Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of common shares outstanding as of ~~October~~April 26, ~~2020: 4,914,543.~~2021: 4,912,959.

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
(Thousands of dollars, except share and per share data)	(Unaudited)						(Unaudited)
ASSETS
Cash and cash equivalents	$	41,248		$	38,929		$	34,685		$	45,175
Accounts receivable, less allowances of $3,536 ($3,849 in 2019)		96,712			83,517
Accounts receivable, less allowances of $3,436 ($3,464 in 2020)								93,654			92,686
Inventories - net		94,315			95,718			99,694			97,537
Prepaids		8,336			6,921			7,642			15,289
Prepaid taxes		2,794			2,601			1,080			2,371
Other current assets		2,517			4,289			3,283			3,256
TOTAL CURRENT ASSETS		245,922			231,975			240,038			256,314
Property, plant and equipment - net		134,440			124,018			145,400			125,965
Operating lease, right-of-use assets		12,762			12,453			12,426			13,139
Intangibles - net		13,926			15,116			13,811			14,443
Goodwill		27,689			27,840			28,844			29,508
Deferred income taxes		6,515			7,564			5,459			10,863
Other assets		10,787			14,605			11,025			10,855
TOTAL ASSETS	$	452,041		$	433,571		$	457,003		$	461,087
LIABILITIES AND SHAREHOLDERS’ EQUITY
Trade accounts payable	$	30,299		$	28,282		$	33,945		$	31,646
Notes payable to banks		15,582			8,696			12,853			17,428
Operating lease liabilities, current		2,214			2,062			2,083			2,240
Current portion of long-term debt		7,198			3,354			9,033			5,216
Accrued compensation and amounts withheld from employees		17,764			11,817			16,823			14,736
Accrued expenses and other liabilities		14,931			16,718			18,001			17,508
Accrued profit-sharing and other benefits		6,484			7,213			3,104			8,252
Dividends payable		1,256			1,173			1,183			1,292
Income taxes payable		2,467			1,758			648			5,456
TOTAL CURRENT LIABILITIES		98,195			81,073			97,673			103,774
Long-term debt, less current portion		45,220			53,722			37,394			33,333
Unfunded pension obligation		4,384			5,278			5,522			5,826
Operating lease liabilities, non-current		8,528			8,246			8,190			8,743
Deferred income taxes		2,890			3,116			2,802			2,921
Other noncurrent liabilities		13,246			13,568			14,284			14,421
SHAREHOLDERS’ EQUITY
Shareholders’ equity:
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,914,543 and 4,992,979 issued and outstanding, at September 30, 2020 and December 31, 2019, respectively		13,013			12,848
Common shares issued to rabbi trust, 265,508 and 267,641 shares at September 30, 2020 and December 31, 2019, respectively		(10,940	)		(10,981	)
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,912,959 and 4,902,233 issued and outstanding, at March 31, 2021 and December 31, 2020, respectively								13,155			13,028
Common shares issued to rabbi trust, 261,781 and 265,508 shares at March 31, 2021 and December 31, 2020, respectively								(10,820	)		(10,940	)
Deferred compensation liability		10,940			10,981			10,820			10,940
Paid-in capital		42,047			38,854			44,322			43,134
Retained earnings		377,384			353,292			385,184			379,035
Treasury shares, at cost, 1,592,027 and 1,431,235 shares at September 30, 2020 and December 31, 2019, respectively		(87,320	)		(79,106	)
Treasury shares, at cost, 1,664,517 and 1,611,927 shares at March 31, 2021 and December 31, 2020, respectively								(92,246	)		(88,568	)
Accumulated other comprehensive loss		(65,549	)		(57,353	)		(59,266	)		(54,551	)
TOTAL PREFORMED LINE PRODUCTS, COMPANY SHAREHOLDERS’ EQUITY		279,575			268,535			291,149			292,078
Noncontrolling interest		3			33			(11	)		(9	)
TOTAL SHAREHOLDERS’ EQUITY		279,578			268,568			291,138			292,069
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	452,041		$	433,571		$	457,003		$	461,087

	Three Months Ended September 30						Nine Months Ended September 30						Three Months Ended March 31
	2020			2019			2020			2019			2021			2020
(Amounts in thousands of dollars, except earnings per share data)
Net sales	$	127,463		$	119,217		$	347,944		$	331,212		$	117,553		$	102,852
Cost of products sold		82,549			79,874			230,554			226,798			77,361			69,942
GROSS PROFIT		44,914			39,343			117,390			104,414			40,192			32,910
Costs and expenses
Selling		8,884			9,410			26,228			26,868			9,601			8,905
General and administrative		14,037			13,275			39,903			38,486			14,394			13,434
Research and engineering		4,541			4,240			12,950			12,809			4,611			4,296
Other operating expense - net		562			775			1,969			1,447			818			1,122
		28,024			27,700			81,050			79,610			29,424			27,757
OPERATING INCOME		16,890			11,643			36,340			24,804			10,768			5,153
Other income (expense)
Interest income		36			211			226			613			21			111
Interest expense		(504	)		(735	)		(1,932	)		(1,688	)		(463	)		(709	)
Other income (expense) - net		998			138			1,775			306
Other income - net														228			549
		530			(386	)		69			(769	)		(214	)		(49	)
INCOME BEFORE INCOME TAXES		17,420			11,257			36,409			24,035			10,554			5,104
Income tax expense		4,458			3,213			9,306			6,302			3,377			1,451
NET INCOME	$	12,962		$	8,044		$	27,103		$	17,733		$	7,177		$	3,653
Net income (loss) attributable to noncontrolling interests		(8	)		(93	)		30			(54	)
Net loss attributable to noncontrolling interests														2			45
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	12,954		$	7,951		$	27,133		$	17,679		$	7,179		$	3,698
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic		4,917			5,024			4,963			5,039			4,917			5,008
Diluted		5,011			5,119			4,998			5,077			4,936			5,017
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:
Basic	$	2.63		$	1.58		$	5.47		$	3.51		$	1.46		$	0.74
Diluted	$	2.59		$	1.55		$	5.43		$	3.48		$	1.45		$	0.74

	Three Months Ended September 30						Nine Months Ended September 30						Three Months Ended March 31
	2020			2019			2020			2019			2021			2020
(Thousands of dollars)
Net income	$	12,962		$	8,044		$	27,103		$	17,733		$	7,177		$	3,653
Other comprehensive income (loss), net of tax
Foreign currency translation adjustment		2,949			(5,897	)		(8,460	)		(3,444	)		(4,829	)		(16,881	)
Recognized net actuarial gain (net of tax provision of $23 and $32 for the three months ended September 30, 2020 and 2019, respectively). Recognized net actuarial gain (net of tax provision of $84 and $95 for the nine months ended September 30, 2020 and 2019, respectively).		75			108			264			294
Other comprehensive (income) loss, net of tax		3,024			(5,789	)		(8,196	)		(3,150	)
Comprehensive (income) loss attributable to noncontrolling interests		(8	)		(93	)		30			(54	)
Comprehensive income attributable to Preformed Line Products Company shareholders	$	15,978		$	2,162		$	18,937		$	14,529
Recognized net actuarial gain (net of tax provision of $35 and $31 for the three months ended March 31, 2021 and 2020, respectively).														114			98
Other comprehensive loss, net of tax														(4,715	)		(16,783	)
Comprehensive loss attributable to noncontrolling interests														2			45
Comprehensive income (loss) attributable to Preformed Line Products Company shareholders													$	2,464		$	(13,085	)

	Nine Months Ended September 30						Three Months Ended March 31
	2020			2019			2021			2020
(Thousands of dollars)
OPERATING ACTIVITIES
Net income	$	27,103		$	17,733		$	7,177		$	3,653
Adjustments to reconcile net income to net cash provided by (used in) operations:
Depreciation and amortization		10,080			9,844			3,145			3,357
Provision for accounts receivable allowances		1,374			1,327			390			424
Provision for inventory reserves		1,718			1,288			811			365
Deferred income taxes		1,064			(1,503	)		4,921			1,163
Share-based compensation expense		3,046			3,344			1,034			976
Gain (loss) on sale of property and equipment		15			(47	)
Loss on sale of property and equipment								(16	)		0
Other - net		(9	)		(35	)		318			(364	)
Changes in operating assets and liabilities
Accounts receivable		(17,620	)		(12,865	)		(3,114	)		(5,192	)
Inventories		(27	)		(6,891	)		(5,154	)		(3,481	)
Prepaid expenses								8,134			(1,409	)
Trade accounts payable and accrued liabilities		9,555			11,591			795			(2,112	)
Income taxes - net		864			1,880			(4,782	)		(328	)
Contributions to company pension plan		(330	)		0
Other - net		(3,276	)		(4,997	)		(423	)		(107	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		33,557			20,669
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES								13,236			(3,055	)
INVESTING ACTIVITIES(1)
Capital expenditures		(24,219	)		(21,950	)		(3,469	)		(5,997	)
Proceeds from the sale of property and equipment		0			48			4			0
Purchase of marketable securities		0			(496	)
Proceeds from marketable securities		0			2,309
Purchase of company owned life insurance policy		0			(2,309	)
Acquisition, net of cash acquired		0			(18,894	)
NET CASH USED IN INVESTING ACTIVITIES		(24,219	)		(41,292	)		(3,465	)		(5,997	)
FINANCING ACTIVITIES
Increase (decrease) in notes payable to banks		8,642			(1,478	)
FINANCING ACTIVITIES⁽¹⁾
(Decrease) increase in notes payable to banks								(3,811	)		3,337
Proceeds from long-term debt		68,789			70,730			15,242			24,945
Payments of long-term debt		(72,693	)		(41,578	)		(27,106	)		(17,652	)
Dividends paid		(3,188	)		(3,226	)		(1,131	)		(1,175	)
Proceeds from issuance of common shares		174			29			0			236
Purchase of common shares for treasury		(5,832	)		(2,397	)		0			(1,602	)
Purchase of common shares for treasury from related parties		(2,378	)		(2,104	)		(3,678	)		(2,378	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(6,486	)		19,976			(20,484	)		5,711
Effects of exchange rate changes on cash and cash equivalents		(867	)		(1,778	)		223			(1,805	)
Net increase (decrease) in cash, cash equivalents and restricted cash		1,985			(2,425	)
Net decrease in cash, cash equivalents and restricted cash								(10,490	)		(5,146	)
Cash, cash equivalents and restricted cash at beginning of year		39,263			43,910			45,175			39,263
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD⁽¹⁾	$	41,248		$	41,485
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD							$	34,685		$	34,117

The accompanying unaudited consolidated financial statements of Preformed Line Products Company and subsidiaries (the “Company” or “PLPC”) have been prepared in accordance with United States of America (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.

The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from these estimates. In the opinion of management, these consolidated financial statements contain all estimates and adjustments, consisting of normal recurring accruals, required to fairly present the financial position, results of operations, and cash flows for the interim periods. Operating results for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 are not necessarily indicative of the results to be expected for the full-year ending December 31, ~~2020.~~2021.

Noncontrolling interests are presented in the Company’s consolidated financial statements as if parent company investors (controlling interests) and other minority investors (noncontrolling interests) in partially-owned subsidiaries have similar economic interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in the Company’s consolidated financial statements. Additionally, the Company’s consolidated financial statements include 100% of a controlled subsidiary’s earnings, rather than only its share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between stockholders, provided that these transactions do not create a change in control.

The Consolidated Balance Sheet at December 31, ~~2019~~2020 has been derived from the audited consolidated financial statements but does not include all of the information and notes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes to consolidated financial statements included in the Company’s ~~2019~~2020 Annual Report on Form 10-K filed on March ~~6, 2020~~5, 2021 with the Securities and Exchange Commission.

Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. The Company estimates product returns based on historical return rates.

	Three Months Ended September 30, 2020															Three Months Ended March 31, 2021
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated			PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		60	%		80	%		59	%		60	%		63	%		57	%		74	%		60	%		72	%		63	%
Communications		34			16			35			4			25			38			22			33			5			29
Special Industries		6			4			6			36			12			5			4			7			23			8
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

																Three Months Ended March 31, 2020
	Three Months Ended September 30, 2019
Product Type	PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated			PLP-USA			The Americas			EMEA			Asia-Pacific			Consolidated
Energy		63	%		72	%		54	%		75	%		66	%		64	%		71	%		62	%		74	%		66	%
Communications		29			26			34			5			23			30			22			30			4			24
Special Industries		8			2			12			20			11			6			7			8			22			10
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Raw materials	$	52,779		$	49,729		$	55,150		$	53,947
Work-in-process		9,330			9,352			9,251			9,272
Finished Goods		37,015			45,760			40,315			38,801
		99,124			104,841			104,716			102,020
Excess of current cost over LIFO cost		(4,809	)		(4,667	)		(5,022	)		(4,483	)
Noncurrent portion of inventory		0			(4,456	)
	$	94,315		$	95,718
Net Inventory							$	99,694		$	97,537

Cost of inventories for certain material is determined using the last-in-first-out (LIFO) method and totaled approximately ~~$31.1~~$32.1 million at ~~September 30, 2020~~March 31, 2021 and $32.0 million at December 31, ~~2019.~~2020. An actual valuation of inventories under the LIFO method can be made only at the end of the year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs. Because these estimates are subject to change and may be different than the actual inventory levels and costs at the end of the year, interim results are subject to the final year-end LIFO inventory valuation. During the ~~three and nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020, the net change in LIFO inventories resulted in ~~$.1~~expense of $.5 million ~~of income~~ and ~~$.1~~$.2 million, ~~of expense,~~ respectively, to Income before income taxes. ~~During the three and nine-month periods ended September 30, 2019, the net change in LIFO inventories resulted in $.1 million and $.5 million, respectively, of expense to Income before income taxes.~~

~~Noncurrent inventory is included in Other assets on the Company’s Consolidated Balance Sheets.~~

Major classes of Property, plant and equipment are stated at cost and were as follows:

	September 30, 2020			December 31, 2019			March 31, 2021			December 31, 2020
Land and improvements	$	21,168		$	22,218		$	21,507		$	22,132
Buildings and improvements		83,480			82,811			99,366			97,909
Machinery, equipment and aircraft		187,372			180,221			195,897			176,377
Construction in progress		17,770			9,460			9,348			9,563
		309,790			294,710			326,118			305,981
Less accumulated depreciation		(175,350	)		(170,692	)		(180,718	)		(180,016	)
	$	134,440		$	124,018		$	145,400		$	125,965

The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including, but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property. The Company has liability insurance to cover many of these claims.

Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of potential loss exists, the Company will include disclosure related to such matters. To the extent that there is a reasonable possibility the losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made, disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. During the year ended December 31, 2020, the Company accrued approximately $2.2 million representing its best estimate for losses to be incurred on a variety of global legal matters. The accrual remained unchanged at $2.2 million at March 31, 2021.

The Company and its subsidiaries Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply), “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers manufactured by Helix were procured and installed in the Projects. The Complaint alleges that the spacer dampers have and may continue to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended function of providing spacing and damping to the Project. The Plaintiffs ~~were initially~~are seeking an estimated $56.0 million Canadian dollars in damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix. ~~The Plaintiffs reduced their demand for damages to $29.4 million Canadian dollars on June 1, 2018.~~

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. The Company is unable to predict the outcome of this case, ~~and cannot reasonably estimate~~however, it has recorded a reserve for the low end of the range for potential ~~range of loss. However, if it~~loss associated with this matter. If this matter is ~~to be determined to be~~concluded in a manner adverse to the Company, it could have a material effect on the Company’s financial results.

The Company is not a party to any other pending legal proceedings that the Company believes would, individually or in the aggregate, have a material adverse effect on its financial condition, results of operations or cash flows.

The following table reflects the changes in shareholders equity for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019:~~2020:

Accumulated Other
Comprehensive Income
(Loss)

Common
Shares

Common
Shares
Issued to
Rabbi Trust

Deferred
Compensation Liability

Paid in
Capital

Retained
Earnings

Treasury
Shares

Cumulative
Translation
Adjustment

Unrecognized
Pension
Benefit Cost

Total
Preformed
Line
Products
Company
Equity

Noncontrolling
Interests

Total
Equity

(In thousands, except share and per share data)

Balance at December 31, 2019

$
12,848

$
(10,981
)

$
10,981

$
38,854

$
353,292

$
(79,106
)

$
(51,682
)

$
(5,671
)

$
268,535

$
33

$
268,568

Net income (loss)

3,698

3,698

(45
)

3,653

Foreign currency translation adjustment

(16,881
)

(16,881
)

(16,881
)
Recognized net actuarial gain, net of tax provision of $31

98

98

98

Total comprehensive income

(13,085
)

(45
)

(13,130
)
Share-based compensation

976

(43
)

933

933

Purchase of 75,246 common shares

(3,980
)

(3,980
)

(3,980
)
Issuance of 77,381 common shares

155

155

155

Common shares distributed from rabbi trust of 3,358, net

101

(101
)

0

0

Cash dividends declared - $.20 per share

(83
)

(963
)

(1,046
)

(1,046
)
Balance at March 31, 2020

$
13,003

$
(10,880
)

$
10,880

$
39,747

$
355,984

$
(83,086
)

$
(68,563
)

$
(5,573
)

$
251,512

$
(12
)

$
251,500

Net income

10,481

10,481

7

10,488

Foreign currency translation adjustment

5,472

5,472

5,472

Recognized net actuarial gain, net of tax provision of $39

91

91

91

Total comprehensive income

16,044

7

16,051

Share-based compensation

612

(26
)

586

586

Purchase of 60,608 common shares

(3,011
)

(3,011
)

(3,011
)
Issuance of 603 common shares

26

26

26

Common shares issued to rabbi trust of 603, net

(30
)

30

0

0

Cash dividends declared - $.20 per share

(996
)

(996
)

(996
)
Balance at June 30, 2020

$
13,003

$
(10,910
)

$
10,910

$
40,385

$
365,443

$
(86,097
)

$
(63,091
)

$
(5,482
)

$
264,161

$
(5
)

$
264,156

Net income

12,954

12,954

8

12,962

Foreign currency translation adjustment

2,949

2,949

2,949

Recognized net actuarial gain, net of tax provision of $23

75

75

75

Total comprehensive income

15,978

8

15,986

Share-based compensation

1,458

1,458

1,458

Purchase of 24,335 common shares

(1,223
)

(1,223
)

(1,223
)
Issuance of 622 common shares

10

204

214

214

Common shares issued to rabbi trust of 622, net

(30
)

30

0

0

Cash dividends declared - $.20 per share

(1,013
)

(1,013
)

(1,013
)
Balance at September 30, 2020

$
13,013

$
(10,940
)

$
10,940

$
42,047

$
377,384

$
(87,320
)

$
(60,142
)

$
(5,407
)

$
279,575

$
3

$
279,578


																			Accumulated Other Comprehensive Income (Loss)
		Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity
	(In thousands, except share and per share data)
Balance at December 31, 2020		$	13,028	$	(10,940	)	$	10,940		$	43,134		$	379,035		$	(88,568	)	$	(47,847	)	$	(6,704	)	$	292,078		$	(9	)	$	292,069
Net income (loss)														7,179												7,179			(2	)		7,177
Foreign currency translation adjustment																				(4,829	)					(4,829	)					(4,829	)
Recognized net actuarial gain, net of tax provision of $35																							114			114						114
Total comprehensive income																										2,464			(2	)		2,462
Share-based compensation											1,034			(40	)											994						994
Purchase of 52,590 common shares																	(3,678	)								(3,678	)					(3,678	)
Issuance of 63,316 common shares			127								270															397						397
Common shares distributed from rabbi trust of 3,727, net					120			(120	)																	0						0
Cash dividends declared - $.20 per share											(116	)		(990	)											(1,106	)					(1,106	)
Balance at March 31, 2021		$	13,155	$	(10,820	)	$	10,820		$	44,322		$	385,184		$	(92,246	)	$	(52,676	)	$	(6,590	)	$	291,149		$	(11	)	$	291,138

																			Accumulated Other Comprehensive Income (Loss)																																	Accumulated Other Comprehensive Income (Loss)
		Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity				Common Shares		Common Shares Issued to Rabbi Trust			Deferred Compensation Liability			Paid in Capital			Retained Earnings			Treasury Shares			Cumulative Translation Adjustment			Unrecognized Pension Benefit Cost			Total Preformed Line Products Company Equity			Noncontrolling Interests			Total Equity
	(In thousands, except share and per share data)																																	(In thousands, except share and per share data)
Balance at December 31, 2018		$	12,662	$	(11,008	)	$	11,008		$	34,401		$	334,170		$	(72,280	)	$	(53,710	)	$	(5,873	)	$	249,370		$	0		$	249,370
Net income														1,824												1,824						1,824
Foreign currency translation adjustment																				1,353						1,353						1,353
Recognized net actuarial gain, net of tax provision of $32																							93			93						93
Total comprehensive income																										3,270			0			3,270
Share-based compensation											928			(36	)											892						892
Purchase of 40,891 common shares																	(2,294	)								(2,294	)					(2,294	)
Issuance of 78,821 common shares			159								(18	)														141						141
Common shares issued to rabbi trust of 705, net					(30	)		30																		0						0
Cash dividends declared - $.20 per share											(165	)		(1,011	)											(1,176	)					(1,176	)
Balance at March 31, 2019		$	12,821	$	(11,038	)	$	11,038		$	35,146		$	334,947		$	(74,574	)	$	(52,357	)	$	(5,780	)	$	250,203		$	0		$	250,203
Balance at December 31, 2019																																			$	12,848	$	(10,981	)	$	10,981		$	38,854		$	353,292		$	(79,106	)	$	(51,682	)	$	(5,671	)	$	268,535		$	33		$	268,568
Net income														7,904												7,904			(39	)		7,865															3,698												3,698			(45	)		3,653
Foreign currency translation adjustment																				1,100						1,100						1,100																					(16,881	)					(16,881	)					(16,881	)
Recognized net actuarial gain, net of tax provision of $31																							93			93						93																								98			98						98
Total comprehensive income																										9,097			(39	)		9,058																											(13,085	)		(45	)		(13,130	)
Share-based compensation											1,028			(43	)											985						985												976			(43	)											933						933
Purchase of 29,724 common shares																	(1,456	)								(1,456	)					(1,456	)
Issuance of 525 common shares			1								26															27						27
Common shares distributed from rabbi trust of 525, net					(28	)		28																		0						0
Purchase of 75,246 common shares																																																		(3,980	)								(3,980	)					(3,980	)
Issuance of 77,381 common shares																																				155																							155						155
Common shares distributed from rabbi trust of 3,358, net																																						101			(101	)																	0						0
Cash dividends declared - $.20 per share														(1,004	)											(1,004	)					(1,004	)											(83	)		(963	)											(1,046	)					(1,046	)
Balance at June 30, 2019		$	12,822	$	(11,066	)	$	11,066		$	36,200		$	341,804		$	(76,030	)	$	(51,257	)	$	(5,687	)	$	257,852		$	(39	)	$	257,813
Net income														7,951												7,951			93			8,044
Foreign currency translation adjustment																				(5,897	)					(5,897	)					(5,897	)
Recognized net actuarial gain, net of tax provision of $32																							108			108						108
Total comprehensive income																										2,162			93			2,255
Share-based compensation											1,388			(43	)											1,345						1,345
Purchase of 15,150 common shares																	(751	)								(751	)					(751	)
Issuance of 1,262 common shares			3								54															57						57
Common shares distributed from rabbi trust of 3,219, net					85			(85	)																	0						0
Cash dividends declared - $.20 per share														(1,002	)											(1,002	)					(1,002	)
Balance at September 30, 2019		$	12,825	$	(10,981	)	$	10,981		$	37,642		$	348,710		$	(76,781	)	$	(57,154	)	$	(5,579	)	$	259,663		$	54		$	259,717
Balance at March 31, 2020																																			$	13,003	$	(10,880	)	$	10,880		$	39,747		$	355,984		$	(83,086	)	$	(68,563	)	$	(5,573	)	$	251,512		$	(12	)	$	251,500

The Company uses a December 31 measurement date for the Preformed Line Products Company Employees’ Retirement Plan (the “Plan”). Net periodic pension cost for this plan included the following components:

	Three Months Ended September 30						Nine Months Ended September 30						Three Months Ended March 31
	2020			2019			2020			2019			2021			2020
Service cost	$	0		$	130		$	0		$	225		$	0		$	91
Interest cost		325			350			976			1,058			282			327
Expected return on plan assets		(563	)		(483	)		(1,688	)		(1,459	)		(586	)		(557	)
Recognized net actuarial loss		98			140			348			390			149			129
Net periodic pension cost (benefit)	$	(140	)	$	137		$	(364	)	$	214		$	(155	)	$	(10	)

~~The Company contributed $.3 million~~There were 0 contributions to the Plan during the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021. The Company does 0t plan to contribute additional funds to the Plan during the remainder of ~~2020.~~2021.

The following tables set forth the total changes in AOCI by component, net of tax:

	Nine Months Ended September 30, 2020									Nine Months Ended September 30, 2019									Three Months Ended March 31, 2021									Three Months Ended March 31, 2020
	Defined benefit pension plan activity			Currency Translation Adjustment			Total			Defined benefit pension plan activity			Currency Translation Adjustment			Total			Unrecognized pension benefit cost			Currency Translation Adjustment			Total			Unrecognized pension benefit cost			Currency Translation Adjustment			Total
Balance at January 1	$	(5,671	)	$	(51,682	)	$	(57,353	)	$	(5,873	)	$	(53,710	)	$	(59,583	)	$	(6,704	)	$	(47,847	)	$	(54,551	)	$	(5,671	)	$	(51,682	)	$	(57,353	)
Other comprehensive loss before reclassifications:
Loss on foreign currency translation adjustment		0			(8,460	)		(8,460	)		0			(3,444	)		(3,444	)		0			(4,829	)		(4,829	)		0			(16,881	)		(16,881	)
Amounts reclassified from AOCI:
Amortization of defined benefit pension actuarial gain (a)		264			0			264			294			0			294			114			0			114			98			0			98
Net current period other comprehensive income (loss)		264			(8,460	)		(8,196	)		294			(3,444	)		(3,150	)		114			(4,829	)		(4,715	)		98			(16,881	)		(16,783	)
Balance at September 30	$	(5,407	)	$	(60,142	)	$	(65,549	)	$	(5,579	)	$	(57,154	)	$	(62,733	)
Balance at March 31																			$	(6,590	)	$	(52,676	)	$	(59,266	)	$	(5,573	)	$	(68,563	)	$	(74,136	)

Basic earnings per share were computed by dividing Net income by the weighted-average number of common shares outstanding for each respective period. Diluted earnings per share were calculated by dividing Net income by the weighted-average of all potentially dilutive common stock that was outstanding during the periods presented.

The calculation of basic and diluted earnings per share for the ~~three~~three-month periods ended March 31, 2021 and ~~nine months ended September 30,~~ 2020 ~~and 2019~~ was as follows:

	Three Months Ended September 30				Nine Months Ended September 30				Three Months Ended March 31
	2020		2019		2020		2019		2021		2020
Numerator
Net income	$	12,954	$	7,951	$	27,133	$	17,679	$	7,179	$	3,698
Denominator
Determination of shares
Weighted-average common shares outstanding		4,917		5,024		4,963		5,039		4,917		5,008
Dilutive effect - share-based awards		94		95		35		38		19		9
Diluted weighted-average common shares outstanding		5,011		5,119		4,998		5,077		4,936		5,017
Earnings per common share
Basic	$	2.63	$	1.58	$	5.47	$	3.51	$	1.46	$	0.74
Diluted	$	2.59	$	1.55	$	5.43	$	3.48	$	1.45	$	0.74

For the ~~three and nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020, ~~45,500~~15,000 and ~~35,364~~20,000 stock options, respectively, ~~were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive. For both three and nine-month periods ended September 30, 2019, 15,000 stock options~~ were excluded from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

The Company’s finite and indefinite-lived intangible assets consist of the following:

	September 30, 2020					December 31, 2019					March 31, 2021					December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Finite-lived intangible assets
Patents	$	4,806	$	(4,806	)	$	4,806	$	(4,806	)	$	4,813	$	(4,806	)	$	4,806	$	(4,806	)
Land use rights		1,262		(437	)		1,128		(331	)		1,259		(413	)		1,286		(396	)
Trademarks		1,675		(1,397	)		1,718		(1,358	)		1,863		(1,482	)		1,756		(1,474	)
Technology		7,173		(2,142	)		7,185		(1,708	)		7,458		(2,489	)		7,673		(2,402	)
Customer relationships		15,735		(7,943	)		15,811		(7,329	)		16,250		(8,642	)		16,441		(8,441	)
	$	30,651	$	(16,725	)	$	30,648	$	(15,532	)	$	31,643	$	(17,832	)	$	31,962	$	(17,519	)
Indefinite-lived intangible assets
Goodwill	$	27,689				$	27,840				$	28,844				$	29,508

The aggregate amortization expense for other intangibles with finite lives for the ~~three and nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020 was $.5 million and ~~$1.3 million, respectively. The aggregate amortization expense for other intangibles with finite lives for the three and nine-month periods ended September 30, 2019 was $.5 million and $1.1~~$.4 million, respectively. Amortization expense is estimated to be ~~$.5~~$1.5 million for the remainder of ~~2020~~2021, $1.7 million for 2022 and 2023, $1.6 million for ~~each of the years 2021,2022~~2024 and ~~2023 and $1.5~~$1.4 million for ~~2024.~~2025. The combined weighted-average remaining amortization period is approximately ~~12.6~~12.2 years. The weighted-average remaining amortization period by intangible asset class is as follows: patents, ~~5.3~~4.8 years; land use rights, ~~55.6~~55.2 years; trademarks, ~~8.4~~6.3 years; technology, ~~10.3~~9.8 years; and customer relationships, ~~9.7~~9.2 years.

The Company’s measurement date for its annual impairment test for goodwill is October 1st of each year. The Company performs its annual impairment test for goodwill utilizing a discounted cash flow methodology, market comparables, and an overall market capitalization reasonableness test in computing fair value by reporting unit. The Company then compares the fair value of the reporting unit to its carrying value to assess if goodwill has been impaired. Based on the assumptions as to growth, discount rates and the weighting used for each respective valuation methodology, results of the valuations could be significantly different. However, the Company believes that the methodologies and weightings used are reasonable and result in appropriate fair values of the reporting units. The Company’s valuation method uses Level 3 inputs under the fair value hierarchy.

The Company’s only intangible asset with an indefinite life is goodwill. The changes in the carrying amount of goodwill, by segment, for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 are as follows:

The Company maintains an equity award program to give the Company a competitive advantage in attracting, retaining, and motivating officers, employees and directors and to provide an incentive to those individuals to increase shareholder value through long-term incentives directly linked to the Company’s performance. Under the Preformed Line Products Company Long Term Incentive Plan of 2008 (the “LTIP”), certain employees, officers, and directors were eligible to receive awards of options, restricted shares and restricted share units (RSUs). The total number of Company common shares reserved for awards under the LTIP was 900,000, of which 800,000 common shares were reserved for RSUs and 100,000 common shares have been reserved for share options. The LTIP was terminated and replaced with the Preformed Line Products Company 2016 Incentive Plan (the “Incentive Plan”) in May 2016 upon approval by the Company’s Shareholders at the 2016 Annual Meeting of Shareholders on May 10, 2016. No further awards will be made under the LTIP and previously granted awards remain outstanding in accordance with their terms. Under the Incentive Plan, certain employees, officers, and directors will be eligible to receive awards of options, restricted shares and RSUs. The total number of Company common shares reserved for awards under the Incentive Plan is 1,000,000 of which 900,000 common shares have been reserved for restricted share awards and 100,000 common shares have been reserved for share options. The Incentive Plan expires on May 10, 2026.

For the regular annual grants, a portion of the RSUs is subject to time-based cliff vesting and a portion is subject to vesting based upon the Company’s performance over a set period for all participants except the CEO. All of the CEO’s regular annual RSUs are subject to vesting based upon the Company’s performance over a set-year period.

The RSUs are offered at no cost to the employees. The fair value of RSUs is based on the market price of a common share on the grant date and the shares underlying the awards are not issued until they vest. Dividends declared are accrued in cash.

A summary of the RSUs outstanding under the LTIP for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 is as follows:

	Restricted Share Units											Restricted Share Units
	Performance and Service Required ⁽¹⁾			Service Required			Total Restricted Share Units			Weighted-Average Grant-Date Fair Value		Performance and Service Required ⁽¹⁾			Service Required		Total Restricted Share Units			Weighted-Average Grant-Date Fair Value
Nonvested as of January 1, 2020		196,342			15,292			211,634		$	53.68
Nonvested as of January 1, 2021													183,777			15,786		199,563		$	60.33
Granted		71,539			9,547			81,086			55.63		51,308			12,285		63,593			71.84
Vested		(73,053	)		0			(73,053	)		54.60		(56,973	)		0		(56,973	)		73.86
Forfeited		(11,051	)		(2,763	)		(13,814	)		61.29		0			0		0			0.00
Nonvested as of September 30 , 2020		183,777			22,076			205,853		$	61.09
Nonvested as of March 31, 2021													178,112			28,071		206,183		$	60.49

For time-based RSUs, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award in General and administrative expense in the accompanying Statements of Consolidated Income. Compensation expense related to the time-based RSUs for ~~the three and nine-month~~both three-month periods ended ~~September 30,~~March 31, 2021 and 2020 was $.1 ~~million and $.3 million, respectively. Compensation expense related to the time-based RSUs for the three and nine-month periods ended September 30, 2019 was $.2 million and $.4 million, respectively.~~million. As of ~~September 30, 2020,~~March 31, 2021, there was ~~$.6~~$1.2 million of total unrecognized compensation cost related to time-based RSUs that is expected to be recognized over the weighted-average remaining period of approximately ~~1.8~~2.4 years.

For the performance-based RSUs, the number of RSUs in which the participants will vest depends on the Company’s level of performance measured by growth in either operating or pre-tax income and sales growth over a requisite performance period. Depending on the extent to which the performance criterions are satisfied under the LTIP and the Incentive Plan, the participants are eligible to earn common shares over the vesting period. Performance-based compensation expense for the ~~three and nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020 was ~~$1.2~~$.7 million and ~~$2.6 million, respectively. Performance-based compensation expense for the three and nine-month periods ended September 30, 2019 was $1.2 million and $2.9~~$.8 million, respectively. As of ~~September 30, 2020,~~March 31, 2021, the remaining compensation expense of ~~$4.6~~$4.8 million for outstanding performance-based RSU’s is expected to be recognized over athe weighted-average period of approximately ~~1.8~~1.9 years.

In the event of a Change in Control (as defined in the LTIP and the Incentive Plan), vesting of the RSUs will be accelerated and all restrictions will lapse. Unvested performance-based awards will vest on a target potential payout.

To satisfy the vesting of its RSU awards, the Company has reserved new shares from its authorized but unissued shares. Any additional awards granted will also be issued from the Company’s authorized but unissued shares.

The LTIP permitted and now the Incentive Plan permits the grant of 100,000 options to buy common shares of the Company to certain employees at not less than fair market value of the shares on the date of grant. Options issued to date under the LTIP and the Incentive Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years, and expire from five to ten years from the date of grant. Shares issued as a result of stock option exercises will be funded with the issuance of new shares.

The Company utilizes the Black-Scholes option pricing model for estimating fair values of options. The Black-Scholes model requires assumptions regarding the volatility of the Company’s stock, the expected life of the stock award and the Company’s dividend yield. The Company utilizes historical data in determining these assumptions. The risk-free rate for periods within the contractual life of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant.

There were ~~25,500 options granted for the nine-month period ended September 30, 2020 and~~ 0 options granted ~~for~~during either of the ~~nine-month period~~three-month periods ended ~~September 30, 2019.~~March 31, 2021 and 2020.

Stock option activity under the Company’s LTIP for ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 was as follows:

	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (000's)		Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (000's)
Outstanding at January 1, 2020		31,750		$	58.77
Outstanding at January 1, 2021											50,950	$	54.81
Granted		25,500		$	48.13						0
Exercised		(3,750	)	$	48.00						0
Forfeited		(1,250	)	$	48.00						0
Outstanding (vested and expected to vest) at September 30, 2020		52,250		$	54.61		7.7	$	44
Exercisable at September 30, 2020		19,250		$	60.76		4.5	$	29
Outstanding (vested and expected to vest) at March 31, 2021											50,950	$	54.81		7.3	$	730
Exercisable at March 31, 2021											21,700	$	61.62		4.8	$	184

There were ~~3,750 and -0- stock~~0stock option shares exercised during either of the ~~nine-month~~three-month periods ended ~~September 30, 2020~~March 31, 2021 and ~~2019, respectively.~~2020.

For the ~~three and nine-month~~three-month periods ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ the Company recorded compensation expense related to the stock options currently vested of ~~less than~~ $.1 million and less than $.1 million, respectively. The total compensation cost related to nonvested awards not yet recognized at ~~September 30, 2020~~March 31, 2021 is expected to be ~~$.4~~$.3 million over a weighted-average period of approximately ~~2.4~~1.9 years.

The Company maintains a trust, commonly referred to as a rabbi trust, in connection with the Company’s deferred compensation plan. This plan allows for 2 deferrals. First, Directors make elective deferrals of Director fees payable and held in the rabbi trust. The deferred compensation plan allows the Directors to elect to receive Director fees in common shares of the Company at a later date instead of fees paid each quarter in cash. Second, this plan allows certain Company employees to defer restricted shares or RSUs for future distribution in the form of common shares. Assets of the rabbi trust are consolidated, and the value of the Company’s common shares held in the rabbi trust is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock. The Company recognizes the original amount of the deferred compensation (fair value of the deferred stock award at the date of grant) as the basis for recognition in common shares issued to the rabbi trust. Changes in the fair value of amounts owed to certain employees or Directors are not recognized as the Company’s deferred compensation plan does not permit diversification and must be settled by the delivery of a fixed number of the Company’s common shares. As of ~~September 30, 2020, 265,508~~March 31, 2021, 261,781 shares have been deferred and are being held in the rabbi trust.

The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of the following three levels:

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, on the Company’s Consolidated Balance Sheets as of ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019:~~2020:

Description	Balance as of September 30, 2020			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of March 31, 2021		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign currency forward contracts	$	646		$	0	$	646		$	0	$	634	$	0	$	634	$	0
Total Assets	$	646		$	0	$	646		$	0	$	634	$	0	$	634	$	0

Liabilities:
Supplemental profit sharing plan	$	6,140		$	0	$	6,140		$	0	$	7,136	$	0	$	7,136	$	0
Foreign currency forward contracts		(277	)		0		(277	)		0		55		0		55		0
Earn-out		204			0		0			204
Total Liabilities	$	6,067		$	0	$	6,140		$	204	$	7,191	$	0	$	7,191	$	0

Description	Balance as of December 31, 2019		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2020		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign currency forward contracts									$	359	$	0	$	359	$	0
Total Assets									$	359	$	0	$	359	$	0

Liabilities:
Supplemental profit sharing plan	$	6,059	$	0	$	6,059	$	0	$	7,143	$	0	$	7,143	$	0
Earn-out		581		0		0		581
Foreign currency forward contracts										56		0		56		0
Total Liabilities	$	6,640	$	0	$	6,059	$	581	$	7,199	$	0	$	7,199	$	0

The Company operates internationally and enters into intercompany transactions denominated in foreign currencies. Consequently, the Company is subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. The Company currently uses foreign currency forward contracts to reduce the risk related to some of these transactions. These contracts usually have maturities of 90 days or less and generally require an exchange of foreign currencies for U.S. dollars at maturity at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other operating expense - net” on the Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the ~~three months~~three-month periods ended March 31, 2021 and ~~nine months ended September 30,~~ 2020, the Company recognized a net ~~gain~~gains of ~~$.1~~$.3 million and ~~$1.0~~$1.1 million, respectively, on foreign currency forward contracts. ~~The Company recognized a gain of $.1 million in both three and nine-month periods ended September 30, 2019.~~

The Company has a non-qualified Supplemental Profit Sharing Plan for its ~~executives.~~executives and directors. The liability for this unfunded Supplemental Profit Sharing Plan was ~~$6.1~~$7.1 million at both ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019.~~2020. These amounts are recorded within Other noncurrent liabilities on the Company’s Consolidated Balance Sheets. The Supplemental Profit Sharing Plan allows participants the ability to hypothetically invest their proportionate award into various investment options, which primarily include mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances based on the investments selected by the participants. The Company measures the fair value of the Supplemental Profit Sharing Plan liability using the market values of the participants’ underlying investment accounts.

The earn-out represents the estimated fair value of additional cash consideration payable in connection with a recent acquisition that is contingent upon the achievement of certain performance milestones using expected future cash flows over the earn-out period while applying a discount rate that appropriately captures the risk associated with the obligation. These are considered to be Level 3 inputs. The contingent liabilities at September 30, 2020 and December 31, 2019 of $.2 million and $.6 million, respectively, are recorded in Other noncurrent liabilities on the Company’s Consolidated Balance Sheets.

In ~~August 2018,~~January 2021, the ~~FASB~~Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU” No. 2021-01), Reference Rate Reform (“Topic 848”) to ASU ~~2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,”~~No. 2020-04, Reference Rate Reform (ASU 2021-01) which ~~will modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, including the removal of certain disclosure requirements.~~was effective immediately. The amendments in ASU ~~2018-13 are effective~~2021-01 provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of the reference rate reform. The provisions must be applied at a Topic, Subtopic, or Industry Subtopic level for all ~~entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.~~transactions other than derivatives, which may be applied at a hedging relationship level. The Company adopted ~~the new disclosure requirements for the period ending March 31, 2020. The additional components of this release did not have a material impact~~ASU 2021-01 on ~~the Company’s consolidated financial statements.~~

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes how entities will measure credit losses for most financial assets and other instruments that are not measured at fair value through net income. This update introduces the current expected credit loss (CECL) model, which will require an entity to measure credit losses for certain financial instruments and financial assets, including trade receivables. Under this update, on initial recognition and at each reporting period, an entity will be required to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument. ASU 2016-13 is effective for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has completed its evaluation process and the January 1, ~~2020 adoption did not have a material~~2021 and is currently evaluating the potential future impact, ~~to the Company’s consolidated financial statements for the nine months ended September 30, 2020.~~if any, on its Consolidated Financial Statements.

~~In December 2019,~~The Company considers the ~~FASB~~applicability and impact of all ASUs. Recently issued ~~ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes (“Topic 740”), which simplifies the accounting for income taxes, eliminates certain exceptions within Topic 740~~ASUs that are not considered were assessed and ~~clarifies certain other aspects of~~determined to be not applicable in the current ~~guidance to promote consistency among~~ reporting entities. The new standard is effective for fiscal years beginning after December 15, 2020 on a prospective basis and early adoption is permitted. The Company is currently evaluating the impact of the provisions of this standard on the Company’s Consolidated Financial Statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (“Topic 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides for temporary optional expedients and exceptions to the current guidance on certain contract modifications and hedging relationships to ease the burdens related to the expected market transition from the London Inter-bank Offered Rate (“LIBOR”) or other reference rates to alternative reference rates. The guidance is effective upon issuance and can be applied through December 31, 2022. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements.period.

The following tables present a summary of the Company’s reportable segments for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profit in inventory.

	Three Months Ended September 30				Nine Months Ended September 30				Three Months Ended March 31
	2020		2019		2020		2019		2021			2020
Net sales
PLP-USA	$	53,027	$	47,617	$	153,595	$	135,411	$	56,231		$	46,601
The Americas		19,914		19,663		54,641		51,142		17,521			17,241
EMEA		27,034		21,132		68,441		59,376		23,481			20,360
Asia-Pacific		27,488		30,805		71,267		85,283		20,320			18,650
Total net sales	$	127,463	$	119,217	$	347,944	$	331,212	$	117,553		$	102,852
Intersegment sales
PLP-USA	$	2,786	$	3,440	$	7,787	$	7,868	$	2,385		$	2,860
The Americas		3,029		2,149		7,706		5,905		2,066			1,863
EMEA		892		335		2,513		898		511			450
Asia-Pacific		4,176		3,572		10,180		10,699		3,652			2,087
Total intersegment sales	$	10,883	$	9,496	$	28,186	$	25,370	$	8,614		$	7,260
Income taxes
PLP-USA	$	2,020	$	1,333	$	4,891	$	2,585	$	2,376		$	845
The Americas		875		901		2,321		1,948		610			634
EMEA		1,205		496		1,735		574		445			86
Asia-Pacific		358		483		359		1,195		(54	)		(114	)
Total income taxes	$	4,458	$	3,213	$	9,306	$	6,302	$	3,377		$	1,451
Net income attributable to Preformed Line Products Company shareholders
PLP-USA	$	6,753	$	3,246	$	16,439	$	7,442	$	5,576		$	3,550
The Americas		1,908		2,565		4,598		5,188		1,192			995
EMEA		2,912		853		5,495		2,171		1,195			337
Asia-Pacific		1,381		1,287		601		2,878		(784	)		(1,184	)
Total net income attributable to Preformed Line Products Company shareholders	$	12,954	$	7,951	$	27,133	$	17,679	$	7,179		$	3,698

The Company’s effective tax rate was ~~26%~~32% and ~~29%~~28% for the three ~~months ended September 30, 2020 and 2019, respectively, and 26% for both nine-month~~month periods ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019~~.respectively. The higher effective tax rate for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ compared to the U.S. federal statutory rate of 21% was primarily due to increases in earnings in jurisdictions with higher tax rates than the U.S. federal statutory rate where such earnings are permanently reinvested and an increase in various U.S. permanent items, primarily ~~limitations on~~from the deductibility of officer’s compensations. The effective tax rate increased for the three months ended March 31, 2021 compared to the three months ended March 31, 2020 due to the decrease in non-deductible executive compensation ~~and losses in jurisdictions where no tax benefit is realized.~~ combined with an increase from adjustments due to foreign income.

The Company provides valuation allowances against deferred tax assets when it is more likely than not that some portion or all of its deferred tax assets will not be realized. NaN significant changes to the valuation allowances were reflected for the periods ended ~~September 30, 2020~~March 31, 2021 or ~~September 30, 2019.~~December 31, 2020.

~~The Company previously considered the majority~~There were 0 significant changes to any of the ~~earnings in its non-U.S. subsidiaries to be permanently reinvested and accordingly did not record any associated deferred income taxes~~balances of unrecognized tax benefits on ~~remittance of such earnings.~~ ~~The Company intends to continue to invest most~~for the three months ended March 31, 2021 or ~~all of these earnings, as well as its capital in these subsidiaries, indefinitely, outside of~~ the ~~U.S. and does not expect to incur any significant additional taxes related to such earnings.~~year ended December 31, 2020.

The Company records an accrual for estimated warranty costs to Costs of products sold in the Statements of Consolidated Income. These amounts are recorded in Accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets. The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim information changes.

	Nine Months Ended September 30						Three Months Ended March 31
	2020			2019			2021			2020
Beginning of period balance	$	1,309		$	928		$	1,282		$	1,309
Additions charged to income		247			692			313			38
Warranty usage		(37	)		(293	)		(93	)		(28	)
Currency translation		(76	)		(46	)		(30	)		(152	)
End of period balance	$	1,443		$	1,281		$	1,472		$	1,167

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount of $20.5 million to fund the purchase of a corporate aircraft. In September 2020, the Company made a deposit of $6.8 million toward the purchase of the aircraft, which amount was subsequently refunded in January 2021 and the full amount of the $20.5 million purchase price was drawn on the loan. The aircraft replaces the Company’s previously owned aircraft, which was sold in December 2020. The proceeds of the sale were used to pay off the debt associated with the previously-owned aircraft. The term of the new loan is 120 months at a fixed interest rate of 2.744%. The loan is payable in 119 equal monthly installments, which commenced on March 1, 2021 with a final payment of any outstanding principal and accrued interest due and payable on the final monthly payment date. Of the $20.3 million outstanding on this debt facility at March 31, 2021, $2.1 million was classified as current. The loan is secured by the aircraft.

On April 17, 2020, the Company extended the term on its $65 million credit facility from June 30, 2021 to June 30, 2024 and added its Austrian subsidiary as a borrower on the facility. All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless ~~its~~the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the LIBOR spread becomes 1.500%. At ~~September 30, 2020,~~March 31, 2021, the Company’s Polish subsidiary had borrowed $6.3 million U.S. dollars at a rate of 1.125% plus the Warsaw Interbank Offer Rate with a term expiring June 30, 2024. At ~~September 30, 2020,~~March 31, 2021, the Company’s Australian subsidiary had borrowed ~~$5.3~~$3.7 million U.S. dollars, also with a term expiring June 30, 2024. At ~~September~~March 31, 2021, the Company’s Austrian subsidiary had borrowed $.6 million U.S. dollars with a term expiring June 30, ~~2020,~~2024. At March 31, 2021, the interest rates on the U.S., Polish, Australian and ~~Australian~~Austrian line of credit agreement were ~~1.273%~~1.236%, ~~1.325%~~1.315%, 1.145% and ~~1.215%~~1.273%, respectively. Under the credit facility, at ~~September 30, 2020,~~March 31, 2021, the Company had utilized ~~$30.1~~$11.5 million with ~~$34.9~~$53.5 million available under the line of credit, net of long-term outstanding letters of credit of $.1 million. The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability. At ~~September 30, 2020,~~March 31, 2021, the Company was in compliance with these covenants.

On February 28, 2019, the Company acquired its Austrian subsidiary, SubCon Electrical Fittings GmbH (“SubCon”), headquartered in Dornbirn, Austria. The Company’s Austrian subsidiary had a 1.0 million euros, or $1.1 million U.S. dollars line of credit with a term expiration of May 31, 2021 with the option to renew for an additional twelve months indefinitely. On June 26, 2020, the Company’s Austrian subsidiary borrowed $.6 million on the Company’s line of credit at an interest rate of 1.308%. The proceeds were used to repay the previously outstanding local line of credit. At repayment, the local line of credit was cancelled.

On April 25, 2019, the Company borrowed $8.0 million U.S. dollars on behalf of its Indonesian subsidiary at a rate of 3.501% with a term expiring on April 30, 2024. At ~~September 30, 2020, $6.9~~March 31, 2021, $5.7 million was outstanding on this debt facility, of which $.8 million is classified as current.

On August 14, 2019, the Company’s New Zealand subsidiary borrowed $5.3 million U.S. dollars at a rate of 3.900% with a term expiring on August 26, 2021. At ~~September 30, 2020, $4.9~~March 31, 2021, $4.1 million was outstanding on this facility, all of which is classified as ~~current.~~current and has an interest rate of 3.150%. This loan is secured by the Company’s New Zealand subsidiary’s land and building.

For the periods ended ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, the Company’s Asia Pacific segment had ~~NaN~~$.7 million and ~~$.3~~$.6 million, respectively, in restricted cash used to secure bank debt. The restricted cash is shown on the Company’s Consolidated Balance Sheets in ~~Other assets.~~Cash and cash equivalents.

The Company regularly enters into leases in the normal course of business. As of ~~September 30, 2020,~~March 31, 2021, the leases in effect were related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to 99 years. The Company often has the option to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at the Company’s discretion. The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for the Company’s operating and financing leases as of ~~September 30, 2020~~March 31, 2021 was ~~17.5~~18.5 and ~~2.7~~3.1 years, respectively.

Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized in the period those payments are incurred. The components of operating and finance lease costs are recognized in Costs and expenses and Interest expense, respectively, on the Company’s Consolidated Statements of Income. The Company’s operating and finance lease costs for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2021 and 2020 were as follows:


	Nine Months Ended				Three Months Ended
	September 30, 2020		September 30, 2019		March 31, 2021		March 31, 2020
Components of lease expense
Operating lease cost	$	2,193	$	2,338	$	698	$	709

Finance lease cost
Amortization of right-of-use assets		47		51		103		16
Interest on lease liabilities		6		8		8		2
Total lease cost	$	2,246	$	2,397	$	809	$	727

The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and

currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure the Company’s operating and finance lease liabilities as of ~~September 30, 2020~~March 31, 2021 was ~~4.55~~%4.93% and ~~4.19~~%4.14%, respectively.

Future maturities of the Company’s lease liabilities as of ~~September 30, 2020~~March 31, 2021 are as follows:

	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2020	$	668	$	30
2021		2,408		60	$	1,801	$	306
2022		1,905		40		2,188		215
2023		1,343		36		1,532		126
2024 and thereafter		10,003		6
2024						738		79
2025 and thereafter						9,801		86
Total lease payments	$	16,327	$	172		16,060		812
Less amount of lease payment representing interest		5,585		9		5,787		51
Total present value of lease payments	$	10,742	$	163	$	10,273	$	761

The total minimum sublease rentals under noncancelable subleases to be received through 2023 is ~~$2.9~~$2.4 million.

Supplemental cash flow information related to leases for the ~~nine-month~~three-month period ended ~~September 30, 2020~~March 31, 2021 was as follows:

	Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019		March 31, 2021		March 31, 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating and financing leases	$	2,100	$	4,618
Operating cash flows from operating leases					$	740	$	2
Operating cash flows from finance leases						8		730
Financing cash flows from finance leases		87		74		108		29

On January ~~2, 2020,~~4, 2021, the Company purchased ~~1,157~~1,160 shares of the Company from a retired Officer at a price per share of ~~$67.71,~~$66.01, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On February ~~5, 2020,~~3, 2021, the Company purchased ~~39,208~~29,676 shares of the Company from current and retired Officers at a price per share of ~~$58.65,~~$69.19, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On March 10, 2021, the Company purchased 19,497 shares of the Company from current Officers at a price per share of $71.10, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

On March 15, 2021, the Company purchased 2,257 shares of the Company from a current employee at a price per share of $71.91, which was calculated from a 30-day average market price in connection with the vesting of equity awards. The Audit Committee of the Board of Directors approved this transaction.

The Company accounts for business combinations using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are recorded at their estimated fair values at the date of acquisition.

On February 28, 2019, the Company acquired 100% of SubCon. Subcon is headquartered in Dornbirn, Austria with manufacturing operations in Brno, Czech Republic. The acquisition of SubCon will strengthen the Company’s position in the global substation market and will expand its operational presence in Europe. The total purchase price was $10.1 million in cash, net of $1.9 million in cash acquired. The purchase price was predominantly allocated to Goodwill of $6.6 million and Intangible assets of $4.7 million with useful lives ranging from 10 to 11 years. SubCon’s overall purchase price included an estimated contingent liability of $.6 million for an earn-out consideration with a potential maximum payment of 4.0 million Euros that will be considered for remeasurement during each reporting period as the operating results of SubCon are evaluated during each reporting period based upon operating results over a four year period. At September 30, 2020, the current earnout value of $.2 million is recorded in Other noncurrent liabilities on the Company’s Consolidated Balance Sheets.

On April 1, 2019, the Company acquired MICOS Telcom s.r.o (“MICOS Telcom”) headquartered in Prostějov, Czech Republic. The acquisition of MICOS Telcom will strengthen the Company’s position in the global telecom market and will also expand its operational presence in Europe. The total purchase price was $8.8 million in cash, net of $.5 million in cash acquired, including a hold-back liability of $1.5 million payable in two years from the date of purchase and $.9 million of deferred consideration for the remaining 10%. The hold-back liability and deferred consideration are recorded in Other noncurrent liabilities on the Company’s Consolidated Balance Sheets. The purchase price was predominantly allocated to Goodwill of $5.6 million and Intangible assets of $3.4 million. The Intangible assets included in the acquisition of MICOS have useful lives of 12 years.

The operating results and financial position of both SubCon and MICOS Telcom are included in the Company’s EMEA reportable segment as of their respective dates of acquisition. Pro-forma results of the Company’s consolidated operations for the three and nine-month periods ended September 30, 2020 and 2019 would not have been materially different from reported results and are, therefore, not presented.

~~The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition dates:~~

!ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the readers of our consolidated financial statements better understand our results of operations, financial condition and present business environment. The MD&A is provided as a supplement to, and should be read in conjunction with, our unaudited consolidated financial statements and related notes included elsewhere in this report.

Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We also provide solar hardware systems, mounting hardware for a variety of solar power applications, and fiber optic and copper splice closures. PLPC is respected around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar markets. We have 2930 sales and manufacturing operations in 2022 different countries.

We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North and South America without PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific, in accordance with accounting standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, Segment Reporting. Each segment distributes a full range of our primary products. Our PLP-USA segment is comprised of our U.S. operations manufacturing our traditional products primarily supporting our domestic energy, communications and special industries products. Our other three segments, The Americas, EMEA and Asia-Pacific, support our energy, communications and special industries products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are responsible. The business components within each segment are managed to maximize the results of the entire operating segment and Company rather than the results of any individual business component of the segment.

We evaluate segment performance and allocate resources based on several factors primarily based on sales and net income.

Our consolidated financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP). Our discussions of the financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial results and provide information that we believe is useful to the readers of our consolidated financial statements in the assessment of our performance and operating trends.

The following discussion describes our results of operations for the three ~~and nine~~ months ended ~~September 30, 2020.~~March 31, 2021. The first quarter of 2020 saw the initial global outbreak of a novel strain of coronavirus (“COVID-19”), which in the latter part of the quarter created significant global economic disruption. While the ~~recent~~prior year outbreak did not have a material impact on our results for ~~the~~those reported periods, it created challenges for us in countries that were the earliest to be impacted by the pandemic, namely countries in our Asia-Pacific business segment. Due to restrictions on our operations, the operations of our customers and the global supply chain, we are continuing to actively ~~monitoring its~~monitor the impact of COVID-19 on current and future periods.

As the virus spread, we took action to protect the health and safety of our employees while we maintained critical operations to protect our customers and suppliers. Many of our customers are considered “essential” and ~~are~~remained open for business, although ~~maybe~~ in a limited capacity in some cases, which ~~has~~ slowed demand into the second and third quarter of the prior year, most notably for specific customers in our Asia ~~Pacific.~~Pacific segment. Our North American plants have remained fully operational and only some of our international plants were closed temporarily. While there are some restrictions to the supply of products and potential price increases globally and those restrictions may continue or expand to other regions, our global supply chain currently remains strong.

Due to the uncertainty created by COVID-19, we are continuing to actively ~~managing~~manage costs and our liquidity position to provide additional flexibility while still supporting our customers and their specific needs. We ~~are reducing~~have reduced and may continue to reduce operating expenses and could continue to experience lower variable SG&A, primarily through a decrease in travel-related expenses incurred by our associates due to travel restrictions in place.

While we expect that the COVID-19 outbreak will continue to have an adverse impact on our business, the businesses of our customers and the global economy, we cannot predict the duration or scope of the COVID-19 pandemic or the magnitude of its impact on our business and results of operations. In addition, the impact of COVID-19 could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company. We continue to assess all challenges related to COVID-19 and plan accordingly. The extent of any future impact is dependent upon several factors including those described in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 filed with the Securities and Exchange Commission (“SEC”) on March 6, 2020 and the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 1, 2020 and August 6, 2020. In addition, the impact of COVID-19 could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company.5, 2021.

Our consolidated financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar. As foreign currencies strengthen against the U.S. dollar, our sales and costs increase as the foreign currency-denominated financial statements translate into more U.S. dollars, and, conversely, when foreign currencies weaken, our sales and costs decrease upon translation into U.S. dollars. The fluctuations of foreign currencies during the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 had a ~~$3.7~~$1.8 million ~~and $15.0 million unfavorable~~favorable effect ~~respectively,~~ on net sales when compared to the same period in ~~2019.~~2020. There was a ~~$.3~~less than $.1 million ~~and a $1.0 million unfavorable~~favorable effect ~~respectively,~~ on net income for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 as compared to the ~~prior year.~~same period in 2020. On a reportable segment basis, the impact of foreign currency on net sales and net income for the three ~~and nine~~ months ended ~~September 30, 2020~~March 31, 2021 was as follows:

	Foreign Currency Translation Impact
	Net Sales						Net Income						Foreign Currency Translation Impact
(Thousands of dollars)	Three Months			Nine Months			Three Months			Nine Months			Net Sales			Net Income
The Americas	$	(4,670	)	$	(12,037	)	$	(418	)	$	(1,044	)	$	(1,802	)	$	(48	)
EMEA		547			(1,358	)		93			(3	)		1,682			117
Asia-Pacific		463			(1,557	)		58			81			1,905			(41	)
Total	$	(3,660	)	$	(14,952	)	$	(267	)	$	(966	)	$	1,785		$	28

The operating results for the three months ended ~~September 30, 2020~~March 31, 2021 are compared to the same period in ~~2019.~~2020. Net sales for the three months ended ~~September 30, 2020~~March 31, 2021 of ~~$127.5~~$117.6 million increased ~~$8.2~~$14.7 million, or 7%14%, compared to ~~2019.~~2020. As a percentage of net sales, gross profit increased to ~~35.2%~~34.2% in ~~2020~~2021 from ~~33.0%~~32.0% in ~~2019.~~2020. Gross profit for the three-month periods ended ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ was ~~$44.9~~$40.2 million and ~~$39.3~~$32.9 million, respectively. Excluding the ~~unfavorable~~favorable impact of foreign currency translation, gross profit increased $6.7 million, or ~~17%~~20%, compared to ~~2019.~~2020. Costs and expenses of ~~$28.0~~$29.4 million increased ~~$.3~~$1.7 million compared to ~~2019~~2020 and included ~~a favorable~~an unfavorable impact from currency translation of $.6 million. Operating income for the three months ended ~~September 30, 2020~~March 31, 2021 was ~~$16.9~~$10.8 million, an increase of ~~$5.2~~$5.6 million compared to ~~2019.~~2020. Net income for the three months ended ~~September 30, 2020~~March 31, 2021 of ~~$13.3~~$7.2 million increased ~~$5.3~~$3.5 million compared to the three months ended ~~September 30, 2019.~~March 31, 2020. The effect of currency translation had negative impacts of ~~$.5~~less than $.1 million ~~and $.3 million~~ on both operating income and net ~~income, respectively.~~income.

~~The operating results for the nine months ended September 30, 2020 are compared to the same period in 2019~~. Net sales for the nine months ended September 30, 2020 of $347.9 million increased $16.7 million, or 5%, compared to 2019. As a percentage of net sales, gross profit increased to 33.7% in 2020 from 31.5% in 2019. Gross profit for the nine-month periods ended September 30, 2020 and 2019 was $117.4 million and $104.41 million, respectively. Excluding the unfavorable impact of foreign currency translation, gross profit increased $17.6 million, or 17%, compared to 2019. Costs and expenses of $81.1 million increased $1.4 million compared to 2019 and included a favorable impact from currency translation of $3.0 million. Operating income for the nine months ended September 30, 2020 was $36.3 million, an increase of $11.5 million compared to 2019. Net income for the nine months ended September 30, 2020 of $27.4 million increased $9.7 million compared to the nine months ended September 30, 2019. The year-to-date effect of currency translation had a $1.7 million and a $1.0 million negative impact on operating income and net income, respectively.

The following table reflects the impact of foreign currency fluctuations on operating income for the ~~three and nine-month~~three-month periods ended ~~September 30, 2020~~March 31, 2021 and ~~2019:~~2020:

	Foreign Currency Impact										Foreign Currency Impact
	Three Months Ended September 30					Nine Months Ended September 30					Three Months Ended March 31
(Thousands of dollars)	2020			2019		2020			2019		2021			2020
Operating income	$	16,890		$	11,643	$	36,340		$	24,804	$	10,768		$	5,153
Translation loss		528			0		1,653			0
Translation gain												(40	)		0
Transaction loss		314			308		1,702			179		615			1,792
Net gain on forward currency contracts		(136	)		0		(1,039	)		0		(327	)		(1,125	)
Operating income excluding currency impact	$	17,596		$	11,951	$	38,656		$	24,983	$	11,016		$	5,820

Despite the constant changes in the current global economy, and aside from the uncertainty created by the COVID-19 outbreak, we believe our business fundamentals and our financial position are sound and that we are strategically well-positioned. We remain focused on assessing our business structure, global facilities and overall capacity in conjunction with the requirements of local manufacturing in the markets that we serve. If necessary, we will modify redundant processes and utilize our global manufacturing network to manage costs, increase sales volumes and deliver value to our customers. We have continued to invest in the business to expand into new markets for the Company, improve efficiency, develop new products, increase our capacity and become an even stronger supplier to our customers. We currently have a bank debt to equity ratio of ~~24.3%~~20.4% and can borrow needed funds at a competitive interest rate under our credit facility.

THREE MONTHS ENDED ~~SEPTEMBER 30, 2020~~MARCH 31, 2021 COMPARED TO THREE MONTHS ENDED ~~SEPTEMBER 30, 2019~~MARCH 31, 2020

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the three months ended ~~September 30, 2020~~March 31, 2021 and ~~2019.~~2020. The Company’s past operating results are not necessarily indicative of future operating results.

	Three Months Ended September 30												Three Months Ended March 31
(Thousands of dollars)	2020					2019					Change		2021					2020					Change
Net sales	$	127,463		100.0%		$	119,217		100.0%		$	8,246	$	117,553		100.0%		$	102,852		100.0%		$	14,701
Cost of products sold		82,549			64.8		79,874			67.0		2,675		77,361			65.8		69,942			68.0		7,419
GROSS PROFIT		44,914			35.2		39,343			33.0		5,571		40,192			34.2		32,910			32.0		7,282
Costs and expenses		28,024			22.0		27,700			23.2		324		29,424			25.0		27,757			27.0		1,667
OPERATING INCOME		16,890			13.3		11,643			9.8		5,247		10,768			9.2		5,153			5.0		5,615
Other income (expense) net		530			0.4		(386	)		(0.3)		916
Other expense, net														(214	)		(0.2)		(49	)		(0.0)		(165	)
INCOME BEFORE INCOME TAXES		17,420			13.7		11,257			9.4		6,163		10,554			9.0		5,104			5.0		5,450
Income tax expense		4,458			3.5		3,213			2.7		1,245		3,377			2.9		1,451			1.4		1,926
NET INCOME		12,962			10.2		8,044			6.7		4,918		7,177			6.1		3,653			3.6		3,524
Net adjustment attributable to noncontrolling interests		(8	)		(0.0)		(93	)		(0.1)		85		2			0.0		45			0.0		(43	)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	12,954		10.2%		$	7,951		6.7%		$	5,003	$	7,179		6.1%		$	3,698		3.6%		$	3,481

Net sales. Net sales were ~~$127.5~~$117.6 million for the three months ended ~~September 30, 2020,~~March 31, 2021, an increase of ~~$8.2~~$14.7 million, or 7%14%, from the three months ended ~~September 30, 2019.~~March 31, 2020. Excluding the ~~unfavorable~~favorable effect of currency translation, net sales for the three months ended ~~September 30, 2020~~March 31, 2021 increased ~~$11.9~~$12.9 million compared to the same period in ~~2019,~~2020, or ~~10%~~13%, as summarized in the following table:

	Three Months Ended September 30																Three Months Ended March 31
(Thousands of dollars)	2020		2019		Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change			2021		2020		Change		Change Due to Currency Translation			Change Excluding Currency Translation			% change
Net sales
PLP-USA	$	53,027	$	47,617	$	5,410		$	0		$	5,410			11	%	$	56,231	$	46,601	$	9,630	$	0		$	9,630			21	%
The Americas		19,914		19,663		251			(4,670	)		4,921			25			17,521		17,241		280		(1,802	)		2,082			12
EMEA		27,034		21,132		5,902			547			5,355			25			23,481		20,360		3,121		1,682			1,439			7
Asia-Pacific		27,488		30,805		(3,317	)		463			(3,780	)		(12	)		20,320		18,650		1,670		1,905			(235	)		(1	)
Consolidated	$	127,463	$	119,217	$	8,246		$	(3,660	)	$	11,906			10	%	$	117,553	$	102,852	$	14,701	$	1,785		$	12,916			13	%

The year-over-year increase in PLP-USA net sales of ~~$5.4~~$9.6 million, or ~~11%~~21%, was primarily due to a volume increase in ~~energy~~communication product sales. International net sales for the three months ended ~~September 30, 2020~~March 31, 2021 experienced ~~an unfavorable~~a favorable impact of ~~$3.7~~$1.8 million when local currencies were converted to U.S. dollars. The following discussion of net sales excludes the effect of currency translation. The Americas net sales of ~~$19.9~~$17.5 million increased ~~$4.9~~$2.1 million, or ~~25%~~12%, primarily due to a volume increase in energy product sales. EMEA net sales of ~~$27.0~~$23.5 million increased ~~$5.4~~$1.4 million, or ~~25%~~7%, primarily due to a volume increase in ~~energy~~communication product sales within the region. In Asia-Pacific net sales of ~~$27.5~~$20.3 million decreased ~~$3.8~~$.2 million, or ~~12%~~1%, compared to ~~2019~~2020 primarily due to a ~~combined~~ volume decrease in energy products, ~~mostly as a result~~partially resulting from the residual effects of the disruption to the global economy caused by the COVID-19 pandemic.

Gross profit. Gross profit was ~~$44.9~~$40.2 million and ~~$39.3~~$32.9 million for the three-month periods ended ~~September 30,~~March 31, 2021 and 2020, ~~and 2019,~~ respectively. Excluding the unfavorable effect of currency translation, gross profit increased $6.7 million, or ~~17%~~20%, as summarized in the following table:

	Three Months Ended September 30																Three Months Ended March 31
(Thousands of dollars)	2020		2019		Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change			2021		2020		Change		Change Due to Currency Translation			Change Excluding Currency Translation		% change
Gross profit
PLP-USA	$	21,613	$	17,687	$	3,926		$	0		$	3,926			22	%	$	21,077	$	17,396	$	3,681	$	0		$	3,681		21	%
The Americas		6,535		7,254		(719	)		(1,453	)		734			10			5,544		5,246		298		(509	)		807		15
EMEA		10,021		6,768		3,253			213			3,040			45			8,134		5,959		2,175		593			1,582		27
Asia-Pacific		6,745		7,634		(889	)		114			(1,003	)		(13	)		5,437		4,309		1,128		517			611		14
Consolidated	$	44,914	$	39,343	$	5,571		$	(1,126	)	$	6,697			17	%	$	40,192	$	32,910	$	7,282	$	601		$	6,681		20	%

PLP-USA gross profit of ~~$21.6~~$21.1 million increased ~~$3.9~~$3.7 million compared to the same period in ~~2019~~2020 as a result of increased sales volume of $9.6 million combined with a product sales mix shift to higher margin product and continued cost containment within material, labor and manufacturing expense. International gross profit for the three months ended ~~September 30, 2020~~March 31, 2021 was ~~unfavorably~~favorably impacted by ~~$1.1~~$.6 million when local currencies were translated to U.S. dollars. The following discussion of gross profit excludes the effects of currency translation. The Americas gross profit increase of ~~$.7~~$.8 million was primarily the result of a ~~$4.9~~$2.1 million increase in sales combined with a product margin improvement in the region due to sales product mix. EMEA’s gross profit increased ~~$3.0~~$1.6 million, mainly as a result an increase in sales of $1.4 million and a shift to higher sales volume in higher margin communication products. ~~Asia-Pacific~~Although Asia-Pacific’s sales decreased by $.2 million, gross profit ~~decreased $1.0~~increased $.6 million primarily as a result of ~~a year-over-year reduction in sales volume, largely caused by~~continued cost containment to mitigate the ~~negative impact related to~~continued effects of the COVID-19 pandemic. ~~The gross profit decrease in Asia-Pacific was partially offset by $.2 million of COVID-19 subsidies.~~

Costs and expenses. Costs and expenses of ~~$28.0~~$29.4 million for the three months ended ~~September 30, 2020~~March 31, 2021 increased ~~$.3~~$1.7 million, or 1%6%. Excluding the ~~favorable~~unfavorable effect of currency translation, costs and expenses increased ~~$.9~~$1.1 million, or 3%4%, as summarized in the following table:

	Three Months Ended September 30																Three Months Ended March 31
(Thousands of dollars)	2020		2019		Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change			2021		2020		Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change
Costs and expenses
PLP-USA	$	12,872	$	12,848	$	24		$	0		$	24			0	%	$	13,134	$	13,193	$	(59	)	$	0		$	(59	)		(0	)%
The Americas		3,707		3,721		(14	)		(803	)		789			21			3,721		3,530		191			(428	)		619			18
EMEA		5,863		5,375		488			91			397			7			6,464		5,601		863			439			424			8
Asia-Pacific		5,582		5,756		(174	)		113			(287	)		(5	)		6,105		5,433		672			549			123			2
Consolidated	$	28,024	$	27,700	$	324		$	(599	)	$	923			3	%	$	29,424	$	27,757	$	1,667		$	560		$	1,107			4	%

PLP-USA costs and expenses of ~~$12.9~~$13.1 million for the three months ended ~~September 30, 2020~~March 31, 2021 were relatively flat compared to ~~2019~~2020 mainly due to ~~$.7~~offsetting variances, which included $.5 million of combined lower travel and entertainment and marketing expenses, ~~and lower professional fees of $.1 million,~~ partially offset by higher ~~personnel-related costs~~legal and professional fees of ~~$.5~~$.2 million and ~~increased~~higher commissions of ~~$.3~~$.2 million. On a consolidated basis, costs and expenses for the three months ended ~~September 30, 2020~~March 31, 2021 were ~~favorably~~unfavorably impacted by $.6 million when local currencies were translated to U.S. dollars. The following discussion of costs and expenses excludes the effect of currency translation. The Americas costs and expenses of $3.7 million increased ~~$.8~~$.6 million for the three months ended ~~September 30, 2020~~March 31, 2021 compared to the same period in ~~2019~~2020 primarily due to ~~an increase in net foreign currency exchange losses of $.4 million,~~ higher ~~compensation~~personnel-related expense of ~~$.3~~$.1 million, ~~and~~ higher commissions of $.1 million, combined with miscellaneous net increases of $.4 million. EMEA costs and expenses of ~~$5.9~~$6.5 million increased $.4 million mainly due to higher personnel-related expenses of ~~$.3~~$.5 million, ~~combined with miscellaneous net~~partially offset by lower travel and entertainment expenses of $.1 million. Asia-Pacific costs and expenses of ~~$5.6~~$6.1 million ~~decreased $.3~~increased $.1 million primarily due to ~~a decrease~~an increase in personnel-related expenses of $.4 million, increased travel and entertainment ~~expenses.~~expenses of $.1 million and higher legal and professional fees of $.1 million, partially offset by the favorable effect of transactional foreign currency exchange of $.5 million.

Other income, ~~(expense).~~net. Other income, ~~(expense)~~net for the three-month periods ended ~~September 30,~~March 31, 2021 and 2020 was $.2 million and ~~2019 was $.5~~less than $.1 million, ~~of income and $.4 million of expense,~~ respectively. ~~During the quarter ended September 30, 2020, Asia-Pacific received government subsidies of $.7 million related to COVID-19.~~

Income taxes.Income taxes for the three months ending ~~September 30,~~March 31, 2021 and 2020 ~~and 2019~~ were ~~$4.5~~$ 3.4 million and ~~$3.2~~$1.5 million, respectively, based on pre-tax income of ~~$17.4~~$10.6 million and ~~$11.3~~$5.1 million, respectively. The effective tax rate for the three-month periods ending ~~September 30,~~March 31, 2021 and 2020 was 32% and ~~2019 was 26% and 29%~~28%, respectively, compared to the U.S. federal statutory rate of 21%. Our tax rate is affected by recurring items such as tax rates in foreign jurisdictions and the relative amount of income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. ~~In addition to state and local~~

On January 1, 2021, we adopted Account Stands Update (“ASU”) 2019-12, Income Taxes (“ASC 740”) - “Simplifying the Accounting for Income Taxes”, which simplifies the accounting for income taxes by removing certain exceptions to the ~~following items had the most significant impact on the difference between our statutory U.S. federal income tax rate~~general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ~~21% and our effective tax rate:~~ASU 2019-12 did not result in any material adjustments.

Net income. As a result of the preceding items, net income for the three months ended ~~September 30, 2020~~March 31, 2021 was ~~$13.0~~$7.2 million, compared to ~~$8.0~~$3.7 million for the three months ended ~~September 30, 2019,~~March 31, 2020, an increase of ~~$5.0~~$3.5 million as summarized in the following table:

	Three Months Ended September 30																	Three Months Ended March 31
(Thousands of dollars)	2020		2019		Change			Change Due to Currency Translation			Change Excluding Currency Translation			% change				2021			2020			Change		Change Due to Currency Translation			Change Excluding Currency Translation		% change
Net income
PLP-USA	$	6,753	$	3,246	$	3,507		$	0		$	3,507			108		%	$	5,576		$	3,550		$	2,026	$	0		$	2,026		57		%
The Americas		1,908		2,565		(657	)		(418	)		(239	)		(9	)			1,192			995			197		(48	)		245		25
EMEA		2,912		853		2,059			93			1,966			230				1,195			337			858		117			741		220
Asia-Pacific		1,381		1,287		94			58			36			3				(784	)		(1,184	)		400		(41	)		441		(37	)
Consolidated	$	12,954	$	7,951	$	5,003		$	(267	)	$	5,270			66		%	$	7,179		$	3,698		$	3,481	$	28		$	3,453		93		%

PLP-USA’s net income for the three months ended ~~September 30, 2020~~March 31, 2021 increased ~~$3.5~~$2.0 million compared to the same period in ~~2019,~~2020, primarily due to an increase in operating income of ~~$3.9~~$4.3 million, partially offset by a decrease in other income, net of $.8 million combined with an increase in other income of $.3 million, partially offset by an increase in income taxes of $.7 million. The following discussion of net income excludes the effect of currency translation. The Americas net income decreased $.2 million as a result of operating income that was relatively unchanged year-over-year combined with higher income taxes of $.2 million. EMEA net income increased $2.0 million as a result of a $2.6 million increase in operating income, partially offset by a $.6 million year-over-year increase in income tax expense. Asia-Pacific net income remained relatively flat due to a $.7 million decrease in operating income, partially offset by an increase in other income of $.6 million along with a decrease in income tax expense of ~~$.1 million.~~

During the three-month period ended September 30, 2020, the Americas, EMEA and Asia-Pacific received COVID-19 government subsidies of $.2 million, $.1 million and $1.1 million, respectively. PLP-USA did not apply for or receive any COVID-19 related government subsidies.

PLP’s EMEA segment incurred a net adjustment attributable to noncontrolling interests of less than $.1 million, which when added back to net income, resulted in an immaterial change to net income attributable to PLP Shareholders.

~~NINE MONTHS ENDED SEPTEMBER 30, 2020 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2019~~

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales for the nine months ended September 30, 2020 and 2019. The Company’s past operating results are not necessarily indicative of future operating results.

~~Net sales.~~ Net sales were $347.9 million for the nine months ended September 30, 2020, an increase of $16.7 million, or 5%, from the nine months ended September 30, 2019. Excluding the unfavorable effect of currency translation, net sales for the nine months ended September 30, 2020 increased $31.7 million compared to the same period in 2019, or 10%, as summarized in the following table:

The year-over-year increase in PLP-USA net sales of $18.2 million, or 13%, was primarily due to a volume increase mainly in energy product sales. International net sales for the nine months ended September 30, 2020 experienced an unfavorable impact of $15.0 million when local currencies were converted to U.S. dollars. The following discussion of net sales excludes the effect of currency translation. The Americas net sales of $54.6 million increased $15.5 million, or 30%, primarily due to a volume increase in energy and communication product sales. EMEA net sales of $68.4 million increased $10.4 million, or 18%, primarily due to a volume increase in energy and communications product sales within the region, inclusive of the remaining incremental sales from the newly acquired businesses. In Asia-Pacific, net sales of $71.3 million decreased $12.5 million, or 15%, compared to 2019 primarily due to a combined volume decrease in the energy, communications and special industries products mostly resulting from the disruption to the global economy caused by the COVID-19 pandemic.

~~Gross profit.~~ Gross profit was $117.4 million and $104.4 million for the nine-month periods ended September 30, 2020 and 2019, respectively. Excluding the unfavorable effect of currency translation, gross profit increased $17.6 million, or 17%, as summarized in the following table:

PLP-USA gross profit of $59.4 million increased $11.1 million compared to the same period in 2019 as a result of increased sales volume of $18.2 million combined with a product sales mix shift to higher margin product and continued cost containment within material, labor and manufacturing expense. International gross profit for the nine months ended September 30, 2020 was unfavorably impacted by $4.6 million when local currencies were translated to U.S. dollars. The following discussion of gross profit excludes the effects of currency translation. The Americas gross profit increase of $4.3 million was primarily the result of a $15.5 million increase in sales combined with a product margin improvement in the region due to sales product mix. EMEA gross profit increased $6.3 million, mainly as a result of increased sales volume. Asia-Pacific gross profit decreased $4.2 million primarily as a result of a year-over-year reduction in sales volume and the negative impact related to the COVID-19 pandemic.

~~Costs and expenses.~~ Costs and expenses of $81.1 million for the nine months ended September 30, 2020 increased $1.4 million, or 2%. Excluding the favorable effect of currency translation, costs and expenses increased $4.4 million, or 6%, as summarized in the following table:

PLP-USA costs and expenses of $38.2 million for the nine months ended September 30, 2020 increased $.7 million compared to 2019 mainly due to $1.6 million of higher personnel-related expenses, increased commissions of $.8 million and an increase in miscellaneous net expense of $.2 million. Partially offsetting the higher expenses were decreases in travel and entertainment expenses of $.9 million, professional fees of $.7 million combined with lower bad debt expense of $.3 million. On a consolidated basis, costs and expenses for the nine months ended September 30, 2020 were favorably impacted by $3.0 million when local currencies were translated to U.S. dollars. The following discussion of costs and expenses excludes the effect of currency translation. The Americas costs and expenses of $10.4 million increased $2.5 million for the nine months ended September 30, 2020 compared to the same period in 2019 primarily due to a $.9 million increase in personnel-related expenses, higher commissions of $.3 million and an increase in foreign currency exchange losses of $1.4 million, partially offset by net decreases in miscellaneous expenses of $.1 million. The higher costs were offset by savings in travel and entertainment expenses of $.3 million. EMEA costs and expenses of $16.4 million increased $1.8 million mainly due to higher personnel-related expense of $1.2 million and the various additional incremental costs incurred with our acquired businesses. Asia-Pacific costs and expenses of $16.0 million decreased $.6 million, primarily due to a decrease in travel and entertainment expenses.

~~Other income (expense).~~ Other income (expense) for the nine-month periods ended September 30, 2020 and 2019 was $.1 million of income and expense of $.8 million, respectively. During the nine-month period ended September 30, 2020, Asia-Pacific received government subsidies of $.7 million related to COVID-19.

~~Income taxes.~~ Income taxes for the nine months ended September 30, 2020 and 2019 were $9.3 million and $6.3 million, respectively, based on pre-tax income of $36.4 million and $24.0 million, respectively. The effective tax rate for both nine-month periods ended September 30, 2020 and 2019 was 26% compared to the U.S. federal statutory rate of 21%. Our tax rate is affected by recurring items, such as tax rates in foreign jurisdictions and the relative amount of income we earn in those jurisdictions. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. In addition to state and local income taxes, the following items had the most significant impact on the difference between our statutory U.S. federal income tax rate of 21% and our effective tax rate:

~~Net income.~~ As a result of the preceding items, net income for the nine months ended September 30, 2020 was $27.1 million, compared to $17.7 million for the nine months ended September 30, 2019, an increase of $9.5 million as summarized in the following table:

PLP-USA’s net income for the nine months ended September 30, 2020 increased $9.0 million compared to the same period in 2019, primarily due to an increase in operating income of $10.4 million combined with an increase in other income of $.9 million, partially offset by an increase in income taxes of $2.3$1.5 million. The following discussion of net income excludes the effect of currency translation. The Americas net income increased ~~$.5~~$.2 million as a result of an increase in operating income of $.2 million. EMEA net income increased $.7 million as a result of a $1.9 million increase in operating income, partially offset by higher income taxes of $.9 million combined with an increase in other non-operating expense of $.5 million. EMEA net income increased $3.3 million as a result of a $4.5$1.0 million increase in operating income, partially offset by a ~~$1.2~~$.3 million year-over-year increase in income tax expense. Asia-Pacific net income ~~decreased $2.4~~increased $.4 million largely due to a ~~$3.5~~$.5 million decrease in operating ~~income~~expense, partially offset by an increase in ~~other income of $.3 million and a decrease in~~ income tax expense of ~~$.8~~$.1 million.

During the nine-month period ended September 30, 2020, the Americas, EMEA and Asia-Pacific received COVID-19 government subsidies of $.5 million, $.2 million and $1.5 million respectively. PLP-USA did not apply for or receive any COVID-19 government subsidies.

Our critical accounting policies are consistent with the information set forth in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Form 10-K for the year ended December 31, ~~2019~~2020 filed on March ~~6, 2020~~5, 2021 with the Securities and Exchange Commission and are, therefore, not presented herein.

We measure liquidity on the basis of our ability to meet short-term and long-term operating needs, repay debt, fund additional investments, including acquisitions, and make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividends, business acquisitions and access to bank lines of credit.

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic initiatives. During the first ~~nine~~three months of ~~2020,~~2021, we used cash of ~~$24.2~~$3.5 million for capital expenditures. We ended the first ~~nine~~three months of ~~2020~~2021 with ~~$41.2~~$34.7 million of cash, cash equivalents and restricted cash ~~(“Cash”~~(collectively, “Cash”). Our Cash is held in various locations throughout the world. At ~~September 30, 2020,~~March 31, 2021, the majority of our Cash was held outside the United States (“U.S.”). We expect most accumulated non-U.S. Cash balances will remain outside of the U.S. and that we will meet U.S. liquidity needs through future operating cash flows, use of U.S. Cash balances, external borrowings, or some combination of these sources. We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements for customers where we have identified a measure of increased risk. We closely monitor payments and developments which may signal possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit issues.

Total debt, including notes payable, at ~~September 30, 2020~~March 31, 2021 was ~~$68.0~~$59.3 million. At ~~September 30, 2020,~~March 31, 2021, our unused availability under our line of credit was ~~$34.9~~$53.5 million and our bank debt to equity percentage was ~~24.3%~~20.4%. On April 17, 2020, we further extended the term on the line of credit to June 30, 2024. All other terms remain the same, including the interest rate at LIBOR plus 1.125% unless our funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the LIBOR spread becomes 1.500%. The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and funded debt-to-earnings before interest, taxes, depreciation and amortization along with an interest coverage ratio. The net worth and profitability requirements are calculated based on the line of credit agreement. At ~~September 30, 2020~~March 31, 2021 and December 31, ~~2019,~~2020, we were in compliance with these covenants.

We expect that our major source of funding for ~~2020~~2021 and beyond will be our operating cash flows and our existing Cash as well as our line of credit agreement. We earn a significant amount of our operating income outside the U.S., which, except for current earnings in certain jurisdictions, is deemed to be indefinitely reinvested in foreign jurisdictions.

As we cannot predict the duration or scope of the continuing COVID-19 pandemic and its impact on our customers and suppliers, the negative financial impact to our financial results and liquidity cannot be reasonably estimated but could be material. We are actively managing the business to maintain cash flow and secure favorable liquidity position. We believe that our future cash flows, together with these factors, will be more than sufficient to cover debt repayments, other contractual obligations, capital expenditures and dividends for the next twelve months and thereafter for the foreseeable future. In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement funding of capital expenditures and/or acquisitions. We also believe that we can expand our borrowing capacity, if necessary, however, we do not believe we would increase our debt to a level that would have a material adverse impact upon results of operations or financial condition.

Cash ~~decreased $.2~~increased $.6 million compared to the same period in ~~2019.~~2020. Net Cash provided by operating activities was ~~$33.6~~$13.2 million. The most significant net investing and financing uses of Cash in the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 were payments of long-term debt of ~~$72.7~~$27.1 million, capital expenditures of ~~$24.2~~$3.5 million, share repurchases of ~~$8.0~~$3.7 million and dividends paid of ~~$3.2~~$1.1 million, partially offset by net debt and notes payable proceeds of ~~$77.4~~$11.4 million. Currency had a ~~negative $.9~~positive $.2 million impact on Cash when translating foreign denominated financial statements to U.S. dollars.

Net Cash provided from operating activities for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 was ~~$33.6~~$13.2 million compared to ~~$20.7~~a use of $3.1 million in the comparable prior year ~~nine-month~~three-month period. The ~~$12.9~~$16.3 million ~~increase~~improvement was primarily a result of an increase in net income of ~~$9.4~~$3.5 million, ~~combined with~~ an increase in cash provided by non-cash items of ~~$3.1~~$4.7 million ~~combined with a slight~~and an increase in Cash provided by operating assets (net of operating liabilities) of ~~$.4 million.~~$8.1 million which included the $6.8 million deposit on the new corporate aircraft that was paid in the fourth quarter of 2020 and fully refunded in 2021.

Net Cash used in investing activities of ~~$24.2~~$3.5 million for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 decreased ~~$17.1~~$2.5 million when compared to Cash used in investing activities in the ~~nine~~three months ended ~~September 30, 2019~~March 31, 2020 of ~~$41.3~~$6.0 million. The change was primarily related to Cash used in the prior year to fund the SubCon and MICOS acquisitions, net of Cash, of $18.9 million combined with cash used to purchase marketable securities of $.5 million during the nine months ended September 30, 2019, partially offset by a year-over-year ~~increase~~decrease in capital ~~expenditures of $2.3 million.~~expenditures.

Cash used in financing activities for the ~~nine~~three months ended ~~September 30, 2020~~March 31, 2021 was ~~$6.5~~$20.5 million compared to Cash provided by financing activities of ~~$20.0~~$5.7 million during the ~~nine~~three months ended ~~September 30, 2019.~~March 31, 2020. The ~~$26.5~~$26.2 million change was primarily the result of a net decrease in net debt borrowings, net of payments in ~~2020~~2021 compared to ~~2019~~2021 of ~~$23.0~~$26.3 million, ~~and an increase~~partially offset by a decrease in net share repurchases and issuances of ~~$3.5~~$.1 million.

We have commitments under operating leases, primarily for office and manufacturing space, transportation equipment, office and computer equipment and capital leases primarily for equipment.

As of March 31, 2021, the Company had total outstanding guarantees of $6.9 million. Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of March 31, 2021, the Company had total outstanding letters of credit of $9.1 million.

Cautionary Statement for “Safe Harbor” Purposes Under The Private Securities Litigation Reform Act of 1995

This Form 10-Q and other documents we file with the SEC contain forward-looking statements regarding the Company’s and management’s beliefs and expectations. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance (as opposed to historical items) and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature. Such forward-looking statements are subject to uncertainties and factors relating to the Company’s operations and business environment, all of which are difficult to predict and many of which are beyond the Company’s control. Such uncertainties and factors could cause the Company’s actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

The following factors, among others, could affect the Company’s future performance and cause the Company’s actual results to differ materially from those expressed or implied by forward-looking statements made in this report:

The Company operates manufacturing facilities and offices around the world and uses fixed and floating rate debt to finance the Company’s global operations. As a result, the Company is subject to business risks inherent in non-U.S. activities, including political and economic uncertainty, import and export limitations and market risk related to changes in interest rates and foreign currency exchange rates. The Company believes that the political and economic risks related to the Company’s international operations are mitigated due to the geographic diversity in which the Company’s international operations are located.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation rate exceeded 100%. As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S. dollar. ~~The remeasurement impact to the three and nine-month~~Revenue from operations in Argentina represented less than 1% of total consolidated net sales for both three-month periods ended ~~September 30, 2020 continues to be immaterial~~March 31, 2021 and ~~is included~~2020.

As of March 31, 2021, the Company had $.1 million in ~~the Company’s consolidated financial statements.~~

net foreign currency forward exchange contracts outstanding. The Company does not hold derivatives for trading ~~or speculative~~ purposes.

The Company’s primary currency rate exposures are related to foreign denominated debt, intercompany debt, foreign denominated receivables and payables and cash and short-term investments. A hypothetical 10% change in currency rates would have a favorable/unfavorable impact on fair values on such instruments of ~~$4.6~~$4.3 million and on income before taxes of ~~$2.1~~$.2 million.

The Company is exposed to market risk, including changes in interest rates and foreign exchange rates since we conduct business in a variety of foreign currencies. The Company is subject to interest rate risk on its variable rate revolving credit facilities and term notes, which consisted of long-term borrowings, which includes the current portion, of ~~$52.4~~$46.4 million at ~~September 30, 2020.~~March 31, 2021. A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately ~~$.7~~$.6 million for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021.

As discussed elsewhere in this report, the ~~recent~~ outbreak of COVID-19 could negatively impact the Company’s business and results of operations. Since we cannot predict the duration or scope of the COVID-19 pandemic, the potential negative financial impact to the Company’s results cannot be reasonably estimated but could be material.

The Company’s Principal Executive Officer and Principal Accounting Officer have concluded that the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Securities Exchange Act of 1934, as amended, were effective as of ~~September 30, 2020.~~March 31, 2021.

There were no other changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)) of the Securities and Exchange Act of 1934, as amended, during the ~~nine-month~~three-month period ended ~~September 30, 2020~~March 31, 2021 that materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

InThe Company is and may in the future be party to a variety of pending legal proceedings and claims arising in the normal course of business, ~~the Company is subject to a variety of claims and lawsuits,~~ including, but not limited to, litigation relating to employment, workers’ compensation, ~~products~~product liability, environmental and intellectual property. ~~The ultimate outcomes of these matters are not predictable with certainty.~~ The Company has liability insurance to cover many of these claims.

The Company and its subsidiaries, Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the corporate successor to HD Supply), “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the (“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in November 2016 (the “Complaint”).

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. ~~We are~~The Company is unable to predict the outcome of this case, ~~and cannot reasonably estimate~~however, it has recorded a reserve for the low end of the range for potential ~~range of loss. However, if it~~loss associated with this matter. If this matter is ~~determined~~concluded in a manner adverse to the Company, it could have a material effect on the Company’s financial results.

There were no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2019~~2020 filed with the SEC on March ~~6, 2020 and the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 1, 2020.~~5, 2021. In addition, the impact of COVID-19 could potentially exacerbate other risks discussed, any of which could have a material adverse effect on the Company. The situation continues to change ~~rapidly~~ and additional impacts may arise that the Company is not aware of currently.

On March 16, 2020, the Board of Directors authorized a plan to repurchase up to an additional 235,625 of Preformed Line Products Company common shares, resulting in a total of 250,000 shares available for repurchase with no expiration date. The following table reflects repurchases for the three-month period ended ~~September 30, 2020:~~March 31, 2021:

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Ohio		34-0676895
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

660 Beta Drive Mayfield Village, Ohio		44143
(Address of Principal Executive Office)		(Zip Code)

Title of each class		Trading Symbol		Name of exchange on which registered
Common stock, par value $2.00 per share		PLPC		NASDAQ

		Page

Part I - Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2319

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3426

Item 4.	Controls and Procedures	3427

Part II - Other Information

Item 1.	Legal Proceedings	3528

Item 1A.	Risk Factors	3528

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3529

Item 3.	Defaults Upon Senior Securities	3629

Item 4.	Mine Safety Disclosures	3629

Item 5.	Other Information	3629

Item 6.	Exhibits	3629

SIGNATURES		3730

	USA		The Americas		EMEA			Asia-Pacific			Total
Balance at January 1, 2021	$	3,078	$	4,251	$	14,449		$	7,730		$	29,508
Currency translation		0		62		(584	)		(142	)		(664	)
Balance at March 31, 2021	$	3,078	$	4,313	$	13,865		$	7,588		$	28,844

Assets acquired
Current assets, net of cash	$	5,976
Property, plant and equipment		1,189
Goodwill		12,132
Finite-lived intangible assets		8,092
Other long-term assets		1,883
Total assets acquired		29,272
Liabilities assumed		(10,378	)
Net assets acquired	$	18,894

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that may yet be Purchased under the Plans or Programs
July		22,065	$	49.72		83,276		166,724
August		2,270		55.63		85,546		164,454
September		0	N/A			85,546		164,454
Total		24,335

10.1		Promissory Note dated December 31, 2020, between the Company and PNC Bank National Association (incorporated by reference to the Company’s 10-K filed for the year ended December 31, 2020)

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		Certifications of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.

32.1		Certifications of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished.

32.2		Certifications of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished.

101.INS		Inline XBRL Instance Document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data (embedded with the Inline XBRL document.

~~October~~April 30, ~~2020~~2021		/s/ Robert G. Ruhlman
		Robert G. Ruhlman
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)

~~October~~April 30, ~~2020~~2021		/s/ Andrew S. Klaus
		Andrew S. Klaus
		Chief Financial Officer
		(Principal Accounting Officer)

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company