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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the fiscal year ended December 31, 2010
 Commission file number 0-31164
 Preformed Line Products Company
  Ohio
    
    34-0676895(State or Other Jurisdiction of Incorporation or Organization)
    
    (I.R.S. Employer Identification No.)660 Beta Drive 
Mayfield Village, Ohio
    
    44143(Address of Principal Executive Office)
    
    (Zip Code)
 (Registrants telephone number, including area code)
  Title of each class
    
    Name of each exchange on which registeredCommon Shares, $2 par value per share
    
    NASDAQ
  o þ
 o þ
 þ o
 o o
 o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller Reporting Company o
 o þ




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Table of Contents
 PagePart I.Item 1. Business
    
    
    4Item 1A. Risk Factors
    
    
    13Item 1B. Unresolved Staff Comments
    
    
    14Item 2. Properties
    
    
    15Item 3. Legal Proceedings
    
    
    16Item 4. (Removed and Reserved)
    
    
    16Part II.Item 5. Market for Registrants Common Equity, Related Shareholder Matters
and Issuer Purchases of Equity Securities
    
    
    17Item 6. Selected Financial Data
    
    
    19Item 7. Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    
    19Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    35Item 8. Financial Statements and Supplementary Data
    
    
    36Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
    
    
    68Item 9A. Controls and Procedures
    
    
    68Item 9B. Other Information
    
    
    70Part III.Item 10. Directors, Executive Officers and Corporate Governance
    
    
    70Item 11. Executive Compensation
    
    
    70Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters
    
    
    70Item 13. Certain Relationships, Related Transactions, and Director Independence
    
    
    70Item 14. Principal Accounting Fees and Services
    
    
    70Part IV.Item 15. Exhibits and Financial Statement Schedules
    
    
    70SIGNATURES
    
    
    73Schedule II  Valuation and Qualifying Accounts
    
    
    74Exhibit 10.15Exhibit 10.16Exhibit 21Exhibit 23.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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Forward-Looking Statements
   
    
    The overall demand for cable anchoring and control hardware for electrical transmission
and distribution lines on a worldwide basis, which has a slow growth rate in mature markets
such as the United States (U.S.), Canada, and Western Europe and may not grow as expected
in developing regions;
    
    The ability of our customers to raise funds needed to build the facilities their
customers require;
    
    Technological developments that affect longer-term trends for communication lines such
as wireless communication;
    
    The decreasing demands for product supporting copper-based infrastructure due to the
introduction of products using new technologies or adoption of new industry standards;
    
    The Companys success at continuing to develop proprietary technology and maintaining
high quality products and customer service to meet or exceed new industry performance
standards and individual customer expectations;
    
    The Companys success in strengthening and retaining relationships with the Companys
customers, growing sales at targeted accounts and expanding geographically;
    
    The extent to which the Company is successful in expanding the Companys product line or
production facilities into new areas;
    
    The Companys ability to identify, complete and integrate acquisitions for profitable
growth;
    
    The potential impact of consolidation, deregulation and bankruptcy among the Companys
suppliers, competitors and customers;
    
    The relative degree of competitive and customer price pressure on the Companys
products;
    
    The cost, availability and quality of raw materials required for the manufacture of
products;
    
    The effects of fluctuation in currency exchange rates upon the Companys reported
results from international operations, together with non-currency risks of investing in and
conducting significant operations in foreign countries, including those relating to
political, social, economic and regulatory factors;
    
    Changes in significant government regulations affecting environmental compliances;
    
    The telecommunication markets continued deployment of Fiber-to-the-Premises;
  3




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
    
    The Companys ability to obtain funding for future acquisitions;
    
    The potential impact of the global economic condition and the depressed U.S. housing
market on the Companys ongoing profitability and future growth opportunities in our core
markets in the U.S. and other foreign countries where the financial situation is expected
to be similar going forward;
    
    The continued support by Federal, State, Local and Foreign Governments in incentive
programs for upgrading electric transmission lines and promoting renewable energy
deployment;
    
    Those factors described under the heading Risk Factors on page 13.
 
 Part I
 
 Item 1.
    
    Business
 Background
    
    
    Formed Wire and Related Hardware Products
 
    
    Protective Closures
 
    
    Data Communication Cabinets
 
    
    Plastic Products
 
    
    Other Products
 Formed Wire Products and Related Hardware Products
  4




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Protective Closures
 Data Communication Cabinets
 Plastic Products
 Other Products
 Corporate History
   â
    5




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6




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Business
       Markets
   7




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Electric Utilities  Transmission.
 Electric Utilities  Distribution
 Renewable Energy
 Communication and Cable.
     8




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Data Communication.
 Special Industries.
 International Operations
   Sales and Marketing
  Research and Development
    9




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Patents and Trademarks
     10




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Competition
  
    
    The Company has a strong and stable workforce. This consistent and continuous
knowledge base has afforded the Company the ability to provide superior service to the
Companys customers and representatives.
 
    
    The Companys Research and Engineering Center in Mayfield Village, Ohio and Research
and Engineering departments subsidiary locations maintain a strong technical support
function to develop unique solutions to customer problems.
 
    
    The Company is vertically integrated both in manufacturing and distribution and is
continually upgrading equipment and processes.
 
    
    The Company is sensitive to the marketplace and provides an extra measure of service
in cases of emergency, storm damage and other rush situations. This high level of
customer service and customer responsiveness is a hallmark of the Company.
 
    
    The Companys 17 manufacturing locations ensure close support and proximity to
customers worldwide.
     Sources and Availability of Raw Materials
     11




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Backlog Orders
  Seasonality
  Environmental
   Employees
  Available Information
   12




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Item 1A.
    
    Risk Factors
 Due to the Companys dependency on the energy and telecommunication industries, the Company is
susceptible to negative trends relating to those industries that could adversely affect the
Companys operating results.
  The Companys 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 intense competition in the Companys markets, particularly telecommunication, may lead to a
reduction in sales and profits.
   13




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The 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.
  Price increases of raw materials could result in lower earnings.
  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.
  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.
  The Company may have interruptions in or lost businesses due to the uncertainty of the global
economy, specifically the potential impact of bankruptcy among the Companys suppliers and lack of
available funding for the Companys customers.
  
 Item 1B.
    
    Unresolved Staff Comments
   14




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Item 2.
    
    Properties
  ReportableLocation
    
    Use
    
    Owned/Leased
    
    Square Feet
    
    
    Segment1. Mayfield Village, Ohio
    
    Corporate Headquarters 
R&E
    
    Owned
    
    
    62,000
    
    
    PLP-USA2. Rogers, Arkansas
    
    Manufacturing Warehouse 
Office
    
    Owned
    
    
    310,000
    
    
    PLP-USA3. Albemarle, North Carolina
    
    Manufacturing Warehouse 
Office
    
    Owned
    
    
    261,000
    
    
    PLP-USA4. Sydney, Australia
    
    Manufacturing R&E 
Warehouse 
Office
    
    Owned
    
    
    123,000
    
    
    Asia-Pacific5. São Paulo, Brazil
    
    Manufacturing R&E 
Warehouse 
Office
    
    Owned
    
    
    148,500
    
    
    The Americas6. Cambridge, Ontario, Canada
    
    Manufacturing Warehouse 
Office
    
    Owned
    
    
    73,300
    
    
    The Americas7. Andover, Hampshire, England
    
    Manufacturing R&E 
Warehouse 
Office
    
    Land Leased;
Building Owned
    
    
    89,400
    
    
    EMEA8. Queretaro, Mexico
    
    Manufacturing Warehouse 
Office
    
    Owned
    
    
    82,900
    
    
    The Americas9. Beijing, China
    
    Manufacturing Warehouse 
Office
    
    Land Leased;
Building Owned
    
    
    180,900
    
    
    Asia-Pacific10. Pietermarizburg, South Africa
    
    Manufacturing R&E 
Warehouse 
Office
    
    Owned
    
    
    73,100
    
    
    EMEA
  15




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ReportableLocation
    
    Use
    
    Owned/Leased
    
    Square Feet
    
    
    Segment11. Sevilla, Spain
    
    Manufacturing R&E 
Warehouse 
Office
    
    Owned
    
    
    63,300
    
    
    EMEA12. Bangkok, Thailand
    
    Manufacturing 
Warehouse 
Office
    
    Owned
    
    
    60,000
    
    
    Asia-Pacific13. Albuquerque, New Mexico
    
    Manufacturing 
Warehouse 
Office
    
    Leased
    
    
    27,200
    
    
    The Americas14. Bielsko-Biala, Poland
    
    Manufacturing 
Warehouse 
Office
    
    Land Leased;
Buildings Owned
    
    
    174,400
    
    
    EMEA15. Bekasi, Indonesia
    
    Manufacturing
 Office
    
    Owned
    
    
    31,700
    
    
    Asia-Pacific16. Selangor, Malaysia
    
    Manufacturing 
Warehouse 
Office
    
    Leased
    
    
    18,600
    
    
    Asia-Pacific17. Bangkok, Thailand
    
    Manufacturing 
Warehouse 
Office
    
    Leased
    
    
    135,700
    
    
    Asia-Pacific18. Auckland, New Zealand
    
    Manufacturing 
Warehouse 
Office
    
    Leased
    
    
    46,200
    
    
    Asia-Pacific
 
 Item 3.
    
    Legal Proceedings
  
 Item 4.
    
    (Removed and Reserved)
 Executive Officers of the Registrant
  Name
    
    Age
    
    
    PositionRobert G. Ruhlman
    
    
    54
    
    
    Chairman, President and Chief Executive OfficerEric R. Graef
    
    
    58
    
    
    Chief Financial Officer and Vice President  FinanceWilliam H. Haag
    
    
    47
    
    
    Vice President  International OperationsJ. Cecil Curlee Jr.
    
    
    54
    
    
    Vice President  Human ResourcesDennis F. McKenna
    
    
    44
    
    
    Vice President  Marketing and Business DevelopmentDavid C. Sunkle
    
    
    52
    
    
    Vice President  Research and Engineering and ManufacturingCaroline S. Vaccariello
    
    
    44
    
    
    General Counsel and Corporate Secretary
  16




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Part II
 
 Item 5.
    
    Market for Registrants Common Equity, Related Shareholder Matters and Issuer Purchases of
Equity Securities
 )
  Year ended December 312010
    
    
    2009Quarter
    
    High
    
    
    Low
    
    
    Dividend
    
    
    High
    
    
    Low
    
    
    DividendFirst
    
    $
    44.14
    
    
    $
    34.60
    
    
    $
    0.20
    
    
    $
    47.65
    
    
    $
    28.26
    
    
    $
    0.20Second
    
    
    39.06
    
    
    
    27.95
    
    
    
    0.20
    
    
    
    48.96
    
    
    
    32.70
    
    
    
    0.20Third
    
    
    35.64
    
    
    
    27.50
    
    
    
    0.20
    
    
    
    44.16
    
    
    
    33.06
    
    
    
    0.20Fourth
    
    
    62.14
    
    
    
    33.60
    
    
    
    0.20
    
    
    
    44.40
    
    
    
    37.85
    
    
    
    0.20
  17




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Equity Compensation Plan Information
 Number of securitiesNumber of securities
    
    
    
    
    
    
    remaining available forto be issued upon
    
    
    
    
    
    
    future issuance underexercise of
    
    
    Weighted-average
    
    
    equity compensationoutstanding options,
    
    
    exercise price of
    
    
    plans (excludingwarrants and rights
    
    
    outstanding options,
    
    
    securities reflected inPlan Category
    
    (a)
    
    
    warrants and rights
    
    
    column (a)Equity compensation plans approved by security holders
    
    
    183,233
    
    
    $
    34.46
    
    
    
    177,403Equity compensation plans not approved by security
holders
    
    
    72,057
    
    
    $
    35.89
    
    
    
    Total
    
    
    255,290
    
    
    
    
    
    
    
    177,403
 Performance Graph
  COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
 
 *
    
    $100 invested on 12/31/05 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31. COMPANY / INDEX / MARKET
    
    2005
    
    
    2006
    
    
    2007
    
    
    2008
    
    
    2009
    
    
    2010PREFORMED LINE PRODUCTS
CO
    
    
    100.00
    
    
    
    84.34
    
    
    
    145.96
    
    
    
    114.00
    
    
    
    110.57
    
    
    
    150.95NASDAQ MARKET INDEX
    
    
    100.00
    
    
    
    111.74
    
    
    
    124.67
    
    
    
    73.77
    
    
    
    107.12
    
    
    
    125.93HEMSCOTT GROUP INDEX
    
    
    100.00
    
    
    
    132.35
    
    
    
    181.83
    
    
    
    95.26
    
    
    
    135.74
    
    
    
    173.54
  18




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Purchases of Equity Securities
  
 Item 6.
    
    Selected Financial Data
 2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006(Thousands of dollars, except per share data)Net Sales and IncomeNet sales
    
    $
    338,305
    
    
    $
    257,206
    
    
    $
    269,742
    
    
    $
    233,289
    
    
    $
    196,910Operating income
    
    
    28,480
    
    
    
    19,460
    
    
    
    23,988
    
    
    
    21,133
    
    
    
    16,359Income before income taxes and discontinued operations
    
    
    30,183
    
    
    
    29,593
    
    
    
    24,760
    
    
    
    21,321
    
    
    
    17,180Income from continuing operations, net of tax
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,042
    
    
    
    13,820
    
    
    
    11,827Net income
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,911
    
    
    
    14,213
    
    
    
    12,103Net income (loss) attributable to noncontrolling interest, net of tax
    
    
    (105
    )
    
    
    (524
    )
    
    
    288
    
    
    
    54
    
    
    
    Net income attributable to PLPC
    
    
    23,113
    
    
    
    23,357
    
    
    
    17,623
    
    
    
    14,159
    
    
    
    12,103Per Share AmountsIncome from continuing operations attributable to PLP shareholders 
basic
    
    $
    4.41
    
    
    $
    4.46
    
    
    $
    3.17
    
    
    $
    2.57
    
    
    $
    2.11Net income attributable to PLPC common shareholders  basic
    
    
    4.41
    
    
    
    4.46
    
    
    
    3.34
    
    
    
    2.64
    
    
    
    2.16Income from continuing operations attributable to PLPC shareholders
 diluted
    
    
    4.33
    
    
    
    4.35
    
    
    
    3.14
    
    
    
    2.54
    
    
    
    2.09Net income attributable to PLPC common shareholders  diluted
    
    
    4.33
    
    
    
    4.35
    
    
    
    3.30
    
    
    
    2.61
    
    
    
    2.14Dividends declared
    
    
    0.80
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    0.80PLPC Shareholders equity
    
    
    37.21
    
    
    
    32.58
    
    
    
    26.09
    
    
    
    27.82
    
    
    
    24.47Other Financial InformationCurrent assets
    
    $
    167,342
    
    
    $
    138,440
    
    
    $
    112,670
    
    
    $
    123,450
    
    
    $
    100,374Total assets
    
    
    280,979
    
    
    
    235,372
    
    
    
    190,875
    
    
    
    203,866
    
    
    
    170,852Current liabilities
    
    
    56,558
    
    
    
    46,340
    
    
    
    35,248
    
    
    
    42,349
    
    
    
    32,372Long-term debt (including current portion)
    
    
    10,650
    
    
    
    4,429
    
    
    
    3,147
    
    
    
    4,959
    
    
    
    4,361Capital leases
    
    
    590
    
    
    
    239
    
    
    
    112
    
    
    
    373
    
    
    
    478PLPC Shareholders equity
    
    
    196,140
    
    
    
    170,966
    
    
    
    136,265
    
    
    
    149,721
    
    
    
    131,148
  
 Item 7.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
     19




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21




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Preface
    22




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Year ended December 31Thousands of dollars
    
    2010
    
    
    2009
    
    
    2008Net sales
    
    $
    338,305
    
    
    
    100
    %
    
    $
    257,206
    
    
    
    100
    %
    
    $
    269,742
    
    
    
    100
    %Cost of products sold
    
    
    230,089
    
    
    
    68
    %
    
    
    172,438
    
    
    
    67
    %
    
    
    182,475
    
    
    
    68
    %GROSS PROFIT
    
    
    108,216
    
    
    
    32
    %
    
    
    84,768
    
    
    
    33
    %
    
    
    87,267
    
    
    
    32
    %Costs and expenses
    
    
    79,736
    
    
    
    24
    %
    
    
    65,308
    
    
    
    25
    %
    
    
    63,279
    
    
    
    23
    %OPERATING INCOME
    
    
    28,480
    
    
    
    8
    %
    
    
    19,460
    
    
    
    8
    %
    
    
    23,988
    
    
    
    9
    %Other income
    
    
    1,703
    
    
    
    1
    %
    
    
    10,133
    
    
    
    4
    %
    
    
    772
    
    
    
    0
    %INCOME BEFORE
INCOME TAXES AND
DISCONTINUED
OPERATIONS
    
    
    30,183
    
    
    
    9
    %
    
    
    29,593
    
    
    
    12
    %
    
    
    24,760
    
    
    
    9
    %Income taxes
    
    
    7,175
    
    
    
    2
    %
    
    
    6,760
    
    
    
    3
    %
    
    
    7,718
    
    
    
    3
    %INCOME FROM
CONTINUING
OPERATIONS, NET OF
TAX
    
    
    23,008
    
    
    
    7
    %
    
    
    22,833
    
    
    
    9
    %
    
    
    17,042
    
    
    
    6
    %Income from discontinued operations, net of tax
    
    
    
    
    
    
    0
    %
    
    
    
    
    
    
    0
    %
    
    
    869
    
    
    
    0
    %NET INCOME
    
    $
    23,008
    
    
    
    7
    %
    
    $
    22,833
    
    
    
    9
    %
    
    $
    17,911
    
    
    
    7
    %
 2010 Results of Operations compared to 2009
 Highlights:
 
    
    Net Sales increased 32% to $338.3 million, a record for the Company, from $257.2 million in 2009.
    
    Operating income increased 46% to $28.5 million from $19.5 million in 2009.
    
    Net income of $23 million was also a record for the Company.
    
    Bank debt to equity ratio of 6% and 4% as of December 31, 2010 and 2009.
  23




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Net Sales
 Year ended December 31Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    118,325
    
    
    $
    103,910
    
    
    $
    14,415
    
    
    $
    
    
    
    $
    14,415
    
    
    
    14
    %The Americas
    
    
    79,695
    
    
    
    62,161
    
    
    
    17,534
    
    
    
    5,567
    
    
    
    11,967
    
    
    
    19EMEA
    
    
    50,073
    
    
    
    46,863
    
    
    
    3,210
    
    
    
    1,007
    
    
    
    2,203
    
    
    
    5Asia-Pacific
    
    
    90,212
    
    
    
    44,272
    
    
    
    45,940
    
    
    
    7,502
    
    
    
    38,438
    
    
    
    87Consolidated
    
    $
    338,305
    
    
    $
    257,206
    
    
    $
    81,099
    
    
    $
    14,076
    
    
    $
    67,023
    
    
    
    26
    %
  Gross Profit
 Year Ended December 31Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    37,946
    
    
    $
    33,727
    
    
    $
    4,219
    
    
    $
    
    
    
    $
    4,219
    
    
    
    13
    %The Americas
    
    
    23,105
    
    
    
    20,535
    
    
    
    2,570
    
    
    
    1,742
    
    
    
    828
    
    
    
    4EMEA
    
    
    17,070
    
    
    
    15,354
    
    
    
    1,716
    
    
    
    482
    
    
    
    1,234
    
    
    
    8Asia-Pacific
    
    
    30,095
    
    
    
    15,152
    
    
    
    14,943
    
    
    
    2,585
    
    
    
    12,358
    
    
    
    82Consolidated
    
    $
    108,216
    
    
    $
    84,768
    
    
    $
    23,448
    
    
    $
    4,809
    
    
    $
    18,639
    
    
    
    22
    %
   24




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Costs and expenses
 Year ended December 31Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    39,110
    
    
    $
    33,872
    
    
    $
    5,238
    
    
    $
    
    
    
    $
    5,238
    
    
    
    15
    %The Americas
    
    
    13,198
    
    
    
    9,982
    
    
    
    3,216
    
    
    
    1,010
    
    
    
    2,206
    
    
    
    22EMEA
    
    
    8,415
    
    
    
    8,940
    
    
    
    (525
    )
    
    
    145
    
    
    
    (670
    )
    
    
    (7
    )Asia-Pacific
    
    
    19,013
    
    
    
    12,514
    
    
    
    6,499
    
    
    
    1,571
    
    
    
    4,928
    
    
    
    39Consolidated
    
    $
    79,736
    
    
    $
    65,308
    
    
    $
    14,428
    
    
    $
    2,726
    
    
    $
    11,702
    
    
    
    18
    %
  Other income.
  25




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##### Table of Contents



Income taxes.
 Net income
 Year ended December 31Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2010
    
    
    2009
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet incomePLP-USA
    
    $
    4,687
    
    
    $
    4,352
    
    
    $
    335
    
    
    $
    
    
    
    $
    335
    
    
    
    8
    %The Americas
    
    
    6,356
    
    
    
    6,763
    
    
    
    (407
    )
    
    
    471
    
    
    
    (878
    )
    
    
    (13
    )EMEA
    
    
    6,031
    
    
    
    3,528
    
    
    
    2,503
    
    
    
    176
    
    
    
    2,327
    
    
    
    66Asia-Pacific
    
    
    5,934
    
    
    
    8,190
    
    
    
    (2,256
    )
    
    
    467
    
    
    
    (2,723
    )
    
    
    (33
    )Consolidated
    
    $
    23,008
    
    
    $
    22,833
    
    
    $
    175
    
    
    $
    1,114
    
    
    $
    (939
    )
    
    
    (4
    )%
  2009 Results of Operations compared to 2008
 Net Sales
 Year ended December 31,Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    tranlation
    
    
    changeNet salesPLP-USA
    
    $
    103,910
    
    
    $
    111,721
    
    
    $
    (7,811
    )
    
    $
    
    
    
    $
    (7,811
    )
    
    
    (7)
    %The Americas
    
    
    62,161
    
    
    
    60,343
    
    
    
    1,818
    
    
    
    (3,714
    )
    
    
    5,532
    
    
    
    9EMEA
    
    
    46,863
    
    
    
    59,224
    
    
    
    (12,361
    )
    
    
    (6,743
    )
    
    
    (5,618
    )
    
    
    (9
    )Asia-Pacific
    
    
    44,272
    
    
    
    38,454
    
    
    
    5,818
    
    
    
    (1,727
    )
    
    
    7,545
    
    
    
    20Consolidated
    
    $
    257,206
    
    
    $
    269,742
    
    
    $
    (12,536
    )
    
    $
    (12,184
    )
    
    $
    (352
    )
    
    
    
    %
  26




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##### Table of Contents



Gross Profit
 Year ended December 31,Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    33,727
    
    
    $
    35,973
    
    
    $
    (2,246
    )
    
    $
    
    
    
    $
    (2,246
    )
    
    
    (6
    )%The Americas
    
    
    20,535
    
    
    
    18,616
    
    
    
    1,919
    
    
    
    (1,133
    )
    
    
    3,052
    
    
    
    16EMEA
    
    
    15,354
    
    
    
    19,113
    
    
    
    (3,759
    )
    
    
    (2,127
    )
    
    
    (1,632
    )
    
    
    (9
    )Asia-Pacific
    
    
    15,152
    
    
    
    13,565
    
    
    
    1,587
    
    
    
    (584
    )
    
    
    2,171
    
    
    
    16Consolidated
    
    $
    84,768
    
    
    $
    87,267
    
    
    $
    (2,499
    )
    
    $
    (3,844
    )
    
    $
    1,345
    
    
    
    2
    %
   27




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##### Table of Contents



Cost and expenses
 Year ended December 31,Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    33,872
    
    
    $
    33,633
    
    
    $
    239
    
    
    $
    
    
    
    $
    239
    
    
    
    1
    %The Americas
    
    
    9,982
    
    
    
    10,033
    
    
    
    (51
    )
    
    
    (899
    )
    
    
    848
    
    
    
    8EMEA
    
    
    8,940
    
    
    
    9,438
    
    
    
    (498
    )
    
    
    (1,469
    )
    
    
    971
    
    
    
    10Asia-Pacific
    
    
    12,514
    
    
    
    10,175
    
    
    
    2,339
    
    
    
    (214
    )
    
    
    2,553
    
    
    
    25Consolidated
    
    $
    65,308
    
    
    $
    63,279
    
    
    $
    2,029
    
    
    $
    (2,582
    )
    
    $
    4,611
    
    
    
    7
    %
  Other income.
 Income taxes.
  28




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##### Table of Contents



Income from continuing operations, net of tax
 Year Ended December 31,Change
    
    
    Changedue to
    
    
    excludingcurrency
    
    
    currency
    
    
    %thousands of dollars
    
    2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeIncome from continuing
operations, net of taxPLP-USA
    
    $
    4,352
    
    
    $
    4,877
    
    
    $
    (525
    )
    
    $
    
    
    
    $
    (525
    )
    
    
    (11
    )%The Americas
    
    
    6,763
    
    
    
    5,227
    
    
    
    1,536
    
    
    
    (123
    )
    
    
    1,659
    
    
    
    32EMEA
    
    
    3,528
    
    
    
    6,162
    
    
    
    (2,634
    )
    
    
    (472
    )
    
    
    (2,162
    )
    
    
    (35
    )Asia-Pacific
    
    
    8,190
    
    
    
    776
    
    
    
    7,414
    
    
    
    (493
    )
    
    
    7,907
    
    
    
    1,019$
    22,833
    
    
    $
    17,042
    
    
    $
    5,791
    
    
    $
    (1,088
    )
    
    $
    6,879
    
    
    
    40
    %
  Working Capital, Liquidity and Capital Resources
 Management Assessment of Liquidity
      29




---



##### Table of Contents



Sources and Uses of Cash
       30




---



##### Table of Contents



Payments Due by PeriodLess than 1
    
    
    
    
    
    
    
    
    
    
    After 5Contractual Obligations
    
    Total
    
    
    year
    
    
    1-3 years
    
    
    4-5 years
    
    
    yearsThousands of dollarsNotes payable to bank (A)
    
    $
    1,246
    
    
    $
    1,246
    
    
    $
    
    
    
    $
    
    
    
    $
    Long-term debt (B)
    
    
    10,865
    
    
    
    1,370
    
    
    
    9,495
    
    
    
    
    
    
    
    Capital leases
    
    
    590
    
    
    
    189
    
    
    
    268
    
    
    
    133
    
    
    
    Operating leases
    
    
    17,011
    
    
    
    2,525
    
    
    
    2,755
    
    
    
    1,448
    
    
    
    10,283Purchase commitments
    
    
    9,641
    
    
    
    9,641
    
    
    
    
    
    
    
    
    
    
    
    Acquisition related obligations (C)
    
    
    483
    
    
    
    483
    
    
    
    
    
    
    
    
    
    
    
    Pension contribution and other
retirement plans (D)
    
    
    1,130
    
    
    
    1,130
    
    
    
    
    
    
    
    
    
    
    
    Income taxes payable, non-current (E)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 Amount of Commitment Expiration by PeriodLess than 1
    
    
    
    
    
    
    
    
    
    
    After 5Other Commercial Commitments
    
    Total
    
    
    year
    
    
    1-3 years
    
    
    4-5 years
    
    
    yearsThousands of dollarsLetters of credit
    
    $
    6,901
    
    
    $
    5,152
    
    
    $
    1,676
    
    
    $
    73
    
    
    $
    Guarantees
    
    
    2,357
    
    
    
    371
    
    
    
    1,986
    
    
    
    
    
    
    
    
 (A)
    
    Interest on short-term debt is included in the table at interest rates of 5.3% to28.62% in
effect at December 31, 2010.(B)
    
    Interest on long-term debt is included in the table at interest rates from .7% to 5.83% based
on the variable interest rates in effect at December 31, 2010.(C)
    
    As part of the Purchase Agreement to acquire Electropar, the Company may be required to make an
additional earn-out consideration payment up to NZ$2 million or $1.5 million US dollar based on
Electropar achieving a financial performance target (Earnings Before Interest, Taxes, Depreciation
and Amortization) over the 12 months ending July 31, 2011. The fair value of the contingent
consideration arrangement is determined by estimating the expected (probability-weighted) earn-out
payment discounted to present value, which includes increases in net present value due to the
passage of time.(D)
    
    Amount represents the expected contribution to the Companys defined benefit pension plan in
2011. Future expected amounts 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. At December 31, 2010, the Companys unfunded contractual obligation was $9.5 million.
The Companys Supplemental Profit Sharing Plan accrued liability at December 31, 2010 was $1.9
million.(E)
    
    As of December 31, 2010, there were $1.8 million of tax liabilities, including interest and
penalties, related to unrecognized tax benefits. Because of the high degree of uncertainty
regarding the timing of future cash outflows associated with these liabilities, if any, the Company
is unable to estimate the years in which cash settlement may occur with the respective tax
authorities. Critical Accounting Policies and Estimates
    31




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##### Table of Contents



Allowance for Doubtful Accounts
  Reserve for credit memos
         32




---



##### Table of Contents



33




---



##### Table of Contents



Recently Adopted Accounting Pronouncements
   Recently Issued Accounting Pronouncements
      34




---



##### Table of Contents



Item 7A.
    
    Quantitative and Qualitative Disclosures About Market Risk
     35




---



##### Table of Contents



Item 8.
    
    Financial Statements and Supplementary Data
  
       
  36




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
 
 CONSOLIDATED BALANCE SHEETS
 December 312010
    
    
    2009(Thousands of dollars, exceptshare and per share data)ASSETSCash and cash equivalents
    
    $
    22,655
    
    
    $
    24,097Accounts receivable, less allowances of $1,213 ($995 in 2009)
    
    
    56,102
    
    
    
    49,245Inventories  net
    
    
    73,121
    
    
    
    56,036Deferred income taxes
    
    
    4,784
    
    
    
    2,737Prepaids
    
    
    9,069
    
    
    
    4,263Other current assets
    
    
    1,611
    
    
    
    2,062TOTAL CURRENT ASSETS
    
    
    167,342
    
    
    
    138,440Property and equipment  net
    
    
    76,266
    
    
    
    67,766Other intangibles  net
    
    
    12,735
    
    
    
    8,087Goodwill
    
    
    12,346
    
    
    
    6,925Deferred income taxes
    
    
    3,615
    
    
    
    4,877Other assets
    
    
    8,675
    
    
    
    9,277TOTAL ASSETS
    
    $
    280,979
    
    
    $
    235,372LIABILITIES AND SHAREHOLDERS EQUITYNotes payable to banks
    
    $
    1,246
    
    
    $
    3,181Current portion of long-term debt
    
    
    1,276
    
    
    
    1,330Trade accounts payable
    
    
    27,001
    
    
    
    18,764Accrued compensation and amounts withheld from employees
    
    
    9,848
    
    
    
    8,345Accrued expenses and other liabilities
    
    
    9,088
    
    
    
    8,375Accrued profit-sharing and other benefits
    
    
    4,464
    
    
    
    3,890Dividends payable
    
    
    1,087
    
    
    
    1,076Income taxes payable and deferred income taxes
    
    
    2,548
    
    
    
    1,379TOTAL CURRENT LIABILITIES
    
    
    56,558
    
    
    
    46,340Long-term debt, less current portion
    
    
    9,374
    
    
    
    3,099Unfunded pension obligation
    
    
    9,473
    
    
    
    8,678Income taxes payable, noncurrent
    
    
    1,768
    
    
    
    1,898Deferred income taxes
    
    
    3,606
    
    
    
    1,515Other noncurrent liabilities
    
    
    4,735
    
    
    
    3,021SHAREHOLDERS EQUITYPLPC Shareholders equity:Common shares  $2 par value per share, 15,000,000 shares authorized,
5,270,977 and 5,248,298 issued and outstanding, net of 586,746
and 554,059 treasury shares at par, respectively
    
    
    10,542
    
    
    
    10,497Common shares issued to rabbi trust
    
    
    (1,200
    )
    
    
    Paid in capital
    
    
    8,748
    
    
    
    5,885Retained earnings
    
    
    184,060
    
    
    
    165,953Accumulated other comprehensive loss
    
    
    (6,010
    )
    
    
    (11,369
    )TOTAL PLPC SHAREHOLDERS EQUITY
    
    
    196,140
    
    
    
    170,966Noncontrolling interest
    
    
    (675
    )
    
    
    (145
    )TOTAL SHAREHOLDERS EQUITY
    
    
    195,465
    
    
    
    170,821TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY
    
    $
    280,979
    
    
    $
    235,372
 See notes to consolidated financial statements.
  37




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
 
 STATEMENTS OF CONSOLIDATED INCOME
 Year ended December 312010
    
    
    2009
    
    
    2008(In thousands, except per share data)Net sales
    
    $
    338,305
    
    
    $
    257,206
    
    
    $
    269,742Cost of products sold
    
    
    230,089
    
    
    
    172,438
    
    
    
    182,475GROSS PROFIT
    
    
    108,216
    
    
    
    84,768
    
    
    
    87,267Costs and expensesSelling
    
    
    29,520
    
    
    
    22,702
    
    
    
    23,555General and administrative
    
    
    39,865
    
    
    
    33,993
    
    
    
    30,014Research and engineering
    
    
    12,040
    
    
    
    9,216
    
    
    
    8,870Other operating (income) expenses  net
    
    
    (1,689
    )
    
    
    (603
    )
    
    
    84079,736
    
    
    
    65,308
    
    
    
    63,279OPERATING INCOME
    
    
    28,480
    
    
    
    19,460
    
    
    
    23,988Other income (expense)Gain on acquisition of business
    
    
    
    
    
    
    9,087
    
    
    
    Interest income
    
    
    374
    
    
    
    380
    
    
    
    846Interest expense
    
    
    (649
    )
    
    
    (523
    )
    
    
    (544
    )Other income
    
    
    1,978
    
    
    
    1,189
    
    
    
    4701,703
    
    
    
    10,133
    
    
    
    772INCOME BEFORE INCOME TAXES AND 
DISCONTINUED OPERATIONS
    
    
    30,183
    
    
    
    29,593
    
    
    
    24,760Income taxes
    
    
    7,175
    
    
    
    6,760
    
    
    
    7,718INCOME FROM CONTINUING OPERATIONS,
NET OF TAX
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,042Income from discontinued operations, net of tax
    
    
    
    
    
    
    
    
    
    
    869NET INCOME
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,911Net income (loss) attributable to noncontrolling interest, net of tax
    
    
    (105
    )
    
    
    (524
    )
    
    
    288NET INCOME ATTRIBUTABLE TO PLPC
    
    $
    23,113
    
    
    $
    23,357
    
    
    $
    17,623BASIC EARNINGS PER SHAREIncome per share from continuing operations attributable to PLPC common shareholders
    
    $
    4.41
    
    
    $
    4.46
    
    
    $
    3.17Discontinued operations attributable to PLPC common shareholders
    
    $
    
    
    
    $
    
    
    
    $
    0.17Net income attributable to PLPC common shareholders
    
    $
    4.41
    
    
    $
    4.46
    
    
    $
    3.34DILUTED EARNINGS PER SHAREIncome per share from continuing operations attributable to PLPC shareholders
    
    $
    4.33
    
    
    $
    4.35
    
    
    $
    3.14Discontinued operations attributable to PLPC common shareholders
    
    $
    
    
    
    $
    
    
    
    $
    0.16Net incme attributable to PLPC common shareholders
    
    $
    4.33
    
    
    $
    4.35
    
    
    $
    3.30Cash dividends declared per share
    
    $
    0.80
    
    
    $
    0.80
    
    
    $
    0.80Weighted-average number of shares outstanding  basic
    
    
    5,242
    
    
    
    5,232
    
    
    
    5,279Weighted-average number of shares outstanding  diluted
    
    
    5,335
    
    
    
    5,366
    
    
    
    5,339Amount attributable to PLPC common shareholdersIncome from continuing operations, net of tax
    
    $
    23,113
    
    
    $
    23,357
    
    
    $
    16,754Discontinued operations, net of tax
    
    
    
    
    
    
    
    
    
    
    869Net Income
    
    $
    23,113
    
    
    $
    23,357
    
    
    $
    17,623
 See notes to consolidated financial statements.
 38




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
 
 STATEMENTS OF CONSOLIDATED CASH FLOWS
 Year ended December 312010
    
    
    2009
    
    
    2008(Thousands of dollars)OPERATING ACTIVITIESNet income
    
    $
    23,008
    
    
    $
    22,833
    
    
    $
    17,911Less: income from discontinued operations
    
    
    
    
    
    
    
    
    
    
    869Income from continuing operations
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,042Adjustments to reconcile net income to net cash provided by operations:Depreciation and amortization
    
    
    9,394
    
    
    
    7,249
    
    
    
    8,549Provision for accounts receivable allowances
    
    
    661
    
    
    
    546
    
    
    
    586Provision for inventory reserves
    
    
    767
    
    
    
    2,395
    
    
    
    1,161Deferred income taxes
    
    
    (900
    )
    
    
    682
    
    
    
    (845
    )Share-based compensation expense
    
    
    2,966
    
    
    
    1,962
    
    
    
    507Excess tax benefits from share-based awards
    
    
    (73
    )
    
    
    (122
    )
    
    
    (56
    )Net investment in life insurance
    
    
    (74
    )
    
    
    (489
    )
    
    
    50Gain on acquisition of business
    
    
    
    
    
    
    (9,087
    )
    
    
    Other  net
    
    
    (301
    )
    
    
    (232
    )
    
    
    (41
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (4,977
    )
    
    
    (594
    )
    
    
    (4,603
    )Inventories
    
    
    (8,268
    )
    
    
    922
    
    
    
    (9,499
    )Trade accounts payables and accrued liabilities
    
    
    8,429
    
    
    
    3,750
    
    
    
    5,663Income taxes payable
    
    
    383
    
    
    
    781
    
    
    
    (2,251
    )Other  net
    
    
    (2,327
    )
    
    
    (1,581
    )
    
    
    1,048NET CASH PROVIDED BY OPERATING
ACTIVITIES
    
    
    28,688
    
    
    
    29,015
    
    
    
    17,311INVESTING ACTIVITIESCapital expenditures
    
    
    (12,274
    )
    
    
    (10,667
    )
    
    
    (10,011
    )Business acquisitions, net of cash acquired
    
    
    (14,324
    )
    
    
    (13,199
    )
    
    
    (3,839
    )Proceeds from the sale of discontinued operations
    
    
    
    
    
    
    750
    
    
    
    11,105Proceeds from the sale of property and equipment
    
    
    757
    
    
    
    422
    
    
    
    333Proceeds on life insurance
    
    
    
    
    
    
    3,082
    
    
    
    Payments on life insurance
    
    
    
    
    
    
    (3,082
    )
    
    
    NET CASH USED IN INVESTING ACTIVITIES
    
    
    (25,841
    )
    
    
    (22,694
    )
    
    
    (2,412
    )FINANCING ACTIVITIESIncrease (decrease) in notes payable to banks
    
    
    4,470
    
    
    
    
    
    
    
    (486
    )Proceeds from the issuance of long-term debt
    
    
    130
    
    
    
    1,330
    
    
    
    6,984Payments of long-term debt
    
    
    (2,465
    )
    
    
    (529
    )
    
    
    (8,363
    )Dividends paid
    
    
    (4,344
    )
    
    
    (4,271
    )
    
    
    (4,247
    )Excess tax benefits from share-based awards
    
    
    73
    
    
    
    122
    
    
    
    56Proceeds from issuance of common shares
    
    
    285
    
    
    
    352
    
    
    
    452Purchase of common shares for treasury
    
    
    (1,081
    )
    
    
    (168
    )
    
    
    (7,457
    )NET CASH USED IN FINANCING ACTIVITIES
    
    
    (2,932
    )
    
    
    (3,164
    )
    
    
    (13,061
    )Effects of exchange rate changes on cash and cash equivalents
    
    
    (1,357
    )
    
    
    1,071
    
    
    
    (4,551
    )Net increase (decrease) in cash and cash equivalents
    
    
    (1,442
    )
    
    
    4,228
    
    
    
    (2,713
    )NET CASH (USED IN) PROVIDED BY DISCONTINUED OPERATIONSOperating cash flows
    
    
    
    
    
    
    
    
    
    
    958Investing cash flows
    
    
    
    
    
    
    
    
    
    
    (1,768
    )NET CASH USED IN DISCONTINUED OPERATIONS
    
    
    
    
    
    
    
    
    
    
    (810
    )Cash and cash equivalents at beginning of year
    
    
    24,097
    
    
    
    19,869
    
    
    
    23,392CASH AND CASH EQUIVALENTS AT END OF YEAR
    
    $
    22,655
    
    
    $
    24,097
    
    
    $
    19,869
 See notes to consolidated financial statements.
  39




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
 
 STATEMENTS OF CONSOLIDATED SHAREHOLDERS EQUITY
 Accumulated OtherComprehensive Income (Loss)Common
    
    
    
    
    
    
    
    
    
    
    Cumulative
    
    
    UnrecognizedCommon
    
    
    Shares Issued
    
    
    Paid in
    
    
    Retained
    
    
    Translation
    
    
    Pension
    
    
    Non-controllingShares
    
    
    to Rabbi Trust
    
    
    Capital
    
    
    Earnings
    
    
    Adjustment
    
    
    Benefit Cost
    
    
    interests
    
    
    Total(In thousands, except share and per share data)Balance at January 1, 2008
    
    $
    10,762
    
    
    $
    
    
    
    $
    2,720
    
    
    $
    140,339
    
    
    $
    (2,848
    )
    
    $
    (1,252
    )
    
    $
    904
    
    
    $
    150,625Noncontrolling interest of business acquisition
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (405
    )
    
    
    (405
    )Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17,623
    
    
    
    
    
    
    
    
    
    
    
    288
    
    
    
    17,911Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,419
    )
    
    
    
    
    
    
    (51
    )
    
    
    (15,470
    )Recognized net acturial loss net
of tax provision of $23
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39
    
    
    
    
    
    
    
    39Loss on unfunded pension
obligations net of tax benefit of $2,942
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,031
    )
    
    
    
    
    
    
    (5,031
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (20,462
    )Share-based compensation
    
    
    
    
    
    
    
    
    
    
    507
    
    
    
    (18
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    489Excess tax benefits from share based awards
    
    
    
    
    
    
    
    
    
    
    56
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    56Purchase of 172,726 common shares
    
    
    (345
    )
    
    
    
    
    
    
    
    
    
    
    (7,112
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7,457
    )Issuance of 15,600 common shares
    
    
    31
    
    
    
    
    
    
    
    421
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    452Cash dividends declared  $.80 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,208
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,208
    )Balance at December 31, 2008
    
    
    10,448
    
    
    
    
    
    
    
    3,704
    
    
    
    146,624
    
    
    
    (18,267
    )
    
    
    (6,244
    )
    
    
    736
    
    
    
    137,001Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,357
    
    
    
    
    
    
    
    
    
    
    
    (524
    )
    
    
    22,833Acquisition of noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    (200
    )
    
    
    364
    
    
    
    
    
    
    
    
    
    
    
    (364
    )
    
    
    (200
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,679
    
    
    
    
    
    
    
    7
    
    
    
    11,686Recognized net actuarial loss net
of tax provision of $207
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    355
    
    
    
    
    
    
    
    355Gain on unfunded pension
obligations net of tax benefit of $646
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,108
    
    
    
    
    
    
    
    1,108Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35,782Share-based compensation
    
    
    
    
    
    
    
    
    
    
    1,962
    
    
    
    (103
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,859Excess tax benefits from share based awards
    
    
    
    
    
    
    
    
    
    
    122
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    122Purchase of 3,000 common shares
    
    
    (6
    )
    
    
    
    
    
    
    
    
    
    
    (99
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (105
    )Issuance of 27,468 common shares
    
    
    55
    
    
    
    
    
    
    
    297
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    352Cash dividends declared  $.80 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,190
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,190
    )Balance at December 31, 2009
    
    
    10,497
    
    
    
    
    
    
    
    5,885
    
    
    
    165,953
    
    
    
    (6,588
    )
    
    
    (4,781
    )
    
    
    (145
    )
    
    
    170,821Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,113
    
    
    
    
    
    
    
    
    
    
    
    (105
    )
    
    
    23,008Acquisition of noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    (351
    )
    
    
    343
    
    
    
    
    
    
    
    
    
    
    
    (343
    )
    
    
    (351
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,028
    
    
    
    
    
    
    
    (82
    )
    
    
    4,946Recognized net actuarial loss net
of tax provision of $106
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    174
    
    
    
    
    
    
    
    174Gain on unfunded pension
obligations net of tax benefit of $96
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    157
    
    
    
    
    
    
    
    157Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,934Share-based compensation
    
    
    
    
    
    
    
    
    
    
    2,966
    
    
    
    (163
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,803Excess tax benefits from share based awards
    
    
    
    
    
    
    
    
    
    
    73
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    73Purchase of 32,687 common shares
    
    
    (65
    )
    
    
    
    
    
    
    
    
    
    
    (995
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,060
    )Issuance of 14,168 common shares
    
    
    28
    
    
    
    
    
    
    
    257
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    285Restricted shares awards of 41,198
    
    
    82
    
    
    
    
    
    
    
    (82
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Common shares issued to rabbi trust
    
    
    
    
    
    
    (1,200
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,200
    )Cash dividends declared  $.80 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,191
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,191
    )Balance at December 31, 2010
    
    $
    10,542
    
    
    $
    (1,200
    )
    
    $
    8,748
    
    
    $
    184,060
    
    
    $
    (1,560
    )
    
    $
    (4,450
    )
    
    $
    (675
    )
    
    $
    195,465
 See notes to consolidated financial statements.
  40




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##### Table of Contents



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
  Consolidation
  Noncontrolling Interests
  Investments in Foreign Joint Ventures
  Cash and Cash Equivalents
  Receivable Allowances
   41




---



##### Table of Contents



Inventories
  Fair Value of Financial Instruments
  Property, Plant and Equipment and Depreciation
  Long-Lived Assets
  Goodwill and Other Intangibles
   42




---



##### Table of Contents



Sales Recognition
  Research and Development
  Income Taxes
  Advertising
  Foreign Currency Translation
   43




---



##### Table of Contents



Use of Estimates
  Business Combinations
  Derivative Financial Instruments
  Reclassifications
  Recently Adopted Accounting Pronouncements
   Recently Issued Accounting Pronouncements
    44




---



##### Table of Contents



Note B  Other Financial Statement Information
 Inventories  net
 December 312010
    
    
    2009Finished products
    
    $
    34,580
    
    
    $
    26,161Work-in-process
    
    
    5,830
    
    
    
    3,473Raw materials
    
    
    40,667
    
    
    
    34,78881,077
    
    
    
    64,422Excess of current cost over LIFO cost
    
    
    (4,801
    )
    
    
    (4,463
    )Noncurrent portion of inventory
    
    
    (3,155
    )
    
    
    (3,923
    )$
    73,121
    
    
    $
    56,036
  45




---



##### Table of Contents



Property and equipment  net
  December 312010
    
    
    2009Land and improvements
    
    $
    7,467
    
    
    $
    7,188Buildings and improvements
    
    
    55,766
    
    
    
    51,297Machinery and equipment
    
    
    117,758
    
    
    
    104,179Construction in progress
    
    
    4,949
    
    
    
    6,068185,940
    
    
    
    168,732Less accumulated depreciation
    
    
    109,674
    
    
    
    100,966$
    76,266
    
    
    $
    67,766
    Legal proceedings
  Note C  Pension Plans
   46




---



##### Table of Contents



2010
    
    
    2009
    
    
    2008Service cost
    
    $
    813
    
    
    $
    908
    
    
    $
    704Interest cost
    
    
    1,195
    
    
    
    1,195
    
    
    
    1,064Expected return on plan assets
    
    
    (960
    )
    
    
    (759
    )
    
    
    (998
    )Recognized net actuarial loss
    
    
    280
    
    
    
    562
    
    
    
    62Net periodic pension cost
    
    $
    1,328
    
    
    $
    1,906
    
    
    $
    832
  2010
    
    
    2009Projected benefit obligation at beginning of the year
    
    $
    21,718
    
    
    $
    20,551Service cost
    
    
    813
    
    
    
    908Interest cost
    
    
    1,195
    
    
    
    1,195Actuarial (gain) loss
    
    
    415
    
    
    
    (488
    )Benefits paid
    
    
    (476
    )
    
    
    (448
    )Projected benefit obligation at end of year
    
    $
    23,665
    
    
    $
    21,718Fair value of plan assets at beginning of the year
    
    $
    13,040
    
    
    $
    9,248Actual return on plan assets
    
    
    1,628
    
    
    
    2,025Employer contributions
    
    
    
    
    
    
    2,215Benefits paid
    
    
    (476
    )
    
    
    (448
    )Fair value of plan assets at end of the year
    
    $
    14,192
    
    
    $
    13,040Unfunded pension obligation
    
    $
    (9,473
    )
    
    $
    (8,678
    )
  2010
    
    
    2009Balance at January 1
    
    $
    (4,762
    )
    
    $
    (6,225
    )Reclassification adjustments:Pretax amortized net actuarial loss
    
    
    280
    
    
    
    562Tax provision
    
    
    (106
    )
    
    
    (207
    )174
    
    
    
    355Adjustment to recognize (loss) gain
on unfunded pension obligations:Pretax gain on plan assets
    
    
    253
    
    
    
    1,754Tax provision
    
    
    (96
    )
    
    
    (646
    )157
    
    
    
    1,108Balance at December 31
    
    $
    (4,431
    )
    
    $
    (4,762
    )
  47




---



##### Table of Contents



2010
    
    
    2009Accumulated benefit obligation
    
    $
    19,915
    
    
    $
    17,039Fair market value of assets
    
    
    14,192
    
    
    
    13,040
  2010
    
    
    2009Discount rate
    
    
    5.60
    %
    
    
    6.00
    %Rate of compensation increase
    
    
    3.50
    
    
    
    3.50
  2010
    
    
    2009
    
    
    2008Discount rate
    
    
    6.00
    %
    
    
    5.75
    %
    
    
    6.50
    %Rate of compensation increase
    
    
    3.50
    
    
    
    3.50
    
    
    
    3.50Expected long-term return on plan assets
    
    
    8.00
    
    
    
    8.00
    
    
    
    8.00
   At December 31, 2010Quoted Prices inActive Markets
    
    
    Significant
    
    
    SignificantTotal Assets
    
    
    for Identical
    
    
    Observable
    
    
    Unobservableat Fair Value
    
    
    Assets (Level 1)
    
    
    Inputs (Level 2)
    
    
    Inputs (Level 3)Asset CategoryCash
    
    $
    374
    
    
    $
    374
    
    
    $
    
    
    
    $
    Equity Securities
    
    
    5,060
    
    
    
    5,060
    
    
    
    
    
    
    
    Mutual Funds
    
    
    2,535
    
    
    
    2,535
    
    
    
    
    
    
    
    U.S. Treasury Securities
    
    
    3,446
    
    
    
    3,446
    
    
    
    
    
    
    
    Corporate Bonds
    
    
    2,726
    
    
    
    
    
    
    
    2,726
    
    
    
    Mortgage-Backed Securities
    
    
    51
    
    
    
    
    
    
    
    51
    
    
    
    Total
    
    $
    14,192
    
    
    $
    11,415
    
    
    $
    2,777
    
    
    $
    
  48




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##### Table of Contents



At December 31, 2009Quoted Prices inActive Markets
    
    
    Significant
    
    
    SignificantTotal Assets
    
    
    for Identical
    
    
    Observable
    
    
    Unobservableat Fair Value
    
    
    Assets (Level 1)
    
    
    Inputs (Level 2)
    
    
    Inputs (Level 3)Asset CategoryCash
    
    $
    246
    
    
    $
    246
    
    
    $
    
    
    
    $
    Equity Securities
    
    
    4,747
    
    
    
    4,747
    
    
    
    
    
    
    
    Mutual Funds
    
    
    3,185
    
    
    
    3,185
    
    
    
    
    
    
    
    U.S. Treasury Securities
    
    
    3,646
    
    
    
    3,646
    
    
    
    
    
    
    
    Corporate Bonds
    
    
    1,216
    
    
    
    
    
    
    
    1,216
    
    
    
    Total
    
    $
    13,040
    
    
    $
    11,824
    
    
    $
    1,216
    
    
    $
    
  Plan assetsat December 312010
    
    
    2009Asset categoryEquity securities
    
    
    60
    %
    
    
    61
    %Debt securities
    
    
    37
    
    
    
    37Cash and equivalents
    
    
    3
    
    
    
    2100
    %
    
    
    100
    %
   Range
    
    TargetEquities
    
    30-80%
    
    
    60
    %Fixed Income
    
    20-70%
    
    
    40
    %Cash Equivalents
    
    0-10%
    49




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##### Table of Contents



Year
    
    Pension Benefits2011
    
    $
    5102012
    
    
    5722013
    
    
    6512014
    
    
    7172015
    
    
    7802016-2020
    
    
    5,464
    50




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##### Table of Contents



Note D  Debt and Credit Arrangements
 December 312010
    
    
    2009Short-term debtSecured notesThailand Baht denominated (Baht106,400) at 4.2% in 2009
    
    $
    
    
    
    $
    3,181Brazilian Real denominated (R$1,056k) at 28.62% due 2011
    
    
    633
    
    
    
    New Zealand Dollar (NZ$796k) at 5.38 to 5.47% due 2011
    
    
    613
    
    
    
    Current portion of long-term debt
    
    
    1,276
    
    
    
    1,330Total short-term debt
    
    
    2,522
    
    
    
    4,511Long-term debtUSD denominated at 1.51%, due 2013
    
    
    8,349
    
    
    
    Australian dollar denominated term loans (A$2,667),
at 4.19% to 5.83% (3.31% to 5.83% in 2009), due 2011 and 2013, secured
by land and building
    
    
    1,389
    
    
    
    2,024Brazilian Real denominated term loan (R$1,289k) at .7% due 2014
secured by capital equipment
    
    
    774
    
    
    
    609Chinese Rmb denominated term loan (RMB10,000) at 6.48%,
secured by letter of credit
    
    
    
    
    
    
    1,463Thailand Baht denominated capital loans (Baht1,841) at 3.75% to 4.5%,
secured by capital equipment
    
    
    
    
    
    
    18Polish Zloty denominated loans (PLN810) at 4.75% (5.07% in 2009) due 2011,
secured by building, capital equipment and commercial note
    
    
    84
    
    
    
    184Polish Zloty denominated loans (PLN593) at 4.33% (4.46% in 2009) due 2011,
secured by corporate guarantee
    
    
    54
    
    
    
    131Total long-term debt
    
    
    10,650
    
    
    
    4,429Less current portion
    
    
    (1,276
    )
    
    
    (1,330
    )Total long-term debt, less current portion
    
    
    9,374
    
    
    
    3,099Total debt
    
    $
    11,896
    
    
    $
    7,610
    Guarantees and Letters of Credit
   51




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##### Table of Contents



Note E  Leases
   Note F  Income Taxes
  2010
    
    
    2009
    
    
    2008United States
    
    $
    9,007
    
    
    $
    8,498
    
    
    $
    8,311Foreign
    
    
    21,176
    
    
    
    21,095
    
    
    
    16,449$
    30,183
    
    
    $
    29,593
    
    
    $
    24,760
  2010
    
    
    2009
    
    
    2008Continuing operations
    
    $
    7,175
    
    
    $
    6,760
    
    
    $
    7,718Discontinued operations
    
    
    
    
    
    
    
    
    
    
    67$
    7,175
    
    
    $
    6,760
    
    
    $
    7,785
  52




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##### Table of Contents



2010
    
    
    2009
    
    
    2008CurrentFederal
    
    $
    1,768
    
    
    $
    1,912
    
    
    $
    2,473Foreign
    
    
    5,498
    
    
    
    3,659
    
    
    
    5,679State and local
    
    
    809
    
    
    
    507
    
    
    
    4118,075
    
    
    
    6,078
    
    
    
    8,563DeferredFederal
    
    
    342
    
    
    
    81
    
    
    
    (380
    )Foreign
    
    
    (1,098
    )
    
    
    615
    
    
    
    (494
    )State and local
    
    
    (144
    )
    
    
    (14
    )
    
    
    29(900
    )
    
    
    682
    
    
    
    (845
    )$
    7,175
    
    
    $
    6,760
    
    
    $
    7,718
  2010
    
    
    2009
    
    
    2008Statutory Federal Tax Rate
    
    
    35
    %
    
    
    34
    %
    
    
    34
    %Federal tax at statutory rate
    
    $
    10,564
    
    
    $
    10,062
    
    
    $
    8,419State and local taxes, net of federal benefit
    
    
    432
    
    
    
    325
    
    
    
    233Non-deductible expenses
    
    
    12
    
    
    
    461
    
    
    
    269Foreign earnings and related tax credits
    
    
    641
    
    
    
    394
    
    
    
    40Non-U.S. tax rate variances
    
    
    (3,121
    )
    
    
    (918
    )
    
    
    (992
    )ASC 740 (formally FIN 48)
    
    
    (368
    )
    
    
    (607
    )
    
    
    (409
    )Valuation allowance
    
    
    (403
    )
    
    
    (480
    )
    
    
    140Tax credits
    
    
    (329
    )
    
    
    (77
    )
    
    
    (65
    )Gain from acquisition of business
    
    
    
    
    
    
    (2,711
    )
    
    
    Other, net
    
    
    (253
    )
    
    
    311
    
    
    
    83$
    7,175
    
    
    $
    6,760
    
    
    $
    7,718
  53




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2010
    
    
    2009Deferred tax assets:Accrued compensation and benefits
    
    $
    1,126
    
    
    $
    1,163Inventory valuation reserves
    
    
    1,798
    
    
    
    1,452Allowance for doubtful accounts
    
    
    69
    
    
    
    44Benefit plan reserves
    
    
    6,183
    
    
    
    4,754Foreign tax credits
    
    
    1,397
    
    
    
    2,929Capital tax loss carryforwards
    
    
    2,056
    
    
    
    2,132Net operating loss carryforwards
    
    
    937
    
    
    
    968Other accrued expenses
    
    
    1,565
    
    
    
    785Gross deferred tax assets
    
    
    15,131
    
    
    
    14,227Valuation allowance
    
    
    (2,993
    )
    
    
    (3,392
    )Net deferred tax assets
    
    
    12,138
    
    
    
    10,835Deferred tax liabilities:Depreciation and other basis differences
    
    
    (3,535
    )
    
    
    (2,649
    )Undistributed foreign earnings
    
    
    (236
    )
    
    
    Inventory
    
    
    
    
    
    
    (11
    )Prepaid expenses
    
    
    (70
    )
    
    
    (75
    )Intangibles
    
    
    (3,299
    )
    
    
    (1,663
    )Unrealized Foreign Exchange
    
    
    (166
    )
    
    
    (230
    )Other
    
    
    (109
    )
    
    
    (112
    )Deferred tax liabilities
    
    
    (7,415
    )
    
    
    (4,740
    )Net deferred tax assets
    
    $
    4,723
    
    
    $
    6,095
 2010
    
    
    2009Change in net deferred tax assets:Deferred income tax benefit
    
    $
    900
    
    
    $
    (682
    )Items of other comprehensive (loss)
    
    
    (202
    )
    
    
    (853
    )Deferred tax balances from business acquisition
    
    
    (2,070
    )
    
    
    (1,374
    )Total change in net deferred tax assets
    
    $
    (1,372
    )
    
    $
    (2,909
    )
      54




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2010
    
    
    2009
    
    
    2008Balance at January 1
    
    $
    1,304
    
    
    $
    1,176
    
    
    $
    1,585Additions for tax positions of current year
    
    
    53
    
    
    
    164
    
    
    
    161Additions for tax positions of prior years
    
    
    62
    
    
    
    678
    
    
    
    290Reductions for tax positions of prior years
    
    
    (281
    )
    
    
    (79
    )
    
    
    (282
    )Expiration of statutes of limitations
    
    
    (76
    )
    
    
    (635
    )
    
    
    (578
    )Balance at December 31
    
    $
    1,062
    
    
    $
    1,304
    
    
    $
    1,176
  Note G  Share-Based Compensation
 The 1999 Stock Option Plan
    55




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##### Table of Contents



2009
    
    
    2008Risk-free interest rate
    
    
    5.2
    %
    
    
    4.2
    %Dividend yield
    
    
    2.1
    %
    
    
    2.8
    %Expected life (years)
    
    
    6
    
    
    
    6Expected volatility
    
    
    44.0
    %
    
    
    34.4
    %
  WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Exercise Price
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2010
    
    
    85,502
    
    
    $
    33.29Granted
    
    
    
    
    
    $
    0.00Exercised
    
    
    (13,445
    )
    
    $
    19.33Forfeited
    
    
    
    
    
    $
    0.00Outstanding (vested and expected
to vest) at December 31, 2010
    
    
    72,057
    
    
    $
    35.89
    
    
    
    5.5
    
    
    $
    1,631Exercisable at December 31, 2010
    
    
    64,557
    
    
    $
    34.89
    
    
    
    5.1
    
    
    $
    1,526
    Long Term Incentive Plan of 2008
  Restricted Share Awards
   56




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##### Table of Contents



Restricted Share AwardsPerformance
    
    
    
    
    
    
    Total
    
    
    Weighted-Averageand Service
    
    
    Service
    
    
    Restricted
    
    
    Grant-DateRequired
    
    
    Required
    
    
    Awards
    
    
    Fair ValueNonvested as of January 1, 2010
    
    
    115,346
    
    
    
    12,475
    
    
    
    127,821
    
    
    $
    38.28Granted
    
    
    66,973
    
    
    
    7,303
    
    
    
    74,276
    
    
    
    35.75Vested
    
    
    (39,364
    )
    
    
    
    
    
    
    (39,364
    )
    
    
    54.74Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nonvested as of December 31, 2010
    
    
    142,955
    
    
    
    19,778
    
    
    
    162,733
    
    
    $
    33.14
      57




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##### Table of Contents



Deferred Compensation Plan
  Share Option Awards
    2010
    
    
    2009Risk-free interest rate
    
    
    2.9
    %
    
    
    5.2
    %Dividend yield
    
    
    2.0
    %
    
    
    2.1
    %Expected life (years)
    
    
    6
    
    
    
    6Expected volatility
    
    
    43.3
    %
    
    
    44.0
    %
  WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Exercise Price
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2010
    
    
    11,000
    
    
    $
    38.76Granted
    
    
    9,500
    
    
    $
    52.10Exercised
    
    
    
    
    
    $
    0.00Forfeited
    
    
    
    
    
    $
    0.00Outstanding (vested and expected
to vest) at December 31, 2010
    
    
    20,500
    
    
    $
    44.94
    
    
    
    9.5
    
    
    $
    279Exercisable at December 31, 2010
    
    
    5,500
    
    
    $
    38.76
    
    
    
    9
    
    
    $
    109
   58




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##### Table of Contents



Note H  Computation of Earnings Per Share
   2010
    
    
    2009
    
    
    2008NumeratorAmount attributable to PLPC shareholdersIncome from continuing operations
    
    $
    23,113
    
    
    $
    23,357
    
    
    $
    16,754Income from discontinued operations
    
    
    
    
    
    
    
    
    
    
    869Net income attributable to PLPC
    
    $
    23,113
    
    
    $
    23,357
    
    
    $
    17,623DenominatorDetermination of sharesWeighted-average common shares outstanding
    
    
    5,242
    
    
    
    5,232
    
    
    
    5,279Dilutive effect  share-based awards
    
    
    93
    
    
    
    134
    
    
    
    60Diluted weighted-average common shares outstanding
    
    
    5,335
    
    
    
    5,366
    
    
    
    5,339Earnings per common share attributable to PLPC shareholdersBasicIncome from continuing operations
    
    $
    4.41
    
    
    $
    4.46
    
    
    $
    3.17Income from discontinued operations
    
    $
    
    
    
    $
    
    
    
    $
    0.17Net income attributable to PLPC
    
    $
    4.41
    
    
    $
    4.46
    
    
    $
    3.34DilutedIncome from continuing operations
    
    $
    4.33
    
    
    $
    4.35
    
    
    $
    3.14Income from discontinued operations
    
    $
    
    
    
    $
    
    
    
    $
    0.16Net income attributable to PLPC
    
    $
    4.33
    
    
    $
    4.35
    
    
    $
    3.30
   59




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Note I  Goodwill and Other Intangibles
  December 31, 2010
    
    
    December 31, 2009Gross Carrying
    
    
    Accumulated
    
    
    Gross Carrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationFinite-lived intangible assetsPatents
    
    $
    4,829
    
    
    $
    (3,524
    )
    
    $
    4,827
    
    
    $
    (3,213
    )Land use rights
    
    
    1,346
    
    
    
    (77
    )
    
    
    1,365
    
    
    
    (55
    )Trademark
    
    
    967
    
    
    
    (156
    )
    
    
    311
    
    
    
    Customer backlog
    
    
    499
    
    
    
    (363
    )
    
    
    
    
    
    
    Technology
    
    
    1,783
    
    
    
    (37
    )
    
    
    
    
    
    
    Customer relationships
    
    
    8,519
    
    
    
    (1,051
    )
    
    
    5,372
    
    
    
    (520
    )$
    17,943
    
    
    $
    (5,208
    )
    
    $
    11,875
    
    
    $
    (3,788
    )Indefinite-lived intangible assetsGoodwill
    
    $
    12,346
    
    
    
    
    
    
    $
    6,925
     60




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##### Table of Contents



The Americas
    
    
    EMEA
    
    
    Asia-Pacific
    
    
    TotalBalance at January 1, 2009
    
    $
    2,212
    
    
    $
    1,181
    
    
    $
    2,127
    
    
    $
    5,520Additions
    
    
    866
    
    
    
    
    
    
    
    
    
    
    
    866Curency translation
    
    
    
    
    
    
    32
    
    
    
    507
    
    
    
    539Balance at December 31, 2009
    
    
    3,078
    
    
    
    1,213
    
    
    
    2,634
    
    
    
    6,925Additions
    
    
    
    
    
    
    
    
    
    
    4,843
    
    
    
    4,843Curency translation
    
    
    
    
    
    
    (36
    )
    
    
    614
    
    
    
    578Balance at December 31, 2010
    
    $
    3,078
    
    
    $
    1,177
    
    
    $
    8,091
    
    
    $
    12,346
 Note J  Fair Value of Financial Assets and Liabilities
  December 31, 2010
    
    
    December 31, 2009Fair Value
    
    
    Carrying Value
    
    
    Fair Value
    
    
    Carrying ValueLong-term debt and related current maturities
    
    $
    10,738
    
    
    $
    10,650
    
    
    $
    4,617
    
    
    $
    4,429
   Note K  Segment Information
   61




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##### Table of Contents



Year ended December 312010
    
    
    2009
    
    
    2008Net salesPLP-USA
    
    $
    118,325
    
    
    $
    103,910
    
    
    $
    111,721The Americas
    
    
    79,695
    
    
    
    62,161
    
    
    
    60,343EMEA
    
    
    50,073
    
    
    
    46,863
    
    
    
    59,224Asia-Pacific
    
    
    90,212
    
    
    
    44,272
    
    
    
    38,454Total net sales
    
    $
    338,305
    
    
    $
    257,206
    
    
    $
    269,742Intersegment salesPLP-USA
    
    $
    8,447
    
    
    $
    6,215
    
    
    $
    7,668The Americas
    
    
    6,194
    
    
    
    3,499
    
    
    
    4,373EMEA
    
    
    1,719
    
    
    
    1,689
    
    
    
    1,198Asia-Pacific
    
    
    9,100
    
    
    
    7,140
    
    
    
    6,818Total intersegment sales
    
    $
    25,460
    
    
    $
    18,543
    
    
    $
    20,057Interest incomePLP-USA
    
    $
    
    
    
    $
    15
    
    
    $
    115The Americas
    
    
    97
    
    
    
    122
    
    
    
    235EMEA
    
    
    163
    
    
    
    207
    
    
    
    376Asia-Pacific
    
    
    114
    
    
    
    36
    
    
    
    120Total interest income
    
    $
    374
    
    
    $
    380
    
    
    $
    846
  62




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Year ended December 312010
    
    
    2009
    
    
    2008Interest expensePLP-USA
    
    $
    (214
    )
    
    $
    (31
    )
    
    $
    (39
    )The Americas
    
    
    (77
    )
    
    
    (95
    )
    
    
    (30
    )EMEA
    
    
    (61
    )
    
    
    (60
    )
    
    
    (88
    )Asia-Pacific
    
    
    (297
    )
    
    
    (337
    )
    
    
    (387
    )Total interest expense
    
    $
    (649
    )
    
    $
    (523
    )
    
    $
    (544
    )Income taxesPLP-USA
    
    $
    2,065
    
    
    $
    1,842
    
    
    $
    2,577The Americas
    
    
    2,276
    
    
    
    2,928
    
    
    
    2,413EMEA
    
    
    1,618
    
    
    
    1,436
    
    
    
    2,107Asia-Pacific
    
    
    1,216
    
    
    
    554
    
    
    
    621Total income taxes
    
    $
    7,175
    
    
    $
    6,760
    
    
    $
    7,718Income from continuing operations, net of taxPLP-USA
    
    $
    4,687
    
    
    $
    4,352
    
    
    $
    4,877The Americas
    
    
    6,356
    
    
    
    6,763
    
    
    
    5,227EMEA
    
    
    6,031
    
    
    
    3,528
    
    
    
    6,162Asia-Pacific
    
    
    5,934
    
    
    
    8,190
    
    
    
    776Total income from continuing operations, net of tax
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,042Income from discontinued operations, net of tax
    
    
    
    
    
    
    
    
    
    
    869Net income
    
    
    23,008
    
    
    
    22,833
    
    
    
    17,911Income (loss) attributable to noncontrolling interest,
net of tax
    
    
    (105
    )
    
    
    (524
    )
    
    
    288Net income attributable to PLPC
    
    $
    23,113
    
    
    $
    23,357
    
    
    $
    17,623
 As of December 312010
    
    
    2009
    
    
    2008Expenditure for long-lived assetsPLP-USA
    
    $
    3,008
    
    
    $
    2,854
    
    
    $
    3,472The Americas
    
    
    5,639
    
    
    
    4,387
    
    
    
    2,518EMEA
    
    
    2,437
    
    
    
    2,183
    
    
    
    2,465Asia-Pacific
    
    
    1,190
    
    
    
    1,243
    
    
    
    1,556Total expenditures for long-lived assets
    
    $
    12,274
    
    
    $
    10,667
    
    
    $
    10,011Depreciation and amortizationPLP-USA
    
    $
    3,396
    
    
    $
    3,224
    
    
    $
    4,399The Americas
    
    
    1,781
    
    
    
    1,305
    
    
    
    1,188EMEA
    
    
    1,527
    
    
    
    1,391
    
    
    
    1,625Asia-Pacific
    
    
    2,690
    
    
    
    1,329
    
    
    
    1,337Total depreciation and amortization
    
    $
    9,394
    
    
    $
    7,249
    
    
    $
    8,549
  63




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##### Table of Contents



As of December 312010
    
    
    2009Identifiable assetsPLP-USA
    
    $
    67,268
    
    
    $
    65,266The Americas
    
    
    61,358
    
    
    
    51,267EMEA
    
    
    44,526
    
    
    
    42,887Asia-Pacific
    
    
    107,481
    
    
    
    75,503280,633
    
    
    
    234,923Corporate assets
    
    
    346
    
    
    
    449Total identifiable assets
    
    $
    280,979
    
    
    $
    235,372Long-lived assetsPLP-USA
    
    $
    23,124
    
    
    $
    22,723The Americas
    
    
    17,112
    
    
    
    12,708EMEA
    
    
    12,327
    
    
    
    11,862Asia-Pacific
    
    
    23,703
    
    
    
    20,473Total long-lived assets
    
    $
    76,266
    
    
    $
    67,766
 ote L -Related Party Transactions
        64




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##### Table of Contents



Note M -Business Combinations
    July 31, 2010Cash and cash equivalents
    
    $
    431Tangible and other assets
    
    
    8,764Amortizable intangible assets:Customer relationships
    
    
    2,617Trade name
    
    
    602Technology
    
    
    1,682Backlog
    
    
    471Goodwill
    
    
    4,843Total assets acquired
    
    
    19,410Liabilities assumed
    
    
    (4,659
    )Total
    
    $
    14,751
  65




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##### Table of Contents



66




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##### Table of Contents



Note N  Discontinued Operations
   2008Net Sales
    
    $
    8,308Income before income taxes
    
    
    180Provision for income taxes
    
    
    (67
    )Gain on sale, net of tax
    
    
    756Income from discontinued operations, net of tax
    
    $
    869
 Note O  Quarterly Financial Information (unaudited)
  Quarter endedMarch 31
    
    
    June 30
    
    
    September 30
    
    
    December 312010Net sales
    
    $
    68,908
    
    
    $
    82,137
    
    
    $
    93,942
    
    
    $
    93,318Gross profit
    
    
    20,025
    
    
    
    27,455
    
    
    
    31,671
    
    
    
    29,065Income before income taxes
    
    
    1,595
    
    
    
    7,293
    
    
    
    13,884
    
    
    
    7,411Net income
    
    
    1,034
    
    
    
    6,096
    
    
    
    9,882
    
    
    
    5,996Net income attributable to PLPC
    
    
    1,132
    
    
    
    6,096
    
    
    
    9,879
    
    
    
    6,006Net income attributable to PLPC per share, basic
    
    
    0.22
    
    
    
    1.16
    
    
    
    1.89
    
    
    
    1.15Net income attributable to PLPC per share, diluted
    
    
    0.21
    
    
    
    1.13
    
    
    
    1.83
    
    
    
    1.132009Net sales
    
    $
    58,694
    
    
    $
    59,568
    
    
    $
    69,132
    
    
    $
    69,812Gross profit
    
    
    18,578
    
    
    
    19,850
    
    
    
    24,614
    
    
    
    21,726Income before income taxes
    
    
    4,307
    
    
    
    5,263
    
    
    
    8,449
    
    
    
    11,574Net income
    
    
    2,717
    
    
    
    3,542
    
    
    
    6,259
    
    
    
    10,315Net income attributable to PLPC
    
    
    2,722
    
    
    
    
    
    
    
    6,320
    
    
    
    10,731Net income attributable to PLPC per share, basic
    
    
    0.52
    
    
    
    0.69
    
    
    
    1.21
    
    
    
    2.05Net income attributable to PLPC per share, diluted
    
    
    0.51
    
    
    
    0.68
    
    
    
    1.19
    
    
    
    1.99
  67




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##### Table of Contents



Item 9.
    
    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
  
 Item 9A.
    
    Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  Managements Report on Internal Control Over Financial Reporting
    Internal Control  Integrated Framework
  Changes in Internal Control Over Financial Reporting
  Report of Independent Registered Public Accounting Firm
 
   68




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##### Table of Contents



.
   
  69




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##### Table of Contents



Item 9B.
    
    Other Information
  
 Part III
 
 Item 10.
    
    Directors, Executive Officers and Corporate Governance
  
 Item 11.
    
    Executive Compensation
  
 Item 12.
    
    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
  
 Item 13.
    
    Certain Relationships, Related Transactions and Director Independence
  
 Item 14.
    
    Principal Accounting Fees and Services
  
 Part IV
 
 Item 15.
    
    Exhibits and Financial Statement Schedules
  Page
    
    
    Financial Statements37
    
    
    Consolidated Balance Sheets38
    
    
    Statements of Consolidated Income39
    
    
    Statements of Consolidated Cash Flows40
    
    
    Statements of Consolidated Shareholders Equity41
    
    
    Notes to Consolidated Financial Statements
 Page
    
    
    Schedule74
    
    
    II  Valuation and Qualifying Accounts
  70




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##### Table of Contents



ExhibitNumber

    
    Exhibit3.1
    
    
    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).4
    
    
    Description of Specimen Share Certificate (incorporated by reference to the Companys
Registration Statement on Form 10).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 and Preformed Line Products Company,
dated December 30, 1994 (incorporated by reference to the Companys Registration Statement on
Form 10).10.6
    
    
    Amendment to the Revolving Credit Agreement between National City Bank 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
    
    
    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).*10.8
    
    
    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).*10.9
    
    
    Preformed Line Products Company Long Term Incentive Plan of 2008 (incorporated by reference
to the Companys 8-K current report filing dated May 1, 2008).*10.10
    
    
    Deferred Shares Plan (incorporated by reference to the Companys 8-K current report filing
dated August 21, 2008).10.11
    
    
    Form of Restricted Shares Grant Agreement (incorporated by reference to the Companys 10-Q
filing for the quarter ended September 30, 2008).*10.12
    
    
    Stock and Purchase Agreement, dated October 22, 2009, by and among the Company and Tyco
Electronics Group S.A. to acquire the Dulmison business (incorporated by reference to the
Companys 10-K filing for the fiscal year ended December 31, 2009).10.13
    
    
    Agreement for sale and purchase of shares in Electropar Limited, dated May 15, 2010, by and
among the Company and Tony Lachlan Wallace, Grant Lachlan Wallace and Helen Amelia Wallace;
Grant Lachlan Wallace, Tony Lachlan Wallace and Alison Kay Wallace; and Cameron Lachlan
Wallace, Grant Lachlan Wallace and Tony Lachlan Wallace (the agreement does not include the
schedules and other attachments. Copies will be provided to the SEC upon request)
(incorporated by reference to the Companys 10-Q filing for the quarter ended September 30,
2010).10.14
    
    
    Stock Purchase Agreement dated August 17, 2010 by and between the Company and the trustee
under the Irrevocable Trust Agreement between Barbara P. Ruhlman and Bernard L. Karr, dated
July 29, 2008 (incorporated by reference to the Companys 8-K current report filing dated
August 17, 2010).10.15
    
    
    Line of Credit Note dated February 5, 2010 between the Company and PNC Bank, National
Association, filed herewith.10.16
    
    
    Loan Agreement dated February 5, 2010 between the Company and PNC Bank, National
Association, filed herewith.14.1
    
    
    Preformed Line Products Company Code of Conduct (incorporated by reference to the Companys
8-K current report filing dated August 6, 2007).
  71




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##### Table of Contents



ExhibitNumber

    
    Exhibit21
    
    
    Subsidiaries of Preformed Line Products Company, filed herewith.23.1
    
    
    Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.31.1
    
    
    Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302
of the Sarbanes-Oxley Act of 2002, filed herewith.31.2
    
    
    Certification of the Principal Financial Officer, Eric R. Graef, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002, filed herewith.32.1
    
    
    Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, furnished.32.2
    
    
    Certification of the Principal Accounting Officer, Eric R. Graef, pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, furnished.
 *
    
    Indicates management contracts or compensatory plan or arrangement.  72




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##### Table of Contents



SIGNATURES
  Preformed Line Products CompanyMarch 11, 2011
    /s/ Robert G. RuhlmanRobert G. RuhlmanChairman, President and Chief Executive Officer
(principal executive officer)March 11, 2011
    /s/ Eric R. GraefEric R. GraefChief Financial Officer and Vice President Finance
(principal financial officer)  March 11, 2011
    
    /s/ Robert G. Ruhlman

Robert G. RuhlmanChairman, President and Chief Executive OfficerMarch 11, 2011
    
    /s/ Barbara P. Ruhlman

Barbara P. RuhlmanDirectorMarch 11, 2011
    
    /s/ Randall M. Ruhlman

Randall M. RuhlmanDirectorMarch 11, 2011
    
    /s/ Glenn E. Corlett

Glenn E. CorlettDirectorMarch 11, 2011
    
    /s/ Michael E. Gibbons

Michael E. GibbonsDirectorMarch 11, 2011
    
    /s/ R. Steven Kestner

R. Steven KestnerDirectorMarch 11, 2011
    
    /s/ Richard R. Gascoigne

Richard R. GascoigneDirector
  73




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
 
    AdditionsBalance at
    
    
    charged to
    
    
    
    
    
    
    Other additions
    
    
    Balance atbeginning of
    
    
    costs and
    
    
    
    
    
    
    or deductions
    
    
    end ofFor the year ended December 31, 2010:
    
    period
    
    
    expenses
    
    
    Deductions
    
    
    (a)
    
    
    periodAllowance for doubtful accounts
    
    $
    769
    
    
    $
    469
    
    
    $
    (386
    )
    
    $
    23
    
    
    $
    875Reserve for credit memos
    
    
    226
    
    
    
    192
    
    
    
    (80
    )
    
    
    
    
    
    
    338Slow-moving and obsolete inventory reserves
    
    
    5,539
    
    
    
    767
    
    
    
    (859
    )
    
    
    160
    
    
    
    5,607Accrued product warranty
    
    
    209
    
    
    
    403
    
    
    
    (108
    )
    
    
    32
    
    
    
    536
 AdditionsBalance at
    
    
    charged to
    
    
    
    
    
    
    Other additions
    
    
    Balance atbeginning of
    
    
    costs and
    
    
    
    
    
    
    or deductions
    
    
    end ofFor the year ended December 31, 2009:
    
    period
    
    
    expenses
    
    
    Deductions
    
    
    (a)
    
    
    periodAllowance for doubtful accounts
    
    $
    498
    
    
    $
    322
    
    
    $
    (224
    )
    
    $
    173
    
    
    $
    769Reserve for credit memos
    
    
    474
    
    
    
    224
    
    
    
    (472
    )
    
    
    
    
    
    
    226Slow-moving and obsolete inventory reserves
    
    
    3,056
    
    
    
    2,029
    
    
    
    (841
    )
    
    
    1,295
    
    
    
    5,539Accrued product warranty
    
    
    129
    
    
    
    81
    
    
    
    (6
    )
    
    
    5
    
    
    
    209
 AdditionsBalance at
    
    
    charged to
    
    
    
    
    
    
    
    
    
    
    Balance atbeginning of
    
    
    costs and
    
    
    
    
    
    
    Other additions
    
    
    end ofFor the year ended December 31, 2008:
    
    period
    
    
    expenses
    
    
    Deductions
    
    
    or deductions
    
    
    periodAllowance for doubtful accounts
    
    $
    733
    
    
    $
    114
    
    
    $
    (305
    )
    
    $
    (44
    )
    
    $
    498Reserve for credit memos
    
    
    466
    
    
    
    472
    
    
    
    (464
    )
    
    
    
    
    
    
    474Slow-moving and obsolete inventory reserves
    
    
    3,332
    
    
    
    1,161
    
    
    
    (1,322
    )
    
    
    (115
    )
    
    
    3,056Accrued product warranty
    
    
    104
    
    
    
    147
    
    
    
    (94
    )
    
    
    (28
    )
    
    
    129
 (a)
    
    Other additions or deductions relate to translation adjustments. Included in 2010 are
opening balances for acquisitions for the allowance for doubtful accounts of $2 thousand.
Included in 2009 are opening balances for acquisitions for the following reserves;
allowance for doubtful accounts of $117 thousand and $1.3 million for inventory reserves.  74




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##### Table of Contents



Exhibit Index
 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).4
    
    
    Description of Specimen Stock Certificate (incorporated by reference to the Companys
Registration Statement on Form 10).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 filing 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 and Preformed Line Products Company,
dated December 30, 1994 (incorporated by reference to the Companys Registration Statement on
Form 10).10.6
    
    
    Amendment to the Revolving Credit Agreement between National City Bank 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
    
    
    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).10.8
    
    
    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).10.9
    
    
    Preformed Line Products Company Long Term Incentive Plan of 2008 (incorporated by reference
to the Companys 8-K current report filing dated May 1, 2008).*10.10
    
    
    Deferred Shares Plan (incorporated by reference to the Companys 8-K current report filing
dated August 21, 2008).*10.11
    
    
    Form of Restricted Shares Grant Agreement (incorporated by reference to the Companys 10-Q
filing for the quarter ended September 30, 2008). *10.12
    
    
    Stock and Purchase Agreement, dated October 22, 2009, by and among the Company and Tyco
Electronics Group S.A. to acquire the Dulmison business (incorporated by reference to the
Companys 10-K filing for the fiscal year ended December 31, 2009).10.13
    
    
    Agreement for sale and purchase of shares in Electropar Limited, dated May 15, 2010, by and
among the Company and Tony Lachlan Wallace, Grant Lachlan Wallace and Helen Amelia Wallace;
Grant Lachlan Wallace, Tony Lachlan Wallace and Alison Kay Wallace; and Cameron Lachlan
Wallace, Grant Lachlan Wallace and Tony Lachlan Wallace (the agreement does not include the
schedules and other attachments. Copies will be provided to the SEC upon request)
(incorporated by reference to the Companys 10-Q filing for the quarter ended September 30,
2010).10.14
    
    
    Stock Purchase Agreement dated August 17, 2010 by and between the Company and the trustee
under the Irrevocable Trust Agreement between Barbara P. Ruhlman and Bernard L. Karr, dated
July 29, 2008 (incorporated by reference to the Companys 8-K current report filing dated
August 17, 2010).10.15
    
    
    Line of Credit Note and Loan Agreement dated February 5, 2010 between the Company and PNC
Bank, National Association, filed herewith10.16
    
    
    Loan Agreement dated February 5, 2010 between the Company and PNC Bank, National
Association, filed herewith.14.1
    
    
    Preformed Line Products Company Code of Conduct (incorporated by reference to the Companys
8-K current report filing dated August 6, 2007).21
    
    
    Subsidiaries of Preformed Line Products Company, filed herewith.
  75




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##### Table of Contents



23.1
    
    
    Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.31.1
    
    
    Certificationsof the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302
of the Sarbanes-Oxley Act of 2002, filed herewith.31.2
    
    
    Certification of the Principal Financial Officer, Eric R. Graef, pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002, filed herewith.32.1
    
    
    Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, furnished.32.2
    
    
    Certification of the Principal Accounting Officer, Eric R. Graef, pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002, furnished.
 *
    
    Indicates management contracts or compensatory plan or arrangement.  76