##### Table of Contents



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, 2009
 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 DriveMayfield Village, Ohio
    
    44143(Address of Principal Executive Office)
    
    (Zip 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(Do not check if a smaller reporting company)
 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
    
    
    67Item 9A. Controls and Procedures
    
    
    67Item 9B. Other Information
    
    
    69Part III.Item 10. Directors, Executive Officers and Corporate Governance
    
    
    69Item 11. Executive Compensation
    
    
    69Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder Matters
    
    
    69Item 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
    
    
    72Schedule II  Valuation and Qualifying Accounts
    
    
    73EX-2.1EX-21EX-23.1EX-23.2EX-31.1EX-31.2EX-32.1EX-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;
 
    
    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 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
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;
 
    
    The Companys ability to obtain funding for future acquisitions;
 3




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
    
    The potential impact of the depressed housing market on the Companys ongoing
profitability and future growth opportunities;
 
    
    The continued support by Federal, State, Local and Foreign Governments in incentive
programs for 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
 Protective Closures
 4




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Data Communication Cabinets
 Plastic Products
 Other Products
 Corporate History
   â
    5




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Business
  6




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Markets
  Electric Utilities  Transmission.
 7




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




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




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Patents and Trademarks
    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.
 10




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
    
    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 16 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.
  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.
  13




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Price increases of raw materials could result in lower earnings.
  The Companys international operations subject the Company to additional business risks.
  The Company may not be able to successfully integrate businesses that it may acquire in the future.
  The Company may have interruptions in its businesses due to the uncertainty of the global economy,
specifically the potential impact of bankruptcy among the Companys suppliers and inability 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
    
    
    Australia5. São Paulo, Brazil
    
    Manufacturing
R&E
Warehouse
Office
    
    Owned
    
    
    148,500
    
    
    Brazil6. Cambridge, Ontario, Canada
    
    Manufacturing
Warehouse
Office
    
    Owned
    
    
    73,300
    
    
    Canada7. Andover, Hampshire, England
    
    Manufacturing
R&E
Warehouse
Office
    
    Building Owned;
Land Leased
    
    
    89,400
    
    
    All Other8. Queretaro, Mexico
    
    Manufacturing
Warehouse
Office
    
    Owned
    
    
    52,900
    
    
    All Other9. Beijing, China
    
    Manufacturing
Warehouse
Office
    
    Building Owned;
Land Leased
    
    
    180,900
    
    
    All Other10. Pietermaritzburg, South
Africa
    
    Manufacturing
R&E
Warehouse
Office
    
    Owned
    
    
    73,100
    
    
    South Africa
 15




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ReportableLocation
    
    Use
    
    Owned/Leased
    
    Square Feet
    
    Segment11. Sevilla, Spain
    
    Manufacturing
R&E
Warehouse
Office
    
    Owned
    
    
    63,300
    
    
    All Other12. Bangkok, Thailand
    
    Manufacturing
Warehouse
Office
    
    Owned
    
    
    60,000
    
    
    All Other13. Albuquerque, New Mexico
    
    Manufacturing
Warehouse
Office
    
    Leased
    
    
    27,200
    
    
    All Other14. Bielsko-Biala, Poland
    
    Manufacturing
Warehouse
Office
    
    Buildings Owned;
Land Leased
    
    
    174,400
    
    
    Poland15. Bekasi, Indonesia
    
    Manufacturing
Office
    
    Owned
    
    
    135,700
    
    
    All Other16. Selangor, Malaysia
    
    Manufacturing
Warehouse
Office
    
    Leased
    
    
    14,100
    
    
    All Other17. Bangkok, Thailand
    
    Manufacturing
Warehouse
Office
    
    Leased
    
    
    135,700
    
    
    All Other
 
 Item 3. Legal Proceedings
  
 Item 4. (Removed and Reserved)
 Executive Officers of the Registrant
  Name
    
    Age
    
    PositionRobert G. Ruhlman
    
    
    53
    
    
    Chairman, President and Chief Executive OfficerEric R. Graef
    
    
    57
    
    
    Chief Financial Officer and Vice President  FinanceWilliam H. Haag
    
    
    46
    
    
    Vice President  International OperationsJ. Cecil Curlee Jr.
    
    
    53
    
    
    Vice President  Human ResourcesDennis F. McKenna
    
    
    43
    
    
    Vice President  Marketing and Business DevelopmentDavid C. Sunkle
    
    
    51
    
    
    Vice President  Research and Engineering and ManufacturingCaroline S. Vaccariello
    
    
    43
    
    
    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 312009
    
    2008Quarter
    
    High
    
    Low
    
    Dividend
    
    High
    
    Low
    
    DividendFirst
    
    $
    47.65
    
    
    $
    28.26
    
    
    $
    0.20
    
    
    $
    59.96
    
    
    $
    42.95
    
    
    $
    0.20Second
    
    
    48.96
    
    
    
    32.70
    
    
    
    0.20
    
    
    
    53.88
    
    
    
    40.31
    
    
    
    0.20Third
    
    
    44.16
    
    
    
    33.06
    
    
    
    0.20
    
    
    
    65.50
    
    
    
    37.66
    
    
    
    0.20Fourth
    
    
    44.40
    
    
    
    37.85
    
    
    
    0.20
    
    
    
    56.97
    
    
    
    31.82
    
    
    
    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
    
    
    138,821
    
    
    $
    38.32
    
    
    
    261,179Equity compensation
plans not approved
by security holders
    
    
    85,502
    
    
    $
    33.29
    
    
    
    500Total
    
    
    224,323
    
    
    
    
    
    
    
    261,679
 Performance Graph
  COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN AMONG PREFORMED LINE
PRODUCTS COMPANY, NASDAQ MARKET INDEX AND HEMSCOTT GROUP INDEX
 
 
 18




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COMPANY / INDEX / MARKET
    
    2004
    
    2005
    
    2006
    
    2007
    
    2008
    
    2009PREFORMED LINE PRODUCTS CO
    
    
    100.00
    
    
    
    150.71
    
    
    
    126.96
    
    
    
    219.67
    
    
    
    171.50
    
    
    
    166.35NASDAQ MARKET INDEX
    
    
    100.00
    
    
    
    102.20
    
    
    
    112.68
    
    
    
    124.57
    
    
    
    74.71
    
    
    
    108.56HEMSCOTT GROUP INDEX
    
    
    100.00
    
    
    
    120.35
    
    
    
    161.08
    
    
    
    222.59
    
    
    
    115.64
    
    
    
    156.21
 Purchases of Equity Securities
  Total Number ofTotal
    
    
    
    
    
    Shares Purchased as
    
    Maximum Number ofNumber of
    
    Average
    
    Part of Publicly
    
    Shares that may yet beShares
    
    Price Paid
    
    Announced Plans or
    
    Purchased under thePeriod (2009)
    
    Purchased
    
    per Share
    
    Programs
    
    Plans or ProgramsOctober
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252November
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252December
    
    
    
    
    
    
    
    
    
    
    188,748
    
    
    
    11,252Total
    
    
    
 
 Item 6. Selected Financial Data
 2009
    
    2008
    
    2007
    
    2006
    
    2005(Thousands of dollars, except per share data)Net Sales and IncomeNet sales
    
    $
    257,206
    
    
    $
    269,742
    
    
    $
    233,289
    
    
    $
    196,910
    
    
    $
    186,232Operating income
    
    
    19,460
    
    
    
    23,988
    
    
    
    21,133
    
    
    
    16,359
    
    
    
    16,673Income before income taxes and discontinued operations
    
    
    29,593
    
    
    
    24,760
    
    
    
    21,321
    
    
    
    17,180
    
    
    
    17,288Income from continuing operations, net of tax
    
    
    22,833
    
    
    
    17,042
    
    
    
    13,820
    
    
    
    11,827
    
    
    
    11,170Net income
    
    
    22,833
    
    
    
    17,911
    
    
    
    14,213
    
    
    
    12,103
    
    
    
    12,030Net income (loss) attributable to noncontrolling interest, net of tax
    
    
    (524
    )
    
    
    288
    
    
    
    54
    
    
    
    
    
    
    
    Net income attributable to PLPC
    
    
    23,357
    
    
    
    17,623
    
    
    
    14,159
    
    
    
    12,103
    
    
    
    12,030Per Share AmountsIncome from continuing operations attributable to PLP shareholders  basic
    
    $
    4.46
    
    
    $
    3.17
    
    
    $
    2.57
    
    
    $
    2.11
    
    
    $
    1.95Net income attributable to PLPC common shareholders  basic
    
    
    4.46
    
    
    
    3.34
    
    
    
    2.64
    
    
    
    2.16
    
    
    
    2.10Income from continuing operations attributable to PLPC shareholders  diluted
    
    
    4.35
    
    
    
    3.14
    
    
    
    2.54
    
    
    
    2.09
    
    
    
    1.93Net income attributable to PLPC common shareholders  diluted
    
    
    4.35
    
    
    
    3.30
    
    
    
    2.61
    
    
    
    2.14
    
    
    
    2.08Dividends declared
    
    
    0.80
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    0.80PLPC Shareholders equity
    
    
    31.50
    
    
    
    26.09
    
    
    
    27.82
    
    
    
    24.47
    
    
    
    23.32Other Financial InformationCurrent assets
    
    $
    138,959
    
    
    $
    112,670
    
    
    $
    123,450
    
    
    $
    100,374
    
    
    $
    110,304Total assets
    
    
    235,372
    
    
    
    190,875
    
    
    
    203,866
    
    
    
    170,852
    
    
    
    168,458Current liabilities
    
    
    46,340
    
    
    
    35,248
    
    
    
    42,349
    
    
    
    32,372
    
    
    
    33,900Long-term debt (including current portion)
    
    
    7,610
    
    
    
    3,147
    
    
    
    4,959
    
    
    
    4,361
    
    
    
    4,928Capital leases
    
    
    239
    
    
    
    112
    
    
    
    373
    
    
    
    478
    
    
    
    305PLPC Shareholders equity
    
    
    170,966
    
    
    
    136,265
    
    
    
    149,721
    
    
    
    131,148
    
    
    
    133,715
  
 Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
  19




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20




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Preface
   21




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2009 Results of Operations compared to 2008
 Net Sales
 Year ended December 31Change
    
    
    Changedue to
    
    
    excludingthousands of dollars
    
    
    
    
    
    
    
    
    
    
    currency
    
    
    currency
    
    
    %2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeNet salesPLP-USA
    
    $
    103,910
    
    
    $
    111,721
    
    
    $
    (7,811
    )
    
    $
    
    
    
    $
    (7,811
    )
    
    
    (7
    )%Australia
    
    
    27,923
    
    
    
    27,244
    
    
    
    679
    
    
    
    (1,881
    )
    
    
    2,560
    
    
    
    9Brazil
    
    
    30,744
    
    
    
    30,279
    
    
    
    465
    
    
    
    (1,926
    )
    
    
    2,391
    
    
    
    8South Africa
    
    
    10,264
    
    
    
    9,535
    
    
    
    729
    
    
    
    (23
    )
    
    
    752
    
    
    
    8Canada
    
    
    12,237
    
    
    
    9,952
    
    
    
    2,285
    
    
    
    (750
    )
    
    
    3,035
    
    
    
    30Poland
    
    
    11,148
    
    
    
    20,602
    
    
    
    (9,454
    )
    
    
    (3,823
    )
    
    
    (5,631
    )
    
    
    (27
    )All Other
    
    
    60,980
    
    
    
    60,409
    
    
    
    571
    
    
    
    (3,781
    )
    
    
    4,352
    
    
    
    7Consolidated
    
    $
    257,206
    
    
    $
    269,742
    
    
    $
    (12,536
    )
    
    $
    (12,184
    )
    
    $
    (352
    )
    
    
    
    %
  22




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Gross Profit
 Year ended December 31Change
    
    
    Changedue to
    
    
    excludingthousands of dollars
    
    
    
    
    
    
    
    
    
    
    currency
    
    
    currency
    
    
    %2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeGross profitPLP-USA
    
    $
    33,727
    
    
    $
    35,973
    
    
    $
    (2,246
    )
    
    $
    
    
    
    $
    (2,246
    )
    
    
    (6
    )%Australia
    
    
    7,703
    
    
    
    8,534
    
    
    
    (831
    )
    
    
    (557
    )
    
    
    (274
    )
    
    
    (3
    )Brazil
    
    
    9,170
    
    
    
    8,193
    
    
    
    977
    
    
    
    (340
    )
    
    
    1,317
    
    
    
    16South Africa
    
    
    3,878
    
    
    
    4,271
    
    
    
    (393
    )
    
    
    (2
    )
    
    
    (391
    )
    
    
    (9
    )Canada
    
    
    5,121
    
    
    
    4,331
    
    
    
    790
    
    
    
    (354
    )
    
    
    1,144
    
    
    
    26Poland
    
    
    3,273
    
    
    
    5,471
    
    
    
    (2,198
    )
    
    
    (1,148
    )
    
    
    (1,050
    )
    
    
    (19
    )All Other
    
    
    21,896
    
    
    
    20,494
    
    
    
    1,402
    
    
    
    (1,443
    )
    
    
    2,845
    
    
    
    14Consolidated
    
    $
    84,768
    
    
    $
    87,267
    
    
    $
    (2,499
    )
    
    $
    (3,844
    )
    
    $
    1,345
    
    
    
    2
    %
  23




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Cost and expenses
 Year ended December 31Change
    
    
    Changedue to
    
    
    excludingthousands of dollars
    
    
    
    
    
    
    
    
    
    
    currency
    
    
    currency
    
    
    %2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeCosts and expensesPLP-USA
    
    $
    33,872
    
    
    $
    33,633
    
    
    $
    239
    
    
    $
    
    
    
    $
    239
    
    
    
    1
    %Australia
    
    
    8,196
    
    
    
    6,591
    
    
    
    1,605
    
    
    
    (224
    )
    
    
    1,829
    
    
    
    28Brazil
    
    
    5,485
    
    
    
    5,789
    
    
    
    (304
    )
    
    
    (548
    )
    
    
    244
    
    
    
    4South Africa
    
    
    1,588
    
    
    
    1,235
    
    
    
    353
    
    
    
    (18
    )
    
    
    371
    
    
    
    30Canada
    
    
    1,630
    
    
    
    1,659
    
    
    
    (29
    )
    
    
    (120
    )
    
    
    91
    
    
    
    5Poland
    
    
    2,309
    
    
    
    2,775
    
    
    
    (466
    )
    
    
    (740
    )
    
    
    274
    
    
    
    10All Other
    
    
    12,228
    
    
    
    11,597
    
    
    
    631
    
    
    
    (932
    )
    
    
    1,563
    
    
    
    13Consolidated
    
    $
    65,308
    
    
    $
    63,279
    
    
    $
    2,029
    
    
    $
    (2,582
    )
    
    $
    4,611
    
    
    
    7
    %
  Other income (expense).
 Income taxes.
 Income from continuing operations, net of tax
 24




---



##### Table of Contents



Year ended December 31Change
    
    
    Changedue to
    
    
    excludingthousands of dollars
    
    
    
    
    
    
    
    
    
    
    currency
    
    
    currency
    
    
    %2009
    
    
    2008
    
    
    Change
    
    
    translation
    
    
    translation
    
    
    changeIncome from
continuing operations,
net of taxPLP-USA
    
    $
    4,352
    
    
    $
    4,877
    
    
    $
    (525
    )
    
    $
    
    
    
    $
    (525
    )
    
    
    (11
    )%Australia
    
    
    6,212
    
    
    
    426
    
    
    
    5,786
    
    
    
    (508
    )
    
    
    6,294
    
    
    NMBrazil
    
    
    2,209
    
    
    
    1,336
    
    
    
    873
    
    
    
    131
    
    
    
    742
    
    
    
    56South Africa
    
    
    1,296
    
    
    
    1,980
    
    
    
    (684
    )
    
    
    (3
    )
    
    
    (681
    )
    
    
    (34
    )Canada
    
    
    2,038
    
    
    
    1,537
    
    
    
    501
    
    
    
    (132
    )
    
    
    633
    
    
    
    41Poland
    
    
    772
    
    
    
    2,089
    
    
    
    (1,317
    )
    
    
    (299
    )
    
    
    (1,018
    )
    
    
    (49
    )All Other
    
    
    5,954
    
    
    
    4,797
    
    
    
    1,157
    
    
    
    (277
    )
    
    
    1,434
    
    
    
    30Consolidated
    
    $
    22,833
    
    
    $
    17,042
    
    
    $
    5,791
    
    
    $
    (1,088
    )
    
    $
    6,879
    
    
    
    40
    %
 
 NM  not meaningful  25




---



##### Table of Contents



2008 Results of Operations compared to 2007
 Net Sales
 Year ended December 31Changedue tocurrency
    
    
    
    
    
    
    %thousands of dollars
    
    
    
    
    
    
    
    
    
    
    conversion
    
    
    Net
    
    
    Net2008
    
    
    2007
    
    
    Change
    
    
    rate changes
    
    
    change
    
    
    changeNet salesPLP-USA
    
    $
    111,721
    
    
    $
    103,173
    
    
    $
    8,548
    
    
    $
    
    
    
    $
    8,548
    
    
    
    8
    %Australia
    
    
    27,244
    
    
    
    29,855
    
    
    
    (2,611
    )
    
    
    878
    
    
    
    (3,489
    )
    
    
    (12
    )Brazil
    
    
    30,279
    
    
    
    26,236
    
    
    
    4,043
    
    
    
    2,684
    
    
    
    1,359
    
    
    
    5South Africa
    
    
    9,535
    
    
    
    8,049
    
    
    
    1,486
    
    
    
    (1,676
    )
    
    
    3,162
    
    
    
    39Canada
    
    
    9,952
    
    
    
    10,620
    
    
    
    (668
    )
    
    
    153
    
    
    
    (821
    )
    
    
    (8
    )Poland
    
    
    20,602
    
    
    
    5,202
    
    
    
    15,400
    
    
    
    
    
    
    
    15,400
    
    
    NMAll Other
    
    
    60,409
    
    
    
    50,154
    
    
    
    10,255
    
    
    
    1,420
    
    
    
    8,835
    
    
    
    18Consolidated
    
    $
    269,742
    
    
    $
    233,289
    
    
    $
    36,453
    
    
    $
    3,459
    
    
    $
    32,994
    
    
    
    14
    %
 
 NM  not meaningful  26




---



##### Table of Contents



Gross Profit.
 Year ended December 31Changedue tocurrency
    
    
    
    
    
    
    %thousands of dollars
    
    
    
    
    
    
    
    
    
    
    conversion
    
    
    Net
    
    
    Net2008
    
    
    2007
    
    
    Change
    
    
    rate changes
    
    
    change
    
    
    changeGross profitPLP-USA
    
    $
    35,973
    
    
    $
    33,680
    
    
    $
    2,293
    
    
    $
    
    
    
    $
    2,293
    
    
    
    7
    %Australia
    
    
    8,534
    
    
    
    9,911
    
    
    
    (1,377
    )
    
    
    207
    
    
    
    (1,584
    )
    
    
    (16
    )Brazil
    
    
    8,193
    
    
    
    8,048
    
    
    
    145
    
    
    
    473
    
    
    
    (328
    )
    
    
    (4
    )South Africa
    
    
    4,271
    
    
    
    3,258
    
    
    
    1,013
    
    
    
    (668
    )
    
    
    1,681
    
    
    
    52Canada
    
    
    4,331
    
    
    
    4,812
    
    
    
    (481
    )
    
    
    64
    
    
    
    (545
    )
    
    
    (11
    )Poland
    
    
    5,471
    
    
    
    828
    
    
    
    4,643
    
    
    
    
    
    
    
    4,643
    
    
    NMAll Other
    
    
    20,494
    
    
    
    17,364
    
    
    
    3,130
    
    
    
    327
    
    
    
    2,803
    
    
    
    16Consolidated
    
    $
    87,267
    
    
    $
    77,901
    
    
    $
    9,366
    
    
    $
    403
    
    
    $
    8,963
    
    
    
    12
    %
 
 NM  not meaningful  27




---



##### Table of Contents



Cost and expenses.
 Year ended December 31Changedue tocurrency
    
    
    
    
    
    
    %thousands of dollars
 
    
    
    
    
    
    
    
    
    
    conversion
    
    
    Net
    
    
    Net2008
    
    
    2007
    
    
    Change
    
    
    rate changes
    
    
    change
    
    
    changeCosts and expensesPLP-USA
    
    $
    33,633
    
    
    $
    31,787
    
    
    $
    1,846
    
    
    $
    
    
    
    $
    1,846
    
    
    
    6
    %Australia
    
    
    6,591
    
    
    
    5,819
    
    
    
    772
    
    
    
    125
    
    
    
    647
    
    
    
    11Brazil
    
    
    5,789
    
    
    
    4,735
    
    
    
    1,054
    
    
    
    339
    
    
    
    715
    
    
    
    15South Africa
    
    
    1,235
    
    
    
    1,270
    
    
    
    (35
    )
    
    
    (210
    )
    
    
    175
    
    
    
    14Canada
    
    
    1,659
    
    
    
    1,586
    
    
    
    73
    
    
    
    (12
    )
    
    
    85
    
    
    
    5Poland
    
    
    2,775
    
    
    
    854
    
    
    
    1,921
    
    
    
    
    
    
    
    1,921
    
    
    NMAll Other
    
    
    11,597
    
    
    
    10,717
    
    
    
    880
    
    
    
    296
    
    
    
    584
    
    
    
    5Consolidated
    
    $
    63,279
    
    
    $
    56,768
    
    
    $
    6,511
    
    
    $
    538
    
    
    $
    5,973
    
    
    
    11
    %
 
   Other income.
 Income taxes.
 Income from continuing operations, net of tax
 28




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##### Table of Contents



Year ended December 31Changedue tocurrency
    
    
    
    
    
    
    %thousands of dollars
 
    
    
    
    
    
    
    
    
    
    conversion
    
    
    Net
    
    
    Net2008
    
    
    2007
    
    
    Change
    
    
    rate changes
    
    
    change
    
    
    changeIncome from
continuing operations,
net of taxPLP-USA
    
    
    4,877
    
    
    $
    4,018
    
    
    $
    859
    
    
    $
    
    
    
    $
    859
    
    
    
    21
    %Australia
    
    
    426
    
    
    
    1,736
    
    
    
    (1,310
    )
    
    
    (27
    )
    
    
    (1,283
    )
    
    
    (74
    )Brazil
    
    
    1,336
    
    
    
    2,286
    
    
    
    (950
    )
    
    
    63
    
    
    
    (1,013
    )
    
    
    (44
    )South Africa
    
    
    1,980
    
    
    
    1,185
    
    
    
    795
    
    
    
    (306
    )
    
    
    1,101
    
    
    
    93Canada
    
    
    1,537
    
    
    
    1,811
    
    
    
    (274
    )
    
    
    61
    
    
    
    (335
    )
    
    
    (18
    )Poland
    
    
    2,089
    
    
    
    (7
    )
    
    
    2,096
    
    
    
    
    
    
    
    2,096
    
    
    NMAll Other
    
    
    4,797
    
    
    
    2,791
    
    
    
    2,006
    
    
    
    (20
    )
    
    
    2,026
    
    
    
    73Consolidated
    
    $
    17,042
    
    
    $
    13,820
    
    
    $
    3,222
    
    
    $
    (229
    )
    
    $
    3,451
    
    
    
    25
    %
 
 NM  not meaningful  Working Capital, Liquidity and Capital Resources
    29




---



##### 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)
    
    $
    3,303
    
    
    $
    3,303
    
    
    $
    
    
    
    $
    
    
    
    $
    Long-term debt (B)
    
    
    4,910
    
    
    
    1,559
    
    
    
    2,943
    
    
    
    408
    
    
    
    Capital leases
    
    
    239
    
    
    
    105
    
    
    
    117
    
    
    
    17
    
    
    
    Operating leases
    
    
    14,776
    
    
    
    2,264
    
    
    
    2,379
    
    
    
    1,133
    
    
    
    9,000Purchase commitments
    
    
    3,065
    
    
    
    3,065
    
    
    
    
    
    
    
    
    
    
    
    Pension contribution and other
retirement plans (C)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income taxes payable, non-current (D)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 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
    
    $
    9,750
    
    
    $
    8,767
    
    
    $
    911
    
    
    $
    72
    
    
    $
    Guarantees
    
    
    2,566
    
    
    
    2,496
    
    
    
    70
    
    
    
    
    
    
    
    
 
 (A)
    
    Interest on short-term debt is included in the table at an interest rate of 4.2% in effect at
December 31, 2009.(B)
    
    Interest on long-term debt is included in the table at interest rates from .7% to 6.8% based on
the variable interest rates in effect at December 31, 2009.(C)
    
    Amount represents the expected contribution to the Companys defined benefit pension plan in
2009. Future 30




---



##### Table of Contents



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, 2009, the Companys unfunded contractual obligation was $8.7 million. The Companys
Supplemental Profit Sharing Plan accrued liability at December 31, 2009 was $1.7 million. Future
expected amounts have not been disclosed as the Company is unable to estimate the years in which
benefit payments may occur.
(D) As of December 31, 2009, there were $.8 million of tax liabilities, including interest, 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
      Allowance for Doubtful Accounts
  Reserve for credit memos
    31




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##### Table of Contents



32




---



##### Table of Contents



Recently Adopted Accounting Pronouncements
    33




---



##### Table of Contents



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




---



##### Table of Contents



/s/ Deloitte & Touche LLP
 
   37




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
 December 312009
    
    
    2008(Thousands of dollars, except shareand per share data)ASSETSCash and cash equivalents
    
    $
    24,097
    
    
    $
    19,869Accounts receivable, less allowances of $995 ($972 in 2008)
    
    
    49,245
    
    
    
    36,899Inventories  net
    
    
    56,036
    
    
    
    48,412Deferred income taxes
    
    
    3,256
    
    
    
    2,786Prepaids
    
    
    4,263
    
    
    
    1,313Other current assets
    
    
    2,062
    
    
    
    3,391TOTAL CURRENT ASSETS
    
    
    138,959
    
    
    
    112,670Property and equipment  net
    
    
    67,766
    
    
    
    55,940Patents and other intangibles  net
    
    
    8,087
    
    
    
    3,858Goodwill
    
    
    6,925
    
    
    
    5,520Deferred income taxes
    
    
    4,358
    
    
    
    6,943Other assets
    
    
    9,277
    
    
    
    5,944TOTAL ASSETS
    
    $
    235,372
    
    
    $
    190,875LIABILITIES AND SHAREHOLDERS EQUITYNotes payable to banks
    
    $
    3,181
    
    
    $
    3,101Current portion of long-term debt
    
    
    1,330
    
    
    
    494Trade accounts payable
    
    
    18,764
    
    
    
    14,632Accrued compensation and amounts withheld from employees
    
    
    8,345
    
    
    
    6,606Accrued expenses and other liabilities
    
    
    8,375
    
    
    
    4,574Accrued profit-sharing and other benefits
    
    
    3,890
    
    
    
    3,687Dividends payable
    
    
    1,076
    
    
    
    1,054Income taxes payable and deferred income taxes
    
    
    1,379
    
    
    
    1,100TOTAL CURRENT LIABILITIES
    
    
    46,340
    
    
    
    35,248Long-term debt, less current portion
    
    
    3,099
    
    
    
    2,653Unfunded pension obligation
    
    
    8,678
    
    
    
    11,303Income taxes payable, noncurrent
    
    
    1,898
    
    
    
    1,405Deferred income taxes
    
    
    1,515
    
    
    
    725Other noncurrent liabilities
    
    
    3,021
    
    
    
    2,540SHAREHOLDERS EQUITYPLPC Shareholders equity:Common stock  $2 par value per share, 15,000,000 shares authorized, 5,248,298 and 5,223,830 issued and outstanding, net of 554,059 and 551,059 treasury shares at par, respectively
    
    
    10,497
    
    
    
    10,448Paid in capital
    
    
    5,885
    
    
    
    3,704Retained earnings
    
    
    165,953
    
    
    
    146,624Accumulated other comprehensive loss
    
    
    (11,369
    )
    
    
    (24,511
    )TOTAL PLPC SHAREHOLDERS EQUITY
    
    
    170,966
    
    
    
    136,265Noncontrolling interest
    
    
    (145
    )
    
    
    736TOTAL SHAREHOLDERS EQUITY
    
    
    170,821
    
    
    
    137,001TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    235,372
    
    
    $
    190,875
 See notes to consolidated financial statements.
 38




---



##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME
 Year ended December 312009
    
    
    2008
    
    
    2007(Thousands of dollars, except share and per share data)Net sales
    
    $
    257,206
    
    
    $
    269,742
    
    
    $
    233,289Cost of products sold
    
    
    172,438
    
    
    
    182,475
    
    
    
    155,388GROSS PROFIT
    
    
    84,768
    
    
    
    87,267
    
    
    
    77,901Costs and expensesSelling
    
    
    22,702
    
    
    
    23,555
    
    
    
    22,623General and administrative
    
    
    33,993
    
    
    
    30,014
    
    
    
    26,416Research and engineering
    
    
    9,216
    
    
    
    8,870
    
    
    
    7,192Other operating (income) expenses  net
    
    
    (603
    )
    
    
    840
    
    
    
    338Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    19965,308
    
    
    
    63,279
    
    
    
    56,768OPERATING INCOME
    
    
    19,460
    
    
    
    23,988
    
    
    
    21,133Other income (expense)Gain on acquisition of business
    
    
    9,087
    
    
    
    
    
    
    
    Interest income
    
    
    380
    
    
    
    846
    
    
    
    1,088Interest expense
    
    
    (523
    )
    
    
    (544
    )
    
    
    (595
    )Other income (expense)
    
    
    1,189
    
    
    
    470
    
    
    
    (305
    )10,133
    
    
    
    772
    
    
    
    188INCOME BEFORE INCOME TAXES AND
DISCONTINUED OPERATIONS
    
    
    29,593
    
    
    
    24,760
    
    
    
    21,321Income taxes
    
    
    6,760
    
    
    
    7,718
    
    
    
    7,501INCOME FROM CONTINUING OPERATIONS,
NET OF TAX
    
    
    22,833
    
    
    
    17,042
    
    
    
    13,820Income from discontinued operations, net of tax
    
    
    
    
    
    
    869
    
    
    
    393NET INCOME
    
    
    22,833
    
    
    
    17,911
    
    
    
    14,213Net income (loss) attributable to noncontrolling
interest, net of tax
    
    
    (524
    )
    
    
    288
    
    
    
    54NET INCOME ATTRIBUTABLE TO PLPC
    
    $
    23,357
    
    
    $
    17,623
    
    
    $
    14,159BASIC EARNINGS PER SHAREIncome per share from continuing operations attributable to PLPC common shareholders
    
    $
    4.46
    
    
    $
    3.17
    
    
    $
    2.57Discontinued operations attributable to PLPC common shareholders
    
    $
    
    
    
    $
    0.17
    
    
    $
    0.07Net income attributable to PLPC common shareholders
    
    $
    4.46
    
    
    $
    3.34
    
    
    $
    2.64DILUTED EARNINGS PER SHAREIncome per share from continuing operations attributable to PLPC shareholders
    
    $
    4.35
    
    
    $
    3.14
    
    
    $
    2.54Discontinued operations attributable to PLPC common shareholders
    
    $
    
    
    
    $
    0.16
    
    
    $
    0.07Net income attributable to PLPC common shareholders
    
    $
    4.35
    
    
    $
    3.30
    
    
    $
    2.61Cash dividends declared per share
    
    $
    0.80
    
    
    $
    0.80
    
    
    $
    0.80Weighted-average number of shares outstanding  basic
    
    
    5,232
    
    
    
    5,279
    
    
    
    5,372Weighted-average number of shares outstanding  diluted
    
    
    5,366
    
    
    
    5,339
    
    
    
    5,416Amount attributable to PLPC common shareholdersIncome from continuing operations, net of tax
    
    $
    23,357
    
    
    $
    16,754
    
    
    $
    13,766Discontinued operations, net of tax
    
    
    
    
    
    
    869
    
    
    
    393Net Income
    
    $
    23,357
    
    
    $
    17,623
    
    
    $
    14,159See notes to consolidated financial statements.
 39




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS
 Year ended December 312009
    
    
    2008
    
    
    2007(Thousands of dollars)OPERATING ACTIVITIESNet income
    
    $
    22,833
    
    
    $
    17,911
    
    
    $
    14,213Less: income from discontinued operations
    
    
    
    
    
    
    869
    
    
    
    393Income from continuing operations
    
    
    22,833
    
    
    
    17,042
    
    
    
    13,820Adjustments to reconcile net income to net cash provided by operations:Depreciation and amortization
    
    
    7,249
    
    
    
    8,549
    
    
    
    7,414Provision for accounts receivable allowances
    
    
    546
    
    
    
    586
    
    
    
    938Provision for inventory reserves
    
    
    2,395
    
    
    
    1,161
    
    
    
    22Deferred income taxes
    
    
    682
    
    
    
    (845
    )
    
    
    (326
    )Share-based compensation expense
    
    
    1,962
    
    
    
    507
    
    
    
    237Excess tax benefits from share-based awards
    
    
    (122
    )
    
    
    (56
    )
    
    
    (253
    )Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    199Net investment in life insurance
    
    
    (489
    )
    
    
    50
    
    
    
    (18
    )Gain on acquisition of business
    
    
    (9,087
    )
    
    
    
    
    
    
    Other  net
    
    
    (232
    )
    
    
    (41
    )
    
    
    69Changes in operating assets and liabilities:Accounts receivable
    
    
    (594
    )
    
    
    (4,603
    )
    
    
    (4,871
    )Inventories
    
    
    922
    
    
    
    (9,499
    )
    
    
    (4,972
    )Trade accounts payables and accrued liabilities
    
    
    3,750
    
    
    
    5,663
    
    
    
    3,100Income taxes payable
    
    
    781
    
    
    
    (2,251
    )
    
    
    (551
    )Other  net
    
    
    (1,581
    )
    
    
    1,048
    
    
    
    114NET CASH PROVIDED BY OPERATING ACTIVITIES
    
    
    29,015
    
    
    
    17,311
    
    
    
    14,922INVESTING ACTIVITIESCapital expenditures
    
    
    (10,667
    )
    
    
    (10,011
    )
    
    
    (9,231
    )Business acquisitions, net of cash acquired
    
    
    (13,199
    )
    
    
    (3,839
    )
    
    
    (8,438
    )Proceeds from the sale of discontinued operations
    
    
    750
    
    
    
    11,105
    
    
    
    Proceeds from the sale of property and equipment
    
    
    422
    
    
    
    333
    
    
    
    548Proceeds on life insurance
    
    
    3,082
    
    
    
    
    
    
    
    Payments on life insurance
    
    
    (3,082
    )
    
    
    
    
    
    
    (149
    )NET CASH USED IN INVESTING ACTIVITIES
    
    
    (22,694
    )
    
    
    (2,412
    )
    
    
    (17,270
    )FINANCING ACTIVITIESIncrease (decrease) in notes payable to banks
    
    
    
    
    
    
    (486
    )
    
    
    (528
    )Proceeds from the issuance of long-term debt
    
    
    1,330
    
    
    
    6,984
    
    
    
    1,379Payments of long-term debt
    
    
    (529
    )
    
    
    (8,363
    )
    
    
    (1,456
    )Dividends paid
    
    
    (4,271
    )
    
    
    (4,247
    )
    
    
    (4,295
    )Excess tax benefits from share-based awards
    
    
    122
    
    
    
    56
    
    
    
    253Proceeds from issuance of common shares
    
    
    352
    
    
    
    452
    
    
    
    735Purchase of common shares for treasury
    
    
    (168
    )
    
    
    (7,457
    )
    
    
    (651
    )NET CASH USED IN FINANCING ACTIVITIES
    
    
    (3,164
    )
    
    
    (13,061
    )
    
    
    (4,563
    )Effects of exchange rate changes on cash and cash equivalents
    
    
    1,071
    
    
    
    (4,551
    )
    
    
    1,014Net increase (decrease) in cash and cash equivalents
    
    
    4,228
    
    
    
    (2,713
    )
    
    
    (5,897
    )NET CASH (USED IN) PROVIDED BY DISCONTINUED OPERATIONSOperating cash flows
    
    
    
    
    
    
    958
    
    
    
    (252
    )Investing cash flows
    
    
    
    
    
    
    (1,768
    )
    
    
    (408
    )NET CASH USED IN DISCONTINUED OPERATIONS
    
    
    
    
    
    
    (810
    )
    
    
    (660
    )Cash and cash equivalents at beginning of year
    
    
    19,869
    
    
    
    23,392
    
    
    
    29,949CASH AND CASH EQUIVALENTS AT END OF YEAR
    
    $
    24,097
    
    
    $
    19,869
    
    
    $
    23,392
  See notes to consolidated financial statements.
 40




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY  STATEMENTS OF CONSOLIDATED SHAREHOLDERS EQUITY
 Accumulated OtherComprehensive Income (Loss)Additional
    
    
    
    
    
    
    Cumulative
    
    
    UnrecognizedCommon
    
    
    Paid in
    
    
    Retained
    
    
    Translation
    
    
    Pension
    
    
    Non-controllingShares
    
    
    Capital
    
    
    Earnings
    
    
    Adjustment
    
    
    Benefit Cost
    
    
    interests
    
    
    Total(In thousands, except share and per share data)Balance at January 1, 2007
    
    $
    10,721
    
    
    $
    1,562
    
    
    $
    131,949
    
    
    $
    (10,758
    )
    
    $
    (2,326
    )
    
    $
    
    
    
    $
    131,148Noncontrolling interest of business acquisition
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    850
    
    
    
    850Net income
    
    
    
    
    
    
    
    
    
    
    14,159
    
    
    
    
    
    
    
    
    
    
    
    54
    
    
    
    14,213Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,910
    
    
    
    
    
    
    
    
    
    
    
    7,910Recognized net acturial loss net
of tax provision of $39
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    66
    
    
    
    
    
    
    
    66Gain on unfunded pension obligations
net of tax provision of $597
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    1,008Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23,197Cumulative effect adjustment to initially
apply SFAS 158, net of tax
benefit of $1,355
    
    
    
    
    
    
    
    
    
    
    (845
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (845
    )Share-based compensation
    
    
    
    
    
    
    237
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    237Excess tax benefits from share-based awards
    
    
    
    
    
    
    253
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    253Purchase of 13,022 common shares
    
    
    (26
    )
    
    
    
    
    
    
    (625
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (651
    )Issuance of 33,719 common shares
    
    
    67
    
    
    
    668
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    735Cash dividends declared  $.80 per share
    
    
    
    
    
    
    
    
    
    
    (4,299
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,299
    )Balance at December 31, 2007
    
    
    10,762
    
    
    
    2,720
    
    
    
    140,339
    
    
    
    (2,848
    )
    
    
    (1,252
    )
    
    
    904
    
    
    
    150,625Noncontrolling interest of business acquisition
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    234
    
    
    
    234Net income
    
    
    
    
    
    
    
    
    
    
    16,984
    
    
    
    
    
    
    
    
    
    
    
    288
    
    
    
    17,272Acquisition of noncontrolling interest
    
    
    
    
    
    
    
    
    
    
    639
    
    
    
    
    
    
    
    
    
    
    
    (639
    )
    
    
    Foreign 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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,190
    )Share-based compensation
    
    
    
    
    
    
    507
    
    
    
    (18
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    489Excess tax benefits from stock 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 stock 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
    )
    
    $
    170,821
 See notes to consolidated financial statements.
 41




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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
  42




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##### Table of Contents



Inventories
  Fair Value of Financial Instruments
  Property, Plant and Equipment and Depreciation
  Long-Lived Assets
  Goodwill and Other Intangibles
  43




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##### Table of Contents



Sales Recognition
  Research and Development
  Advertising
  Foreign Currency Translation
  Use of Estimates
  Derivative Financial Instruments
  Reclassifications
  Recently Adopted Accounting Pronouncements
  44




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##### Table of Contents



45




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##### Table of Contents



Recently Issued Accounting Pronouncements
   Note B  Other Financial Statement Information
 Inventories  net
 December 312009
    
    
    2008Finished products
    
    $
    26,161
    
    
    $
    21,829Work-in-process
    
    
    3,473
    
    
    
    2,382Raw materials
    
    
    34,788
    
    
    
    32,23164,422
    
    
    
    56,442Excess of current cost over LIFO cost
    
    
    (4,463
    )
    
    
    (5,122
    )Noncurrent portion of inventory
    
    
    (3,923
    )
    
    
    (2,908
    )$
    56,036
    
    
    $
    48,412
  46




---



##### Table of Contents



Property and equipment  net
  December 312009
    
    
    2008Land and improvements
    
    $
    7,188
    
    
    $
    5,490Buildings and improvements
    
    
    51,297
    
    
    
    47,048Machinery and equipment
    
    
    104,179
    
    
    
    91,097Construction in progress
    
    
    6,068
    
    
    
    2,133168,732
    
    
    
    145,768Less accumulated depreciation
    
    
    100,966
    
    
    
    89,828$
    67,766
    
    
    $
    55,940
    Legal proceedings
  Note C  Pension Plans
  47




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##### Table of Contents



2009
    
    
    2008
    
    
    2007Service cost
    
    $
    908
    
    
    $
    704
    
    
    $
    708Interest cost
    
    
    1,195
    
    
    
    1,064
    
    
    
    938Expected return on plan assets
    
    
    (759
    )
    
    
    (998
    )
    
    
    (938
    )Recognized net actuarial loss
    
    
    562
    
    
    
    62
    
    
    
    105Net periodic pension cost
    
    $
    1,906
    
    
    $
    832
    
    
    $
    813
  2009
    
    
    2008Projected benefit obligation at beginning of the year
    
    $
    20,551
    
    
    $
    15,952Service cost
    
    
    908
    
    
    
    704Interest cost
    
    
    1,195
    
    
    
    1,063Actuarial (gain) loss
    
    
    (488
    )
    
    
    3,241Benefits paid
    
    
    (448
    )
    
    
    (409
    )Projected benefit obligation at end of year
    
    $
    21,718
    
    
    $
    20,551Fair value of plan assets at beginning of the year
    
    $
    9,248
    
    
    $
    13,165Actual return (loss) on plan assets
    
    
    2,025
    
    
    
    (3,735
    )Employer contributions
    
    
    2,215
    
    
    
    227Benefits paid
    
    
    (448
    )
    
    
    (409
    )Fair value of plan assets at end of the year
    
    $
    13,040
    
    
    $
    9,248Unfunded pension obligation
    
    $
    (8,678
    )
    
    $
    (11,303
    )
  2009
    
    
    2008Balance at January 1
    
    $
    (6,225
    )
    
    $
    (1,233
    )Reclassification adjustments:Pretax amortized net actuarial loss
    
    
    562
    
    
    
    62Tax provision
    
    
    (207
    )
    
    
    (23
    )355
    
    
    
    39Adjustment to recognize (loss) gainon unfunded pension obligations:Pretax gain (loss) on plan assets
    
    
    1,754
    
    
    
    (7,973
    )Tax (provision) benefit
    
    
    (646
    )
    
    
    2,9421,108
    
    
    
    (5,031
    )Balance at December 31
    
    $
    (4,762
    )
    
    $
    (6,225
    )
 48




---



##### Table of Contents



2009
    
    2008Accumulated benefit obligation
    
    $
    17,039
    
    
    $
    16,101Fair market value of assets
    
    
    13,040
    
    
    
    9,248
  2009
    
    2008Discount rate
    
    
    6.00
    %
    
    
    5.75
    %Rate of compensation increase
    
    
    3.50
    
    
    
    3.50
  2009
    
    2008
    
    2007Discount rate
    
    
    5.75
    %
    
    
    6.50
    %
    
    
    6.00
    %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, 2009Quoted Prices in Active
    
    
    Significant
    
    
    SignificantTotal Assets at
    
    
    Markets for Identical
    
    
    Observable Inputs
    
    
    UnobservableFair Value
    
    
    Assets (Level 1)
    
    
    (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
    
    
    $
    13,040
    
    
    $
    
    
    
    $
    
  49




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##### Table of Contents



Plan assetsat December 312009
    
    2008Asset categoryEquity securities
    
    
    61
    %
    
    
    58
    %Debt securities
    
    
    37
    
    
    
    40Cash and equivalents
    
    
    2
    
    
    
    2100
    %
    
    
    100
    %
   Range
    
    TargetEquities
    
    
    30-80
    %
    
    
    60
    %Fixed Income
    
    
    20-70
    %
    
    
    40
    %Cash Equivalents
    
    
    0-10
    %
    PensionYear
    
    Benefits2010
    
    $
    4682011
    
    
    5062012
    
    
    5652013
    
    
    6412014
    
    
    7142015-2019
    
    
    5,060
   50




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##### Table of Contents



Note D  Debt and Credit Arrangements
 December 312009
    
    
    2008Short-term debtSecured NotesThailand Baht denominated (Baht106,400) at 4.2% in 2009 (5.18% in 2008)
    
    $
    3,181
    
    
    $
    3,101Current portion of long-term debt
    
    
    1,330
    
    
    
    494Total short-term debt
    
    
    4,511
    
    
    
    3,595Long-term debtAustralian dollar denominated term loans (A$2,667),
at 3.31% to 5.83% (5.83% to 6.54% in 2008), due 2010, 2011 and 2013, secured
by land and building
    
    
    2,024
    
    
    
    1,152Brazilian Real denominated term loan (R $1,059k) at .7% due 2015,
secured by capital equipment
    
    
    609
    
    
    
    Chinese Rmb denominated term loan (RMB10,000) at 6.48% due 2012,
secured by letter of credit
    
    
    1,463
    
    
    
    1,467Thailand Baht denominated capital loans (Baht1,841) at 3.75% to 4.5%
due 2010 and 2011, secured by capital equipment
    
    
    18
    
    
    
    9Australian dollar denominated capital loan (A$405) at 6.80%,
due 2009, secured by capital equipment
    
    
    
    
    
    
    33Polish Zloty denominated loans (PLN810) at 5.07% (3.00% to 6.31% in 2008) due
2011,
secured by building, capital equipment and commercial note
    
    
    184
    
    
    
    284Polish Zloty denominated loans (PLN593) at 4.46% (6.31% in 2008) due 2011,
secured by corporate guarantee
    
    
    131
    
    
    
    202Total long-term debt
    
    
    4,429
    
    
    
    3,147Less current portion
    
    
    (1,330
    )
    
    
    (494
    )Total long-term debt, less current portion
    
    
    3,099
    
    
    
    2,653Total debt
    
    $
    7,610
    
    
    $
    6,248
    51




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##### Table of Contents



Note E  Leases
   Note F  Income Taxes
  2009
    
    
    2008
    
    
    2007United States
    
    $
    8,498
    
    
    $
    8,311
    
    
    $
    6,627Foreign
    
    
    21,095
    
    
    
    16,449
    
    
    
    14,694$
    29,593
    
    
    $
    24,760
    
    
    $
    21,321
  2009
    
    
    2008
    
    
    2007Continuing operations
    
    $
    6,760
    
    
    $
    7,718
    
    
    $
    7,501Discontinued operations
    
    
    
    
    
    
    67
    
    
    
    255$
    6,760
    
    
    $
    7,785
    
    
    $
    7,756
  2009
    
    
    2008
    
    
    2007CurrentFederal
    
    $
    1,912
    
    
    $
    2,473
    
    
    $
    2,665Foreign
    
    
    3,659
    
    
    
    5,679
    
    
    
    4,787State and local
    
    
    507
    
    
    
    411
    
    
    
    3756,078
    
    
    
    8,563
    
    
    
    7,827DeferredFederal
    
    
    81
    
    
    
    (380
    )
    
    
    (785
    )Foreign
    
    
    615
    
    
    
    (494
    )
    
    
    569State and local
    
    
    (14
    )
    
    
    29
    
    
    
    (110
    )682
    
    
    
    (845
    )
    
    
    (326
    )$
    6,760
    
    
    $
    7,718
    
    
    $
    7,501
 52




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##### Table of Contents



2009
    
    
    2008
    
    
    2007Statutory Federal Tax Rate
    
    
    34
    %
    
    
    34
    %
    
    
    34
    %Federal tax at statutory rate
    
    $
    10,062
    
    
    $
    8,419
    
    
    $
    7,249State and local taxes, net of federal benefit
    
    
    325
    
    
    
    233
    
    
    
    185Non-deductible expenses
    
    
    461
    
    
    
    269
    
    
    
    99Foreign earnings and related tax credits
    
    
    394
    
    
    
    40
    
    
    
    77Non-U.S. tax rate variances
    
    
    (918
    )
    
    
    (992
    )
    
    
    (340
    )ASC 740 (formally FIN 48)
    
    
    (607
    )
    
    
    (409
    )
    
    
    (234
    )Valuation allowance
    
    
    (480
    )
    
    
    140
    
    
    
    265Tax credits
    
    
    (77
    )
    
    
    (65
    )
    
    
    (137
    )Gain from acquisition of business
    
    
    (2,711
    )
    
    
    
    
    
    
    Other, net
    
    
    311
    
    
    
    83
    
    
    
    337$
    6,760
    
    
    $
    7,718
    
    
    $
    7,501
  53




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##### Table of Contents



2009
    
    
    2008Deferred tax assets:Accrued compensation and benefits
    
    $
    1,163
    
    
    $
    973Inventory valuation reserves
    
    
    1,452
    
    
    
    1,355Allowance for doubtful accounts
    
    
    44
    
    
    
    50Benefit plan reserves
    
    
    4,754
    
    
    
    4,828Foreign tax credits
    
    
    2,929
    
    
    
    4,193Capital tax loss carryforwards
    
    
    2,132
    
    
    
    2,152NOL carryforwards
    
    
    968
    
    
    
    547Other accrued expenses
    
    
    750
    
    
    
    1,607Unrecognized tax benefits
    
    
    35
    
    
    
    119Gross deferred tax assets
    
    
    14,227
    
    
    
    15,824Valuation allowance
    
    
    (3,392
    )
    
    
    (4,152
    )Net deferred tax assets
    
    
    10,835
    
    
    
    11,672Deferred tax liabilities:Depreciation and other basis differences
    
    
    (2,649
    )
    
    
    (2,079
    )Undistributed foreign earnings
    
    
    
    
    
    
    (39
    )Inventory
    
    
    (11
    )
    
    
    (31
    )Prepaid expenses
    
    
    (75
    )
    
    
    (70
    )Intangibles
    
    
    (1,663
    )
    
    
    (401
    )Unrealized Foreign Exchange
    
    
    (230
    )
    
    
    Other
    
    
    (112
    )
    
    
    (48
    )Deferred tax liabilities
    
    
    (4,740
    )
    
    
    (2,668
    )Net deferred tax assets
    
    $
    6,095
    
    
    $
    9,004
 2009
    
    
    2008Change in net deferred tax assets:Deferred income tax benefit
    
    $
    (682
    )
    
    $
    845Items of other comprehensive income (loss)
    
    
    (853
    )
    
    
    2,919Deferred tax balances from business acquisition
    
    
    (1,374
    )
    
    
    Total change in net deferred tax assets
    
    $
    (2,909
    )
    
    $
    3,764
    54




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##### Table of Contents



2009
    
    
    2008
    
    
    2007Balance at January 1
    
    $
    1,176
    
    
    $
    1,585
    
    
    $
    1,819Additions for tax positions of current year
    
    
    164
    
    
    
    161
    
    
    
    224Additions for tax positions of prior years
    
    
    678
    
    
    
    290
    
    
    
    Reductions for tax positions of prior years
    
    
    (79
    )
    
    
    (282
    )
    
    
    (121
    )Expiration of statutes of limitations
    
    
    (635
    )
    
    
    (578
    )
    
    
    (337
    )Balance at December 31
    
    $
    1,304
    
    
    $
    1,176
    
    
    $
    1,585
  Note G  Share-Based Compensation
 The 1999 Stock Option Plan
    55




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##### Table of Contents



2009
    
    2008
    
    2007Risk-free interest rate
    
    
    5.2
    %
    
    
    4.2
    %
    
    
    4.3
    %Dividend yield
    
    
    2.1
    %
    
    
    2.8
    %
    
    
    2.9
    %Expected life (years)
    
    
    6
    
    
    
    6
    
    
    
    6Expected volatility
    
    
    44.0
    %
    
    
    34.4
    %
    
    
    37.9
    %
  WeightedWeighted
    
    AverageAverage
    
    Remaining
    
    AggregateNumber of
    
    Exercise Price
    
    Contractual
    
    IntrinsicShares
    
    per Share
    
    Term (Years)
    
    ValueOutstanding at January 1, 2009
    
    
    107,092
    
    
    $
    27.83Granted
    
    
    8,500
    
    
    $
    39.10Exercised
    
    
    (30,090
    )
    
    $
    15.50Forfeited
    
    
    
    
    
    $
    0.00Outstanding (vested and expected
to vest) at December 31, 2009
    
    
    85,502
    
    
    $
    33.29
    
    
    
    5.9
    
    
    $
    961Exercisable at December 31, 2009
    
    
    66,752
    
    
    $
    30.64
    
    
    
    5.1
    
    
    $
    929
    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, 2009
    
    
    39,364
    
    
    
    4,273
    
    
    
    43,637
    
    
    $
    54.74Granted
    
    
    75,982
    
    
    
    8,202
    
    
    
    84,184
    
    
    
    29.75Vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Nonvested as of December 31,
2009
    
    
    115,346
    
    
    
    12,475
    
    
    
    127,821
    
    
    $
    38.28
     Share Option Awards
  57




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##### Table of Contents



2009Risk-free interest rate
    
    
    5.2
    %Dividend yield
    
    
    2.1
    %Expected life (years)
    
    
    6Expected volatility
    
    
    44.0
    %
  WeightedWeighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    AggregateNumber of
    
    
    Exercise Price
    
    
    Contractual
    
    
    IntrinsicShares
    
    
    per Share
    
    
    Term (Years)
    
    
    ValueOutstanding at January 1, 2009
    
    
    
    
    
    $
    0.00Granted
    
    
    11,000
    
    
    $
    38.76Exercised
    
    
    
    
    
    $
    0.00Forfeited
    
    
    
    
    
    $
    0.00Outstanding (vested and expected
to vest) at December 31, 2009
    
    
    11,000
    
    
    $
    38.76
    
    
    
    9.8
    
    
    $
    55Exercisable at December 31, 2009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
   Note H  Computation of Earnings Per Share
   58




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##### Table of Contents



2009
    
    
    2008
    
    
    2007NumeratorAmount attributable to PLPC shareholdersIncome from continuing operations
    
    $
    23,357
    
    
    $
    16,754
    
    
    $
    13,766Income from discontinued operations
    
    
    
    
    
    
    869
    
    
    
    393Net income attributable to PLPC
    
    $
    23,357
    
    
    $
    17,623
    
    
    $
    14,159DenominatorDetermination of sharesWeighted-average common shares outstanding
    
    
    5,232
    
    
    
    5,279
    
    
    
    5,372Dilutive effect  share-based awards
    
    
    134
    
    
    
    60
    
    
    
    44Diluted weighted-average common shares outstanding
    
    
    5,366
    
    
    
    5,339
    
    
    
    5,416Earnings per common share attributable to PLPC shareholdersBasicIncome from continuing operations
    
    $
    4.46
    
    
    $
    3.17
    
    
    $
    2.57Income from discontinued operations
    
    $
    
    
    
    $
    0.17
    
    
    $
    0.07Net income attributable to PLPC
    
    $
    4.46
    
    
    $
    3.34
    
    
    $
    2.64DilutedIncome from continuing operations
    
    $
    4.35
    
    
    $
    3.14
    
    
    $
    2.54Income from discontinued operations
    
    $
    
    
    
    $
    0.16
    
    
    $
    0.07Net income attributable to PLPC
    
    $
    4.35
    
    
    $
    3.30
    
    
    $
    2.61
  Note I  Goodwill and Other Intangibles
  December 31, 2009
    
    
    December 31, 2008Gross Carrying
    
    
    Accumulated
    
    
    Gross Carrying
    
    
    AccumulatedAmount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationFinite-lived intangible assetsPatents
    
    $
    4,827
    
    
    $
    (3,213
    )
    
    $
    4,807
    
    
    $
    (2,901
    )Land use rights
    
    
    1,365
    
    
    
    (55
    )
    
    
    1,350
    
    
    
    (32
    )Trademark
    
    
    311
    
    
    
    
    
    
    
    
    
    
    
    Customer relationships
    
    
    5,372
    
    
    
    (520
    )
    
    
    1,003
    
    
    
    (369
    )$
    11,875
    
    
    $
    (3,788
    )
    
    $
    7,160
    
    
    $
    (3,302
    )Indefinite-lived intangible
assetsGoodwill
    
    $
    6,925
    
    
    
    
    
    
    $
    5,520
  59




---



##### Table of Contents



Australia
    
    
    South Africa
    
    
    Poland
    
    
    All Other
    
    
    TotalBalance at January 1, 2008
    
    $
    1,782
    
    
    $
    57
    
    
    $
    
    
    
    $
    2,089
    
    
    $
    3,928Additions
    
    
    462
    
    
    
    
    
    
    
    1,370
    
    
    
    489
    
    
    
    2,321Curency translation
    
    
    (509
    )
    
    
    (16
    )
    
    
    (230
    )
    
    
    26
    
    
    
    (729
    )Balance at December 31, 2008
    
    
    1,735
    
    
    
    41
    
    
    
    1,140
    
    
    
    2,604
    
    
    
    5,520Additions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    866
    
    
    
    866Curency translation
    
    
    508
    
    
    
    11
    
    
    
    21
    
    
    
    (1
    )
    
    
    539Balance at December 31, 2009
    
    $
    2,243
    
    
    $
    52
    
    
    $
    1,161
    
    
    $
    3,469
    
    
    $
    6,925
 Note J  Fair Value of Financial Assets and Liabilities
  
    60




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##### Table of Contents



December 31, 2009
    
    
    December 31, 2008Fair Value
    
    
    Carrying Value
    
    
    Fair Value
    
    
    Carrying ValueLong-term debt and
related current
maturities
    
    $
    4,617
    
    
    $
    4,429
    
    
    $
    3,294
    
    
    $
    3,147
 Note K  Segment Information
     61




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##### Table of Contents



Year ended December 312009
    
    
    2008
    
    
    2007Net salesPLP-USA
    
    $
    103,910
    
    
    $
    111,721
    
    
    $
    103,173Australia
    
    
    27,923
    
    
    
    27,244
    
    
    
    29,855Brazil
    
    
    30,744
    
    
    
    30,279
    
    
    
    26,236South Africa
    
    
    10,264
    
    
    
    9,535
    
    
    
    8,049Canada
    
    
    12,237
    
    
    
    9,952
    
    
    
    10,620Poland
    
    
    11,148
    
    
    
    20,602
    
    
    
    5,202All Other
    
    
    60,980
    
    
    
    60,409
    
    
    
    50,154Total net sales
    
    $
    257,206
    
    
    $
    269,742
    
    
    $
    233,289Intersegment salesPLP-USA
    
    $
    6,215
    
    
    $
    7,668
    
    
    $
    5,424Australia
    
    
    62
    
    
    
    62
    
    
    
    137Brazil
    
    
    2,314
    
    
    
    1,828
    
    
    
    1,977South Africa
    
    
    786
    
    
    
    854
    
    
    
    888Canada
    
    
    232
    
    
    
    421
    
    
    
    117Poland
    
    
    1,082
    
    
    
    411
    
    
    
    34All Other
    
    
    11,025
    
    
    
    10,644
    
    
    
    9,849Total intersegment sales
    
    $
    21,716
    
    
    $
    21,888
    
    
    $
    18,426Interest incomePLP-USA
    
    $
    15
    
    
    $
    115
    
    
    $
    551Australia
    
    
    31
    
    
    
    109
    
    
    
    21Brazil
    
    
    73
    
    
    
    79
    
    
    
    106South Africa
    
    
    110
    
    
    
    129
    
    
    
    91Canada
    
    
    15
    
    
    
    101
    
    
    
    95Poland
    
    
    41
    
    
    
    17
    
    
    
    13All Other
    
    
    95
    
    
    
    296
    
    
    
    211Total interest income
    
    $
    380
    
    
    $
    846
    
    
    $
    1,088Interest expensePLP-USA
    
    $
    (31
    )
    
    $
    (39
    )
    
    $
    (38
    )Australia
    
    
    (85
    )
    
    
    (159
    )
    
    
    (234
    )Brazil
    
    
    (93
    )
    
    
    (28
    )
    
    
    (21
    )South Africa
    
    
    (15
    )
    
    
    (1
    )
    
    
    Canada
    
    
    
    
    
    
    
    
    
    
    Poland
    
    
    (27
    )
    
    
    (70
    )
    
    
    (25
    )All Other
    
    
    (272
    )
    
    
    (247
    )
    
    
    (277
    )Total interest expense
    
    $
    (523
    )
    
    $
    (544
    )
    
    $
    (595
    )
 62




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##### Table of Contents



Year ended December 312009
    
    
    2008
    
    
    2007Income taxesPLP-USA
    
    $
    1,842
    
    
    $
    2,577
    
    
    $
    2,268Australia
    
    
    379
    
    
    
    258
    
    
    
    825Brazil
    
    
    1,209
    
    
    
    862
    
    
    
    1,112South Africa
    
    
    663
    
    
    
    777
    
    
    
    542Canada
    
    
    887
    
    
    
    747
    
    
    
    991Poland
    
    
    206
    
    
    
    554
    
    
    
    (31
    )All Other
    
    
    1,574
    
    
    
    1,943
    
    
    
    1,794Total income taxes
    
    $
    6,760
    
    
    $
    7,718
    
    
    $
    7,501Income from continuing operations, net of taxPLP-USA
    
    $
    4,352
    
    
    $
    4,877
    
    
    $
    4,018Australia
    
    
    6,212
    
    
    
    426
    
    
    
    1,736Brazil
    
    
    2,209
    
    
    
    1,336
    
    
    
    2,286South Africa
    
    
    1,296
    
    
    
    1,980
    
    
    
    1,185Canada
    
    
    2,038
    
    
    
    1,537
    
    
    
    1,811Poland
    
    
    772
    
    
    
    2,089
    
    
    
    (7
    )All Other
    
    
    5,954
    
    
    
    4,797
    
    
    
    2,791Total income from continuing operations, net of tax
    
    
    22,833
    
    
    
    17,042
    
    
    
    13,820Income from discontinued operations, net of tax
    
    
    
    
    
    
    869
    
    
    
    393Net income
    
    
    22,833
    
    
    
    17,911
    
    
    
    14,213Income (loss) attributable to noncontrolling interest,
net of tax
    
    
    (524
    )
    
    
    288
    
    
    
    54Net income attributable to PLPC
    
    $
    23,357
    
    
    $
    17,623
    
    
    $
    14,159
 As of December 312009
    
    
    2008
    
    
    2007Expenditure for long-lived assetsPLP-USA
    
    $
    2,854
    
    
    $
    3,472
    
    
    $
    4,589Australia
    
    
    783
    
    
    
    267
    
    
    
    693Brazil
    
    
    2,357
    
    
    
    1,672
    
    
    
    470South Africa
    
    
    347
    
    
    
    389
    
    
    
    141Canada
    
    
    227
    
    
    
    137
    
    
    
    74Poland
    
    
    849
    
    
    
    833
    
    
    
    649All Other
    
    
    3,250
    
    
    
    3,241
    
    
    
    2,615Total expenditures for long-lived assets
    
    $
    10,667
    
    
    $
    10,011
    
    
    $
    9,231Depreciation and amortizationPLP-USA
    
    $
    3,224
    
    
    $
    4,399
    
    
    $
    4,558Australia
    
    
    741
    
    
    
    772
    
    
    
    749Brazil
    
    
    696
    
    
    
    638
    
    
    
    169South Africa
    
    
    143
    
    
    
    111
    
    
    
    117Canada
    
    
    127
    
    
    
    89
    
    
    
    93Poland
    
    
    672
    
    
    
    972
    
    
    
    286All Other
    
    
    1,646
    
    
    
    1,568
    
    
    
    1,442Total depreciation and amortization
    
    $
    7,249
    
    
    $
    8,549
    
    
    $
    7,414
 63




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##### Table of Contents



As of December 312009
    
    
    2008Identifiable assetsPLP-USA
    
    $
    65,266
    
    
    $
    72,641Australia
    
    
    31,269
    
    
    
    19,438Brazil
    
    
    25,194
    
    
    
    16,087South Africa
    
    
    7,081
    
    
    
    5,569Canada
    
    
    9,006
    
    
    
    8,545Poland
    
    
    14,777
    
    
    
    13,920All Other
    
    
    82,330
    
    
    
    54,675234,923
    
    
    
    190,875Corporate assets
    
    
    449
    
    
    
    Total identifiable assets
    
    $
    235,372
    
    
    $
    190,875PLP-USA
    
    $
    22,723
    
    
    $
    22,465Australia
    
    
    9,796
    
    
    
    7,332Brazil
    
    
    6,004
    
    
    
    3,355South Africa
    
    
    1,102
    
    
    
    637Canada
    
    
    2,003
    
    
    
    1,627Poland
    
    
    5,524
    
    
    
    5,372All Other
    
    
    20,614
    
    
    
    15,152Total long-lived assets
    
    $
    67,766
    
    
    $
    55,940
 Note L -Related Party Transactions
      64




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##### Table of Contents



Note M -Business Combinations
      December 18, 2009Cash and cash equivalents
    
    $
    4,144Accounts receivable
    
    
    6,274Inventories
    
    
    9,752Other current assets
    
    
    762Deferred income taxes
    
    
    141Total current assets
    
    
    21,073Other assets
    
    
    1,155Deferred income taxes
    
    
    213Property and equipment
    
    
    3,471Tradename
    
    
    311Customer relationships
    
    
    4,365Total assets
    
    
    30,588Current deferred tax liabilities
    
    
    306Other current liabilities
    
    
    2,289Noncurrent deferred tax liabilities
    
    
    1,422Other noncurrent liabilities
    
    
    1,484Total liabilities
    
    
    5,501Net tangible and intangible assets
    
    
    25,087Purchase Price
    
    
    16,000Gain on bargain purchase
    
    $
    9,087
 65




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##### Table of Contents



Note N  Discontinued Operations
   2008
    
    
    2007Net Sales
    
    $
    8,308
    
    
    $
    21,318Income before income taxes
    
    
    180
    
    
    
    648Provision for income taxes
    
    
    (67
    )
    
    
    (255
    )Gain on sale, net of tax
    
    
    756
    
    
    
    Income from discontinued operations, net of tax
    
    $
    869
    
    
    $
    393
 66




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##### Table of Contents



Note O  Quarterly Financial Information (unaudited)
  Quarter endedMarch 31
    
    June 30
    
    September 30
    
    December 312009Net sales
    
    $
    58,694
    
    
    $
    59,568
    
    
    $
    69,132
    
    
    $
    69,812Gross profit
    
    
    18,578
    
    
    
    19,850
    
    
    
    24,614
    
    
    
    21,726Income before income taxes and discontinued operations
    
    
    4,307
    
    
    
    5,263
    
    
    
    8,449
    
    
    
    11,574Income from continuing operations, net of tax
    
    
    2,717
    
    
    
    3,542
    
    
    
    6,259
    
    
    
    10,315Income (loss) from discontinued operations, net of tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income
    
    
    2,717
    
    
    
    3,542
    
    
    
    6,259
    
    
    
    10,315Net income attributable to PLPC
    
    
    2,722
    
    
    
    3,584
    
    
    
    6,320
    
    
    
    10,731Income from continuing operations per share, basic
    
    
    0.52
    
    
    
    0.69
    
    
    
    1.21
    
    
    
    2.05Net income attributable to PLPC per share, basic
    
    
    0.52
    
    
    
    0.69
    
    
    
    1.21
    
    
    
    2.05Income from continuing operations per share, diluted
    
    
    0.51
    
    
    
    0.68
    
    
    
    1.19
    
    
    
    1.99Net income attributable to PLPC per share, diluted
    
    
    0.51
    
    
    
    0.68
    
    
    
    1.19
    
    
    
    1.992008Net sales
    
    $
    59,865
    
    
    $
    75,362
    
    
    $
    73,952
    
    
    $
    60,563Gross profit
    
    
    19,005
    
    
    
    23,677
    
    
    
    25,463
    
    
    
    19,122Income before income taxes and discontinued operations
    
    
    4,249
    
    
    
    7,329
    
    
    
    9,421
    
    
    
    3,761Income from continuing operations, net of tax
    
    
    2,834
    
    
    
    4,947
    
    
    
    6,614
    
    
    
    2,647Income (loss) from discontinued operations, net of tax
    
    
    149
    
    
    
    620
    
    
    
    (34
    )
    
    
    134Net income
    
    
    2,983
    
    
    
    5,567
    
    
    
    6,580
    
    
    
    2,781Net income attributable to PLPC
    
    
    2,950
    
    
    
    5,489
    
    
    
    6,423
    
    
    
    2,761Income from continuing operations per share, basic
    
    
    0.52
    
    
    
    0.92
    
    
    
    1.24
    
    
    
    0.50Net income attributable to PLPC per share, basic
    
    
    0.55
    
    
    
    1.04
    
    
    
    1.23
    
    
    
    0.53Income from continuing operations per share, diluted
    
    
    0.52
    
    
    
    0.91
    
    
    
    1.23
    
    
    
    0.50Net income attributable to PLPC per share, diluted
    
    
    0.54
    
    
    
    1.03
    
    
    
    1.22
    
    
    
    0.52
 
 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
  67




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##### Table of Contents



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



.
   
 
 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
  69




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##### Table of Contents



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
    
    Schedule72
    
    II  Valuation and Qualifying Accounts
  ExhibitNumber
    
    Exhibit
 2.1
    
    Stock and Purchase Agreement, dated October 22, 2009, by and among the Company and Tyco
Electronics Group S.A. to acquire the Dulmison business (The agreement does not include the
schedules and other attachments. A copy will be provided to the SEC upon request.), filed
herewith.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 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).*
 70




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##### Table of Contents



ExhibitNumber
    
    Exhibit
 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
    
    Stock Purchase Agreement, dated March 22, 2007, by and among the Company and Claudia W.
Goodreau, Kevin M. Goodreau, Dora Ely Randall and Jeffrey J. Randall to acquire Direct Power
and Water Corporation (incorporated by reference to the Companys 10-Q filing for the quarter
ended March 31, 2007).
 10.9
    
    Conditional Share Purchase Agreement, dated April 22, 2007, by and among the Company and BBO
Spolka z o.o. to acquire a holding in Zaklady Wytworcze Sprzetu Sieciowego Belos SA
(incorporated by reference to the Companys 10-Q filing for the three-month and six-month
ended June 30, 2007).
 10.10
    
    Preformed Line Products Company Chief Executive Officer Bonus Plan (incorporated by
reference to the Companys 10-K filing for the year ended December 31, 2007).*
 10.11
    
    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).*
 10.12
    
    Deferred Shares Plan (incorporated by reference to the Companys 8-K current report filing
dated August 21, 2008).
 10.13
    
    Form of Restricted Shares Grant Agreement (incorporated by reference to the Companys 10-Q
filing for the quarter ended September 30, 2008).*
 10.14
    
    Agreement and Plan of Merger, dated May 30, 2008, by and among the Company and Optical Cable
Corporation to divest Superior Modular Company Inc. (incorporated by reference to the
Companys 8-K current report filing dated May 30, 2008).
 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.
 23.1
    
    Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.
 23.2
    
    Consent of Deloitte & Touche 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. 71




---



##### Table of Contents



SIGNATURES
  Preformed Line Products CompanyMarch 15, 2010
    /s/ Robert G. RuhlmanRobert G. RuhlmanChairman, President and Chief Executive Officer
(principal executive officer)March 15, 2010
    /s/ Eric R. GraefEric R. GraefChief Financial Officer and Vice President Finance
(principal financial officer)  March 15, 2010
    /s/ Robert G. RuhlmanRobert G. RuhlmanChairman, President and Chief Executive OfficerMarch 15, 2010
    /s/ Barbara P. RuhlmanBarbara P. RuhlmanDirectorMarch 15, 2010
    /s/ Randall M. RuhlmanRandall M. RuhlmanDirectorMarch 15, 2010
    /s/ Glenn E. CorlettGlenn E. CorlettDirectorMarch 15, 2010
    /s/ Michael E. GibbonsMichael E. GibbonsDirectorMarch 15, 2010
    /s/ R. Steven KestnerR. Steven KestnerDirectorMarch 15, 2010
    /s/ Richard R. GascoigneRichard R. GascoigneDirector 72




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##### Table of Contents



PREFORMED LINE PRODUCTS COMPANY
 
 
 AdditionsBalance at
    
    charged to
    
    
    
    
    
    Other additions
    
    Balance atbeginning
    
    costs and
    
    
    
    
    
    or deductions
    
    end ofFor the year ended December 31, 2009:
    
    of 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
    
    costs and
    
    
    
    
    
    Other additions
    
    end ofFor the year ended December 31, 2008:
    
    of period
    
    expenses
    
    Deductions
    
    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
 AdditionsBalance at
    
    charged to
    
    
    
    
    
    Other additions
    
    Balance atbeginning
    
    costs and
    
    
    
    
    
    or deductions
    
    end ofFor the year ended December 31, 2007:
    
    of period
    
    expenses
    
    Deductions
    
    (a)
    
    periodAllowance for doubtful accounts
    
    $
    625
    
    
    $
    143
    
    
    $
    (172
    )
    
    $
    137
    
    
    $
    733Reserve for credit memos
    
    
    447
    
    
    
    795
    
    
    
    (776
    )
    
    
    
    
    
    
    466Slow-moving and obsolete inventory
reserves
    
    
    3,843
    
    
    
    22
    
    
    
    (1,047
    )
    
    
    514
    
    
    
    3,332Accrued product warranty
    
    
    82
    
    
    
    41
    
    
    
    (124
    )
    
    
    105
    
    
    
    104
 
 (a)
    
    Other additions or deductions relate to translation adjustments. 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. Included in 2007 are
opening balances for acquisitions for the following reserves; allowance for doubtful
accounts of $86 thousand, inventory reserves of $440 thousand and $97 thousand for accrued
product warranty. 73




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##### Table of Contents



Exhibit Index
 2.1
    
    Stock and Purchase Agreement, dated October 22, 2009, by and among the Company and Tyco
Electronics Group S.A. to acquire the Dulmison business (The agreement does not include the
schedules and other attachments. A copy will be provided to the SEC upon request.), filed
herewith.
 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
    
    Stock Purchase Agreement, dated March 22, 2007, by and among the Company and Claudia W.
Goodreau, Kevin M. Goodreau, Dora Ely Randall and Jeffrey J. Randall to acquire Direct Power
and Water Corporation (incorporated by reference to the Companys 10-Q filing for the quarter
ended March 31, 2007).
 10.9
    
    Conditional Share Purchase Agreement, dated April 22, 2007, by and among the Company and BBO
Spolka Z o.o. to acquire a holding in Zaklady Wytworcze Sprzetu Sieciowego Belos SA
(incorporated by reference to the Companys 10-Q filing for the three-month and six-month
ended June 30, 2007).
 10.10
    
    Preformed Line Products Company Chief Executive Officer Bonus Plan (incorporated by
reference to the Companys 10-K filing for the year ended December 31, 2007).
 10.11
    
    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).*
 10.12
    
    Deferred Shares Plan (incorporated by reference to the Companys 8-K current report filing
dated August 21, 2008).*
 10.13
    
    Form of Restricted Shares Grant Agreement (incorporated by reference to the Companys 10-Q
filing for the quarter ended September 30, 2008). *
 10.14
    
    Agreement and Plan of Merger, dated May 30, 2008, by and among the Company and Optical Cable
Corporation to divest Superior Modular Company Inc. (incorporated by reference to the
Companys 8-K current report filing dated May 30, 2008).
 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.
 23.1
    
    Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.




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##### Table of Contents



23.2
    
    Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm, filed
herewith.
 31.1
    
    Certifications 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.