Company: PLPC
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001628280-25-012640
Chunk: 48

Company: PREFORMED LINE PRODUCTS CO
Filing Date: 2025-03-13
Form: 10-K
Item: Item 7
Chunk 48
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 lower interest expense from reduced debt balances for the year ended December 31, 2024.

Income taxes. Income taxes for the years ended December 31, 2024 and 2023 were $13.7 million and $19.0 million based on pre-tax income of $50.8 million and $82.3 million, respectively. The effective tax rate for the years ended December 31, 2024 and 2023 was 26.9% and 23.1%, respectively. Our effective tax rate increased primarily due to the limitations on the deductibility of compensation and the unfavorable impact from the mix of income earned in jurisdictions with a higher tax rate than the U.S. This was partially offset by a favorable impact from increase in excess tax benefit on share-based compensation. The following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21.0%:

22

2024

1.A $2.0 million, or 4.0%, net increase resulting from Non-deductible officers' compensation. 

2.A $1.6 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.

3.A $1.6 million, or 3.2%, net decrease resulting from generation of foreign tax credits.

4.A $1.2 million, or 2.4%, net decrease resulting from other stock compensation.

5.A $1.2 million, or 2.3%, net increase resulting from the inclusion of Global Intangible Low-Taxed Income.

2023

1.A $3.7 million, or 4.5%, net decrease resulting from generation of foreign tax credits.

2.A $3.0 million, or 3.6%, net increase resulting from the inclusion of Global Intangible Low-Taxed Income.

3.A $1.8 million, or 2.2%, net increase resulting from earnings in various U.S States.

4.A $1.7 million, or 2.0%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested.

Net income. As a result of the preceding items, net income for the year ended December 31, 2024 was $37.1 million, compared to $63.3 million for 2023. Excluding the effect of currency translation