Note 14 - Revenue
Revenue recognition
Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services and is primarily based on shipping terms. Sales are measured as the amount of consideration the Company expects to receive in exchange for transferring products.
Net sales include products and shipping and handling charges, net of estimates for product returns. The Company estimates product returns based on historical return rates. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered to or picked up by the customer. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold.
Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between when revenue is recognized, and payment is due is not significant. Sales, value added, and other taxes collected concurrent with revenue are excluded from sales.
PLP records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the various markets served.
Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are typically earned at the completion of the contract when the customer is invoiced or when the customer pays PLP.
Sales of products and services varies by segment and are discussed in Note 15, "Segment Information".
Disaggregated revenue
The following table presents the Company’s revenues disaggregated by segment and product type:
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| | Year Ended December 31, 2025 |
| Product Type | PLP-USA | | The Americas | | EMEA | | Asia-Pacific | | Consolidated |
| Energy | 63 | % | | 80 | % | | 74 | % | | 77 | % | | 71 | % |
| Communications | 32 | | | 19 | | | 19 | | | 3 | | | 22 | |
| Special Industries | 5 | | | 1 | | | 7 | | | 20 | | | 7 | |
| Total | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended December 31, 2024 |
| Product Type | PLP-USA | | The Americas | | EMEA | | Asia-Pacific | | Consolidated |
| Energy | 63 | % | | 80 | % | | 71 | % | | 77 | % | | 71 | % |
| Communications | 30 | | | 18 | | | 24 | | | 3 | | | 22 | |
| Special Industries | 7 | | | 2 | | | 5 | | | 20 | | | 7 | |
| Total | 100 | % | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
Credit losses for receivables
The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make required payments. The Company uses a current expected credit loss model in order to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial instruments, mainly trade receivables. Additionally, the allowance is based upon identified delinquent accounts, customer payment patterns and other analyses of historical data trends. Receivable balances
are written off against an allowance for credit losses after a final determination has been made. The change in the allowance for credit losses includes expense and net write-offs, which are identified in the following table:
| | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | 2023 |
| Allowance for credit losses, beginning of period | $ | 6,958 | | | $ | 8,260 | | | $ | 5,021 | |
| Additions (reductions) charged to costs and expenses | 92 | | | (750) | | | 3,250 | |
| Write-offs | (1,571) | | | (260) | | | (218) | |
| Foreign exchange and other | 318 | | | (292) | | | 207 | |
| Allowance for credit losses, end of period | $ | 5,797 | | | $ | 6,958 | | | $ | 8,260 | |