some of the Company’s debt is tied to LIBOR. The use of LIBOR is expected to be phased out by June 2023. The uncertainty regarding the transition from LIBOR to another reference rate or rates could have adverse impacts on the Company’s available debt that currently uses LIBOR as a reference rate, and ultimately, adversely affect our financial condition and results of operations.

The COVID-19 pandemic may continue to have a material adverse effect on the Company’s business, operating results and financial condition.

The Company is subject to public health concerns, including viral outbreaks such as the COVID-19 pandemic. Worldwide economic conditions have been significantly impacted by COVID-19 and the effects could continue to have an adverse effect on the Company’s operations and businesses as government authorities could continue to impose mandatory closures, work-from-home orders and social distancing protocols along with other unknown potential restrictions. COVID-19 has disrupted and could continue to disrupt the global supply chain, which could have a material, adverse effect on the Company’s ability to secure raw materials and supplies and could result in increased costs and the loss of sales and customers. The impact of COVID-19 could potentially exacerbate all the risks discussed and lead to the creation of new risks, any of which could have a material adverse effect on the Company’s business, operating results and financial condition. The duration and scope of the COVID-19 pandemic cannot be predicted, and therefore, any anticipated negative financial impact to the Company’s operating results cannot be reasonably estimated.

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.~~11

~~Price increases or decreased 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 could slow production and delivery to the Company’s customers.

International sales account for a substantial portion of the Company’s net sales (60%, 61% and 60% in 2018, 2017 and 2016) 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 result, 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, in connection with its international operations. Additionally. uncertainty relating to the United Kingdom’s vote to leave the European Union (“Brexit”) could adversely impact the Company. These risks of conducting business internationally may have a material adverse effect on the Company’s business, operating results and financial condition.

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 ~~relating to acquisitions. The factors affecting this exposure are~~ in addition to the risks faced in the Company’s day-to-day ~~operations. Acquisitions involve a number of special risks,~~operations, including the risks pertaining to integrating acquired businesses, realizing the benefits of acquired technology, ~~and~~ utilizing new ~~personnel.~~personnel and operating in new jurisdictions. 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, acts of war, military conflict, international hostilities or the perception that hostilities may be imminent, terrorism and changes in ~~developing countries,~~diplomatic and trade relationships, including any retaliatory measures, sanctions or tariffs imposed in response to any acts of war or military conflicts, 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 ofand financial condition.

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 ~~financial condition.~~ 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.

The Company is subject to various laws and regulation. For example, extensive environmental regulations related to air and water quality, the discharge of pollutants, climate change, 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. It is difficult to predict what impact, if any, changes in federal policy, including environmental and tax policies will have on our industry, the economy as a whole, consumer confidence and spending. As a result, the nature, timing and impact on our business of potential changes to the current legal and regulatory frameworks are uncertain. At any given time, wethe Company may also be subject to litigation or claims related to ~~our~~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 ~~our~~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 ~~we are~~the Company is required to pay substantial damages and expenses as a result of these or other types of lawsuits, ~~our~~the Company’s business and results of operations would be adversely affected. Regardless of whether any claims against usthe Company are valid or whether ~~we are~~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 ~~our~~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 ~~our~~the Company’s insurance coverage or financial statement accruals for any claims could adversely affect ~~our~~the Company’s business and ~~the results of our operations.~~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.~~claims or the requirement to pay a licensing fee or royalty. 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 ~~of operations~~ 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 ~~recently enacted~~proposed U.S. ~~tax reform legislation commonly referred to as~~Build Back Better Plan, which potentially could raise the U.S. ~~Tax Cuts and Jobs Act of 2017 (the “Tax Act”). Finally,~~corporate tax rate. Additionally, due to the COVID-19 pandemic, foreign governments ~~may enact~~facilitated economic stimulus by enacting new tax ~~laws in response~~legislation throughout 2021. Foreign governments will continue to ~~the Tax Act that could result in further~~contemplate future changes to ~~global taxation and~~tax law to assist in economic recovery. These future changes could materially affect the Company’s financial position and results of operations.

The 2017 Tax Act significantly changed the taxation of U.S. based, multinational corporations. Our compliance with the Tax Act requires the use of estimates in our financial statements and exercise of significant judgment in accounting for its provisions. The implementation of the Tax Act requires interpretations and implementing regulations by the U.S. Treasury Department and Internal Revenue Service, as well as state tax authorities. The legislation could be subject to potential amendments and technical corrections, any of which could materially lessen or increase certain adverse impacts of the legislation. As regulations and guidance evolve with respect to the Tax Act, and as we gather information and perform more analysis, our results may differ from previous estimates and may materially affect our financial position.

The Company ~~employs information technology systems to support its business,~~depends on maintaining a skilled workforce and any ~~material breach,~~ interruption ~~or failure may adversely~~in the workforce could negatively impact the Company’s ~~business.~~operating results and financial condition.

The Company’s ability to sustain and grow its business requires a commitment to hire, retain and develop a highly skilled and diverse management team and workforce. Failure to ensure that the Company has the depth and breadth of personnel with the necessary skill set and experience, the loss of key employees or interruptions in the Company's workforce, including unionization efforts and changes in labor relations, could impede the Company’s ability to deliver its growth objectives and execute its strategy. Additionally, the health of the Company's employees is critical and protection of its employees is the Company's top priority.

The Company ~~employs information technology systems~~continues to ~~support its business. Security breaches~~develop and ~~other disruptions to the Company’s information technology infrastructure could interfere with the Company’s operations,~~invest in human capital through continuing education, work-related certifications, and ~~compromise information belonging to the Company~~talent and ~~its customers, suppliers and employees, exposing the Company to liability which could adversely~~performance management systems. These efforts directly impact the ~~Company’s business~~ability to deliver its growth objectives 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 ofexecute 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 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.strategy.

The Company currently owns or leases 2640 facilities, which together contain approximately ~~2.1~~2.6 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:

~~The Company can be party to a variety of pending~~Information regarding the Company’s current legal proceedings ~~and claims arising~~is presented 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~~Note B 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 dampingNotes 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. Consolidated Financial Statements.

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 determined in a manner adverse to the Company, it could have a material effect on the Company’s financial 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, results of operations or cash flows.

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.

The following sets forth the name and recent business experience for each person who is an executive officer of the Company at March ~~1, 2019:~~4, 2022:

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.

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 Executive Vice President - U.S. Operations in October 2020. Prior to that, Mr. Hofstetter served as Vice President – Sales and Global Communications Markets and Business Development in April 2012.

Andrew S. Klaus was elected Chief Financial Officer in April 2020. Previous to his employment with the Company, Mr. Klaus served as the Chief Accounting Officer and VP Corporate Controller at Vertiv Holdings Co. since 2017. Mr. Klaus served as the Chief Financial Officer of Consolidated Precisions Products Corporation from 2013 to 2017 and Vice President, Corporate Controller for JMC Steel Group (now known as Zekelman Industries, Inc.) from 2007 to 2013.

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—~~President - Marketing and Global Business Development in April 2004.

~~William H. Haag~~John J. Olenik was elected Vice President ~~– Asia Pacific Region~~- Research and Engineering in January ~~2018.~~2020. Prior to that, Mr. ~~Haag served as~~Olenik was the Company’s ~~Vice President—International Operations~~Director of Engineering since ~~April 1999.~~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.

~~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.

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. Previous to his employment with the Company, Mr. Weisbarth served as the Controller from April 2013 to April 2014 and as the Vice President, Finance/Controller from April 2008 to April 2013 of AssuraMed, Inc., a division of Cardinal, Inc.

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 ~~4, 2019,~~1, 2022, the Company had approximately ~~1,900~~2,900 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.

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.

There were no equity compensation plans not approved by security holders during the year ended December 31, 2021. The approved transactions for the year ended December 31, 2021 are as follows.

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, ~~2013, December 31, 2014, December 31, 2015, December 31,~~ 2016, December 31, 2017, December 31, 2018, December 31, 2019, December 31, 2020, and December 31, ~~2018,~~2021, assuming in each case an initial investment of $100 on December 31, ~~2013,~~2016, and reinvestment of dividends.

On ~~December 13, 2017,~~July 28, 2021, the Board of Directors authorized a plan to repurchase up to an additional ~~228,138~~191,163 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~~There were no repurchases under this plan for the three months ended December 31, ~~2018:~~2021. There were 242,930 shares remaining to be purchased as of December 31, 2021.

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.

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 2630 sales and manufacturing operations in 1822 different countries.

We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America, ~~without~~excluding 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.

On February 28, 2019, the Company acquired SubCon Electrical Fittings GmbH (“SubCon”), headquartered in Dornbirn, Austria with manufacturing operations in Brno, Czech Republic. The acquisition is not considered material as assets acquired are less than 5% of our total consolidated assets. The acquisition of SubCon will strengthen our position in the global substation market and will expand our operational presence in Europe.

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~~There has ~~led to~~also been a ~~challenging environment to sustain consistent sales levels over the past few years. Prior to 2018, there had been a~~historical lack of commitment by developed countries to upgrade and strengthen their electrical grids and communication networks despite the growing need. ~~Low oil prices,~~More recently, increasing commodity prices, transportation costs, and ~~changes in governmental leadership in certain markets have affected construction projects worldwide which suggests~~foreign currency fluctuations coupled with the varying degrees of recovery from the COVID-19 pandemic throughout the global economy has led to a challenging operating environment. While these factors are likely to continue to provide inherent uncertainty going ~~forward.~~forward, the COVID-19 pandemic and other large scale environmental events have placed a renewed focus on key infrastructure priorities around the world, including bolstering grid reliability, strengthening grid resilience to climate events, upgrading aging infrastructure, enhancing communication networks and transitioning to renewable energy. Our focused portfolio is well-positioned to respond to these priorities.

In ~~2018,~~2021, sales in the energy market continued to ~~increase~~remain strong while sales in the communications market increased due to the number and scale of ~~transmission~~ projects in North America ~~while there was a continued decline in solar projects in the region.~~and globally. We believe that our leadership position in these and other markets and the ~~market and~~ ability to deliver reliable products quickly will ~~enable~~position 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~~mostly concentrated in the energy and communications markets, which is where we experienced our most significant top line growth in ~~2018.~~2021. 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~~expect 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~~We believe that we are well positioned to supply the needs of the world’s diverse energy and communication markets as a result of our focused portfolio, strategic operational footprint and product designs and technologies.

The following discussion describes our results of operations for the years ended December 31, 2021 and 2020. Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles ~~(GAAP)~~("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.

While the ongoing COVID-19 pandemic has not had a material effect on our overall results, it has continued to create challenges for us in countries that have significant outbreak mitigation strategies, namely, countries in our Asia-Pacific business segment, which led to temporary project postponements and continued to impact results in this segment. We are continuing to actively monitor the impact of COVID-19 on current and future periods and actively manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. We cannot predict the duration or scope of the COVID-19 pandemic or the magnitude of its impact on our business and results of operations. In addition, the impact of COVID-19 could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company. We continue to assess all challenges related to COVID-19 and plan accordingly.

Overall customer demand remained strong and contributed to record net sales revenue of $517.4 million for the year ended December 31, 2021. However, we also experienced significant commodity and transportation cost inflation that negatively affected our earnings. To mitigate the ongoing inflationary pressures, we implemented several price increases in the U.S. and internationally in 2021. Due to the large volume in our order backlog, we expect tailwinds from these increases into 2022, however, continued cost inflation in these areas may require further price adjustments going forward to maintain profit margin, and any price increases may have a negative effect on demand.

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. ~~As foreign~~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~~strengthened against the U.S. dollar in ~~2018~~2021 as opposed weakening in ~~contrast to the currencies strengthening in 2017.~~2020. The fluctuations of foreign currencies during the year ended December 31, ~~2018~~2021 had ~~an unfavorable~~a favorable impact on net sales of ~~$5.7~~$9.3 million ~~as compared to~~and an unfavorable impact of $16.9 million during the year ended December 31, 2020. The effect of currency translation had a favorable impact on net income in the year ended December 31, 2021 of ~~$5.2~~$0.4 million and an unfavorable impact of $1.3 million in ~~2017.~~the year ended December 31, 2020. On a reportable segment basis, the ~~unfavorable and favorable~~ impact of foreign currency translation on net sales and net income for the years ended December 31, ~~2018~~2021 and ~~2017,~~2020, respectively, was as follows:

The effect of currency translation had an unfavorable impact on net income in the year ended December 31, 2018 of $.2 million and a favorable impact on net income in 2017 of $.2 million. There was an incremental $.3 million in lossesLoss on foreign currency translation on operating income for the year ended December 31, ~~2018.~~2021 was $0.7 million. There ~~was a~~were transaction ~~loss~~losses of $0.3 million that were combined with losses on forward currency contracts of $0.7 million in the year ended

December 31, 2021 and $1.5 million of transaction losses in the year ended December 31, ~~2018 as compared to a transaction gain for the year ended December 31, 2017~~2020 which were partially mitigated by forward currency contract gains of ~~$.3~~$0.4 million as summarized in the following table:

Despite the continued ~~changes~~challenges in the ~~current~~ global economy, we believe our business ~~fundamentals~~portfolio 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~~our business to expand our market footprint, improve efficiency, develop new products, increase our capacity and become an even stronger supplier to our current and new customers. WeOur liquidity remains strong and we currently have a bank debt to equity ratio of ~~14.2% and~~18.8%. We can borrow needed funds at a competitive interest rate under our credit facility. ~~Debt decreased $1.5~~A consolidated increase in debt of $3.6 million as of December 31, ~~2018, driving~~2021 was partially a result of current year funding needs for the ~~decrease~~purchase of a new corporate aircraft to replace the former aircraft which was substantially offset by decreases in ~~our bank~~ debt ~~to equity ratio, compared to 15.5% at December 31, 2017.~~levels globally, most notably in variable debt instruments. See Note E "Debt and Credit Arrangements" 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~~Statements of Consolidated Income and the percentage of net sales for the years ended December 31, ~~2018~~2021 and ~~2017.~~2020. The Company’s past operating results are not necessarily indicative of future operating results.

Net sales. In ~~2018,~~2021, net sales were ~~$420.9~~$517.4million, an increase of ~~$42.7~~$51.0 million, or 11%, compared to ~~2017.~~2020. Excluding the ~~unfavorable~~favorable effect of currency translation, net sales increased ~~13%~~9% as summarized in the following table:

The increase in PLP-USA net sales of ~~$21.4~~$56.3 million, or ~~14%~~28%, was primarily due to a volume increase in communication and energy product ~~sales.~~sales, combined with benefits resulting from price increases in June and October of 2021. International net sales for the year ended December 31, ~~2018~~2021 were ~~unfavorably~~favorably affected by ~~$5.7~~$9.3 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 ~~$66.9~~$70.7 million ~~increased $5.3~~decreased $2.6 million, or 8%3%, primarily due to ~~higher~~decreased volume in energy ~~and~~product sales, partially offset by an in increase in communication product sales. EMEA net ~~sale~~ssales of ~~$69.8~~$95.9 million ~~increased $3.4~~decreased $0.5 million, or 5%1%, primarily due to volume ~~increases~~decreases in ~~energy~~communication products in the region. The Asia-Pacific net sales of ~~$115.2~~$93.2 million ~~increased $18.2 million, or 19%, compared to 2017. The increase in net sales is primarily~~ ~~due to a sales volume increase in energy, communication and special industries products.~~

~~Gross Profit.~~ ~~Gross profit of $132.2 million for 2018 increased $13.6~~decreased $11.6 million, or 12%, compared to ~~2017.~~2020 primarily due to the continued volume decreases from the postponement of large-scale projects caused by the ongoing COVID-19 pandemic.

Gross Profit. Gross profit of $166.2 million for 2021 increased $12.2 million, or 8%, compared to 2020. Excluding the ~~unfavorable~~favorable effect of currency translation, gross profit increased ~~$16.2~~$9.2 million, or ~~14%~~6%, as summarized in the following table:

PLP-USA gross profit of ~~$59.0~~$87.7 million increased by ~~$9.1~~$12.6 million, or 17%, compared to ~~2017~~2020 mostly due to an increase in sales ~~volume~~of $56.3 million and a shift in mix toward higher margin ~~products.~~products, most notably in the communications market, partially offset by the negative impact of rising commodity prices, freight costs, inflation and an increase in warranty costs. Incremental price increases were enacted in the PLP-USA region in 2021 to further mitigate the ongoing inflation and commodity price increases. International gross profit for the year ended December 31, ~~2018~~2021 was ~~unfavorably~~favorably impacted by ~~$2.6~~$3.1 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit ~~increase of $4.2~~decreased $.4 million, or 2%, which was primarily the result of ~~product margin improvement~~the year-over-year decrease in ~~the region due to a favorable shift in sales mix toward higher margin products combined with the $5.3 million improvement in~~net sales. EMEA gross profit decreased ~~$.4~~$2.0 million ~~despite the $3.4~~year-over-year, partially as a result of decreased sales of $0.5 million ~~increase in sales~~combined with increased expenses in the region, ~~primarily in lower margin energy products.~~largely due to higher freight and raw material costs. Asia-Pacific’s gross profit ~~increased $3.2~~decreased $1.0 million when compared to the year ended December 31, 2020, largely as ~~sales mix shifted to higher margin products combined with an increase~~a result of the year-over-year decrease in sales of ~~$18.2~~$11.6 million,. partially offset by manufacturing cost savings.

Costs and expenses. Costs and expenses of ~~$99.3~~$118.7 million for the year ended December 31, ~~2018~~2021 increased ~~$6.8~~$4.9 million, or 7%4%, when compared to ~~2017.~~2020. Excluding the ~~favorable~~unfavorable effect of currency translation, costs and expenses increased ~~$9.1~~$2.5 million, or ~~10%~~2%, as summarized in the following table:

PLP-USA costs and expenses of ~~$47.9~~$55.1 million increased ~~$3.7~~$2.3 million, or ~~8%.~~4% year-over-year. PLP-USA’s ~~year-over-year~~ increase was mainly attributable to ~~higher personnel related expenses, including benefits~~increased commissions of $2.1 million, ~~and~~ a ~~$1.1 million~~year-over-year incremental loss ~~in net~~on foreign currency ~~transaction~~ exchange ~~effect. Additionally, higher commission expense~~ of ~~$.2~~$1.3 million, ~~as a result~~partially offset by the prior year loss on sale of ~~increased sales, increased travel and entertainment expenses~~capital assets of ~~$.2~~$1.0 million ~~and increased professional fees~~combined with miscellaneous net decreases of ~~$.2 million contributed to the year-over-year increase. Foreign~~$0.1 million. PLP’s 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 ~~2018~~2021 year-end exchange rates. ~~International~~PLP’s costs and expenses for the year ended December 31, ~~2018~~2020 were ~~favorably~~unfavorably impacted by $2.3 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~~decrease of ~~$3.6~~$1.9 million was primarily due to a prior year litigation reserve of $2.2 million, partially offset by miscellaneous

net ~~loss on foreign currency transactional exchange~~decreases of ~~$1.9 million, higher personnel related costs of $1.6 million and higher professional fee expense of $.1~~$0.3 million. EMEA costs and expenses of ~~$15.2~~$25.5 million increased ~~$.7~~$1.5 million mainly due to higher personnel related ~~costs.~~costs of $1.8 million, partially offset by a decrease in bad-debt expense of $0.3 million. Asia-Pacific costs and expenses of ~~$22.2~~$24.3 million increased ~~$1.1~~$0.5 million primarily due to ~~higher~~an increase in personnel related ~~expenses of $1.0 million and increased professional fees of $.1 million.~~costs.

Other income, ~~(expense).~~net. Other ~~expense~~income, net of ~~$.3~~$1.3 million for the year ended December 31, ~~2018 remained flat as~~2021 was favorable by $1.0 million when compared to ~~2017.~~ other income, net for the twelve months ended December 31, 2020 of $0.4 million. Other income, net for year ended December 31, 2021 includes a pre-tax recovery of approximately $2.1 million related to a recent Brazilian Supreme Court decision that granted the Company the right to recover, through offset of federal tax liabilities, certain tax overpayments collected by the Brazilian government. During the year ended December 31, 2020, the Asia-Pacific segment recorded $1.1 million of income for COVID-19 related government subsidies which did not recur in 2021 which partially offset the current year income realized in Brazil.

Income taxes. Income taxes for the years ended December 31, ~~2018~~2021 and ~~2017~~2020 were ~~$6.0~~$13.2 million and ~~$13.2~~$10.8 million, respectively, based on pre-tax income of ~~$32.6~~$48.9 million and ~~$25.8~~$40.6 million, respectively. The effective tax rate for the years ended December 31, ~~2018~~2021 and ~~2017~~2020 was ~~18.4%~~27.0% and ~~51.0%~~26.6%, respectively, compared to the U.S. federal statutory rate of 21% and 35% for the years ended December 31, 2018 and 2017, respectively. 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% and 35% for 2018 and 2017, respectively and our effective tax rate:

~~Net income.~~ As a result of the preceding items, net income for the year ended December 31, 2018 was $26.6 million, compared to $12.7 million for 2017. Excluding the effect of currency translation, net income increased $14.1 million as summarized in the following table:

PLP-USA’s net income of $9.9 million was an increase of $12.3 million year over year, mainly due to the current year favorable income tax expense impact resulting from the newly enacted Tax Act of $6.7 million combined with a year-over-year increase in operating income of $5.6 million. International net income for the year ended December 31, 2018 was favorably affected by approximately $.2 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 $8.5 million increased $.6 million mainly as a result of a $.7 million increase in operating income, slightly offset by a $.1 million increase in income tax expense. EMEA net income decreased $.7 million as a result of a $1.1 million decrease in operating income offset by a year-over-year decrease in income taxes of $.4 million. Asia-Pacific net income improved $1.9 million mainly as a result of a $2.2 million increase in operating income offset by an increase in income tax expense for the region of $.3 million.

~~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, 2017 and 2016.~~

~~Net sales.~~ In 2017, net sales were $378.2 million, an increase of $41.6 million, or 12%, compared to 2016. Excluding the favorable effect of currency translation, net sales increased 11% as summarized in the following table:

The increase in PLP-USA net sales of $12.4 million, or 9%, was primarily due to a volume increase in transmission and distribution products. International net sales for the year ended December 31, 2017 were favorably affected by $5.2 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 $69.8 million increased $8.0 million, or 13%, primarily due to higher volume in energy and telecommunication sales. EMEA net sales of $63.9 million increased $5.9 million, or 10%, primarily due to volume increases in the telecommunication sales and transmission projects in the region. The Asia-Pacific net sales of $96.9 million increased $10.1 million, or 12%, compared to 2016. The increase in net sales is primarily related to sales volume increases in transmission sales, partially offset by a decrease in solar sales.

~~Gross Profit.~~ Gross profit of $118.6 million for 2017 increased $9.2 million, or 8%, compared to 2016. Excluding the favorable effect of currency translation, gross profit increased $8.1 million, or 7%, as summarized in the following table:

PLP-USA gross profit of $49.9 million increased by $2.6 million compared to 2016 mostly due to a shift in sales mix toward higher margin products. International gross profit for the year ended December 31, 2017 was favorably impacted by $1.1 million when local currencies were translated to U.S. dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit increase of $3.4 million was primarily the result of product margin improvement in the region due to a favorable shift in sales mix toward higher margin products combined with the $8.0 million improvement in sales. Higher personnel costs throughout the region due to inflation were a slight offset to the margin improvement. EMEA gross profit decreased $1.3 million despite the $5.9 million increase in sales in the region, primarily in lower margin energy products. Asia-Pacific’s gross profit increased $3.5 million as mix shifted to higher margin products combined with an increase in sales of $10.1 million.

~~Costs and expenses.~~ Costs and expenses of $92.5 million for the year ended December 31, 2017 increased $4.6 million, or 5.2%, compared to 2016. Excluding the unfavorable effect of currency translation, costs and expenses increased $3.7 million, or 4%, as summarized in the following table:

PLP-USA costs and expenses of $44.2 million increased $1.4 million, or 3%. Higher personnel related expenses, which include healthcare and benefits of $2.7 million and higher commission expense of $1.0 million, were partially offset by the non-recurrence of a $1.0 million charge in 2016 related to the lease expiration of the Company aircraft, a $.6 million improvement in net foreign currency transaction exchange effect combined with lower bad debt expense of $.5 million and various net expense decreases of $.2 million. Foreign currency exchange gains 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 2017 year-end exchange rates. International costs and expenses for the year ended December 31, 2016 were unfavorably impacted by $.9 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 million was primarily due to a net loss on foreign currency transactional exchange of $1.0 million, partially offset by lower bad debt expense of $.5 million and lower professional fee expense of $.3 million. EMEA costs and expenses of $13.9 million increased $1.2 million due to a net loss on foreign currency transactional exchange of $.4 million, higher personnel related costs of $.3 million, increased professional expense of $.1 million, increased commission expense of $.1 million combined with various net expense increases of $.3 million. Asia-Pacific costs and expenses of $21.1 million increased $.8 million primarily due to higher personnel related expenses of $1.6 million, partially offset by lower commission expense of $.3 million and reduced professional fees of $.3 million combined with various net expense reductions of $.2 million.

~~Other income (expense).~~ ~~Other expense for the year ended December 31, 2017 decreased $.2 million compared to 2016.~~

~~Income taxes.~~ ~~Income taxes for the years ended December 31, 2017 and 2016 were $13.2 million and $5.7 million, respectively, based on pre-tax income of $25.8 million and $21.0 million, respectively.~~ ~~The effective tax rate for the years ended December 31, 2017 and 2016 was 51.0% and 27.2%, respectively, compared to the U.S. federal statutory rate of 35%~~21.0%. 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 ~~35%~~21.0%:

A $0.2 million, or 0.6%, net decrease resulting from losses in certain jurisdictions where no tax ~~rate:~~

~~2017~~

~~A $2.5 million, or 9.6%, increase resulting primarily from a $2.6 million charge as a result of the Transition Tax and partially offset by other U.S. permanent items and state and local income taxes.~~

benefit was previously recognized.

~~A $3.2 million, or 12.2%, increase resulting from the net reduction in our deferred taxes due to the result of U.S. federal statutory rate decrease included in the Tax Act.~~

A $1.3 million, or 3.2%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.

~~A $1.5 million, or 5.8%, decrease resulting from earnings in jurisdictions with lower tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.~~

A $0.9 million, or 2.2%, net increase resulting from state and local taxes, net of federal benefit.

~~2016~~

~~A $.4 million, or 2.0%, decrease resulting from losses in certain jurisdictions where no tax benefit was previously recognized.~~

~~A $.5 million, or 2.2%, increase resulting primarily from incremental tax from the repatriation of foreign earnings, partially offset by other U.S. permanent items and state and local income taxes.~~

~~A $.2 million, or 0.9%, decrease of unrecognized tax benefits due to expiration of statutes of limitations.~~

~~A $1.5 million, or 7.1%, decrease resulting from earnings in jurisdictions with lower 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, ~~2017~~2021 was ~~$12.7~~$35.7 million, compared to ~~$15.3~~$29.8 million for ~~2016.~~2020. Excluding the effect of currency translation, net income ~~decreased $2.8~~increased $5.5 million as summarized in the following table:


	Year Ended December 31																		Year Ended December 31
									Change		Change																Change		Change
(Thousands of dollars)									Due to		Excluding																Due to		Excluding
									Currency		Currency			%													Currency		Currency			%
	2017			2016		Change			Translation		Translation			Change					2021			2020		Change			Translation		Translation			Change
Net income (loss)
Net income																		Net income
PLP-USA	$	(2,367	)	$	2,007	$	(4,374	)	$	0	$	(4,374	)		(218	)	%		$	24,384		$	16,564	$	7,820		$	0	$	7,820			47		%
The Americas		8,169			5,881		2,288			71		2,217			38					8,351			5,068		3,283			59		3,224			64
EMEA		4,088			6,243		(2,155	)		95		(2,250	)		(36	)				3,715			6,644		(2,929	)		335		(3,264	)		(49	)
Asia-Pacific		2,764			1,124		1,640			21		1,619			(144	)				(721	)		1,527		(2,248	)		20		(2,268	)		(149	)
Consolidated	$	12,654		$	15,255	$	(2,601	)	$	187	$	(2,788	)		(18	)	%		$	35,729		$	29,803	$	5,926		$	414	$	5,512			18		%

~~PLP-USA~~PLP-USA’s net income of ~~$2.0~~$24.4 million ~~was flat year over year.~~increased $7.8 million year-over-year, mainly due to an increase in operating income of $10.2 million, partially offset by an increase in income tax expense of $2.5 million. International net income for the year ended December 31, ~~2016~~2021 was ~~unfavorably~~favorably affected by ~~$1.5~~approximately $0.4 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 $8.4 million increased $3.5 million as a result of a $5.0 million increase in operating income, offset by an income tax expense increase of $1.5 million. EMEA net income increased $2.1 million as a result of a $2.5 million increase in operating income offset by an increase in income taxes of $.4 million. Asia-Pacific net (loss) income improved $4.5$3.2 million mainly as a result of a ~~$3.9~~$1.5 million increase in operating income combined with ~~the non-recurrence~~an increase in other income (expense) of $2.5

million, partially offset by an increase in income tax expense of $0.7 million. EMEA net income decreased $3.3 million as a result of a ~~prior year receivable settlement of $.8~~$3.5 million decrease in operating income, partially offset by a ~~lower year over year~~decrease in income tax expense. Asia-Pacific net income decreased $2.3 million mainly as a result of a $1.6 million decrease in operating income, a decrease in other income, net of $0.9 million, partially offset by a decrease in income tax ~~benefit~~expense for the region ~~which was $.2 million lower.~~of $0.2 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 ~~2018,~~2021, we used cash of ~~$9.5~~$18.4 million for capital expenditures. ~~We ended 2018 with $43.9~~At December 21, 2021, we had $36.4 million of cash, cash equivalents and restricted cash ~~(“cash”~~(collectively “Cash”). Our ~~cash~~Cash is held in various locations throughout the world. At December 31, ~~2018,~~2021, 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, ~~2018~~2021 and ~~2017~~2020 was ~~3.1~~2.6 to 1 and ~~3.3~~2.4 to 1, respectively. Total debt, including Notes payable, at December 31, ~~2018~~2021 was ~~$35.5~~$59.6 million. ~~At December 31, 2018, our unused availability under our line of credit was $49.8 million and our bank debt to equity percentage was 14.2%.~~ On ~~March 13, 2018, the Company~~April 17, 2020, we extended the term on its ~~$65~~$65.0 million ~~credit facility~~Credit Facility (the "Facility") from June 30, ~~2019~~2021 to June 30, ~~2021.~~2024 and added its Austrian subsidiary as a borrower on the Facility. All other terms ~~remain~~remained the same, including the interest rate at LIBOR plus 1.125% unless ~~its~~the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, ~~then~~at which point the LIBOR spread becomes 1.500%. ~~As of~~At December 31, ~~2018,~~2021, we had the ~~Company’s~~following borrowings on the $65.0 million Facility; the U.S. borrowed $3.4 million at 1.205%, our Polish subsidiary ~~had~~ borrowed ~~$.9~~$6.1 million at a rate of 1.125% plus the Warsaw Interbank Offer Rate with a term expiring June 30, 2021. As of December 31, 2018, the interest rates on the U.S. and Polish line of credit agreement were 3.63% and 2.77%2.455%, ~~respectively. As of December 31, 2018, the Company’s~~our Australian subsidiary ~~had~~ borrowed ~~$2.1~~$2.4 million at ~~a rate of 1.125% plus the Australian Bank Bill Swap Bid Rate with a term expiring June 30, 2021. As of December 31, 2018, the interest rate on the Australian line of credit agreement was 2.96%~~2.980% and our Austrian subsidiary borrowed $1.4 million at 1.216%. Under the ~~credit facility,~~Facility, at December 31, ~~2018, the Company~~2021, we had utilized ~~$15.2~~$13.3 million with ~~$49.8~~$51.7 million available, ~~under the line of credit~~ net of long-term outstanding letters of ~~credit.~~credit of $0.1 million. Our bank debt to equity percentage was 18.8%. The ~~PLP-USA line of credit provides for $5.0 million to be available to the Company’s subsidiaries. The line of credit~~Facility agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability. At ~~both~~ December 31, ~~2018 and 2017, the Company was~~2021, we were in compliance with ~~all~~these covenants.

On March 2, 2022, the we entered into an amendment to the Facility to increase the borrowing capacity from $65.0 million to $90.0 million. As part of this amendment, the index used to determine the interest rate changed from LIBOR to the Bloomberg Short Term Bank Yield Index ("BSBY"). The interest rate will now be defined as BSBY plus 1.125% unless the funded debt to Earnings before Interest, Taxes and Depreciation ration exceeds 2.25 to 1, at which point the BSBY spread becomes 1.500%. The amendment also allows us to change our rate from BSBY to the Second Overnight Financing Rate ("SOFR") at the its discretion. The amendment extended the maturity from June 30, 2024 to March 2, 2026. All other terms remain the same.

Our Asia-Pacific segment had $0.2 million and $0.6 million in restricted cash at December 31, 2021 and 2020, respectively. The restricted cash was used to secure bank debt and is included in Cash and Other assets for the years ended December 31, 2021 and 2020, respectively, on the balance sheet.

We ~~own a~~sold our corporate aircraft ~~with a remaining~~in December of 2020, thereby eliminating the balance due on the previous loan which was secured by the corporate aircraft. The proceeds of ~~$11.0~~the sale were used to pay off the debt associated with the former aircraft. On January 19, 2021, the Company received funding for a term loan in the amount of $20.5 million to fund the purchase of a new corporate aircraft. At December 31, 2021, the outstanding balance on the term loan was $18.8 million, of which ~~$1.4~~$2.1 million iswas classified as ~~short-term, with a term expiring~~ current. See Note E in ~~2026. The loan is secured by~~ the ~~purchased aircraft.~~Notes to Consolidated Financial Statements for more information.

We expect that our major source of funding for ~~2019~~2022 and beyond will be our operating cash flows, our existing cash and cash equivalents as well as our ~~line of credit~~Credit Facility 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 further expand our borrowing capacity, if ~~necessary,~~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, ~~2018~~2021 decreased ~~$1.7~~$8.8 million when compared to December 31, ~~2017.~~2020. Net ~~cash~~Cash provided by operating activities was ~~$23.0~~$33.6 million. The most significant net investing and financing uses of ~~cash~~Cash were net payments of ~~long-term~~ debt of ~~$85.5~~$14.2 million, capital expenditures of ~~$9.5 million, a combined net purchase of marketable securities and a company-owned life insurance policy of $4.7~~$18.4 million, share repurchases of ~~$4.2~~$5.3 million and dividends paid of ~~$4.2 million, partially offset by net debt and notes payable proceeds of $85.5~~$4.1 million. Currency had ~~a negative $1.6~~an unfavorable impact of $0.9 million ~~impact~~ on ~~cash~~Cash when translating foreign denominated financial statements to U.S. dollars.

Net ~~cash~~Cash provided by operating activities for the ~~year~~years ended December 31, ~~2018~~2021 and ~~2017~~2020 was ~~$23.0~~$33.6 million and ~~$33.8~~$41.6 million, respectively. The ~~$10.8~~$8.0 million decrease was primarily a result of an increase in cash ~~usage for operating assets (net~~used to fund working capital of ~~operating liabilities) of $24.4 million, which included a $5.3 million contribution to the pension plan,~~$26.9, partially offset by miscellaneous net favorable movements in non-cash items of $12.9 million and an increase in net income of ~~$13.9~~$6.0 million.

Net ~~cash~~Cash used in investing activities of ~~$14.0~~$18.2 million for the year ended December 31, ~~2018~~2021 represents an increase of ~~$11.5~~$4.2 million when compared to ~~cash~~Cash used in investing activities for the year ended December 31, ~~2017.~~2020. The increased use of ~~cash~~Cash was primarily related to ~~a reduction in cash provided~~the prior year Cash proceeds from ~~fixed-term deposits~~the sale of ~~$8.5~~property and equipment of $10.5 million, ~~along with net cash used~~primarily from the sale of ~~$4.7 million related to~~ the ~~purchase of marketable securities and a company-owned life insurance policy,~~corporate aircraft, partially offset by a decrease in ~~cash used for~~ capital expenditures of ~~$1.7~~$6.2 million.

Cash used in financing activities for ~~the year~~both years ended December 31, ~~2018~~2021 and 2020 was ~~$9.1 million compared to a use of $19.6 million in the year ended December 31, 2017.~~$23.2 million. The ~~$10.5 million improvement was primarily a result of a net favorable~~year-over-year change in cash usage was due to an increase in net debt ~~transactions~~payments of ~~$7.9~~$4.5 million, ~~in 2018 as compared to 2017 and~~partially offset by a ~~net~~ year-over-year decrease in cash used in capital stock transactions of ~~$2.6~~$4.4 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.

~~Contractual obligations and other commercial commitments are summarized~~ See Note F in the ~~following tables:~~Notes to Consolidated Financial Statements for more information.

As of December 31, 2021, the Company had total outstanding guarantees of $10.0 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, 2021, the Company had total outstanding letters of credit of $2.2 million.

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)

$
9,042

$
9,042

$
0

$
0

$
0

Long-term debt (B)

26,408

1,508

18,223

2,930

3,747

Capital leases

189

60

89

40

0

Operating leases

12,998

2,225

3,408

1,086

6,279

Purchase commitments

634

634

0

0

0

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

$
2,508

$
2,508

$
-

$
-

$
-

Guarantees

4,855

1,558

1,491

1,012

794

~~(A)~~

~~Interest on short-term debt is included in the table at interest rates from 2.83% to 9.40% in effect at December 31, 2018.~~

~~(B)~~

~~Interest on long-term debt is included in the table at interest rates from 2.71% to 4.60% based on the variable interest rates in effect at December 31, 2018.~~

~~(C)~~

The Company does not expect to make contributions to the Company’s defined benefit pension plan in 2019. 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~~Allowance for Credit Losses

We maintain an allowance for ~~doubtful accounts~~credit losses 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~~credit losses represents approximately ~~less than 3.5%~~3.0% and ~~3.8%~~2.8% of our trade receivables balance at December 31, ~~2018~~2021 and ~~2017,~~2020, respectively.

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 ~~allowance~~reserve for excess and obsolete inventory was ~~9.6%~~6.6% and ~~10.6%~~7.5% of gross inventory for the years ended December 31, ~~2018~~2021 and December 31, ~~2017,~~2020, 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 measurement date for our annual impairment test is October 1 of each year. We did not have any impairment for goodwill ~~utilizing~~for the years ended December 31, 2021 or 2020. See Note J for additional information.

We may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting units where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is performed to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that determination is made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the reporting unit.

For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market ~~comparables, and an overall~~approach, which uses comparable market ~~capitalization reasonableness test~~multiples, in computing fair value by reporting unit. WeThe Company then ~~compare~~compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. ~~Based on~~The fair value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the ~~assumptions as to growth, discount rates~~weighted-average cost of capital ("WACC"), and ~~the weighting used for each respective valuation methodology, results~~estimated market multiples, of ~~the valuations could be significantly changed. However, we believe~~which are affected by expectations of future market or economic conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units.

~~Our measurement date for our annual~~Impairment assessments inherently involve management judgments regarding a number of assumptions. Due to the multiple variables inherent in arriving at the estimates of the reporting unit's fair value, differences in assumptions could have an effect on the estimated fair value of a reporting unit and could result in goodwill impairment test is October 1 of each year. We performed our annual impairment tests for goodwill as of October 1, 2018. We did not have any impairment for goodwill for the years ended December 31, 2018 or 2017. See Note J for additional information.charges in a future period.

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~~Pension Obligations

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.

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, 2018, we did not record any activity 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 ~~4.25%~~2.92% at December 31, ~~2018~~2021 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 ~~8.0%~~6.50% 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.

~~RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS~~26

~~In March 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“A~~SU”) 2018-05, “Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118.” The ASU adds various Securities and Exchange Commission (“SEC”) paragraphs pursuant to the issuance of the December 2017 SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which was effective immediately. For additional details regarding SAB 118, refer to Note G “Income Taxes.”

In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The Company adopted ASU 2017-07 as of January 1, 2018. The adoption did not have a material impact on the Company’s consolidated statements of operations and since prior period reclassifications were deemed immaterial, the Company elected to not make a retrospective adjustment to prior period income statements.

In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted ASU 2016-18 as of January 1, 2018 using a retrospective transition method to each period presented. The cash, cash equivalents and restricted cash balance on the Company’s consolidated cash flow includes $.3 million and $1.2 million of restricted cash as of December 31, 2018 and December 31, 2017, respectively. Restricted cash is included in Other assets on the Company’s consolidated balance sheet in each period presented. The adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements. Refer to Note E “Debt Arrangements” for additional details regarding the Company’s restricted cash.

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” ASU 2016-16 modifies the recognition of income tax expense resulting from intra-entity transfers of assets other than

inventory. Pursuant to this amendment, entities should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This amendment eliminates the exception for an intra-entity transfer of assets other than inventory. The Company adopted ASU 2016-16 as of January 1, 2018 with no material impact on the Company’s consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”, which changes how companies recognize, measure, present and make disclosures about certain financial assets and financial liabilities. Under this guidance, entities have to measure certain equity investments, including available-for-sale securities, at fair value and recognize any changes in fair value in net income. ASU 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods therein. The Company adopted ASU 2016-01 effective January 1, 2018. Refer to Note K “Fair Value of Financial Assets and Liabilities” for additional details regarding the Company’s marketable securities.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09. ASU 2014-09 requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the amendment provides five steps that an entity should apply when recognizing revenue. The amendment also specifies the accounting of some costs to obtain or fulfill a contract with a customer and expands the disclosure requirements around contracts with customers. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date of the amendment to annual reporting periods beginning after December 15, 2017, including interim periods therein.

The Company implemented changes to processes and controls to meet the standard’s reporting and disclosure requirements and adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective transition method applied to contracts that were not yet completed at that date. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be presented based on the Company’s historic accounting policy. The cumulative impact of adopting ASU 2014-09 as of January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. Further, the Company does not expect the impact of the adoption of ASU 2014-09 to be material to its consolidated financial statements on an ongoing basis. Refer to Note L “Revenue” for additional details regarding the Company’s revenue recognition policy.

~~NEW ACCOUNTING STANDARDS TO BE ADOPTED~~

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.” The FASB issued the update to provide amended guidance to allow a reclassification from Accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. Additionally, under the new guidance an entity will be required to provide certain disclosures regarding stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, and the guidance may be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal income tax rate in the Tax Act is recognized. Early adoption is permitted. The Company is currently assessing the impact, if any, that the ASU will have 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, a lessee can make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. Lessees will also be 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 is required to be 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. This ASU is effective for interim and annual periods on January 1, 2019, and the Company will apply 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 will not elect the hindsight transitional practical expedient. The Company also will apply the practical expedient to not separate lease and non-lease components to new leases as well as existing leases through transition. The Company will elect an accounting policy to not apply recognition requirements of the guidance to short-term leases.

In July of 2018, the FASB issued ASU 2018-11, “Targeted Improvements to ASC 842,” which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the initial application of transition. The amendments in Topic 842 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted.

The Company established a cross-functional implementation team and is finalizing policy elections, the discount rate to be used on January 1, 2019, data and business processes and controls to support recognition and disclosure under the new standard. As discussed above, the primary impact upon adoption will be the recognition of right of use assets and lease obligations, on a discounted basis, of our minimum lease obligations as disclosed in Note F “Leases”. The adoption of this ASU is not expected to have a material impact on the Company’s results of operations, cash flows or debt covenants.

Item 7A. Quantitative and ~~Qualitative~~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. ~~The impact to the Company’s Consolidated financial statements was not material and is included in the December 31, 2018 results.~~ Revenue from operations in Argentina ~~was~~represented less than 2%1% of total consolidated net sales for the year ended December 31, ~~2018.~~2021 and less than 2% of consolidated net sales for the years ended December 31, 2020 and 2019.

As of December 31, ~~2018,~~2021, the Company had no$0.5 million in 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~~$5.3 million and on income before tax of ~~$2.7~~$1.6 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 ~~$35.5~~$43.2 million at December 31, ~~2018.~~2021. A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately ~~$.3~~$0.6 million for the year ended December 31, ~~2018.~~2021.

Included in the Company’s accounting for the 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, demographic 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 ~~4.25%~~2.92% and 2.69% at ~~both years ended~~ December 31, ~~2018~~2021 and ~~2017.~~2020, respectively. The discount rate is a significant factor in determining the amounts reported. A 50 basis point change in the discount rate of ~~4.25%~~2.92% used at December 31, ~~2018~~2021 would have a ~~$.1~~$3.4 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 ~~8.0% in both 2018~~6.50% and ~~2017.~~7.00% for the years ended December 31, 2021 and 2020, respectively. A 50 basis point change in the expected rate of return would have a ~~$.3~~$0.2 million effect on the Plan’s subsequent year’s net periodic pension cost.

As discussed elsewhere in this report, the continuing effects of COVID-19 could negatively impact the Company’s business and results of operations. Since we cannot predict the duration or scope of the COVID-19 pandemic or the possibility or severity of new variants, the potential negative financial impact to the Company’s results cannot be reasonably estimated but could be material. Although the recent deployment of vaccinations is expected to mitigate potential future adverse impact, the impact cannot be predicted with certainty.

Item 8. Financial ~~Statemen~~tsStatements 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, ~~2018~~2021 and ~~2017, and~~2020, 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, ~~2018~~2021, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the ~~“financial~~“consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company at December 31, ~~2018~~2021 and ~~2017,~~2020, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, ~~2018,~~2021, 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, ~~2018,~~2021, 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 ~~8, 2019~~4, 2022 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.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.


Quantitative Impairment Assessment of Goodwill

Description of the matter How we addressed the matter in our audit	At December 31, 2021, the Company’s goodwill was $28.2 million. As discussed in Note J to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level or more frequently if impairment indicators arise using either a qualitative or quantitative assessment. Under the quantitative assessment, goodwill is tested for impairment utilizing a combination of the income approach, which uses a discounted cash flow methodology, and the market approach, which uses comparable company market multiples, to estimate the fair value of each reporting unit. Auditing management’s quantitative goodwill impairment assessment for one reporting unit was complex and highly judgmental due to the significant estimation required to determine the fair value of the reporting unit. In particular, the fair value estimate was sensitive to significant assumptions, such as revenue growth rates, operating margins, weighted average cost of capital (WACC), and estimated market multiples, which are affected by expectations of future market or economic conditions. We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment process. This included controls over management’s review of the significant assumptions underlying the fair value determination described above. To test the estimated fair value of the Company’s reporting unit, we performed audit procedures that included, among others, assessing the methodologies used, testing the significant assumptions described above, and testing the underlying data used by the Company in its analysis. For example, we compared the significant assumptions used by management to current industry and economic trends and to historical results. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting unit that would result from changes in the assumptions. We also utilized our specialists to review the methodology, and certain assumptions such as the WACC and market multiples.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2008

Cleveland, Ohio

March ~~8, 2019~~4, 2022

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS


	December 31						December 31
	2018			2017			2021			2020
	(Thousands of dollars, except share and per share data)						(Thousands of dollars, except share and per share data)
ASSETS
Cash and cash equivalents	$	43,609		$	44,358
Accounts receivable, less allowances of $3,178 ($3,325 in 2017)		73,139			73,972
Cash, cash equivalents and restricted cash							$	36,406		$	45,175
Accounts receivable, less allowances of $3,744 ($3,464 in 2020)								98,203			92,686
Inventories - net		85,259			77,886			114,507			97,537
Prepaids		6,205			3,434
Prepaid taxes		3,169			5,266
Prepaid expenses								19,778			17,660
Other current assets		2,882			2,214			3,217			3,256
TOTAL CURRENT ASSETS		214,263			207,130			272,111			256,314
Property, plant and equipment - net		102,955			108,598			149,774			125,965
Intangibles - net		8,458			10,020
Operating lease, right-of-use assets								12,400			13,139
Goodwill		15,621			16,544			28,194			29,508
Other intangible assets - net								12,039			14,443
Deferred income taxes		6,900			7,774			3,839			10,863
Other assets		10,600			9,719			10,661			10,855
TOTAL ASSETS	$	358,797		$	359,785		$	489,018		$	461,087
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable	$	26,414		$	25,141		$	42,376		$	31,646
Notes payable to banks		9,042			864			16,423			17,428
Operating lease liabilities, current								1,986			2,240
Current portion of long-term debt		1,448			1,448			3,116			5,216
Accrued compensation and amounts withheld from employees		11,153			11,461
Accrued compensation								13,756			14,736
Accrued expenses and other liabilities		12,582			14,686			17,522			17,508
Accrued profit-sharing and other benefits		6,982			6,284			7,947			8,252
Dividends payable		1,051			1,046			1,301			1,292
Income taxes payable		815			1,903			1,108			5,456
TOTAL CURRENT LIABILITIES		69,487			62,833			105,535			103,774
Long-term debt, less current portion		24,960			34,598			40,048			33,333
Unfunded pension obligation		5,259			10,664
Pension obligation								3,653			5,826
Operating lease liabilities, non-current								8,154			8,743
Deferred income taxes		1,711			2,090			2,791			2,921
Other noncurrent liabilities		8,010			11,063			12,737			14,421
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares - $2 par value per share, 15,000,000 shares authorized, 5,020,410 and 5,038,207 issued and outstanding, at December 31, 2018 and December 31, 2017, respectively		12,662			12,593
Common shares issued to rabbi trust, 269,630 and 289,026 shares at December 31, 2018 and December 31, 2017, respectively		(11,008	)		(11,834	)
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,907,143 and 4,902,233 issued and outstanding, at December 31, 2021 and December 31, 2020, respectively								13,185			13,028
Common shares issued to rabbi trust, 243,138 and 265,508 shares at December 31, 2021 and December 31, 2020, respectively								(10,102	)		(10,940	)
Deferred compensation liability		11,008			11,834			10,102			10,940
Paid-in capital		34,401			29,734			47,814			43,134
Retained earnings		334,170			311,765			410,673			379,035
Treasury shares, at cost, 1,310,387 and 1,258,069 shares at
December 31, 2018 and December 31, 2017, respectively		(72,280	)		(68,115	)
Treasury shares, at cost, 1,685,387 and 1,611,927 shares at December 31 and
December 31, 2020, respectively								(93,836	)		(88,568	)
Accumulated other comprehensive loss		(59,583	)		(47,440	)		(61,719	)		(54,551	)
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY								316,117			292,078
Noncontrolling interest								(17	)		(9	)
TOTAL SHAREHOLDERS' EQUITY		249,370			238,537			316,100			292,069
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	358,797		$	359,785		$	489,018		$	461,087

See notes to consolidated financial statements.

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED INCOME


	Year Ended December 31									Year Ended December 31
	2018			2017			2016			2021			2020			2019
	(In thousands, except per share data)									(In thousands, except per share data)
Net sales	$	420,878		$	378,212		$	336,634		$	517,417		$	466,449		$	444,861
Cost of products sold		288,647			259,584			227,220			351,175			312,436			304,266
GROSS PROFIT		132,231			118,628			109,414			166,242			154,013			140,595
Costs and expenses
Selling		36,358			34,048			31,799			40,539			35,637			36,609
General and administrative		45,398			43,160			42,057			55,257			56,335			51,806
Research and engineering		15,107			14,327			14,025			19,188			17,625			17,187
Other operating expenses - net		2,434			985			54			3,709			4,209			2,366
		99,297			92,520			87,935			118,693			113,806			107,968
OPERATING INCOME		32,934			26,108			21,479			47,549			40,207			32,627
Other income (expense)
Interest income		486			430			291			169			259			783
Interest expense		(1,290	)		(1,061	)		(844	)		(2,023	)		(2,396	)		(2,217	)
Other income (expense)		458			329			27
Other income - net											3,201			2,501			265
		(346	)		(302	)		(526	)		1,347			364			(1,169	)
INCOME BEFORE INCOME TAXES		32,588			25,806			20,953			48,896			40,571			31,458
Income taxes		6,007			13,152			5,698
Income tax expense											13,175			10,810			8,122
NET INCOME	$	26,581		$	12,654		$	15,255		$	35,721		$	29,761		$	23,336
BASIC EARNINGS PER SHARE
Net income	$	5.28		$	2.48		$	2.95
DILUTED EARNINGS PER SHARE
Net income	$	5.21		$	2.47		$	2.95
Cash dividends declared per share	$	0.80		$	0.80		$	0.80
Weighted-average number of shares outstanding - basic		5,032			5,102			5,166
Weighted-average number of shares outstanding - diluted		5,107			5,133			5,178
Net loss (income) attributable to noncontrolling interests											8			42			(33	)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS										$	35,729		$	29,803		$	23,303
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic											4,907			4,923			5,031
Diluted											4,970			4,984			5,087
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:
Basic										$	7.28		$	6.05		$	4.63
Diluted										$	7.19		$	5.98		$	4.58

See notes to consolidated financial statements.

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME


	Year Ended December 31									Year Ended December 31
	2018			2017			2016			2021			2020			2019
	(Thousands of dollars)									(Thousands of dollars)
Net income	$	26,581		$	12,654		$	15,255		$	35,721		$	29,761		$	23,336
Other comprehensive income (loss), net of tax:
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment		(12,285	)		10,070			(3,579	)		(8,376	)		3,835			2,028
Recognized net actuarial gains		386			269			326			469			363			397
Gain (loss) on unfunded pension obligations		(244	)		(410	)		35			739			(1,396	)		(195	)
Other comprehensive income (loss), net of tax		(12,143	)		9,929			(3,218	)
Comprehensive income	$	14,438		$	22,583		$	12,037
Other comprehensive (loss) income, net of tax											(7,168	)		2,802			2,230
Less: Comprehensive loss (income) attributable to noncontrolling interests											8			42			(33	)
Comprehensive income attributable to Preformed Line Products Company shareholders										$	28,561		$	32,605		$	25,533

See notes to consolidated financial statements.

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED CASH FLOWS


	Year Ended December 31									Year Ended December 31
	2018			2017			2016			2021			2020			2019
	(Thousands of dollars)									(Thousands of dollars)
OPERATING ACTIVITIES
Net income	$	26,581		$	12,654		$	15,255		$	35,721		$	29,761		$	23,336
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		12,444			12,790			11,996			15,564			13,838			13,748
Provision for accounts receivable allowances		1,206			1,165			2,184			2,895			2,053			2,132
Provision for inventory reserves		2,402			1,205			2,736			3,052			2,035			1,283
Deferred income taxes		314			2,436			2,249			6,544			(3,380	)		(1,274	)
Share-based compensation expense		4,236			3,055			1,366			4,163			4,089			4,396
(Gain) loss on sale of property and equipment		(156	)		160			(20	)		(184	)		1,108			10
Other - net		192			213			539			656			6			292
Changes in operating assets and liabilities assets:
Accounts receivable		(4,499	)		(9,205	)		(2,292	)		(11,576	)		(10,539	)		(9,777	)
Inventories		(13,703	)		(2,208	)		(6,354	)		(24,154	)		80			(9,455	)
Prepaid expenses											(2,974	)		(8,786	)		(932	)
Trade accounts payables and accrued liabilities		3,048			4,957			4,270			11,558			6,952			6,087
Income taxes, net		(1,896	)		7,134			(4,999	)
Accrued income and other taxes											(4,332	)		3,470			634
Contributions to company pension plan		(5,340	)		(225	)		(991	)		0			(330	)		0
Other - net		(1,853	)		(301	)		35			(3,335	)		1,285			(3,263	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		22,976			33,830			25,974			33,598			41,642			27,217
INVESTING ACTIVITIES
Capital expenditures		(9,528	)		(11,233	)		(24,725	)		(18,384	)		(24,569	)		(29,467	)
Proceeds from the sale of property and equipment		195			142			70			141			10,525			54
Purchase of marketable securities		(4,690	)		0			0			0			0			(496	)
Proceeds from sale of marketable securities		2,953			0			0			0			0			2,309
Purchase of company owned life insurance policy		(2,953	)		0			0
Fixed-term deposits		0			8,527			(3,815	)
Purchase of company owned life insurance policies											0			0			(2,309	)
Acquisition of businesses, net of cash											0			0			(18,894	)
NET CASH USED IN INVESTING ACTIVITIES		(14,023	)		(2,564	)		(28,470	)		(18,243	)		(14,044	)		(48,803	)
FINANCING ACTIVITIES
Increase (decrease) in notes payable to banks		8,446			(537	)		851			376			9,465			(355	)
Proceeds from long-term debt		76,030			55,581			70,274			98,919			90,847			93,036
Payments of long-term debt		(85,496	)		(63,981	)		(57,742	)		(113,537	)		(110,083	)		(64,124	)
Dividends paid		(4,088	)		(4,099	)		(4,170	)		(4,128	)		(4,184	)		(4,230	)
Excess tax benefits from share-based awards	0			0				(2	)
Proceeds from issuance of common shares		222			1,962			248			409			252			213
Purchase of common shares for treasury		(191	)		(2	)		(3,108	)		(177	)		(5,836	)		(2,800	)
Purchase of common shares for treasury from related parties		(3,974	)		(8,475	)		(1,962	)		(5,092	)		(3,626	)		(4,026	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(9,051	)		(19,551	)		4,389			(23,230	)		(23,165	)		17,714
Effects of exchange rate changes on cash and cash equivalents		(1,591	)		1,359			(1,539	)		(894	)		1,479			(775	)
Net (decrease) increase in cash, cash equivalents and restricted cash		(1,689	)		13,074			354			(8,769	)		5,912			(4,647	)
Cash, cash equivalents and restricted cash at beginning of year		45,599			32,525			32,171			45,175			39,263			43,910
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR⁽¹⁾	$	43,910		$	45,599		$	32,525		$	36,406		$	45,175		$	39,263

~~(1)~~

Includes restricted cash of $.3 million, $1.2 and $1.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. For further information regarding restricted cash, refer to Note E, “Debt Arrangements.”

(1) Non-cash investing and financing activities: The Company purchased a new corporate aircraft during the year ended December 31, 2021 with a term loan in the principal amount of $20.5 million. For further information regarding this transaction, refer to Note E, “Debt and Credit Arrangements.”

See notes to consolidated financial statements.

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

(In thousands, except share and per share data)

Balance at January 1, 2016

$
12,478

$
(12,052
)

$
12,052

$
22,916

$
292,311

$
(54,570
)

$
(47,916
)

$
(6,235
)

$
218,984

Net income

15,255

15,255

Foreign currency translation adjustment

(3,579
)

(3,579
)
Recognized net actuarial loss, net of tax
   provision of $196

326

326

Gain on unfunded pension obligations,
   net of tax provision of $21

35

35

Total comprehensive income

12,037

Share-based compensation

1,366

(27
)

1,339

Excess tax benefits from share-based awards

2

2

Purchase of 118,430 common shares

(5,070
)

(5,070
)
Issuance of 15,131 common shares

30

345

375

Common shares issued to rabbi trust of
   646, net

(2
)

2

0

Cash dividends declared - $.80 per share

(4,124
)

(4,124
)
Balance at December 31, 2016

$
12,508

$
(12,054
)

$
12,054

$
24,629

$
303,415

$
(59,640
)

$
(51,495
)

$
(5,874
)

$
223,543

Net income

12,654

12,654

Foreign currency translation adjustment

10,070

10,070

Recognized net actuarial loss, net
   of tax provision of $199

269

269

(Loss) on unfunded pension obligations,
   net of tax provision of $247

(410
)

(410
)
Total comprehensive income

22,583

Share-based compensation

3,055

(231
)

2,824

Purchase of 121,626 common shares

(8,475
)

(8,475
)
Issuance of 42,080 common shares

85

2,050

2,135

Common shares distributed from rabbi trust of 8,255, net

220

(220
)

0

Cash dividends declared - $.80 per share

(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

Net income

26,581

26,581

Foreign currency translation adjustment

(12,285
)

(12,285
)
Recognized net actuarial gain, net
   of tax provision of $139

386

386

(Loss) on unfunded pension obligations,
   net of tax benefit of $77

(244
)

(244
)
Total comprehensive income

14,438

Share-based compensation

4,236

(152
)

4,084

Purchase of 52,318 common shares

(4,165
)

(4,165
)
Issuance of 34,521 common shares

69

431

500

Common shares distributed from rabbi trust of 19,396, net

826

(826
)

0

Cash dividends declared - $.80 per share

(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


																		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, 2019		$	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 - $0.80 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
Net income													29,803												29,803			(42	)		29,761
Foreign currency translation adjustment																			3,835						3,835						3,835
Recognized net actuarial gain, net of tax provision of $112																						363			363						363
Loss on unfunded pension obligations, net of tax benefit of $433																						(1,396	)		(1,396	)					(1,396	)
Total comprehensive income																									32,605			(42	)		32,563
Share-based compensation											4,089		(148	)											3,941						3,941
Purchase of 120,848 common shares																(9,462	)								(9,462	)					(9,462	)
Issuance of 88,377 common shares			180								191														371						371
Common shares distributed from rabbi trust of 19,396, net					41			(41	)																0						0
Cash dividends declared - $0.80 per share													(3,912	)											(3,912	)					(3,912	)
Balance at December 31, 2020		$	13,028	$	(10,940	)	$	10,940		$	43,134	$	379,035		$	(88,568	)	$	(47,847	)	$	(6,704	)	$	292,078		$	(9	)	$	292,069
Net income													35,729												35,729			(8	)		35,721
Foreign currency translation adjustment																			(8,376	)					(8,376	)					(8,376	)
Recognized net actuarial gain, net of tax provision of $145																						469			469						469
Loss on unfunded pension obligations, net of tax benefit of $229																						739			739						739
Total comprehensive income																									28,561			(8	)		28,553
Share-based compensation											4,163		(166	)											3,997						3,997
Purchase of 73,460 common shares																(5,268	)								(5,268	)					(5,268	)
Issuance of 78,730 common shares			157								517														674						674
Common shares distributed from rabbi trust of 22,370, net					838			(838	)																0						0
Cash dividends declared - $0.80 per share													(3,925	)											(3,925	)					(3,925	)
Balance at December 31, 2021		$	13,185	$	(10,102	)	$	10,102		$	47,814	$	410,673		$	(93,836	)	$	(56,223	)	$	(5,496	)	$	316,117		$	(17	)	$	316,100

See notes to consolidated financial statements.

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, cash equivalents and restricted cash (“Cash”) are stated at fair value and consist of highly liquid investments with original maturities of three months or less at the time of acquisition. Restricted cash is included on the Cash and cash equivalents on the Company’s Consolidated Balance Sheets.

Accounts Receivable Allowances

The Company maintains an allowance for ~~doubtful accounts~~credit losses for estimated losses resulting from the inability of its customers to make required payments. ~~The~~Prior to the adoption of Financial Accounting Standards Board (“FASB”) ASC 326 “Financial Instruments – Credit Losses", the allowances for uncollectible accounts receivable iswere based upon the number of days the accounts are past due, the current business and macroeconomic environment, geographic considerations and specific information such as bankruptcy or liquidity issues of its customers. Rather than recognizing losses when they are deemed to be probable, the Company now uses a current expected credit loss model in order to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments, mainly trade receivables. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns and other analyses of historical data trends. 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)~~(“FIFO”) or average cost methods. Inventories are carried at ~~the lower of cost or market.~~net realizable value. Reserves are maintained for estimated obsolescence or excess inventory based on past usage and future demand.

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 allowance for excess and obsolete inventory was 9.6% and 10.6% for the years ended December 31, 2018 and December 31, 2017, respectively. If the impact of market conditions deteriorates from those projected by management, additional inventory reserves may be necessary.

Fair Value of Financial Instruments

Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 825, “Disclosures about Fair Value of Financial ~~Instruments”,~~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;~~years; buildings, forty ~~years;~~years; building improvements, five to forty ~~years;~~years; machinery and equipment, three to ten ~~years;~~years; and aircraft, fifteen ~~years.~~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, ~~2018~~2021 and ~~2017.~~2020.

Goodwill and Other Intangibles

Goodwill and other intangible assets are generally recoded as a result ~~from~~of a business ~~acquisitions.~~acquisition. Goodwill represents the excess of purchase price over the fair value of the tangible and identifiable net assets acquired during a business combination and is not subject to amortization but is subject to annual impairment testing. Goodwill is reviewed for impairment annually on October 1 or more frequently when changes in circumstances indicate the carrying amount may be impaired. Such events or changes may include, but are not limited to, a significant deterioration in overall economic conditions, changes in the business climate of the Company's industry, overall performance indicators, a decline in the Company's market capitalization, business reorganization or restructuring or disposal of all or part of a reporting unit.

Goodwill is tested for impairment at the reporting unit level, and is based on the net assets for each reporting unit, including goodwill and intangible assets. The Company’s reporting units are equivalent to the reportable operating segments, except for the Americas segment which has 2 reporting units (Canada and Other Americas). Goodwill is assigned to each reporting unit, as this represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The Other Americas reporting unit does not have any allocated goodwill.

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~~four years to eighty-two years. The Company has 0 indefinite lived intangible assets other than ~~one year to twenty years.~~goodwill. 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 July 2010 are being amortized~~consumed, using either a projected cash flow basis method or the straight-line ~~method over their useful lives. This~~method. The straight-line method ~~was more appropriate because~~is used in circumstances in which it better ~~reflected~~reflects 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 when the carrying amount may not be recoverable, consistent with its policy for assessing other long-lived assets. ~~Goodwill~~Approximately $0.3 million of impairment charges were recorded in 2021 related to finite-lived intangible assets.

The Company may use both quantitative and ~~intangible assets~~qualitative approaches when testing goodwill for impairment. A qualitative analysis is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales and gross profit margins, discount rates and other relevant qualitative factors. These trends and factors are ~~also reviewed for impairment annually or more frequently when changes in circumstances indicate~~compared to, and based on, the ~~carrying amount may be impaired, or~~assumptions used in the ~~case~~most recent quantitative analysis performed for each reporting unit to determine if it is more likely than not that the fair value of ~~finite-lived intangible assets, when~~ the reporting unit exceeds its carrying ~~amount may not be recoverable. Events or circumstances~~amount. If that ~~would result in an impairment review primarily include operations reporting losses or a significant change in~~determination is made, no further evaluation is necessary. Otherwise, the ~~use of an asset. Impairment charges are recognized pursuant to FASB ASC 350-20, “Goodwill”.~~

~~The~~ Company performs ~~the annual~~a quantitative impairment test ~~for goodwill utilizing~~on the reporting unit.

For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market ~~comparables, and an overall~~approach, which uses comparable market ~~capitalization reasonableness test~~multiples, 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~~The fair value estimates are subjective and sensitive to significant assumptions, such as future cash flows, revenue growth rates, operating margins, the weighted-average cost of capital ("WACC"), and estimated market multiples, of which are affected by expectations of future market or economic conditions. The future cash flows are based on the ~~assumptions as~~Company’s long-term operating plan and a terminal value was used to ~~growth, discount rates and~~estimate the ~~weighting used for each respective valuation methodology, results~~reporting unit’s cash flows beyond the period covered by the operating plan. The WACC is an estimate of the ~~valuations could be significantly changed. However, the~~overall after-tax rate of return required by equity and debt market holders of a business enterprise. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units.

~~The Company performed its annual impairment test for goodwill~~36

Impairment assessments inherently involve management judgments regarding a number of assumptions such as ~~of October 1, 2018 and 2017 and determined that no adjustment~~those described above. Due to the ~~carrying~~multiple variables inherent in arriving at the estimates of the reporting unit's fair value, ~~was required for~~differences in assumptions could have an effect on the ~~years ended December 31, 2018~~estimated fair value of a reporting unit and ~~2017.~~could result in goodwill impairment charges in a future period.

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. Payment terms vary by the type and location of the customer and the products offered but are generally short-term in nature. 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 ~~$2.4~~$3.3 million in ~~2018, $2.1~~2021, $2.8 million in ~~2017~~2020 and ~~$2.7~~$3.0 million in ~~2016.~~2019.

Income Taxes

Income taxes are computed in accordance with the provisions of FASB ASC 740, “Income ~~taxes”~~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. Tax legislation commonly known as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) includes a mandatory one-time tax on certain accumulated earnings of foreign subsidiaries, and as a result, these previously unremitted earnings for which no U.S. deferred tax liability had been accrued have now been subject to U.S. tax. Notwithstanding the U.S. taxation of these amounts, the Company intends to continue to invest most or all of these earnings, as well as its capital in these subsidiaries, indefinitely outside of the U.S. and do not expect to incur any significant, additional taxes related to such amounts. The Company will monitor cash balances at each of its foreign subsidiaries on an ongoing basis.

In January 2018, the Financial Accounting Standard Board released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or to treat any taxes on GILTI inclusions as a period cost are both acceptable methods subject to an accounting policy election. The Company has elected to account for GILTI as a component of tax expense in the period incurred.

Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected on the Consolidated Financial Statements. Deferred tax liabilities and assets are determined based on the differences between the book and tax basis of particular assets and liabilities and operating loss carryforwards using tax rates in effect for the years in which the differences are expected to reverse.

Deferred tax assets are recognized to the extent that the Company believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

Uncertain tax positions are recorded in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than ~~50 percent~~ likely than not to be realized upon ultimate settlement with the related tax ~~authority~~.authority.

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.

The actuarial gain in 2021 was primarily the result of an increase in the Plan discount rate from 3.50% in 2020 to 2.69% in 2021.

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:

The ~~2018~~2021 pre-tax unfunded pension obligation ~~loss~~gain of ~~$0.3~~$1.0 million included a gain of ~~$2.7~~$1.5 million due to a ~~.5%~~.23% increase in the discount rate to ~~4.25%~~2.92%, a ~~gain~~loss of ~~$.2~~$0.1 million associated with the industry updates to the mortality table used ~~offset by~~and a loss of ~~$.5~~$0.3 million due to demographic ~~changes combined with a loss of $2.7 million resulting from asset~~changes. Asset performance ~~below~~exceeding the ~~8.0%~~6.50% rate of return ~~assumption. The estimated net loss for~~assumption had a negligible effect on the ~~Plan that will be amortized from Accumulated other comprehensive income into periodic benefit cost for 2019 is $.5 million.~~ unfunded obligation.There is no0 prior service cost to be amortized in the future.

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

The net periodic pension cost for ~~2018~~2021 was based on a long-term asset rate-of-return of ~~8.0%~~6.50%. 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~~

At December 31, 2021 and 2020, the Plan’s ~~mix of assets and~~pooled investment funds were measured at fair value using the net asset value ("NAV"). The NAV is based on the ~~average historical returns and expected future returns for such mix, an expected long-term rate-of-return of 8.0% is justified.~~

~~At December 31, 2018 and 2017, the fair~~ value of the ~~Plan~~ assets ~~included inputs in Level 1: Quoted market prices in~~owned by the plan, less liabilities. These pooled assets are not quoted on an active ~~markets for identical assets or liabilities and Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.~~exchange. The fair value of the Plan assets ~~as of~~at December 31, ~~2018~~2021 and ~~2017, by category, are as follows:~~2020 was $37.8 million and $36.8 million, respectively.

The Plan weighted-average asset allocations at December 31, ~~2018~~2021 and ~~2017,~~2020, by asset category, are as follows:

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.

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million to fund the purchase of a corporate aircraft. In September 2020, the Company made a deposit of $6.8 million toward the purchase of the aircraft which was subsequently refunded in January 2021 and the full amount of the $20.5 million purchase price was drawn on the loan. The aircraft replaces the Company’s previously owned aircraft, which was sold in December 2020. The proceeds of the sale were used to pay off the debt associated with the previously-owned aircraft. The term of the new loan is 120 months at a fixed interest rate of 2.744%. The loan is payable in 119 equal monthly installments, which commenced on March 1, 2021 with a final payment of any outstanding principal and accrued interest due and payable on the final monthly payment date. Of the $18.8 million outstanding on this debt facility at December 31, 2021, $2.1 million was classified as current. The loan is secured by the aircraft.

On ~~March 13, 2018,~~April 17, 2020, the Company extended the term on its ~~$65~~$65.0 million ~~credit facility~~Credit Facility ("the Facility") from June 30, ~~2019~~2021 to June 30, ~~2021.~~2024 and added its Austrian subsidiary as a borrower on the Facility. All other terms remain the same, including the interest rate at LIBOR plus ~~1.125%~~1.125% unless ~~its~~the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, ~~then~~at which point the LIBOR spread becomes ~~1.500%~~1.500%. ~~As of~~At December 31, ~~2018,~~2021, the Company had the following borrowings on the $65.0 million Facility; the U.S. borrowed $3.4 million at 1.205%, the Company’s Polish subsidiary ~~had~~ borrowed ~~$.9~~$6.1 million at ~~a rate of 1.125% plus~~2.455%, the Warsaw Interbank Offer Rate with a term expiring June 30, 2021. As of December 31, 2018, the interest rates on the U.S. and Polish line of credit agreement were 3.63% and 2.77%, respectively. As of December 31, 2018, the

Company’s Australian subsidiary ~~had~~ borrowed ~~$2.1~~$2.4 million at ~~a rate of 1.125% plus~~2.980% and the ~~Australian Bank Bill Swap Bid Rate with a term expiring June 30, 2021. As of December 31, 2018, the interest rate on the Australian line of credit agreement was 2.96%~~Company’s Austrian subsidiary borrowed $1.4 million at 1.216%. Under the ~~credit facility,~~Facility, at December 31, ~~2018,~~2021, the Company had utilized ~~$15.2~~$13.3 million with ~~$49.8~~$51.7 million available, ~~under the line of credit~~ net of long-term outstanding letters of ~~credit.~~credit of $0.1 million. Our bank debt to equity percentage was 18.8%. The ~~PLP-USA line of credit provides for $5.0 million to be available to the Company’s subsidiaries. The line of credit~~Facility agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability. At ~~both~~ December 31, ~~2018 and 2017,~~2021, the Company was in compliance with ~~all~~these covenants.

~~The~~On April 25, 2019, the Company ~~own~~borrowed $8.0 million U.S. dollars on behalf of its Indonesian subsidiary at a ~~corporate aircraft~~rate of 3.501% with a ~~remaining balance due~~term expiring on ~~the loan of $11.0~~April 30, 2024. At December 31, 2021, $5.9 million was outstanding on this debt facility, of which ~~$1.4~~$0.8 million is classified as ~~short-term, with a~~current.

On August 16, 2021, the Company's New Zealand subsidiary extended the term ~~expiring in 2026. The~~of its $3.8 million debt facility from August 26, 2021 to August 26, 2024. All other terms remain the same, including the interest rate of 3.650%. Of the $3.2 million outstanding on this debt facility at December 31, 2021, $0.2 million is classified as current. This loan is secured by the ~~purchased aircraft.~~Company's New Zealand subsidiary's land and building.

The Company’s Asia Pacific segment had ~~$.3~~$0.2 million and ~~$1.2~~$0.6 million in restricted cash at December 31, ~~2018~~2021 and ~~2017,~~2020, respectively. The restricted cash iswas used to secure bank debt and is included in Cash and cash equivalents and Other current assets on the ~~balance sheet.~~Company’s Consolidated Balance Sheets at December 31, 2021 and 2020, respectively.

Aggregate maturities of long-term debt during the next five years are as follows: ~~$1.4 million for 2019, $1.5 million for 2020, $16.7 million for 2021, $1.5~~$3.1 million for 2022, $3.1 million for 2023, $16.3 million for 2024, $4.9 million for 2025 and ~~$5.2~~$15.8 million thereafter.

Interest paid was ~~$1.8~~$1.6 million in ~~2018, $1.0~~2021, $1.9 million in ~~2017~~2020 and ~~$.7~~$2.0 million in ~~2016.~~2019.

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 ~~nonperformance.~~non-performance. As of December 31, ~~2018,~~2021, the Company had total outstanding guarantees of ~~$4.9~~$10.0 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, ~~2018,~~2021, the Company had total outstanding letters of credit of ~~$2.5~~$2.2 million.

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 ~~year~~years ended December 31 are summarized as follows:

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:

~~The aggregate amortization expense for other intangibles with finite lives, ranging from 4 to 82 years, for each of the years ended December 31, 2018, 2017 and 2016 was $1.0 million~~. Amortization expense is estimated to be $0.9 million for 2019, $0.9 million for 2020, $.8 million for 2021, $.8 million for 2022 and $.8 million for 2023. The weighted-average remaining amortization period is approximately 16.3 years. The weighted-average remaining amortization period by intangible asset class; patents, 7.0 years; land use rights, 57.0 years; trademark, 8.6 years; technology, 12.9 years and customer relationships, 11.4 years.51

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:

~~Level 1~~

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

•

Quoted prices for similar assets in active markets;

~~Level 2~~

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

•

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

~~Quoted prices for similar assets in active markets;~~

•

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

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

•

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

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

~~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.~~

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, ~~2018 (there were no financial instruments measured at fair value at December 31, 2017):~~2021 and 2020:

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


Description	Balance as of December 31, 2021		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign currency forward contracts	$	534	$	0	$	534	$	0
Total Assets	$	534	$	0	$	534	$	0

Liabilities:
Supplemental profit sharing plan	$	8,015	$	0	$	8,015	$	0
Total Liabilities	$	8,015	$	0	$	8,015	$	0

Description	Balance as of December 31, 2020		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign currency forward contracts	$	359	$	0	$	359	$	0
Total Assets	$	359	$	0	$	359	$	0

Liabilities:
Supplemental profit sharing plan	$	7,143	$	0	$	7,143	$	0
Foreign currency forward contracts		56		0		56		0
Total Liabilities	$	7,199	$	0	$	7,199	$	0

~~During the year ended December 31, 2018,~~The Company operates internationally and enters into intercompany transactions denominated in foreign currencies. Consequently, the Company ~~invested $4.7 million in marketable securities, principally equity-based mutual funds,~~is subject to ~~mitigate~~market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. The Company currently uses foreign currency forward contracts to reduce the risk ~~associated with the investment returns on the Company’s Supplemental Profit Sharing Plan discussed below.~~related to some of these transactions. These ~~marketable securities are comprised~~contracts usually have maturities of available-for-sale securities. During the year ended December 31, 2018, the Company sold $3.0 million from the marketable securities to fund a Corporate Owned Life Insurance Policy (“COLI”), resulting90 days or less and generally require an exchange of foreign currencies for U.S. dollars at maturity at rates stated in the ~~$1.6 million of marketable securities reported that~~contracts. These contracts are ~~reported at fair value within Other current assets on~~not designated as hedging instruments under U.S. GAAP. Accordingly, the ~~Company’s consolidated balance sheet as of December 31, 2018. Changes~~changes in the fair value of the ~~securities~~foreign currency forward contracts are recognized in each accounting period in “Other operating expense - net” on the Consolidated Statements of ~~$.1 million were recognized within Other income, net within~~Income together with the ~~consolidated statements of income for~~transaction gain or loss from the ~~twelve-month period~~related balance sheet position. For the twelve months ended December 31, ~~2018. At December 31, 2018,~~2021 and 2020, the ~~cash surrender value~~Company recognized a net loss of ~~the COLI was $2.8~~$0.7 million and isgain of $0.4 million, respectively, on foreign currency forward contracts. The gains and losses on foreign currency forward contracts are recorded in Other ~~assets~~operating expense, net on the Company’s ~~consolidated balance sheet.~~ Statement of Consolidated Income.

The Company has a non-qualified Supplemental Profit Sharing Plan for its executives. The liability for this unfunded Supplemental Profit Sharing Plan was ~~$4.9 million and $4.8~~$8.0 million at December 31, ~~2018~~2021 and $7.1 million at December 31, ~~2017, respectively, and is~~ 2020.These amounts are

recorded within Other noncurrent liabilities on the Company’s ~~consolidated balance sheets. During January 2018, the Company amended the~~Consolidated Balance Sheets. The Supplemental Profit Sharing Plan ~~to allow the~~allows participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds. The ~~company then~~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.

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

At December 31, ~~2018,~~2021, 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, 2018.~~ Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt are as follows:

December 31, 2018

December 31, 2017

Fair Value

Carrying Value

Fair Value

Carrying Value

Long-term debt and related current maturities

$
27,017

$
26,408

$
35,369

$
36,046


	December 31, 2021				December 31, 2020
	Fair Value		Carrying Value		Fair Value		Carrying Value
Long-term debt and related current maturities	$	46,577	$	43,164	$	38,726	$	38,549

Note L –- Revenue

Revenue recognition

~~Net sales include products~~Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services and is primarily based on shipping ~~and handling charges, net of estimates for product returns. Revenue is~~terms. Sales are measured as the amount of consideration the Company expects to receive in exchange for transferring products. ~~All revenue is recognized when the~~

Net sales include products and shipping and handling charges, net of estimates for product returns. The Company ~~satisfies the performance obligations under the contract and control of the~~estimates product ~~is transferred to the customer, primarily~~returns based on ~~shipping terms.~~historical return rates. 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~~Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized, and payment is due is not significant. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales.

PLP records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical ~~return rates.~~experience, trend analysis, and projected market conditions in the various markets served.

Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are typically earned at the completion of the contract when the customer is invoiced or when the customer pays PLP.

Sales of products and services varies by segment and are discussed in Note M, "Segment Information".

Disaggregated revenue

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


	Year Ended December 31, 2021
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		57	%		68	%		55	%		71	%		61	%
Communications		37	%		29	%		39	%		3	%		30	%
Special Industries		6	%		3	%		6	%		26	%		9	%
Total		100	%		100	%		100	%		100	%		100	%


	Year Ended December 31, 2020
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		62	%		78	%		57	%		70	%		66	%
Communications		32	%		17	%		36	%		4	%		24	%
Special Industries		6	%		5	%		7	%		26	%		10	%
Total		100	%		100	%		100	%		100	%		100	%

Credit losses for receivables

The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. The Company uses a current expected credit loss model in order to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments, mainly trade receivables. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns and other analyses of historical data trends. Receivable balances are written off against an allowance for credit losses after a final determination has been made. The change in the allowance for credit losses includes expense and net write-offs, which are identified in the following table:

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
%


	2021			2020			2019
Allowance for credit losses, beginning of period	$	2,848		$	3,224		$	2,652
Additions charged to costs and expenses		931			1,279			1,294
Write-offs		(435	)		(1,527	)		(697	)
Foreign exchange and other		(253	)		(128	)		(25	)
Allowance for credit losses, end of period	$	3,091		$	2,848		$	3,224

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.~~Asia-Pacific.

The Company reports its segments in ~~four~~4 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. NoNaN single customer accounts for more than ten percent of the Company’s consolidated revenue. U.S. net sales for the ~~year~~years ended December 31, ~~2018, 2017,~~2021, 2020, and ~~2016~~2019 were ~~$169.0~~$257.6 million, ~~$147.6~~$201.2 million and ~~$135.3~~$178.3 million, respectively. U.S. long-lived assets as of December 31, ~~2018~~2021 and ~~2017~~2020 were ~~$51.5~~$71.7 million and ~~$53.2~~$44.2 million, respectively.

The following table presents a summary of the Company’s reportable segments for the ~~year~~years ended December 31, ~~2018, 2017~~2021, 2020 and ~~2016.~~2019. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profits in inventory.


	Year Ended December 31
	2021			2020			2019
Net sales
PLP-USA	$	257,602		$	201,277		$	178,301
The Americas		70,732			74,192			68,293
EMEA		95,922			91,108			79,158
Asia-Pacific		93,161			99,872			119,109
Total net sales	$	517,417		$	466,449		$	444,861

Intersegment sales
PLP-USA	$	6,176		$	9,702		$	10,757
The Americas		9,486			9,938			7,774
EMEA		2,784			3,682			1,375
Asia-Pacific		21,610			14,452			12,720
Total intersegment sales	$	40,056		$	37,774		$	32,626

Interest income
PLP-USA	$	0		$	0		$	0
The Americas		138			112			412
EMEA		4			67			192
Asia-Pacific		27			80			179
Total interest income	$	169		$	259		$	783

Interest expense
PLP-USA	$	(665	)	$	(741	)	$	(972	)
The Americas		(368	)		(586	)		(466	)
EMEA		(309	)		(233	)		(149	)
Asia-Pacific		(681	)		(836	)		(630	)
Total interest expense	$	(2,023	)	$	(2,396	)	$	(2,217	)

Income taxes
PLP-USA	$	8,185		$	6,161		$	3,299
The Americas		3,250			2,461			2,551
EMEA		1,492			1,768			616
Asia-Pacific		248			420			1,656
Total income taxes	$	13,175		$	10,810		$	8,122


Net income attributable to Preformed Line Products Company shareholders
PLP-USA	$	24,384		$	16,564		$	8,054
The Americas		8,351			5,068			6,657
EMEA		3,715			6,644			2,935
Asia-Pacific		(721	)		1,527			5,657
Total net income	$	35,729		$	29,803		$	23,303


	Year Ended December 31
	2021		2020		2019
Expenditure for long-lived assets
PLP-USA	$	12,750	$	9,536	$	4,928
The Americas		1,289		3,527		2,864
EMEA		2,785		3,007		5,304
Asia-Pacific		1,560		8,499		16,371
Total expenditures for long-lived assets	$	18,384	$	24,569	$	29,467

Depreciation and amortization
PLP-USA	$	6,195	$	5,321	$	5,393
The Americas		1,855		1,710		1,862
EMEA		3,146		2,797		2,528
Asia-Pacific		4,368		4,010		3,965
Total depreciation and amortization	$	15,564	$	13,838	$	13,748


	As of December 31
	2021		2020
Identifiable assets
PLP-USA	$	177,288	$	137,689
The Americas		78,766		75,438
EMEA		106,929		106,922
Asia-Pacific		126,035		141,038
Total identifiable assets	$	489,018	$	461,087

Long-lived assets
PLP-USA	$	71,726	$	44,184
The Americas		15,663		16,507
EMEA		17,931		18,362
Asia-Pacific		44,454		46,912
Total long-lived assets	$	149,774	$	125,965

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.

In 2016, the Company purchased 7,703 common shares of the Company from current Officers and other employees, at a price per share ranging between $42.10 and $45.20, which was calculated from a 30-day average of market price. The Audit Committee of the Board of Directors approved these transactions.

On August 23, 2016, the Company purchased 27,448 shares of the Company from a trust for the benefit of Barbara P. Ruhlman and a foundation of which Barbara P. Ruhlman, Robert G. Ruhlman and Bernard Karr are officers, at a price per share of $44.66 which was calculated from a 30-day average of market price. The purchase was consummated pursuant to Share Purchase Agreements both dated August 23, 2016, between the Company and the foundation, and the Company and the trust. The Audit Committee of the Board of Directors approved these transactions.

On December 29, 2016, the Company purchased 5,000 shares from a current Officer, at a price per share of $56.38, which was calculated from a 30-day average of market price. The Audit Committee of the Board of Directors approved this transaction.

The Company’s Australian subsidiary ~~utilizes~~previously utilized copper extrusion services from Cast Alloy. ~~For each~~As of December 31, 2020, the ~~years~~Company’s Australian subsidiary no longer utilized the copper extrusion services from Cast Alloy, therefore, there was 0 expense recorded during that year or in the current year. During the year ended December 31, ~~2018, 2017 and 2016,~~2019, PLP-Australia incurred a total of ~~$.2~~$0.1 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~~Austrian subsidiary ~~Electropar~~ currently ~~leases~~has a loan due, carrying an interest rate of 3.0%, to one ~~parcel~~if its current employees which is reflected on the Company’s balance sheet in the amount of ~~property,~~$0.1 million. Interest incurred on which it has its corporate office, manufacturing and warehouse space. The entities leasing the property to Electropar are 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 2018. Forthis loan during the year ended December 31, ~~2017, Electropar incurred less than $.1~~2021 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 each of the years ended December 31, 2021, 2020 and 2019, the Company paid $0.2 million in lease expenses. The lease is valid for ~~such lease expense. 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 2 current employees. During the year ended December 31, ~~2016, Electropar leased two parcels~~2021, the Company paid $0.3 million in lease expenses and during each of property which were owned, in part, by Grant Wallace, a former Director, and incurred a total of $.3 million annually for such lease expense. The Audit Committee of the Board of Directors approved these transactions.

The Company’s Belos operation previously hired temporary employees through a temporary work agency, Flex-Work Sp. Z.o.o., which is 50% owned by Agnieszka Rozwadowska. Agnieszka Rozwadowska is the wife of Piotr Rozwadowska, the Managing Director of the Belos operation located in Poland. For the years ended December 31, ~~2018, 2017~~2020 and ~~2016, Belos incurred a total~~2019, the Company paid $0.2 million in lease expenses. The lease term is for 5 years from its original effective date of ~~$.0 million, $.0 million and $.4 million, respectively, for such temporary labor expense. The Audit Committee~~April 1, 2019.

~~During 2018,~~years ended December 31, 2021, 2020 and 2019, the Company paid approximately ~~$.1~~$0.1 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.

On October 28, 2020, the Board of the Directors of the Company approved the appointment of David C. Sunkle to serve on its Board of Directors effective upon his retirement at December 31, 2020 for a term commencing January 1, 2021 and ending when his successor has been duly elected and qualified at the annual meeting of shareholders in 2022 or until his earlier resignation or removal. In addition, Mr. Sunkle has a consulting agreement with the Company that expires on December 31, 2025.

~~The following table summarizes~~On January 2, 2022, Director Emeritus Barbara P. Ruhlman passed away at the age of 89. Barbara was member of the Company’s ~~results~~Board of ~~operations for each~~Directors from 1988 to 2016, at which time she elected to resign and was appointed as the Company’s Director Emeritus. Barbara was the daughter of the ~~quarters~~Company’s founder, Thomas F. Peterson, and was the mother of the Company’s current Chief Executive Officer, Robert G. Ruhlman. A Company-owned life insurance policy was maintained for Barbara until her death. At December 31, 2021, the cash surrender value was recorded in ~~2018~~Other assets on the Company’s Consolidated Balance Sheets. The Company expects to receive cash proceeds from the life insurance policy of approximately $7.0 million during the first quarter of 2022 and ~~2017:~~will be recorded in the Company’s Consolidated Financial Statements upon receipt.

On ~~February 28, 2019,~~January 4, 2022, the Company acquired ~~SubCon Electrical Fittings GmbH (“SubCon”~~all issued and outstanding shares of Maxxweld Conectores Eletricos Ltda. ("Maxxweld"), a Brazilian entity headquartered in ~~Dornbirn, Austria with manufacturing operations in Brno, Czech Republic. The acquisition is not considered material as assets acquired are less than 5% of the Company’s total consolidated assets.~~Curitiba, Brazil, from its shareholders. Maxxweld designs and manufactures substation connector systems and accessory hardware for high voltage AC systems. The acquisition of ~~SubCon~~Maxxweld will expand and strengthen the Company's operational and technical capabilities in the region while supporting its overall substation strategy. The purchase price was approximately $11.2 million as of the closing date. The purchase price is subject to a holdback of approximately $1.8 million. To fund the Maxxweld acquisition, the Company borrowed $11.2 million on the Facility.

On March 1, 2022, the Company acquired all issued and outstanding shares of Holplast, s.r.o (“Holplast”), an entity headquartered in Prostejov, Czech Republic from its shareholder. Holplast specializes in injection molding and will expand the Company’s operational capabilities in the region and strengthen the Company’s position in the global ~~substation market~~communications market. The purchase price was approximately $5.3 million with a holdback of $0.8 million.

To fund the Holplast acquisition, the Company borrowed $4.4 million on its Facility. After the incremental borrowings to fund both the Maxxweld and Holplast, the Company had total borrowings on the Facility of $35.1 million as of March 2, 2022.

On March 2, 2022, the Company amended its credit facility to increase the capacity from $65.0 million to $90.0 million. As part of this amendment, the index used to determine the interest rate changed from LIBOR to the Bloomberg Short Term Bank Yield Index (“BSBY”). The interest rate will ~~expand~~now be defined as BSBY plus 1.125% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the BSBY spread becomes 1.500%. The amendment also allows the Company to change its ~~operational presence~~rate from BSBY to the Secured Overnight Financing Rate (“SOFR”) at the Company’s discretion. The amendment extended the maturity from June 30, 2024 to March 2, 2026. All other terms remain the same. The Company does not expect this change in ~~Europe.~~index to have a material impact on the Company’s consolidated financial statements.

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

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, ~~2018.~~2021.

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.

Management, with the participation of the Company's Chief Executive Officer and ~~Vice President of Finance and Treasurer,~~Chief Financial Officer, assessed the effectiveness of the Company's internal control over financial reporting as of December 31, ~~2018.~~2021. 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, ~~2018.~~2021.

The effectiveness of the Company’s internal control over financial reporting as of December 31, ~~2018~~2021 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.

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, ~~2018~~2021 that materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

We have audited Preformed Line Products ~~Company and subsidiaries’~~Company’s internal control over financial reporting as of December 31, ~~2018,~~2021, 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~~(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2018,~~2021, based on the COSO criteria.

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~~the Company as of December 31, ~~2018~~2021 and ~~2017, and~~2020, 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, ~~2018~~2021, 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 ~~8, 2019~~4, 2022 expressed an unqualified opinion thereon.

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.

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.

~~None~~On March 2, 2022, the Company entered into an amendment to the Facility to increase the capacity from $65.0 million to $90.0 million. As part of this amendment, the index used to determine the interest rate changed from LIBOR to the Bloomberg Short Term Bank Yield Index (“BSBY”). The interest rate will now be defined as BSBY plus 1.125% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the BSBY spread becomes 1.500%. The amendment also allows the Company to change its rate from BSBY to the Secured Overnight Financing Rate (“SOFR”) at the Company’s discretion. The amendment extended the maturity from June 30, 2024 to March 2, 2026. All other terms remain the same.

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 ~~7, 2019~~10, 2022 (the “Proxy Statement”). Information relative to executive officers of the Company is contained in Part I of this Annual Report on Form 10-K.

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.

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

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.


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


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


			Page

Part I.

	Item 1.	Business	5

	Item 1A.	Risk Factors	1210

	Item 1B.	Unresolved Staff Comments	1513

	Item 2.	Properties	1514

	Item 3.	Legal Proceedings	1514

	Item 4.	Mine Safety Disclosures	1614

	Item 4A.	Information about our Executive Officers ~~of the Registrant~~	1614

Part II.

	Item 5.	Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	1716

	Item 6.	Selected Financial Data	1917

	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2018

	Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	3427

	Item 8.	Financial Statements and Supplementary Data	3528

	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	6758

	Item 9A.	Controls and Procedures	6758

	Item 9B.	Other Information	6960

	Item 9C.	Disclosure Regarding Foreign Jurisdictions that Require Inspections	60

Part III.

	Item 10.	Directors, Executive Officers and Corporate Governance	6960

	Item 11.	Executive Compensation	6960

	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	6960

	Item 13.	Certain Relationships, Related Transactions, and Director Independence	6960

	Item 14.	Principal Accounting Fees and Services	6960

Part IV.

	Item 15.	Exhibits and Financial Statement Schedules	6961


										Total Approximate													Total Approximate
		Number of Facilities								Square Feet					Type of Facilities								Square Feet
Segment	Location	Manufacturing		Warehouse		R&E		Office		Owned		Leased		Location	Manufacturing		Warehouse		R&E		Office		Owned		Leased
United States	United States		2		2		1		3		704,900			United States		2		2		1		3		704,900

Americas	Brazil		1		1		1		1		167,600			Brazil		1		1		1		1		167,600
	Argentina		1		1				1				26,400	Argentina		1		1				1				26,400
	Canada		2		2		1		2		124,400			Canada		2		2		1		2		124,400
	Mexico		1		1				2		113,000		1,100	Mexico		1		1				2		113,000		1,100

Asia-Pac	Australia		1		1		1		4		122,900		78,300	Australia		1		1		1		4		122,900		79,200
	China		1		1		1		1		132,100			China		1		1		1		1		132,100
	Indonesia		2		1				2		60,100		20,300	Indonesia		2		1				2		197,900
	Malaysia		1		1								18,600	Malaysia		1		1								18,600
	Thailand		1		3				1		80,000		49,500	Thailand		1		3				1		80,000		49,500
	New Zealand		1		2		1		2				39,600	New Zealand		1		2		1		2		34,200		6,200

EMEA	Great Britain		1		1		1		1		89,400			Great Britain		1		1		1		1		90,400
	South Africa		1		1		1		1		68,800			Austria		1						1				14,100
	Spain		1		1		1		1		63,300		10,800	Czech Republic		2		1		1		1				66,700
	Poland		1		1		1		1		175,000			South Africa		1		1		1		1		68,800
														Spain		1		1		1		1		63,300		10,800
														Poland		1		1		1		1		175,000


Name	Age	Position
Robert G. Ruhlman	6265	Chairman, President and Chief Executive Officer
~~Dennis F. McKenna~~William H. Haag	5258	~~Chief Operating Officer~~Vice President - Asia-Pacific Region
~~William H. Haag~~John M. Hofstetter	5557	Executive Vice President - ~~Asia Pacific Region~~U.S. Operations
~~John M. Hofstetter~~Andrew S. Klaus	5456	Chief Financial Officer
Dennis F. McKenna	55	Chief Operating Officer
John J. Olenik	51	Vice President - ~~Sales~~Research and ~~Global Communications Markets~~Engineering
Tim O'Shaughnessy	4851	Vice President - Human Resources
J. Ryan Ruhlman	3538	Vice President - Marketing and Business Development
~~David C. Sunkle~~	60	~~Vice President - Research and Engineering and Manufacturing~~
Caroline S. Vaccariello	5255	General Counsel and Corporate Secretary
~~Michael A. Weisbarth~~	54	~~Vice President - Finance and Treasurer~~

~~Large accelerated filer~~	☐	~~Accelerated filer~~	☒

~~Non-accelerated filer~~	☐	~~Smaller Reporting Company~~	☐
~~Emerging Growth Company~~	☐


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller Reporting Company	☐

Emerging Growth Company	☐


	(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		239,504	$	56.84		612,717


	2013		2014		2015		2016		2017		2018		2016		2017		2018		2019		2020		2021
PREFORMED LINE PRODUCTS CO		100.00		75.72		59.53		83.70		103.78		80.18		100.00		123.98		95.79		108.08		124.43		119.02
NASDAQ MARKET INDEX		100.00		114.62		122.81		133.19		172.11		165.84		100.00		129.64		125.96		172.17		249.51		304.85
PEER GROUP INDEX		100.00		99.53		95.06		116.90		133.61		109.39		100.00		116.69		92.92		123.45		166.33		188.14

Period (2018)	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		0	$	0.00		51,548		198,452
November		0	$	0.00		51,548		198,452
December		770	$	49.78		52,318		197,682
Total		770


	Foreign Currency Translation Impact										Foreign Currency Translation Impact
	Net Sales					Net Income (Loss)					Net Sales						Net Income (Loss)
(Thousands of dollars)	2018			2017		2018			2017		2021			2020			2021		2020
The Americas	$	(8,173	)	$	1,688	$	(311	)	$	67	$	(893	)	$	(15,523	)	$	59	$	(1,391	)
EMEA		2,443			1,651		157			69		5,295			(777	)		335		(26	)
Asia-Pacific		75			1,897		(22	)		21		4,864			(563	)		20		73
Total	$	(5,655	)	$	5,236	$	(176	)	$	157	$	9,266		$	(16,863	)	$	414	$	(1,344	)

	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)	$	9,042	$	9,042	$	0	$	0	$	0
Long-term debt (B)		26,408		1,508		18,223		2,930		3,747
Capital leases		189		60		89		40		0
Operating leases		12,998		2,225		3,408		1,086		6,279
Purchase commitments		634		634		0		0		0
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	$	2,508	$	2,508	$	-	$	-	$	-
Guarantees		4,855		1,558		1,491		1,012		794


	2021			2020
Projected benefit obligation at beginning of the year	$	42,582		$	37,936
Interest cost		1,138			1,301
Actuarial (gain) loss		(958	)		4,590
Benefits paid		(1,352	)		(1,245	)
Projected benefit obligation at end of year	$	41,410		$	42,582

Fair value of plan assets at beginning of the year	$	36,756		$	32,658
Actual return on plan assets		2,353			5,013
Employer contributions		0			330
Benefits paid		(1,352	)		(1,245	)
Fair value of plan assets at end of the year	$	37,757		$	36,756

Unfunded pension obligation	$	3,653		$	5,826


	2021		2020
Accumulated benefit obligation	$	41,410	$	42,582
Fair market value of assets		37,757		36,756


	Year ended December 31												Year ended December 31
	2018						2017						2021						2020
Quarter	High		Low		Dividend		High		Low		Dividend		High		Low		Dividend		High		Low		Dividend
First	$	84.40	$	59.95	$	0.20	$	57.87	$	45.06	$	0.20		79.00		64.29	$	0.20	$	60.76	$	36.41	$	0.20
Second		92.00		61.90		0.20		54.19		45.22		0.20		81.30		65.45		0.20		55.00		38.43		0.20
Third		90.54		70.28		0.20		68.64		46.00		0.20		75.76		64.50		0.20		60.45		47.25		0.20
Fourth		74.50		50.13		0.20		84.97		68.53		0.20		71.47		57.15		0.20		67.59		48.77		0.20


Weighted-average assumptions used to determine benefit obligations at December 31:	2021	2020
Discount rate	2.92%	2.69%
Rate of compensation increase	n/a	n/a


Weighted -average assumptions used to determine net periodic benefit cost at December 31:	2021	2020	2019
Discount rate	2.69%	3.50%	3.50%
Rate of compensation increase	n/a	n/a	n/a
Expected long-term return on plan assets	6.50%	7.00%	7.00%

	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)
Asset Category
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

	At December 31, 2017
	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)
Asset Category
Cash	$	453	$	453	$	0	$	0
Equity Securities		16,667		16,667		0		0
U.S. Treasury Bonds		3,517		3,517		0		0
Corporate Bonds		4,730	0			4,730		0
Total	$	25,367	$	20,637	$	4,730	$	0


	Plan assets						Plan assets
	at December 31						at December 31
	2018			2017			2021			2020
Asset category
Equity securities		37	%		66	%		49	%		47	%
Debt securities		61			32			51			53
Cash and equivalents		2			2
		100	%		100	%		100	%		100	%


	Range	Target
Equities	~~30-80%~~40-60%		~~60%~~	50%
Fixed Income	~~20-70%~~40-60%		~~40%~~	50%
Cash Equivalents	~~0-10%~~0-10%			0%

Year	Pension Benefits
2019	$	1,202
2020		1,246
2021		1,310
2022		1,402
2023		1,484
2024-2028		8,709


	Year Ended December 31, 2021									Year Ended December 31, 2020
				Cumulative									Cumulative
	Unrecognized			Translation						Unrecognized			Translation
	Benefit Cost			Adjustment			Total			Benefit Cost			Adjustment			Total
Balance at January 1	$	(6,704	)	$	(47,847	)	$	(54,551	)	$	(5,671	)	$	(51,682	)	$	(57,353	)
Other comprehensive income before reclassifications:
(Loss) gain on foreign currency translation adjustment		0			(8,376	)		(8,376	)		0			3,835			3,835
Gain (loss) on unfunded pension obligations		739			0			739			(1,396	)		0			(1,396	)

Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss (a)		469			0			469			363			0			363

Net current period other comprehensive income (loss)		1,208			(8,376	)		(7,168	)		(1,033	)		3,835			2,802
Balance at December 31	$	(5,496	)	$	(56,223	)	$	(61,719	)	$	(6,704	)	$	(47,847	)	$	(54,551	)

	Year Ended December 31, 2018									Year Ended December 31, 2017
				Cumulative									Cumulative
	Unrecognized			Translation						Unrecognized			Translation
	Benefit Cost			Adjustment			Total			Benefit Cost			Adjustment			Total
Balance at January 1	$	(6,015	)	$	(41,425	)	$	(47,440	)	$	(5,874	)	$	(51,495	)	$	(57,369	)
Other comprehensive income before reclassifications:
Gain (loss) on foreign currency translation adjustment		0			(12,285	)		(12,285	)		0			10,070			10,070
Gain (loss) on unfunded pension obligations		(244	)		0			(244	)		(410	)		0			(410	)

Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial loss (a)		386			0			386			269			0			269

Net current period other comprehensive income (loss)		142			(12,285	)		(12,143	)		(141	)		10,070			9,929
Balance at December 31	$	(5,873	)	$	(53,710	)	$	(59,583	)	$	(6,015	)	$	(41,425	)	$	(47,440	)


	Year Ended December 31, 2021
	Operating Leases		Finance Leases
2022	$	2,448	$	267
2023		1,762		146
2024		1,019		100
2025		883		82
2026 and thereafter		9,713		20
Total lease payments	$	15,825	$	615
Less amount of lease payment representing interest		5,685		6
Total present value of lease payments	$	10,140	$	609


	2021			2020
Deferred tax assets:
Accrued compensation and benefits	$	1,175		$	1,518
Inventory valuation reserves		2,504			2,535
Allowance for credit losses		663			480
Benefit plan reserves		7,048			7,564
Net operating loss carryforwards		2,383			1,851
Foreign tax credit		543			0
Other accrued expenses		2,453			3,825
Unrealized foreign exchange		213			799
Other		0			284
Gross deferred tax assets		16,982			18,856
Valuation allowance		(1,932	)		(2,912	)
Net deferred tax assets		15,050			15,944

Deferred tax liabilities:
Depreciation and other basis differences		(11,023	)		(4,514	)
Intangibles		(2,594	)		(3,419	)
Other		(404	)		(69	)
Deferred tax liabilities		(14,021	)		(8,002	)
Net deferred tax assets	$	1,029		$	7,942


	2021			2020
Change in net deferred tax assets:
Deferred income tax expense
Ordinary movement	$	(6,544	)	$	3,380
Items of other comprehensive (loss) income		(371	)		319
Currency translation		2			(205	)
Total change in net deferred tax assets	$	(6,913	)	$	3,494

	Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at January 1, 2018		750	$	39.10
Exercised		0	$	0.00
Forfeited		0	$	0.00
Outstanding (exercisable and vested) at December 31, 2018		750	$	39.10		0.8	$	11

	Restricted Share Awards
	Performance						Total			Weighted-Average		Restricted Share Awards
	and Service			Service			Restricted			Grant-Date		Performance						Total			Weighted-Average
	Required			Required			Awards			Fair Value		and Service			Service			Restricted			Grant-Date
Nonvested as of January 1, 2018		200,572			18,214			218,786		$	44.49
												Required (1)			Required			Awards			Fair Value
Nonvested as of January 1, 2021													183,777			15,786			199,563		$	60.33
Granted		63,122			8,155			71,277			73.86		51,308			12,285			63,593			71.84
Vested		(19,277	)		(9,071	)		(28,348	)		41.97		(56,973	)		(7,198	)		(64,171	)		71.77
Forfeited		(30,793	)		0			(30,793	)		45.85		(5,145	)		(1,286	)		(6,431	)		54.55
Nonvested as of December 31, 2018		213,624			17,298			230,922		$	53.68
Nonvested as of December 31, 2021													172,967			19,587			192,554		$	60.34


	December 31, 2018					December 31, 2017					December 31, 2021					December 31, 2020
	Gross Carrying		Accumulated			Gross Carrying		Accumulated			Gross Carrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization			Amount		Amortization			Amount		Amortization
Finite-lived intangible assets
Patents	$	4,806	$	(4,788	)	$	4,806	$	(4,791	)	$	4,806	$	(4,806	)	$	4,806	$	(4,806	)
Land use rights		1,134		(203	)		1,199		(201	)		1,293		(437	)		1,286		(396	)
Trademark		1,707		(1,247	)		1,770		(1,166	)		1,837		(1,533	)		1,756		(1,474	)
Technology		2,994		(1,334	)		3,149		(1,215	)		7,306		(2,830	)		7,673		(2,402	)
Customer relationships		11,804		(6,415	)		12,350		(5,881	)		15,046		(8,643	)		16,441		(8,441	)
	$	22,445	$	(13,987	)	$	23,274	$	(13,254	)	$	30,288	$	(18,249	)	$	31,962	$	(17,519	)
Indefinite-lived intangible assets
Goodwill	$	15,621				$	16,544				$	28,194				$	29,508

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

	Quarter ended
	March 31		June 30		September 30		December 31
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

2017
Net sales	$	84,569	$	97,512	$	99,239	$	96,892
Gross profit		24,665		29,673		33,535		30,755
Income before income taxes		2,118		6,258		9,739		7,691
Net income		1,518		4,156		6,278		702
Net income, basic	$	0.30	$	0.81	$	1.23	$	0.14
Net income, diluted	$	0.30	$	0.81	$	1.23	$	0.14

~~Page~~		Financial Statements

3630		Consolidated Balance Sheets
3731		Statements of Consolidated Income
3832		Statements of Consolidated Comprehensive Income
3933		Statements of Consolidated Cash Flows
4034		Statements of Consolidated Shareholders’ Equity
4135		Notes to Consolidated Financial Statements

~~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~~(incorporated by reference to the Company's Registration Statement on Form 10).

4		Description of Specimen Share Certificate (incorporated by reference to the Company’s Registration Statement on Form 10).

~~10.1~~ 4.2		Description of the Registrant’s Securities Registered Under Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to the Company’s 10-K filed for the year ended December 31, 2019)

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).
10.5
~~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~~ 10.6		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~~ 10.7		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~~ 10.8		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~~ 10.9		Deferred Shares Plan (incorporated by reference to the Company’s 8-K current report filing dated August 21, 2008).

~~10.13~~ 10.10		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~~ 10.11		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).*


10.12		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).*
10.13
~~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).*

~~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~~ 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, 2015).*

~~10.22~~ 10.15		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~~ 10.16		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)~~Company's 10-K filing for the year ended December 31, 2020).

~~10.24~~ 10.17		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~~
10.18		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~~ 10.19		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~~ 10.20		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~~ 10.21		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~~ 10.22		~~Preformed Line Products~~Term Note April 25, 2019 between the Company ~~Amended Supplemental Profit Sharing Plan~~and PNC Bank, National Association (incorporated by reference to the Company’s ~~Form~~10-Q filing for the quarter ended March 31, 2019).

10.23		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).

10.24		Amended and Restated Loan Agreement, dated April 17, 2020, between the Company and PNC Bank, National Association 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 June 30, ~~2018~~)2020).

10.25		Promissory Note dated December 31, 2020, between the Company and PNC Bank National Association (incorporated by reference to the Company's 10-K filing for the year ended December 31, 2020).

~~14.1~~ 10.26		Amended and Restated Loan Agreement, dated March 2, 2022, between the Company and PNC Bank, National Association Joinder and Amendment No. 12 to Amended and Restated Line of Credit Note dated March 2, 2022 between the Company and PNC Bank, National Association, filed herewith.

10.27		Amendment No. 12 to Amended and Restated Loan Agreement, dated March 2, 2022, between the Company and PNC Bank, National Association, filed herewith.

14.1		Preformed Line Products Amended Company Code of Conduct (incorporated by reference to the Company’s ~~8-K current report filing dated August 6, 2007).~~10-K filed for the year ended December 31, 2019)

21		Subsidiaries of Preformed Line Products Company, filed herewith.

23.1		Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.