Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Entity Registrant Name | 'IPG PHOTONICS CORP | ' |
Entity Central Index Key | '0001111928 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 51,680,453 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $398,355 | $384,053 |
Accounts receivable, net | 120,640 | 96,630 |
Inventories | 171,268 | 139,618 |
Prepaid income taxes and income taxes receivable | 17,326 | 13,071 |
Prepaid expenses and other current assets | 30,072 | 18,639 |
Deferred income taxes, net | 11,547 | 12,948 |
Total current assets | 749,208 | 664,959 |
DEFERRED INCOME TAXES, NET | 6,100 | 2,107 |
GOODWILL | 455 | 2,898 |
INTANGIBLE ASSETS, NET | 10,131 | 7,510 |
PROPERTY, PLANT AND EQUIPMENT, NET | 236,507 | 210,563 |
OTHER ASSETS | 7,395 | 7,461 |
TOTAL | 1,009,796 | 895,498 |
CURRENT LIABILITIES: | ' | ' |
Revolving line-of-credit facilities | 1,547 | 2,442 |
Current portion of long-term debt | 1,333 | 1,505 |
Accounts payable | 14,293 | 17,783 |
Accrued expenses and other liabilities | 59,553 | 51,451 |
Deferred income taxes, net | 2,050 | 9,831 |
Income taxes payable | 27,031 | 42,443 |
Total current liabilities | 105,807 | 125,455 |
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 16,635 | 13,102 |
LONG-TERM DEBT, NET OF CURRENT PORTION | 11,667 | 14,014 |
Total liabilities | 134,109 | 152,571 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | ' | ' |
IPG PHOTONICS CORPORATION STOCKHOLDERS’ EQUITY: | ' | ' |
Common stock, $0.0001 par value, 175,000,000 shares authorized; 51,604,568 shares issued and outstanding at September 30, 2013; 51,359,247 shares issued and outstanding at December 31, 2012 | 5 | 5 |
Additional paid-in capital | 526,481 | 511,039 |
Retained earnings | 354,162 | 234,977 |
Accumulated other comprehensive loss | -4,961 | -3,094 |
Total IPG Photonics Corporation stockholders’ equity | 875,687 | 742,927 |
TOTAL | $1,009,796 | $895,498 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 51,604,568 | 51,359,247 |
Common stock, shares outstanding | 51,604,568 | 51,359,247 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
NET SALES | $172,152 | $156,379 | $482,175 | $417,498 |
COST OF SALES | 79,339 | 70,420 | 223,799 | 187,945 |
GROSS PROFIT | 92,813 | 85,959 | 258,376 | 229,553 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Sales and marketing | 6,801 | 5,785 | 19,514 | 16,771 |
Research and development | 11,501 | 7,762 | 30,782 | 22,131 |
General and administrative | 13,175 | 10,609 | 37,814 | 29,294 |
Loss (gain) on foreign exchange | 1,563 | 1,796 | 972 | -272 |
Total operating expenses | 33,040 | 25,952 | 89,082 | 67,924 |
OPERATING INCOME | 59,773 | 60,007 | 169,294 | 161,629 |
OTHER INCOME (EXPENSE), Net: | ' | ' | ' | ' |
Interest income (expense), net | 63 | 55 | -25 | 541 |
Other income (expense), net | 218 | 205 | 49 | -981 |
Total other income (expense) | 281 | 260 | 24 | -440 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 60,054 | 60,267 | 169,318 | 161,189 |
PROVISION FOR INCOME TAXES | -17,716 | -17,832 | -50,133 | -48,357 |
NET INCOME | 42,338 | 42,435 | 119,185 | 112,832 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 2,740 |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $42,338 | $42,435 | $119,185 | $110,092 |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.82 | $0.83 | $2.32 | $2.20 |
Diluted (in dollars per share) | $0.81 | $0.81 | $2.28 | $2.16 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ' | ' | ' | ' |
Basic (shares) | 51,495 | 51,090 | 51,474 | 50,204 |
Diluted (shares) | 52,367 | 52,102 | 52,346 | 51,281 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $42,338 | $42,435 | $119,185 | $112,832 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Translation adjustments | 11,892 | 10,479 | -2,094 | 3,676 |
Unrealized gain on derivatives | 53 | 24 | 227 | 130 |
Total other comprehensive income (loss) | 11,945 | 10,503 | -1,867 | 3,806 |
Comprehensive income | 54,283 | 52,938 | 117,318 | 116,638 |
Comprehensive income attributable to noncontrolling interest & redeemable noncontrolling interest | 0 | 0 | 0 | 1,908 |
Comprehensive income attributable to IPG Photonics Corporation | $54,283 | $52,938 | $117,318 | $114,730 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $119,185 | $112,832 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 23,414 | 19,168 |
Deferred income taxes | -7,591 | 2,705 |
Stock-based compensation | 8,604 | 6,358 |
Gains on foreign currency transactions | 972 | 1,484 |
Other | 369 | 38 |
Provisions for inventory, warranty & bad debt | 18,203 | 14,762 |
Changes in assets and liabilities that (used) provided cash: | ' | ' |
Accounts receivable | -26,942 | -36,514 |
Inventories | -43,705 | -17,050 |
Prepaid expenses and other current assets | -3,478 | -3,335 |
Accounts payable | -2,008 | 2,170 |
Accrued expenses and other liabilities | 2,734 | -1,281 |
Income and other taxes payable | -25,186 | 19,038 |
Tax benefit from exercise of employee stock options | -3,610 | -3,870 |
Net cash provided by operating activities | 60,961 | 116,505 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property, plant and equipment | -48,333 | -51,715 |
Proceeds from sales of property, plant and equipment | 202 | 0 |
Proceeds from short-term investments | 0 | 25,452 |
Acquisition of businesses | -5,555 | -11,596 |
Other | 442 | -313 |
Net cash used in investing activities | -53,244 | -38,172 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from line-of-credit facilities | 14,124 | 9,647 |
Payments on line-of-credit facilities | -15,019 | -11,605 |
Purchase of noncontrolling interests | 0 | -700 |
Purchase of redeemable noncontrolling interests | 0 | -55,400 |
Principal payments on long-term borrowings | -2,519 | -1,848 |
Exercise of employee stock options and issuances under employee stock purchase plan | 3,228 | 4,275 |
Tax benefit from exercise of employee stock options | 3,610 | 3,870 |
Proceeds from follow-on public offering, net of offering expenses | 0 | 167,963 |
Net cash provided by financing activities | 3,424 | 116,202 |
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 3,161 | -2,200 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,302 | 192,335 |
CASH AND CASH EQUIVALENTS — Beginning of period | 384,053 | 180,234 |
CASH AND CASH EQUIVALENTS — End of period | 398,355 | 372,569 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 190 | 553 |
Cash paid for income taxes | 74,107 | 20,967 |
Non-cash transactions: | ' | ' |
Demonstration units transferred from inventory to other assets | 3,185 | 2,098 |
Amounts related to acquisition of businesses included in accounts payable and accrued expenses and other long-term liabilities | 0 | 2,444 |
Additions to property, plant and equipment included in accounts payable | $679 | $545 |
Consolidated_Statements_Of_Equ
Consolidated Statements Of Equity (USD $) | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TOTAL IPG PHOTONICS CORPORATION STOCKHOLDERS’ EQUITY | NONCONTROLLING INTERESTS |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | ' | $5 | $332,585 | $122,833 | ($12,100) | ' | $287 |
Balance, shares at Dec. 31, 2011 | ' | 47,616,115 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 6,358 | ' | ' | ' | ' |
Exercise of stock options, shares | ' | 385,428 | ' | ' | ' | ' | ' |
Exercise of stock options and related tax benefit from exercise | ' | 0 | 7,585 | ' | ' | ' | ' |
Common stock issued under employee stock purchase plan, shares | ' | 18,654 | ' | ' | ' | ' | ' |
Common stock issued under employee stock purchase plan | ' | 0 | 560 | ' | ' | ' | ' |
Common stock issued in a public offering, shares | ' | 3,250,000 | ' | ' | ' | ' | ' |
Purchase of redeemable noncontrolling interests (NCI) | ' | ' | -7,794 | ' | ' | ' | ' |
Common stock issued in follow-on public offering | ' | 0 | 167,964 | ' | ' | ' | ' |
Premium on purchase of NCI | ' | ' | 404 | ' | ' | ' | ' |
Net income attributable to IPG Photonics Corporation | 110,092 | ' | ' | 110,092 | ' | ' | ' |
Adjustments to redemption value of redeemable NCI | 493 | ' | ' | 493 | ' | ' | ' |
Translation adjustments | 3,676 | ' | ' | ' | 3,676 | ' | ' |
Unrealized gain on derivatives, net of tax | 130 | ' | ' | ' | 130 | ' | ' |
Purchase of NCI & redeemable NCI | ' | ' | ' | ' | -3,243 | ' | ' |
Attribution to NCI & redeemable NCI | ' | ' | ' | ' | 832 | ' | ' |
Sale of NCI | ' | ' | ' | ' | ' | ' | -700 |
Other comprehensive income attributable to NCI | -1,908 | ' | ' | ' | ' | ' | 9 |
Premium on purchase of NCI | ' | ' | ' | ' | ' | ' | 404 |
Balance at Sep. 30, 2012 | 729,572 | 5 | 506,854 | 233,418 | -10,705 | 729,572 | 0 |
Balance, shares at Sep. 30, 2012 | ' | 51,270,197 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | ' | 5 | 511,039 | 234,977 | -3,094 | ' | 0 |
Balance, shares at Dec. 31, 2012 | ' | 51,359,247 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 8,604 | ' | ' | ' | ' |
Exercise of stock options, shares | ' | 231,408 | ' | ' | ' | ' | ' |
Exercise of stock options and related tax benefit from exercise | ' | 0 | 6,120 | ' | ' | ' | ' |
Common stock issued under employee stock purchase plan, shares | ' | 13,913 | ' | ' | ' | ' | ' |
Common stock issued under employee stock purchase plan | ' | 0 | 718 | ' | ' | ' | ' |
Common stock issued in a public offering, shares | ' | 0 | ' | ' | ' | ' | ' |
Purchase of redeemable noncontrolling interests (NCI) | ' | ' | 0 | ' | ' | ' | ' |
Common stock issued in follow-on public offering | ' | 0 | 0 | ' | ' | ' | ' |
Premium on purchase of NCI | ' | ' | 0 | ' | ' | ' | ' |
Net income attributable to IPG Photonics Corporation | 119,185 | ' | ' | 119,185 | ' | ' | ' |
Adjustments to redemption value of redeemable NCI | 0 | ' | ' | 0 | ' | ' | ' |
Translation adjustments | -2,094 | ' | ' | ' | -2,094 | ' | ' |
Unrealized gain on derivatives, net of tax | 227 | ' | ' | ' | 227 | ' | ' |
Purchase of NCI & redeemable NCI | ' | ' | ' | ' | 0 | ' | ' |
Attribution to NCI & redeemable NCI | ' | ' | ' | ' | 0 | ' | ' |
Sale of NCI | ' | ' | ' | ' | ' | ' | 0 |
Other comprehensive income attributable to NCI | 0 | ' | ' | ' | ' | ' | 0 |
Premium on purchase of NCI | ' | ' | ' | ' | ' | ' | 0 |
Balance at Sep. 30, 2013 | $875,687 | $5 | $526,481 | $354,162 | ($4,961) | $875,687 | $0 |
Balance, shares at Sep. 30, 2013 | ' | 51,604,568 | ' | ' | ' | ' | ' |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis Of Presentation | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements have been prepared by IPG Photonics Corporation, or “IPG”, “we”, “our”, “its” or “the Company”. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements include the Company’s accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
In the opinion of the Company’s management, the unaudited financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows. The results reported in these consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. | |
The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require | |
adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
INVENTORIES | ||||||||
Inventories consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Components and raw materials | $ | 56,738 | $ | 53,436 | ||||
Work-in-process | 60,391 | 46,240 | ||||||
Finished goods | 54,139 | 39,942 | ||||||
Total | $ | 171,268 | $ | 139,618 | ||||
The Company recorded inventory provisions totaling $4,286 and $2,486 for the three months ended September 30, 2013 and 2012, respectively, and $7,842 and $6,129 for the nine months ended September 30, 2013 and 2012, respectively. These provisions relate to the recoverability of the value of inventories due to technological changes and excess quantities. These provisions are reported as a reduction to components and raw materials and finished goods. |
Accrued_Expenses_And_Other_Lia
Accrued Expenses And Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses And Other Liabilities | ' | |||||||
ACCRUED EXPENSES AND OTHER LIABLILITES | ||||||||
Accrued expenses and other liabilities consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Accrued compensation | $ | 24,863 | $ | 21,972 | ||||
Customer deposits and deferred revenue | 19,929 | 17,174 | ||||||
Current portion of accrued warranty | 7,697 | 7,838 | ||||||
Other | 7,064 | 4,467 | ||||||
Total | $ | 59,553 | $ | 51,451 | ||||
Financing_Arrangements
Financing Arrangements | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Financing Arrangements | ' | |||||||
FINANCING ARRANGEMENTS | ||||||||
The Company’s borrowings under existing financing arrangements consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving line-of-credit facilities: | ||||||||
European overdraft facilities | $ | 820 | $ | 1,135 | ||||
Euro line of credit | 727 | 956 | ||||||
U.S. line of credit | — | 351 | ||||||
Total | $ | 1,547 | $ | 2,442 | ||||
Term debt: | ||||||||
U.S. long-term note | $ | 13,000 | $ | 14,000 | ||||
Other notes payable | — | 1,519 | ||||||
Less: current portion | (1,333 | ) | (1,505 | ) | ||||
Total long-term debt | $ | 11,667 | $ | 14,014 | ||||
The U.S. and Euro lines of credit are available to certain foreign subsidiaries and allow for borrowings in the local currencies of those subsidiaries. |
Net_Income_Attributable_To_IPG
Net Income Attributable To IPG Photonics Corporation Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Attributable To IPG Photonics Corporation Per Share | ' | |||||||||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE | ||||||||||||||||
The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 42,338 | $ | 42,435 | $ | 119,185 | $ | 110,092 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | — | 493 | ||||||||||||
Net income attributable to common stockholders | 42,338 | 42,435 | 119,185 | 110,585 | ||||||||||||
Weighted average shares | 51,495 | 51,090 | 51,474 | 50,204 | ||||||||||||
Dilutive effect of common stock equivalents | 872 | 1,012 | 872 | 1,077 | ||||||||||||
Diluted weighted average common shares | 52,367 | 52,102 | 52,346 | 51,281 | ||||||||||||
Basic net income attributable to IPG Photonics Corporation per share | $ | 0.82 | $ | 0.83 | $ | 2.32 | $ | 2.19 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | — | 0.01 | ||||||||||||
Basic net income attributable to common stockholders | $ | 0.82 | $ | 0.83 | $ | 2.32 | $ | 2.2 | ||||||||
Diluted net income attributable to IPG Photonics Corporation per share | $ | 0.81 | $ | 0.81 | $ | 2.28 | $ | 2.15 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | — | 0.01 | ||||||||||||
Diluted net income attributable to common stockholders | $ | 0.81 | $ | 0.81 | $ | 2.28 | $ | 2.16 | ||||||||
The computation of diluted weighted average common shares excludes options to purchase 31,000 shares and 75,000 shares for the three months ended September 30, 2013 and 2012, respectively, and 210,000 shares and 9,000 shares for the nine months ended September 30, 2013 and 2012, respectively, because the effect would be anti-dilutive. | ||||||||||||||||
The Company computes net income per share in accordance with ASC 260-Earnings Per Share. Under the provisions of ASC 260, the Company is required to present basic and diluted earnings per share information separately for each class of equity instruments that participate in any income distribution with primary equity instruments. The Company calculates earnings per share in periods where a class of common stock was redeemable for other than fair value through the application of the two-class method. Until June 29, 2012, the Company had redeemable noncontrolling interests reported in the accompanying consolidated financial statements related to a 22.5% minority interest of the Company's subsidiary, NTO IRE-Polus. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
The Company’s primary market exposures are to interest rates and foreign exchange rates. The Company uses certain derivative financial instruments to help manage these exposures. The Company executes these instruments with financial institutions it judges to be credit-worthy. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. | ||||||||||||||||||||||||
The Company recognizes all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company has used foreign currency forward contracts as cash flow hedges of forecasted intercompany settlements denominated in foreign currencies of major industrial countries. The Company has no outstanding foreign currency forward contracts. The Company has interest rate swaps that are classified as a cash flow hedge of its variable rate debt. The Company has no derivatives that are not accounted for as a hedging instrument. | ||||||||||||||||||||||||
Cash flow hedges – The Company’s cash flow hedges are interest rate swaps under which it pays fixed rates of interest. The fair value amounts in the consolidated balance sheet were: | ||||||||||||||||||||||||
Notional Amounts1 | Other Assets | Other Long-Term Liabilities | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Interest rate swap | $ | 13,000 | $ | 14,000 | $ | — | $ | — | $ | 493 | $ | 855 | ||||||||||||
Total | $ | 13,000 | $ | 14,000 | $ | — | $ | — | $ | 493 | $ | 855 | ||||||||||||
(1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. | ||||||||||||||||||||||||
The derivative gains (losses) in the consolidated statements of income related to the Company’s interest rate swap contracts were as follows: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Effective portion recognized in other comprehensive gain (loss), pretax: | ||||||||||||||||||||||||
Interest rate swap | $ | 186 | $ | 219 | $ | 733 | $ | 667 | ||||||||||||||||
Effective portion reclassified from other comprehensive gain (loss) to interest expense, pretax: | ||||||||||||||||||||||||
Interest rate swap | $ | (101 | ) | $ | (140 | ) | $ | (371 | ) | $ | (436 | ) | ||||||||||||
Ineffective portion recognized in income: | ||||||||||||||||||||||||
Interest rate swap | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The Company’s financial instruments consist of cash equivalents, accounts receivable, auction rate securities, accounts payable, drawings on revolving lines of credit, long-term debt and certain derivative instruments. | ||||||||||||||||
The valuation techniques used to measure fair value are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||||||||||||||
The carrying amounts of cash equivalents, accounts receivable, accounts payable and drawings on revolving lines of credit are considered reasonable estimates of their fair market value, due to the short maturity of these instruments or as a result of the competitive market interest rates, which have been negotiated. If measured at fair value, accounts receivable and accounts payable would be classified as Level 3 and drawings on the revolving lines of credit would be classified as Level 2. | ||||||||||||||||
The following table presents information about the Company’s cash equivalents and assets and liabilities measured at fair value: | ||||||||||||||||
Fair Value Measurements at September 30, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 219,248 | $ | 219,248 | $ | — | $ | — | ||||||||
Auction rate securities | 1,118 | — | — | 1,118 | ||||||||||||
Total assets | $ | 220,366 | $ | 219,248 | $ | — | $ | 1,118 | ||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration | $ | 375 | $ | — | $ | — | $ | 375 | ||||||||
Interest rate swaps | 493 | — | 493 | — | ||||||||||||
Total liabilities | $ | 868 | $ | — | $ | 493 | $ | 375 | ||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 237,049 | $ | 237,049 | $ | — | $ | — | ||||||||
Auction rate securities | 1,112 | — | — | 1,112 | ||||||||||||
Total assets | $ | 238,161 | $ | 237,049 | $ | — | $ | 1,112 | ||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration | $ | 3,023 | $ | — | $ | — | $ | 3,023 | ||||||||
Interest rate swaps | 855 | — | 855 | — | ||||||||||||
Total liabilities | $ | 3,878 | $ | — | $ | 855 | $ | 3,023 | ||||||||
The fair value of the auction rate securities considered prices observed in inactive secondary markets for the securities held by the Company. | ||||||||||||||||
The fair value of accrued contingent consideration incurred was determined using an income approach at the acquisition date and reporting date. That approach is based on significant inputs that are not observable in the market. Key assumptions include assessing the probability of meeting certain milestones required to earn the contingent consideration. | ||||||||||||||||
During the second quarter of 2013, the Company reduced the fair value of the accrued contingent purchase consideration associated with a 2012 purchase of a manufacturer of laser-based systems by $2,463 as management assessed that there was no possibility that any earn-out amounts included in the purchase agreement with the former owners would be achieved (see Note 9). During the third quarter of 2013, the Company reduced the fair value of the accrued contingent purchase consideration associated with a 2011 purchase of a technology developer by $196. These adjustments are included in total other (expense) income, net. | ||||||||||||||||
During the first quarter of 2012, the Company determined a final payment of contingent consideration and other related matters in association with the purchase of a technology company in 2010, increased the liability by $987 and reclassed the revised obligation to accrued expenses. The adjustment was included in total other (expense) income, net. As the payment was then fixed, it was no longer measured at its fair value. | ||||||||||||||||
Also, during the nine months ended September 30, 2012, the Company terminated a warrant held by a former investor in NTO IRE-Polus as part of the redemption of the investor's redeemable noncontrolling interest for its fair value of $77. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Auction Rate Securities | ||||||||||||||||
Balance, beginning of period | $ | 1,116 | $ | 1,108 | $ | 1,112 | $ | 1,104 | ||||||||
Period transactions | — | — | — | — | ||||||||||||
Change in fair value | 2 | 2 | 6 | 6 | ||||||||||||
Redeemed by issuers at par | — | — | — | — | ||||||||||||
Balance, end of period | $ | 1,118 | $ | 1,110 | $ | 1,118 | $ | 1,110 | ||||||||
Contingent Purchase Consideration | ||||||||||||||||
Balance, beginning of period | $ | 559 | $ | 597 | $ | 3,023 | $ | 999 | ||||||||
Period transactions | — | 1,847 | — | 1,847 | ||||||||||||
Adjustment for determination of final payment | — | — | — | 987 | ||||||||||||
Change in fair value | (184 | ) | — | (2,648 | ) | 28 | ||||||||||
Reclass of determined final payment | — | — | — | (1,417 | ) | |||||||||||
Balance, end of period | $ | 375 | $ | 2,444 | $ | 375 | $ | 2,444 | ||||||||
Warrant | ||||||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | 77 | ||||||||
Period transactions | — | — | — | (77 | ) | |||||||||||
Change in fair value | — | — | — | — | ||||||||||||
Balance, end of period | $ | — | $ | — | $ | — | $ | — | ||||||||
Goodwill_And_Intangibles
Goodwill And Intangibles | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill And Intangibles | ' | ||||||||||||||||||||
GOODWILL AND INTANGIBLES | |||||||||||||||||||||
The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2013: | |||||||||||||||||||||
Amounts | |||||||||||||||||||||
Balance at January 1 | $ | 2,898 | |||||||||||||||||||
Adjustment | (95 | ) | |||||||||||||||||||
Impairment | (2,803 | ) | |||||||||||||||||||
Total goodwill arising from acquisition | 455 | ||||||||||||||||||||
Balance at September 30 | $ | 455 | |||||||||||||||||||
Intangible assets, subject to amortization, consisted of the following: | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Weighted- | Gross Carrying | Accumulated | Net Carrying | Weighted- | ||||||||||||||
Amount | Amortization | Amount | Average Lives | Amount | Amortization | Amount | Average Lives | ||||||||||||||
Patents | $ | 4,667 | $ | (4,066 | ) | $ | 601 | 6 Years | $ | 4,664 | $ | (4,193 | ) | $ | 471 | 6 Years | |||||
Customer relationships | 4,054 | (3,101 | ) | 953 | 5 Years | 3,993 | (2,363 | ) | 1,630 | 5 Years | |||||||||||
Production know-how | 7,029 | (1,494 | ) | 5,535 | 8 Years | 2,514 | (656 | ) | 1,858 | 9 Years | |||||||||||
Technology, trademark and tradename | 4,249 | (1,207 | ) | 3,042 | 8 Years | 4,229 | (678 | ) | 3,551 | 8 Years | |||||||||||
$ | 19,999 | $ | (9,868 | ) | $ | 10,131 | $ | 15,400 | $ | (7,890 | ) | $ | 7,510 | ||||||||
On March 13, 2013, the Company acquired the working capital and long term assets of Mobius Photonics Inc., a manufacturer of high-power pulsed ultra-violet ("UV") fiber lasers for micro-machining and fine processing applications. As a result of the acquisition, the Company recorded intangible assets of $4,480 of which all related to technology and know-how. Additionally, the Company recorded $455 of goodwill related to expected synergies for the Company's expansion of product offerings with UV and short pulsed fiber lasers. | |||||||||||||||||||||
Amortization expense for the three months ended September 30, 2013 and 2012 was $596 and $572, respectively. Amortization expense for the nine months ended September 30, 2013 and 2012 was $1,705 and $1,669, respectively.The estimated future amortization expense for intangibles for the remainder of 2013 and subsequent years is as follows: | |||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
$596 | $2,047 | $1,637 | $1,451 | $1,451 | $2,949 | $10,131 | |||||||||||||||
In accordance with ASC 350-Intangibles-Goodwill and Other, the Company assesses the impairment of its long-lived assets including its definite-lived intangible assets and goodwill, at least annually for goodwill, and whenever changes in events or circumstances indicate that the carrying value of such assets may not be recoverable. During each reporting period, the Company assesses for factors that may be present which would cause an impairment review. | |||||||||||||||||||||
During the second quarter of 2013, the Company undertook an impairment analysis of long-lived assets and goodwill related to IPG Microsystems ("IPGM"), the assets of which were acquired in September 2012. The Company undertook the analysis because of certain qualitative factors including a decline in sales and bookings due to underlying weakness in the markets IPGM serves. | |||||||||||||||||||||
The Company performed an impairment analysis to assess whether there was impairment of long-lived assets of IPGM including identifiable intangibles included in the table above using the guidance in ASU 360-10-35. The Company concluded that no impairment existed as the undiscounted cash flows from IPGM are forecasted to be greater than the carrying value of identified long-lived assets. | |||||||||||||||||||||
The Company carried out the two-step goodwill impairment test in accordance with the provisions of ASU 350-20-35. That analysis indicated that the fair value of IPGM, based on a discounted cash flow analysis, was less than the carrying value. The implied value of goodwill, as measured in step 2, was zero. Accordingly, the Company adjusted the value of goodwill associated with IPGM to $0. The adjustment was included in total other (expense) income, net. |
Product_Warranties
Product Warranties | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Product Warranties | ' | |||||||
PRODUCT WARRANTIES | ||||||||
The Company typically provides one to three-year parts and service warranties on lasers and amplifiers. Most of the Company’s sales offices provide support to customers in their respective geographic areas. Warranty reserves have generally been sufficient to cover product warranty repair and replacement costs. The following table summarizes product warranty activity recorded during the nine months ended September 30, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Balance at January 1 | $ | 10,714 | $ | 8,631 | ||||
Provision for warranty accrual | 7,867 | 6,548 | ||||||
Warranty claims and other reductions | (4,977 | ) | (4,775 | ) | ||||
Foreign currency translation | 136 | (14 | ) | |||||
Balance at September 30 | $ | 13,740 | $ | 10,390 | ||||
Accrued warranty reported in the accompanying consolidated financial statements as of September 30, 2013 and December 31, 2012 consist of $7,697 and $7,838 in accrued expenses and other liabilities and $6,043 and $2,876 in other long-term liabilities, respectively. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
INCOME TAXES | ||||||||
A reconciliation of the total amounts of unrecognized tax benefits is as follows: | ||||||||
2013 | 2012 | |||||||
Balance at January 1 | $ | 5,392 | $ | 4,509 | ||||
Reductions of prior period positions | (63 | ) | — | |||||
Additions for tax positions in prior period | — | — | ||||||
Additions for tax positions in current period | 293 | 556 | ||||||
Balance at September 30 | $ | 5,622 | $ | 5,065 | ||||
Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters, would benefit the Company’s effective tax rate, if recognized. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
From time to time, the Company may be involved in disputes and legal proceedings in the ordinary course of its business. These proceedings may include allegations of infringement of intellectual property, commercial disputes and employment matters. In August 2013, the Company was sued for misappropriation of certain trade secrets, unfair trade practices, and correction of inventorship on a patent owned by the Company related to beam couplers and beam switches. The plaintiff seeks damages in an unspecified amount, double damages for misappropriation of trade secrets and treble damages for unfair trade practices. The Company has filed to dismiss the trade secret misappropriation claims. The Company intends to vigorously defend the claims. At this time, no loss is deemed probable and no amounts have been accrued in respect of this contingency. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components Of Inventories | ' | |||||||
Inventories consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Components and raw materials | $ | 56,738 | $ | 53,436 | ||||
Work-in-process | 60,391 | 46,240 | ||||||
Finished goods | 54,139 | 39,942 | ||||||
Total | $ | 171,268 | $ | 139,618 | ||||
Accrued_Expenses_And_Other_Lia1
Accrued Expenses And Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Components Of Accrued Expenses And Other Liabilities | ' | |||||||
Accrued expenses and other liabilities consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Accrued compensation | $ | 24,863 | $ | 21,972 | ||||
Customer deposits and deferred revenue | 19,929 | 17,174 | ||||||
Current portion of accrued warranty | 7,697 | 7,838 | ||||||
Other | 7,064 | 4,467 | ||||||
Total | $ | 59,553 | $ | 51,451 | ||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Borrowings Under Existing Financing Arrangements | ' | |||||||
The Company’s borrowings under existing financing arrangements consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving line-of-credit facilities: | ||||||||
European overdraft facilities | $ | 820 | $ | 1,135 | ||||
Euro line of credit | 727 | 956 | ||||||
U.S. line of credit | — | 351 | ||||||
Total | $ | 1,547 | $ | 2,442 | ||||
Term debt: | ||||||||
U.S. long-term note | $ | 13,000 | $ | 14,000 | ||||
Other notes payable | — | 1,519 | ||||||
Less: current portion | (1,333 | ) | (1,505 | ) | ||||
Total long-term debt | $ | 11,667 | $ | 14,014 | ||||
Net_Income_Attributable_To_IPG1
Net Income Attributable To IPG Photonics Corporation Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation Of Diluted Net Income Per Share | ' | |||||||||||||||
The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 42,338 | $ | 42,435 | $ | 119,185 | $ | 110,092 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | — | 493 | ||||||||||||
Net income attributable to common stockholders | 42,338 | 42,435 | 119,185 | 110,585 | ||||||||||||
Weighted average shares | 51,495 | 51,090 | 51,474 | 50,204 | ||||||||||||
Dilutive effect of common stock equivalents | 872 | 1,012 | 872 | 1,077 | ||||||||||||
Diluted weighted average common shares | 52,367 | 52,102 | 52,346 | 51,281 | ||||||||||||
Basic net income attributable to IPG Photonics Corporation per share | $ | 0.82 | $ | 0.83 | $ | 2.32 | $ | 2.19 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | — | 0.01 | ||||||||||||
Basic net income attributable to common stockholders | $ | 0.82 | $ | 0.83 | $ | 2.32 | $ | 2.2 | ||||||||
Diluted net income attributable to IPG Photonics Corporation per share | $ | 0.81 | $ | 0.81 | $ | 2.28 | $ | 2.15 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | — | 0.01 | ||||||||||||
Diluted net income attributable to common stockholders | $ | 0.81 | $ | 0.81 | $ | 2.28 | $ | 2.16 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Fair Value Of Cash Flow Hedges | ' | |||||||||||||||||||||||
The fair value amounts in the consolidated balance sheet were: | ||||||||||||||||||||||||
Notional Amounts1 | Other Assets | Other Long-Term Liabilities | ||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Interest rate swap | $ | 13,000 | $ | 14,000 | $ | — | $ | — | $ | 493 | $ | 855 | ||||||||||||
Total | $ | 13,000 | $ | 14,000 | $ | — | $ | — | $ | 493 | $ | 855 | ||||||||||||
(1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. | ||||||||||||||||||||||||
Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts | ' | |||||||||||||||||||||||
The derivative gains (losses) in the consolidated statements of income related to the Company’s interest rate swap contracts were as follows: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Effective portion recognized in other comprehensive gain (loss), pretax: | ||||||||||||||||||||||||
Interest rate swap | $ | 186 | $ | 219 | $ | 733 | $ | 667 | ||||||||||||||||
Effective portion reclassified from other comprehensive gain (loss) to interest expense, pretax: | ||||||||||||||||||||||||
Interest rate swap | $ | (101 | ) | $ | (140 | ) | $ | (371 | ) | $ | (436 | ) | ||||||||||||
Ineffective portion recognized in income: | ||||||||||||||||||||||||
Interest rate swap | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets And Liabilities Measured At Fair Value | ' | |||||||||||||||
The following table presents information about the Company’s cash equivalents and assets and liabilities measured at fair value: | ||||||||||||||||
Fair Value Measurements at September 30, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 219,248 | $ | 219,248 | $ | — | $ | — | ||||||||
Auction rate securities | 1,118 | — | — | 1,118 | ||||||||||||
Total assets | $ | 220,366 | $ | 219,248 | $ | — | $ | 1,118 | ||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration | $ | 375 | $ | — | $ | — | $ | 375 | ||||||||
Interest rate swaps | 493 | — | 493 | — | ||||||||||||
Total liabilities | $ | 868 | $ | — | $ | 493 | $ | 375 | ||||||||
Fair Value Measurements at December 31, 2012 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 237,049 | $ | 237,049 | $ | — | $ | — | ||||||||
Auction rate securities | 1,112 | — | — | 1,112 | ||||||||||||
Total assets | $ | 238,161 | $ | 237,049 | $ | — | $ | 1,112 | ||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration | $ | 3,023 | $ | — | $ | — | $ | 3,023 | ||||||||
Interest rate swaps | 855 | — | 855 | — | ||||||||||||
Total liabilities | $ | 3,878 | $ | — | $ | 855 | $ | 3,023 | ||||||||
Fair Value Of Auction Rate Securities | ' | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Auction Rate Securities | ||||||||||||||||
Balance, beginning of period | $ | 1,116 | $ | 1,108 | $ | 1,112 | $ | 1,104 | ||||||||
Period transactions | — | — | — | — | ||||||||||||
Change in fair value | 2 | 2 | 6 | 6 | ||||||||||||
Redeemed by issuers at par | — | — | — | — | ||||||||||||
Balance, end of period | $ | 1,118 | $ | 1,110 | $ | 1,118 | $ | 1,110 | ||||||||
Contingent Purchase Consideration | ||||||||||||||||
Balance, beginning of period | $ | 559 | $ | 597 | $ | 3,023 | $ | 999 | ||||||||
Period transactions | — | 1,847 | — | 1,847 | ||||||||||||
Adjustment for determination of final payment | — | — | — | 987 | ||||||||||||
Change in fair value | (184 | ) | — | (2,648 | ) | 28 | ||||||||||
Reclass of determined final payment | — | — | — | (1,417 | ) | |||||||||||
Balance, end of period | $ | 375 | $ | 2,444 | $ | 375 | $ | 2,444 | ||||||||
Warrant | ||||||||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | 77 | ||||||||
Period transactions | — | — | — | (77 | ) | |||||||||||
Change in fair value | — | — | — | — | ||||||||||||
Balance, end of period | $ | — | $ | — | $ | — | $ | — | ||||||||
Goodwill_And_Intangibles_Table
Goodwill And Intangibles (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Changes In The Carrying Amount Of Goodwill | ' | ||||||||||||||||||||
The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2013: | |||||||||||||||||||||
Amounts | |||||||||||||||||||||
Balance at January 1 | $ | 2,898 | |||||||||||||||||||
Adjustment | (95 | ) | |||||||||||||||||||
Impairment | (2,803 | ) | |||||||||||||||||||
Total goodwill arising from acquisition | 455 | ||||||||||||||||||||
Balance at September 30 | $ | 455 | |||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||
Intangible assets, subject to amortization, consisted of the following: | |||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Weighted- | Gross Carrying | Accumulated | Net Carrying | Weighted- | ||||||||||||||
Amount | Amortization | Amount | Average Lives | Amount | Amortization | Amount | Average Lives | ||||||||||||||
Patents | $ | 4,667 | $ | (4,066 | ) | $ | 601 | 6 Years | $ | 4,664 | $ | (4,193 | ) | $ | 471 | 6 Years | |||||
Customer relationships | 4,054 | (3,101 | ) | 953 | 5 Years | 3,993 | (2,363 | ) | 1,630 | 5 Years | |||||||||||
Production know-how | 7,029 | (1,494 | ) | 5,535 | 8 Years | 2,514 | (656 | ) | 1,858 | 9 Years | |||||||||||
Technology, trademark and tradename | 4,249 | (1,207 | ) | 3,042 | 8 Years | 4,229 | (678 | ) | 3,551 | 8 Years | |||||||||||
$ | 19,999 | $ | (9,868 | ) | $ | 10,131 | $ | 15,400 | $ | (7,890 | ) | $ | 7,510 | ||||||||
Estimated Future Amortization Expense For Intangibles | ' | ||||||||||||||||||||
The estimated future amortization expense for intangibles for the remainder of 2013 and subsequent years is as follows: | |||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||
$596 | $2,047 | $1,637 | $1,451 | $1,451 | $2,949 | $10,131 |
Product_Warranties_Tables
Product Warranties (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Product Warranties Disclosures [Abstract] | ' | |||||||
Summary Of Product Warranty Activity | ' | |||||||
The following table summarizes product warranty activity recorded during the nine months ended September 30, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Balance at January 1 | $ | 10,714 | $ | 8,631 | ||||
Provision for warranty accrual | 7,867 | 6,548 | ||||||
Warranty claims and other reductions | (4,977 | ) | (4,775 | ) | ||||
Foreign currency translation | 136 | (14 | ) | |||||
Balance at September 30 | $ | 13,740 | $ | 10,390 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Reconciliation Of The Total Amounts Of Unrecognized Tax Benefits | ' | |||||||
A reconciliation of the total amounts of unrecognized tax benefits is as follows: | ||||||||
2013 | 2012 | |||||||
Balance at January 1 | $ | 5,392 | $ | 4,509 | ||||
Reductions of prior period positions | (63 | ) | — | |||||
Additions for tax positions in prior period | — | — | ||||||
Additions for tax positions in current period | 293 | 556 | ||||||
Balance at September 30 | $ | 5,622 | $ | 5,065 | ||||
Inventories_Components_Of_Inve
Inventories (Components Of Inventories) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' | ' | ' | ' |
Components and raw materials | $56,738 | ' | $56,738 | ' | $53,436 |
Work-in-process | 60,391 | ' | 60,391 | ' | 46,240 |
Finished goods | 54,139 | ' | 54,139 | ' | 39,942 |
Total | 171,268 | ' | 171,268 | ' | 139,618 |
Inventory provisions | $4,286 | $2,486 | $7,842 | $6,129 | ' |
Accrued_Expenses_And_Other_Lia2
Accrued Expenses And Other Liabilities (Components Of Accrued Expenses And Other Liabilities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation | $24,863 | $21,972 |
Customer deposits and deferred revenue | 19,929 | 17,174 |
Current portion of accrued warranty | 7,697 | 7,838 |
Other | 7,064 | 4,467 |
Total | $59,553 | $51,451 |
Financing_Arrangements_Borrowi
Financing Arrangements (Borrowings Under Existing Financing Arrangements) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Revolving line-of-credit facilities: | $1,547 | $2,442 |
Less: current portion | -1,333 | -1,505 |
Total long-term debt | 11,667 | 14,014 |
European overdraft facilities | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving line-of-credit facilities: | 820 | 1,135 |
Euro line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving line-of-credit facilities: | 727 | 956 |
U.S. line of credit | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Revolving line-of-credit facilities: | 0 | 351 |
U.S. long-term note | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Term debt: | 13,000 | 14,000 |
Other notes payable | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Term debt: | $0 | $1,519 |
Net_Income_Attributable_To_IPG2
Net Income Attributable To IPG Photonics Corporation Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 29, 2012 |
Russian Subsidiary, Nto Ire Polus | |||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' |
Net income attributable to IPG Photonics Corporation | $42,338 | $42,435 | $119,185 | $110,092 | ' |
Adjustments to redemption value of redeemable NCI | 0 | 0 | 0 | 493 | ' |
Net income attributable to common stockholders | $42,338 | $42,435 | $119,185 | $110,585 | ' |
Weighted average shares (shares) | 51,495 | 51,090 | 51,474 | 50,204 | ' |
Dilutive effect of common stock equivalents (shares) | 872 | 1,012 | 872 | 1,077 | ' |
Diluted weighted average common shares (shares) | 52,367 | 52,102 | 52,346 | 51,281 | ' |
Basic net income attributable to IPG Photonics Corporation per share (in dollars per share) | $0.82 | $0.83 | $2.32 | $2.19 | ' |
Adjustments to redemption value of redeemable noncontrolling interests (in dollars per share) | $0 | $0 | $0 | $0.01 | ' |
Basic net income attributable to common stockholders (in dollars per share) | $0.82 | $0.83 | $2.32 | $2.20 | ' |
Diluted net income attributable to IPG Photonics Corporation per share (in dollars per share) | $0.81 | $0.81 | $2.28 | $2.15 | ' |
Adjustments to redemption value of redeemable noncontrolling interests (in dollars per share) | $0 | $0 | $0 | $0.01 | ' |
Diluted net income attributable to common stockholders (in dollars per share) | $0.81 | $0.81 | $2.28 | $2.16 | ' |
Options excluded from computation of diluted weighted average common shares | 31 | 75 | 210 | 9 | ' |
Percentage of redeemable noncontrolling interests | ' | ' | ' | ' | 22.50% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Fair Value Of Cash Flow Hedges) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional amount of derivatives | $13,000,000 | [1] | $14,000,000 | [1] |
Foreign currency forward contract | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional amount of derivatives | 0 | ' | ||
Interest rate swap | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional amount of derivatives | 13,000,000 | [1] | 14,000,000 | [1] |
Other Assets | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative asset fair value | 0 | 0 | ||
Other Assets | Interest rate swap | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative asset fair value | 0 | 0 | ||
Other Long-Term Liabilities | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liability fair value | 493,000 | 855,000 | ||
Other Long-Term Liabilities | Interest rate swap | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Derivative liability fair value | 493,000 | 855,000 | ||
Designated as Hedging Instrument | ' | ' | ||
Derivatives, Fair Value [Line Items] | ' | ' | ||
Notional amount of derivatives | $0 | ' | ||
[1] | Notional amounts represent the gross contract/notional amount of the derivatives outstanding. |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts) (Details) (Interest rate swap, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest rate swap | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Effective portion recognized in other comprehensive gain (loss), pretax: | $186 | $219 | $733 | $667 |
Effective portion reclassified from other comprehensive gain (loss) to interest expense, pretax: | -101 | -140 | -371 | -436 |
Ineffective portion recognized in income: | $0 | $0 | $0 | $0 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Rusnano | Level 1 | Level 1 | Level 2 | Level 2 | Level 3 | Level 3 | Cash equivalents | Cash equivalents | Cash equivalents | Cash equivalents | Auction rate securities | Auction rate securities | Auction rate securities | Auction rate securities | Contingent purchase consideration | Contingent purchase consideration | Contingent purchase consideration | Contingent purchase consideration | Interest rate swap | Interest rate swap | Interest rate swap | Interest rate swap | |||||
Level 1 | Level 1 | Level 3 | Level 3 | Level 3 | Level 3 | Level 2 | Level 2 | ||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | $220,366 | ' | ' | $238,161 | ' | $219,248 | $237,049 | ' | ' | $1,118 | $1,112 | $219,248 | $237,049 | $219,248 | $237,049 | $1,118 | $1,112 | $1,118 | $1,112 | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities | 868 | ' | ' | 3,878 | ' | ' | ' | 493 | 855 | 375 | 3,023 | ' | ' | ' | ' | ' | ' | ' | ' | 375 | 3,023 | 375 | 3,023 | 493 | 855 | 493 | 855 |
Increase in accrued liability for the estimated fair value of contingent consideration | 196 | 2,463 | 987 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable noncontrolling interest fair value | ' | ' | ' | ' | $77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Of Auction Rate Securities) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Auction rate securities | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of period | $1,108 | $1,116 | $1,112 | $1,104 |
Period transactions | 0 | 0 | 0 | 0 |
Change in fair value | 2 | 2 | 6 | 6 |
Redeemed by issuers at par | 0 | 0 | 0 | 0 |
Balance, end of period | 1,118 | 1,110 | 1,118 | 1,110 |
Contingent purchase consideration | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of period | 597 | 559 | 3,023 | 999 |
Period transactions | 0 | 1,847 | 0 | 1,847 |
Adjustment for determination of final payment | 0 | 0 | 0 | 987 |
Change in fair value | -184 | 0 | -2,648 | 28 |
Reclass of determined final payment | 0 | 0 | 0 | -1,417 |
Balance, end of period | 375 | 2,444 | 375 | 2,444 |
Warrant | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of period | 0 | 0 | 0 | 77 |
Period transactions | 0 | 0 | 0 | -77 |
Change in fair value | 0 | 0 | 0 | 0 |
Balance, end of period | $0 | $0 | $0 | $0 |
Goodwill_And_Intangibles_Narra
Goodwill And Intangibles (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 13, 2013 | Sep. 30, 2013 | |
Mobius Photonics | IPG Microsystems | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Acquired finite-lived intangible asset | ' | ' | ' | ' | ' | $4,480,000 | ' |
Total goodwill arising from acquisition | ' | ' | 455,000 | ' | ' | 455,000 | ' |
Amortization expense of intangibles | 596,000 | 572,000 | 1,705,000 | 1,669,000 | ' | ' | ' |
Adjusted value of goodwill | $455,000 | ' | $455,000 | ' | $2,898,000 | ' | $0 |
Goodwill_And_Intangibles_Chang
Goodwill And Intangibles (Changes In The Carrying Amount Of Goodwill) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' |
Balance at January 1 | $2,898 |
Adjustment | -95 |
Impairment | -2,803 |
Total goodwill arising from acquisition | 455 |
Balance at September 30 | $455 |
Goodwill_And_Intangibles_Intan
Goodwill And Intangibles (Intangible Assets) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $19,999 | $15,400 |
Accumulated Amortization | -9,868 | -7,890 |
Net Carrying Amount | 10,131 | 7,510 |
Patents | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4,667 | 4,664 |
Accumulated Amortization | -4,066 | -4,193 |
Net Carrying Amount | 601 | 471 |
Weighted- Average Lives | '6 years | '6 years |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4,054 | 3,993 |
Accumulated Amortization | -3,101 | -2,363 |
Net Carrying Amount | 953 | 1,630 |
Weighted- Average Lives | '5 years | '5 years |
Production know-how | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 7,029 | 2,514 |
Accumulated Amortization | -1,494 | -656 |
Net Carrying Amount | 5,535 | 1,858 |
Weighted- Average Lives | '8 years | '9 years |
Technology, trademark and tradename | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4,249 | 4,229 |
Accumulated Amortization | -1,207 | -678 |
Net Carrying Amount | $3,042 | $3,551 |
Weighted- Average Lives | '8 years | '8 years |
Goodwill_And_Intangibles_Estim
Goodwill And Intangibles (Estimated Future Amortization Expense For Intangibles) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2013 | $596 | ' |
2014 | 2,047 | ' |
2015 | 1,637 | ' |
2016 | 1,451 | ' |
2017 | 1,451 | ' |
Thereafter | 2,949 | ' |
Net Carrying Amount | $10,131 | $7,510 |
Product_Warranties_Narrative_D
Product Warranties (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Minimum | Maximum | ||
Product Warranties [Line Items] | ' | ' | ' | ' |
Service warranties on lasers and amplifiers | ' | ' | '1 year | '3 years |
Accrued warranty reported in accrued expenses and other liabilities | $7,697 | $7,838 | ' | ' |
Accrued warranty reported in other long-term liabilities | $6,043 | $2,876 | ' | ' |
Product_Warranties_Summary_Of_
Product Warranties (Summary Of Product Warranty Activity) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ' | ' |
Balance at January 1 | $10,714 | $8,631 |
Provision for warranty accrual | 7,867 | 6,548 |
Warranty claims and other reductions | -4,977 | -4,775 |
Foreign currency translation | 136 | -14 |
Balance at September 30 | $13,740 | $10,390 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Balance at January 1 | $5,392 | $4,509 |
Reductions of prior period positions | -63 | 0 |
Additions for tax positions in prior period | 0 | 0 |
Additions for tax positions in current period | 293 | 556 |
Balance at September 30 | $5,622 | $5,065 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Misappropriation of Trade Secrets, Unfair Trade Practices, and Correction of Inventorship on a Patent Owned, Pending Litigation, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Misappropriation of Trade Secrets, Unfair Trade Practices, and Correction of Inventorship on a Patent Owned | Pending Litigation | ' |
Loss Contingencies [Line Items] | ' |
Loss deemed probable | $0 |
Amount accrued in respect of contingency | $0 |