Company: PLPC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000080035-25-000022
Chunk: 18

Company: PREFORMED LINE PRODUCTS CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 11 - GOODWILL AND OTHER INTANGIBLESThe Company’s finite and indefinite-lived intangible assets consist of the following:September 30, 2025December 31, 2024Gross CarryingAmountAccumulatedAmortization Gross CarryingAmountAccumulatedAmortization Finite-lived intangible assetsPatents$4,806 $(4,806)$4,806 $(4,806)Land use rights718 (143)637 (122)Trademark1,948 (1,715)1,910 (1,685)Technology7,204 (4,630)6,582 (3,933)Customer relationships18,681 (12,391)17,399 (11,132)$33,357 $(23,685)$31,334 $(21,678)Indefinite-lived intangible assetsGoodwill$30,480 $26,685 The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs additional interim impairment assessments as circumstances warrant. The Company 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. 

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For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow methodology, and the market approach, which uses comparable market 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. The fair value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted average cost of capital, and estimated market multiples, all of 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.As a result of actual performance for the EMEA reporting unit falling short of internal forecasts, combined with an increase in projected capital expenditures related to the construction of a new manufacturing facility in 2025 and 2026, management identified a potential indicator of impairment as of September 30,