Company: PLPC
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000080035-25-000022
Chunk: 16

Company: PREFORMED LINE PRODUCTS CO
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 borrowing needs. At September 30, 2025, and December 31, 2024, $19.9 million and $8.8 million were outstanding, of which $5.5 million and $8.2 million were classified as current, respectively. These facilities support commitments made in the ordinary course of business.On July 16, 2025, PLP Poland (Belos) S.A. ("PLP Poland"), a subsidiary of the Company, entered into a non-revolving investment loan with Bank Polska Kasa Opieki Spolka Akcynja ("Bank Pekao S.A")  to finance the construction of a new manufacturing plant for an amount up to PLN100.3 million ($27.6 million). The maturity date of the loan is January 31, 2035 and is payable in annual installments in the amounts of PLN5.3 million ($1.5 million) in 2026, PLN9.0 million ($2.6 million) in 2027, PLN9.6 million ($2.6 million) in 2028 through 2034, and PLN18.8 million ($5.3 million) in 2035. The loan bears interest at the one month Warsaw Interbank Offered Rate ("WIBOR") plus 1.0% unless the Company does not meet the covenants as set forth in the Facility with PNC, at which point the WIBOR spread becomes 1.5%. The current manufacturing plant owned by PLP Poland, the plant under construction and all fixed assets within the plants are pledged as collateral against the loan. The loan also is guaranteed by the Company.Restricted CashThe Company's Asia-Pacific segment had $0.1 million in restricted cash used to secure bank guarantees at September 30, 2025 and December 31, 2024. The restricted cash is shown on the Company’s Consolidated Balance Sheets in Cash, cash equivalents and restricted cash.

NOTE 9 - INCOME TAXES

For the three-month period ended September 30, 2025 and 2024, the Company’s effective tax rate was (11)% and 26%, respectively. The lower effective tax rate for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due to the decrease in income before income taxes attributable to the pension termination charges recorded in the third quarter of 2025 and a