Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 24, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | IPG PHOTONICS CORP | ||
Entity Central Index Key | 1111928 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 52,482,512 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $1.90 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $522,150 | $448,776 |
Accounts receivable, net | 143,109 | 103,803 |
Inventories | 171,009 | 172,700 |
Prepaid income taxes | 20,967 | 15,996 |
Prepaid expenses and other current assets | 21,295 | 30,836 |
Deferred income taxes, net | 15,308 | 14,232 |
Total current assets | 893,838 | 786,343 |
DEFERRED INCOME TAXES, NET | 5,438 | 4,799 |
GOODWILL | 455 | 455 |
INTANGIBLE ASSETS, NET | 9,227 | 9,564 |
PROPERTY, PLANT AND EQUIPMENT, NET | 275,082 | 252,245 |
OTHER ASSETS | 26,847 | 7,810 |
TOTAL | 1,210,887 | 1,061,216 |
CURRENT LIABILITIES: | ||
Revolving line-of-credit facilities | 2,631 | 3,296 |
Current portion of long-term debt | 13,333 | 1,333 |
Accounts payable | 17,141 | 18,787 |
Accrued expenses and other liabilities | 64,057 | 59,336 |
Deferred income taxes, net | 3,241 | 2,109 |
Income taxes payable | 21,672 | 15,218 |
Total current liabilities | 122,075 | 100,079 |
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 22,584 | 21,835 |
LONG-TERM DEBT, NET OF CURRENT PORTION | 19,667 | 11,333 |
Total liabilities | 164,326 | 133,247 |
COMMITMENTS AND CONTINGENCIES (NOTE 10) | ||
IPG PHOTONICS CORPORATION STOCKHOLDERS' EQUITY: | ||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 52,369,688 shares issued and outstanding at December 31, 2014; 51,930,978 shares issued and outstanding at December 31, 2013 | 5 | 5 |
Additional paid-in capital | 567,617 | 538,908 |
Retained earnings | 591,202 | 390,757 |
Accumulated other comprehensive loss | -112,263 | -1,701 |
Total IPG Photonics Corporation stockholders' equity | 1,046,561 | 927,969 |
TOTAL | $1,210,887 | $1,061,216 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 52,369,688 | 51,930,978 |
Common stock, shares outstanding | 52,369,688 | 51,930,978 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
NET SALES | $769,832 | $648,034 | $562,528 |
COST OF SALES | 353,314 | 308,136 | 257,801 |
GROSS PROFIT | 416,518 | 339,898 | 304,727 |
OPERATING EXPENSES: | |||
Sales and marketing | 30,637 | 26,692 | 23,845 |
Research and development | 53,403 | 41,660 | 31,401 |
General and administrative | 55,338 | 50,863 | 39,231 |
(Gain) loss on foreign exchange | -6,618 | 2,536 | 1,362 |
Total operating expenses | 132,760 | 121,751 | 95,839 |
OPERATING INCOME | 283,758 | 218,147 | 208,888 |
OTHER INCOME (EXPENSE), Net: | |||
Interest (expense) income, net | -77 | -1 | 319 |
Other income, net | 793 | 155 | 8 |
Total other income (expense) | 716 | 154 | 327 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 284,474 | 218,301 | 209,215 |
PROVISION FOR INCOME TAXES | -84,029 | -62,521 | -61,471 |
NET INCOME | 200,445 | 155,780 | 147,744 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 2,740 |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $200,445 | $155,780 | $145,004 |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | |||
Basic (in dollars per share) | $3.85 | $3.02 | $2.87 |
Diluted (in dollars per share) | $3.79 | $2.97 | $2.81 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||
Basic (shares) | 52,104 | 51,548 | 50,477 |
Diluted (shares) | 52,824 | 52,375 | 51,536 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $200,445 | $155,780 | $147,744 |
Other comprehensive (loss) income, net of tax: | |||
Translation adjustments | -110,734 | 1,125 | 11,225 |
Unrealized gain on derivatives | 172 | 268 | 241 |
Total other comprehensive (loss) income | -110,562 | 1,393 | 11,466 |
Comprehensive income | 89,883 | 157,173 | 159,210 |
Comprehensive income attributable to noncontrolling interest & redeemable noncontrolling interest | 0 | 0 | 1,908 |
Comprehensive income attributable to IPG Photonics Corporation | $89,883 | $157,173 | $157,302 |
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] | |||||||
Exercise of stock options, shares | 456,919 | ||||||
Exercise of stock options and related tax benefit from exercise | 8,954 | ||||||
Common stock issued under employee stock purchase plan, shares | 36,213 | ||||||
Common stock issued under employee stock purchase plan | 1,205 | ||||||
Common stock issued in a public offering, shares | 3,250,000 | ||||||
Common stock issued in follow-on public offering | 167,928 | ||||||
Stock-based compensation | 8,565 | ||||||
Purchase of redeemable noncontrolling interests (NCI) | -7,794 | ||||||
Premium on purchase of redeemable NCI | -404 | ||||||
Net income attributable to IPG Photonics Corporation | 145,004 | 145,004 | |||||
Adjustments to redemption value of redeemable NCI | 493 | 493 | |||||
Dividend to shareholders | 33,353 | -33,353 | |||||
Translation adjustments | 11,225 | 11,225 | |||||
Unrealized gain on derivatives | 241 | 241 | |||||
Purchase of redeemable NCI | -3,292 | ||||||
Attribution to redeemable NCI | 832 | ||||||
Sale of redeemable NCI | -700 | ||||||
Other comprehensive income attributable to redeemable NCI | -1,908 | 9 | |||||
Premium on purchase of redeemable NCI | 404 | ||||||
Balance at Dec. 31, 2012 | 742,927 | 5 | 511,039 | 234,977 | -3,094 | 742,927 | |
Balance, shares at Dec. 31, 2012 | 51,359,247 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options, shares | 540,232 | ||||||
Exercise of stock options and related tax benefit from exercise | 14,523 | ||||||
Common stock issued under employee stock purchase plan, shares | 31,499 | ||||||
Common stock issued under employee stock purchase plan | 1,626 | ||||||
Stock-based compensation | 11,720 | ||||||
Net income attributable to IPG Photonics Corporation | 155,780 | 155,780 | |||||
Adjustments to redemption value of redeemable NCI | 0 | ||||||
Dividend to shareholders | 0 | ||||||
Translation adjustments | 1,125 | 1,125 | |||||
Unrealized gain on derivatives | 268 | 268 | |||||
Other comprehensive income attributable to redeemable NCI | 0 | ||||||
Balance at Dec. 31, 2013 | 927,969 | 5 | 538,908 | 390,757 | -1,701 | 927,969 | |
Balance, shares at Dec. 31, 2013 | 51,930,978 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options, shares | 414,775 | 402,647 | |||||
Exercise of stock options and related tax benefit from exercise | 11,428 | ||||||
Common stock issued under employee stock purchase plan, shares | 36,063 | ||||||
Common stock issued under employee stock purchase plan | 2,109 | ||||||
Stock-based compensation | 15,172 | ||||||
Net income attributable to IPG Photonics Corporation | 200,445 | 200,445 | |||||
Adjustments to redemption value of redeemable NCI | 0 | ||||||
Dividend to shareholders | 0 | ||||||
Translation adjustments | -110,734 | -110,734 | |||||
Unrealized gain on derivatives | 172 | 172 | |||||
Other comprehensive income attributable to redeemable NCI | 0 | ||||||
Balance at Dec. 31, 2014 | $1,046,561 | $5 | $567,617 | $591,202 | ($112,263) | $1,046,561 | |
Balance, shares at Dec. 31, 2014 | 52,369,688 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $200,445 | $155,780 | $147,744 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,612 | 31,524 | 26,144 |
Deferred income taxes | -1,486 | -6,168 | 5,546 |
Stock-based compensation | 15,172 | 11,720 | 8,565 |
(Gains) losses on unrealized foreign currency transactions | -3,497 | -235 | 1,250 |
Other | 459 | 62 | -19 |
Provisions for inventory, warranty & bad debt | 28,036 | 29,975 | 19,967 |
Changes in assets and liabilities that (used) provided cash: | |||
Accounts receivable | -48,518 | -9,991 | -22,706 |
Inventories | -42,246 | -50,355 | -22,975 |
Prepaid expenses and other current assets | -5,351 | -3,980 | -899 |
Accounts payable | 3,262 | 974 | 4,375 |
Accrued expenses and other liabilities | -1,567 | -281 | -8,155 |
Income and other taxes payable | 5,763 | -30,784 | 21,118 |
Tax benefit from exercise of employee stock options | -5,979 | -8,874 | -4,679 |
Net cash provided by operating activities | 180,105 | 119,367 | 175,276 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | -88,601 | -70,919 | -68,184 |
Purchase of intangible assets | -2,000 | 0 | 0 |
Proceeds from sales of property, plant and equipment | 434 | 236 | 0 |
Proceeds from sale of investment | 0 | 495 | 0 |
Proceeds from short-term investments | 0 | 0 | 25,451 |
Acquisition of businesses | 0 | -5,555 | -11,596 |
Other | 87 | -143 | -928 |
Net cash used in investing activities | -90,080 | -75,886 | -55,257 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from line-of-credit facilities | 33,282 | 16,843 | 12,760 |
Payments on line-of-credit facilities | -33,623 | -15,990 | -17,190 |
Purchase of noncontrolling interests | 0 | 0 | -700 |
Purchase of redeemable noncontrolling interests | 0 | 0 | -55,400 |
Principal payments on long-term borrowings | -1,667 | -2,853 | -2,117 |
Exercise of employee stock options and issuances under employee stock purchase plan | 7,558 | 7,275 | 5,480 |
Tax benefit from exercise of employee stock options | 5,979 | 8,874 | 4,679 |
Proceeds from follow-on public offering, net of offering expenses | 0 | 0 | 167,928 |
Distributions to shareholders | 0 | 0 | -33,353 |
Net cash provided by financing activities | 11,529 | 14,149 | 82,087 |
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | -28,180 | 7,093 | 1,713 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 73,374 | 64,723 | 203,819 |
CASH AND CASH EQUIVALENTS b Beginning of period | 448,776 | 384,053 | 180,234 |
CASH AND CASH EQUIVALENTS b End of period | 522,150 | 448,776 | 384,053 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 253 | 208 | 864 |
Cash paid for income taxes | 73,544 | 89,611 | 25,980 |
Non-cash transactions: | |||
Demonstration units transferred from inventory to other assets | 3,528 | 3,927 | 2,631 |
Property, plant and equipment transferred from inventory | 1,551 | 0 | 0 |
Additions to property, plant and equipment included in accounts payable | 1,084 | 2,132 | 2,071 |
Property purchase financed with debt | 22,000 | 0 | 0 |
Gain on sale of property, plant and equipment offset by related notes | $0 | $0 | $322 |
Nature_Of_Business_And_Summary
Nature Of Business And Summary Of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||
Nature Of Business And Summary Of Significant Accounting Policies | NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||||||||||
Nature of Business — IPG Photonics Corporation (the "Company") is the leading developer and manufacturer of a broad line of high-performance fiber lasers, fiber amplifiers and diode lasers that are used for diverse applications, primarily in materials processing. Its world headquarters are located in Oxford, Massachusetts. It also has facilities and sales offices elsewhere in the United States, Europe and Asia. | |||||||||||||||||||||||||||||||
Principles of Consolidation — The Company was incorporated as a Delaware corporation in December 1998. The accompanying financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | |||||||||||||||||||||||||||||||
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||||
Foreign Currency — The financial information for entities outside the United States is measured using local currencies as the functional currency. Assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the respective balance sheet dates. Income and expenses are translated into U.S. dollars based on the average rate of exchange for the corresponding period. Exchange rate differences resulting from translation adjustments are accounted for directly as a component of accumulated other comprehensive loss. | |||||||||||||||||||||||||||||||
Cash and Cash Equivalents — Cash and cash equivalents consist primarily of highly liquid investments, such as bank deposits, marketable securities with original maturities of three months or less with insignificant interest rate risk and marketable securities with remaining maturities of three months or less at the date of acquisition. | |||||||||||||||||||||||||||||||
Inventories — Inventories are stated at the lower of cost or market on a first-in, first-out basis. Inventories include parts and components that may be specialized in nature and subject to rapid obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. Because of the Company's vertical integration, a significant or sudden decrease in sales activity could result in a significant change in the estimates of excess or obsolete inventory valuation. The costs associated with provisions for excess quantities, technological obsolescence, or component rejections are charged to cost of sales as incurred. | |||||||||||||||||||||||||||||||
Property, Plant and Equipment — Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is determined using the straight-line method based on the estimated useful lives of the related assets. In the case of leasehold improvements, the estimated useful lives of the related assets do not exceed the remaining terms of the corresponding leases. The following table presents the assigned economic useful lives of property, plant and equipment: | |||||||||||||||||||||||||||||||
Category | Economic | ||||||||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||||||||
Buildings | 30 years | ||||||||||||||||||||||||||||||
Machinery and equipment | 5-12 years | ||||||||||||||||||||||||||||||
Office furniture and fixtures | 3-5 years | ||||||||||||||||||||||||||||||
Expenditures for maintenance and repairs are charged to operations. Interest expense associated with significant capital projects is capitalized as a cost of the project. The Company capitalized $383, $524 and $142 of interest expense in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||
Long-Lived Assets — Long-lived assets, which consist primarily of property, plant and equipment, are reviewed by management for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In cases in which undiscounted expected future cash flows are less than the carrying value, an impairment loss is recorded equal to the amount by which the carrying value exceeds the fair value of assets. No impairment losses have been recorded during the periods presented. | |||||||||||||||||||||||||||||||
Included in other long-term assets is certain demonstration equipment. The demonstration equipment is amortized over the respective estimated economic lives, generally 3 years. The carrying value of the demonstration equipment totaled $3,612 and $5,524 at December 31, 2014 and 2013, respectively. Amortization expense of demonstration equipment for the years ended December 31, 2014, 2013 and 2012, was $2,068, $2,725 and $2,797, respectively. | |||||||||||||||||||||||||||||||
Goodwill — Goodwill is the amount by which the cost of the acquired net assets in a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase. Goodwill is not amortized which is in accordance with the requirements of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, Intangibles-Goodwill and Other ("FASB ASC 350"). Goodwill is assessed for impairment at least annually, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. As more fully described in Note 13, the Company incurred an impairment loss of $2,803 in 2013, which is included in other income (expense) in the accompanying consolidated statements of income. | |||||||||||||||||||||||||||||||
Intangible Assets — Intangible assets result from the Company's various business acquisitions. Intangible assets are reported at cost, net of accumulated amortization, and are amortized on a straight-line basis either over their estimated useful lives of five to ten years or over the period the economic benefits of the intangible asset are consumed. | |||||||||||||||||||||||||||||||
Revenue Recognition — The Company recognizes revenue in accordance with FASB ASC 605. Revenue from orders with multiple deliverables is divided into separate units of accounting when certain criteria are met. These separate units generally consist of equipment and installation. The consideration for the arrangement is allocated to the separate units of accounting based on their relative selling prices. The selling price of equipment is based on vendor-specific objective evidence and the selling price of installation is based on third-party evidence. Applicable revenue recognition criteria are applied separately for each separate unit of accounting. Revenue for laser and amplifier sources generally is recognized upon the transfer of ownership which is typically at the time of shipment. Installation revenue is recognized upon completion of the installation service which typically occurs within 30 to 90 days of delivery. For laser systems, which may carry customer specific processing requirements, revenue is recognized at the latter of customer acceptance date or shipment date if the customer acceptance is made prior to shipment. Returns and customer credits are infrequent and are recorded as a reduction to revenue. Rights of return generally are not included in sales arrangements. | |||||||||||||||||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts — Accounts Receivable include $25,150 and $17,679 of bank acceptance drafts at December 31, 2014 and 2013, respectively. Bank acceptance drafts are bank guarantees of payment on specified dates. The maturity of these bank acceptance drafts is less than 90 days. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. | |||||||||||||||||||||||||||||||
Activity related to the allowance for doubtful accounts was as follows: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at January 1 | $ | 2,473 | $ | 2,173 | $ | 1,605 | |||||||||||||||||||||||||
Provision for bad debts, net of recoveries | 579 | 323 | 642 | ||||||||||||||||||||||||||||
Uncollectable accounts written off | (617 | ) | (31 | ) | (170 | ) | |||||||||||||||||||||||||
Foreign currency translation | (545 | ) | 8 | 96 | |||||||||||||||||||||||||||
Balance at December 31 | $ | 1,890 | $ | 2,473 | $ | 2,173 | |||||||||||||||||||||||||
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. The Company estimates the warranty accrual considering past claims experience, the number of units still covered by warranty and the average life of the remaining warranty period. The warranty accrual has generally been sufficient to cover product warranty repair and replacement costs. | |||||||||||||||||||||||||||||||
Activity related to the warranty accrual was as follows: | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at January 1 | $ | 14,997 | $ | 10,714 | $ | 8,631 | |||||||||||||||||||||||||
Provision for warranty accrual | 15,449 | 11,363 | 8,112 | ||||||||||||||||||||||||||||
Warranty claims | (9,165 | ) | (7,405 | ) | (6,542 | ) | |||||||||||||||||||||||||
Foreign currency translation and other | (2,009 | ) | 325 | 513 | |||||||||||||||||||||||||||
Balance at December 31 | $ | 19,272 | $ | 14,997 | $ | 10,714 | |||||||||||||||||||||||||
Accrued warranty reported in the accompanying consolidated financial statements as of December 31, 2014 and December 31, 2013 consists of $9,489 and $7,724 in accrued expenses and other liabilities and $9,783 and $7,273 in other long-term liabilities, respectively. | |||||||||||||||||||||||||||||||
Advertising Expense — The cost of advertising is expensed as incurred. The Company conducts substantially all of its sales and marketing efforts through trade shows, professional and technical conferences, direct sales and our website. The Company's advertising costs were not material for the periods presented. | |||||||||||||||||||||||||||||||
Research and Development — Research and development costs are expensed as incurred. | |||||||||||||||||||||||||||||||
Income Taxes — Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts and tax basis of assets and liabilities and net operating loss carryforwards and credits using enacted rates in effect when those differences are expected to reverse. Valuation allowances are provided against deferred tax assets that are not deemed to be recoverable. The Company recognizes tax positions that are more likely than not to be sustained upon examination by relevant tax authorities. The tax positions are measured at the greatest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement. | |||||||||||||||||||||||||||||||
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. The reserves are based on a determination of whether and how much of a tax benefit taken by it in its tax filings or positions is more likely than not to be realized following resolution of uncertainties related to the tax benefit, assuming that the matter in question will be raised by the tax authorities. | |||||||||||||||||||||||||||||||
Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, auction rate securities and accounts receivable. The Company maintains substantially all of its cash and marketable securities in six financial institutions, which it believes to be high-credit quality financial institutions. The Company grants credit to customers in the ordinary course of business and provide a reserve for potential credit losses. Such losses historically have been within management's expectations (see discussion related to significant customers in Note 15). | |||||||||||||||||||||||||||||||
Fair Value of Financial Instruments — 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, certain derivative instruments and contingent consideration. | |||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||
The following table presents information about the Company's assets and liabilities measured at fair value: | |||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 266,011 | $ | 266,011 | $ | — | $ | — | |||||||||||||||||||||||
Auction rate securities | 1,128 | — | — | 1,128 | |||||||||||||||||||||||||||
Total assets | $ | 267,139 | $ | 266,011 | $ | — | $ | 1,128 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Contingent purchase consideration | $ | 98 | $ | — | $ | — | $ | 98 | |||||||||||||||||||||||
Interest rate swap | 151 | — | 151 | — | |||||||||||||||||||||||||||
Total liabilities | $ | 249 | $ | — | $ | 151 | $ | 98 | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 240,159 | $ | 240,159 | $ | — | $ | — | |||||||||||||||||||||||
Auction rate securities | 1,120 | — | — | 1,120 | |||||||||||||||||||||||||||
Total assets | $ | 241,279 | $ | 240,159 | $ | — | $ | 1,120 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Contingent purchase consideration | $ | 375 | $ | — | $ | — | $ | 375 | |||||||||||||||||||||||
Interest rate swap | 423 | — | 423 | — | |||||||||||||||||||||||||||
Total liabilities | $ | 798 | $ | — | $ | 423 | $ | 375 | |||||||||||||||||||||||
Auction rate securities and contingent consideration are measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The fair value of the auction rate securities was determined using prices observed in inactive secondary markets for the securities held by the Company. The auction rate securities are considered available-for-sale securities. They had a cost basis of $1,450 at December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||
The interest rate swap is designated as a cash flow hedge, the fair value of which was estimated based on quoted market prices or pricing models using current market rates. Fair value at December 31, 2014 and December 31, 2013 for the interest rate swap considered prices observed in inactive secondary markets for the securities held by the Company. | |||||||||||||||||||||||||||||||
The fair value of contingent consideration was determined using an income approach at the respective business combination dates and at the reporting date. That approach is based on significant inputs that are not observable in the market and include key assumptions such as assessing the probability of meeting certain milestones required to earn the contingent consideration. The business combinations that give rise to contingent consideration are more fully described in Note 12. | |||||||||||||||||||||||||||||||
During the second quarter of 2013, the Company reduced the fair value of contingent consideration related to the Company's subsidiary, IPG Microsystems LLC's ("IPGM") acquisition of certain working capital and long-term assets from JP Sercel Associates Inc. ("JPSA") to $0 because management assessed that there was no possibility that milestones in the earn-out agreements would be achieved. Additionally, the Company reduced other contingent consideration for other agreements by $196. Accordingly, $2,659 is included in other income (expense) in the accompanying Consolidated Statements of Income in 2013. | |||||||||||||||||||||||||||||||
The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value: | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
Auction Rate Securities | |||||||||||||||||||||||||||||||
Balance, January 1 | $ | 1,120 | $ | 1,112 | |||||||||||||||||||||||||||
Change in fair value and accretion | 8 | 8 | |||||||||||||||||||||||||||||
Balance, December 31 | $ | 1,128 | $ | 1,120 | |||||||||||||||||||||||||||
Contingent Purchase Consideration | |||||||||||||||||||||||||||||||
Balance, January 1 | $ | 375 | $ | 3,023 | |||||||||||||||||||||||||||
Change in fair value and currency fluctuations | (277 | ) | (2,648 | ) | |||||||||||||||||||||||||||
Balance, December 31 | $ | 98 | $ | 375 | |||||||||||||||||||||||||||
Comprehensive Income — Comprehensive income includes charges and credits to equity that are not the result of transactions with stockholders. Included within comprehensive income is the cumulative foreign currency translation adjustment and unrealized gains or losses on derivatives. These adjustments are accumulated within the consolidated statements of comprehensive income. | |||||||||||||||||||||||||||||||
Total components of accumulated other comprehensive loss were as follows: | |||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | (112,411 | ) | $ | (1,677 | ) | |||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax of $67 and $168 | (84 | ) | (256 | ) | |||||||||||||||||||||||||||
Change in carrying value of auction rate securities | 232 | 232 | |||||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (112,263 | ) | $ | (1,701 | ) | |||||||||||||||||||||||||
Derivative 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 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 is an interest rate swap under which it pays fixed rates of interest. | |||||||||||||||||||||||||||||||
The fair value amounts in the consolidated balance sheets were: | |||||||||||||||||||||||||||||||
Notional Amounts1 | Other Assets | Other Current Liabilities2 | Deferred | ||||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||||||
And Other | |||||||||||||||||||||||||||||||
Long-Term | |||||||||||||||||||||||||||||||
Liabilities2 | |||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
$ | 11,333 | $ | 12,666 | $ | — | $ | — | $ | 151 | $ | — | $ | — | $ | 423 | ||||||||||||||||
(1) Notional amounts represent the gross contract/notional amount of the derivative outstanding. | |||||||||||||||||||||||||||||||
(2) As of December 31, 2014, the remaining balance of the U.S. long-term note outstanding is considered current because the term of the note expires in June 2015. Accordingly, the interest rate swap liability has been reclassified. | |||||||||||||||||||||||||||||||
The derivative gains and losses in the consolidated statements of income for the years ended December 31, 2014, 2013 and 2012, related to the Company's interest rate swap contract was as follows: | |||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Effective portion recognized in other comprehensive (loss) income, pretax: | |||||||||||||||||||||||||||||||
Interest rate swap | $ | 567 | $ | 881 | $ | 944 | |||||||||||||||||||||||||
Effective portion reclassified from other comprehensive (loss) income to interest expense, pretax: | |||||||||||||||||||||||||||||||
Interest rate swap | $ | (295 | ) | $ | (449 | ) | $ | (576 | ) | ||||||||||||||||||||||
Ineffective portion recognized in income: | |||||||||||||||||||||||||||||||
Interest rate swap | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
The Company made no adjustments to the fair value of this derivative as a result of evaluating counterparty risk. | |||||||||||||||||||||||||||||||
Business Segment Information — The Company operates in one segment which involves the design, development, production and distribution of fiber lasers, laser systems, fiber amplifiers, and related optical components. The Company has a single, company-wide management team that administers all properties as a whole rather than as discrete operating segments. The chief decision maker, who is the Company's chief executive officer, measures financial performance as a single enterprise and not on legal entity or end market basis. Throughout the year, the chief decision maker allocates capital resources on a project-by-project basis across the Company's entire asset base to maximize profitability without regard to legal entity or end market basis. The Company operates in a number of countries throughout the world in a variety of product lines. Information regarding geographic financial information and product lines is provided in Note 15. | |||||||||||||||||||||||||||||||
Earnings Per Share — 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 IPG Russia. The computation of net income per share is provided in Note 9. | |||||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||
Subsequent Events — The Company has considered the impact of subsequent events through the filing date of these financial statements. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION | |||||||||||||
Stock-based compensation is included in the following financial statement captions: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of sales | $ | 4,153 | $ | 3,187 | $ | 2,184 | ||||||||
Sales and marketing | 1,567 | 1,195 | 1,052 | |||||||||||
Research and development | 3,033 | 1,929 | 1,327 | |||||||||||
General and administrative | 6,419 | 5,409 | 4,002 | |||||||||||
Total stock-based compensation | 15,172 | 11,720 | 8,565 | |||||||||||
Tax benefit recognized | (4,865 | ) | (3,784 | ) | (2,629 | ) | ||||||||
Net stock-based compensation | $ | 10,307 | $ | 7,936 | $ | 5,936 | ||||||||
Compensation cost for all stock-based payment awards is based on the estimated grant-date fair value. The Company allocates and records stock-based compensation expense on a straight-line basis over the requisite service period. | ||||||||||||||
The Company calculates the fair value of stock option grants using the Black-Scholes option pricing model. Determining the appropriate fair value model and calculating the fair value of stock-based payment awards require the use of highly subjective assumptions, including the expected life of the stock-based payment awards and stock price volatility. The assumptions used in calculating the fair value of stock-based payment awards represent management’s best estimates, but the estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, its stock-based compensation expense could be materially different in the future. The weighted average assumptions used in the Black-Scholes model or the calculation of compensation were as follows for the years ended December 31. | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected term | 4.7-6.1 years | 4.4-6.3 years | 4.0-6.6 years | |||||||||||
Volatility | 48%-51% | 51%-54% | 49%-56% | |||||||||||
Risk-free rate of return | 1.46%-1.84% | 0.74%-1.32% | 0.59%-1.23% | |||||||||||
Dividend yield | 0.25% | 0.25% | —% | |||||||||||
Forfeiture rate | 3.04%-5.86% | 0%-5.97% | 0%-6.1% | |||||||||||
Incentive Plans — In April 2000, the Company's board of directors adopted the 2000 Incentive Compensation Plan (the "2000 Plan"), and in February 2006, the Company's board of directors adopted the 2006 Incentive Compensation Plan (the "2006 Plan"), which provide for the issuance of stock options and other stock and non-stock based awards to the Company's directors, employees, consultants and advisors. The Company reserved 5,833,333 shares under the 2000 Plan and 4,000,000 shares under the 2006 Plan for the issuance of awards under the plans. During 2011, the Company reserved an additional 6,084,273 shares under the 2006 Plan. In June 2006, the Company's board of directors adopted the Non-Employee Directors Stock Plan (the "Directors Plan"). Only non-employee directors are eligible to receive awards under the Directors Plan. The Company reserved 486,660 shares for issuance under the Directors Plan. Under the three plans, the Company may grant nonstatutory stock options at an exercise price at least equal to the fair value of its common stock on the date of grant, unless the board of directors or compensation committee determines otherwise on the date of grant. Incentive stock options may be granted under the 2000 Plan and the 2006 Plan at exercise prices equal to or exceeding the fair value of the common stock on the date of grant. The Company may also grant restricted stock, restricted stock units and other equity-based awards. Incentive awards generally become exercisable over periods of one to five years and expire seven to ten years from the date of the grant. The awards under the 2000 Plan and the 2006 Plan may become exercisable earlier upon the occurrence of certain change of control events at the election of the board of directors or compensation committee, and all awards under the Directors Plan automatically become exercisable upon a change of control. All shares issued under the incentive plans are registered shares newly issued by the Company. At December 31, 2014, 5,491,656 shares of the Company's stock were available for future grant under the three incentive plans. | ||||||||||||||
A summary of option activity, including the employee stock purchase plan, is presented below (see Note 11 for further information): | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Options | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Life | ||||||||||||||
(In years) | (In thousands) | |||||||||||||
Outstanding — January 1, 2014 | 2,674,897 | $ | 37.63 | |||||||||||
Granted | 463,289 | 70.67 | ||||||||||||
Exercised | (414,775 | ) | 16.97 | |||||||||||
Forfeited | (31,535 | ) | 62.94 | |||||||||||
Outstanding — December 31, 2014 | 2,691,876 | $ | 45.48 | 6.62 | $ | 88,500 | ||||||||
Vested or expected to vest — December 31, 2014 | 2,554,160 | $ | 44.58 | 6.53 | $ | 85,697 | ||||||||
Exercisable — December 31, 2014 | 1,027,303 | $ | 24.29 | 4.83 | $ | 52,018 | ||||||||
The intrinsic value of the options exercised during the years ended December 31, 2014, 2013 and 2012, was $23,491, $30,063 and $20,792, respectively. | ||||||||||||||
The weighted-average grant fair value per share for options granted during the years ended December 31, 2014, 2013 and 2012, was $39.12, $28.28 and $26.80, respectively. | ||||||||||||||
The total compensation cost related to nonvested awards not yet recorded at December 31, 2014 was $27,310 which is expected to be recognized over a weighted average of 2.4 years. | ||||||||||||||
The aggregate fair value of awards vested during the year ended December 31, 2014 was $7,076. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | INVENTORIES | |||||||
Inventories consist of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Components and raw materials | $ | 54,925 | $ | 54,539 | ||||
Work-in-process | 58,603 | 64,927 | ||||||
Finished goods | 57,481 | 53,234 | ||||||
Total | $ | 171,009 | $ | 172,700 | ||||
The Company recorded inventory provisions totaling $11,302, $15,128 and $8,232 for the years ended December 31, 2014, 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. |
Property_Plant_And_Equipment
Property, Plant, And Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant, and equipment consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 19,248 | $ | 15,448 | |||||
Buildings | 144,629 | 146,730 | |||||||
Machinery and equipment | 202,075 | 165,050 | |||||||
Office furniture and fixtures | 25,816 | 23,589 | |||||||
Construction-in-progress | 47,285 | 52,911 | |||||||
Total property, plant and equipment | 439,053 | 403,728 | |||||||
Accumulated depreciation | (163,971 | ) | (151,483 | ) | |||||
Total property, plant and equipment — net | $ | 275,082 | $ | 252,245 | |||||
The Company recorded depreciation expense of $31,334, $26,489 and $21,108 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Accrued_Expenses_And_Other_Lia
Accrued Expenses And Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses And Other Liabilities | ACCRUED EXPENSES AND OTHER LIABLILITES | |||||||
Accrued expenses and other liabilities consist of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued compensation | $ | 31,673 | $ | 25,727 | ||||
Customer deposits and deferred revenue | 16,605 | 18,489 | ||||||
Current portion of accrued warranty | 9,489 | 7,724 | ||||||
Other | 6,290 | 7,396 | ||||||
Total | $ | 64,057 | $ | 59,336 | ||||
Financing_Arrangements
Financing Arrangements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Financing Arrangements | FINANCING ARRANGEMENTS | |||||||
The Company's borrowings under existing financing arrangements consist of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Revolving line of credit facilities: | ||||||||
European overdraft facilities | $ | 828 | $ | 1,038 | ||||
Euro line of credit | 1,803 | 2,258 | ||||||
Total | $ | 2,631 | $ | 3,296 | ||||
Term debt: | ||||||||
U.S. long-term note | $ | 11,333 | $ | 12,666 | ||||
Collateralized long-term note | 21,667 | — | ||||||
Less: current portion | (13,333 | ) | (1,333 | ) | ||||
Total long-term debt | $ | 19,667 | $ | 11,333 | ||||
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. | ||||||||
Revolving Line of Credit Facilities: | ||||||||
U.S. Line of Credit — The Company maintains an unsecured revolving line of credit with available principal of up to $35,000, expiring in June 2015. The line of credit bears interest at a variable rate of LIBOR plus 1.125% to 1.625% depending on the Company's financial performance. $14,100 of this credit facility is available to the Company's foreign subsidiaries including those in India, China, Japan and South Korea. At December 31, 2014, there were no drawings, however there were $87 of guarantees issued against the line which reduced the total availability. At December 31, 2014, the remaining availability under the U.S. Line of Credit totaled $34,913. | ||||||||
Euro Line of Credit — The Company maintains an unsecured revolving line of credit with a principal amount of Euro 30,000 ($36,466 at December 31, 2014), expiring in July 2017. The line of credit bears interest at various rates based upon the type of loan. $19,448 is available to the Company's Russian subsidiary, $9,724 of this credit facility is available to the Company's German subsidiary, $3,647 is available to the Company's Chinese subsidiary and $3,647 is available to the Company's Italian subsidiary. Total drawings at December 31, 2014 were $1,803 with an interest rate of 1.0% and there were $4,309 of guarantees issued against the line which also reduced the total availability. At December 31, 2014, the remaining availability under this line was $30,354. | ||||||||
Euro Overdraft Facilities — The Company maintains a syndicated overdraft facility with available principal of Euro 500 ($608 at December 31, 2014) with no expiration date. This facility bears interest at market rates that vary depending upon the bank within the syndicate that advances the principal outstanding. At December 31, 2014, total drawings were $395 with an interest rate of 1.0%. The aggregate remaining availability under this line was $213. | ||||||||
Other European Facilities — The Company maintains two Euro credit lines in Italy with aggregate available principal of Euro 1,500 ($1,823 as of December 31, 2014) which bear interest at 1.0% and expire in June and September 2015. Total drawings at December 31, 2014 were $433. At December 31, 2014, the aggregate remaining availability under these lines was $1,390. These facilities are collateralized by a common pool of the assets of the Company's Italian subsidiary. | ||||||||
Term Debt: | ||||||||
U.S. Long-Term Note — The Company has an outstanding promissory note which bears interest at LIBOR plus 0.9% to 1.3%, depending on certain financial ratios and requires monthly principal payments of $111 and interest through June 2015, at which time the remaining principal is payable. The Company entered into an interest rate swap instrument which converted the variable LIBOR rate on the original term note to a fixed rate of 5.0% per annum. For the term from August 2013 to June 2015, the Company entered into a separate interest rate swap instrument which converts the variable LIBOR rate to a fixed rate of 2.57% per annum. Changes in the fair value of the swap is included in accumulated other comprehensive loss on the consolidated balance sheets. The unrealized loss on the swap will be recognized into income over the term of the swap as a charge to interest expense. | ||||||||
The Company is required to meet certain financial covenants associated with its U.S. line of credit and its original U.S. long-term note. These covenants, tested quarterly, include a debt service coverage ratio and a funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. The debt service coverage covenant requires it to maintain a trailing twelve month ratio of cash flow to debt service that is greater than 1.5:1. Debt service is defined as required principal and interest payments during the period. Cash flow is defined as EBITDA less unfunded capital expenditures. The funded debt to EBITDA covenant requires that the sum of all indebtedness for borrowed money on a consolidated basis be less than two times the Company's trailing twelve months EBITDA. | ||||||||
As of December 31, 2014, the remaining balance of $11,333 related to the original U.S. long-term note outstanding is considered current because the term of the note expires in June 2015. | ||||||||
Collateralized Long-Term Note —In October 2014, the Company entered into a collateralized long-term note to finance the purchase of the Company's aircraft which bears a fixed interest rate of 2.81% per annum. The note requires monthly principal payments of $167 and interest through October 2019, at which time the remaining principal is payable. As of December 31, 2014, the note has a remaining balance of $21,667. |
Redeemable_Noncontrolling_Inte
Redeemable Noncontrolling Interests and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Stockholders' Equity | REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY |
Redeemable Noncontrolling Interests — Redeemable noncontrolling interests reported in the accompanying consolidated financial statements related to a 22.5% minority interest of IPG Russia that was redeemed on June 29, 2012. The associated net income attributable to noncontrolling interest in 2012 was $2,740. | |
Authorized Capital — The Company has authorized capital stock consisting of 175,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001 per share. There are no shares of preferred stock outstanding as of December 31, 2014. |
RelatedParty_Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS |
In 2014 and 2013, the Company purchased various parts and services from a company with which one of the Company's independent directors is an executive officer. The payments made for such services for 2014 and 2013 totaled $3,687 and $130, respectively. There were no amounts due to this company at December 31, 2014, however, the Company had an amount of $1,155 in Accounts Payable due to this company at December 31, 2013. | |
The Company leased from an unrelated third party approximately 12,000 square feet of office space in Marlborough, Massachusetts under an office lease expiring November 2017. A subsidiary of IP Fibre Devices (UK) Ltd. ("IPFD") purchased the building in October 2014 and acquired the lease. The Company's CEO is the managing director of IPFD, and IPFD is a stockholder of the Company. The 2014 year-end annual lease rate was $232 with annual increase of approximately 2.5% per year. The Company reimburses the landlord for its portion of certain operational costs. The Company paid IPFD $20 under the office lease. | |
The CEO leases the right to use 25% of the Company's aircraft annually under a October 2014 lease expiring November 2019. The 2014 year-end annual lease rate was $684 and future rent payments will be adjusted annually. The CEO also pays direct and incidental operating costs for his private use including pilot fees. The CEO paid the Company $146 in 2014 under the aircraft lease. | |
In 2014, the Company sold products and services of $2,731 to OAO "RCE" Laser Processing Center ("Laser Center"), an application development and parts processing company. The Company's CEO owns approximately 39% of Laser Center, which he acquired from an unrelated third party in 2014. |
Net_Income_Attributable_To_IPG
Net Income Attributable To IPG Photonics Corporation Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income attributable to IPG Photonics Corporation | $ | 200,445 | $ | 155,780 | $ | 145,004 | ||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | 493 | |||||||||
Net income attributable to common stockholders | 200,445 | 155,780 | 145,497 | |||||||||
Weighted average shares | 52,104 | 51,548 | 50,477 | |||||||||
Dilutive effect of common stock equivalents | 720 | 827 | 1,059 | |||||||||
Diluted weighted average common shares | 52,824 | 52,375 | 51,536 | |||||||||
Basic net income attributable to IPG Photonics Corporation per share | $ | 3.85 | $ | 3.02 | $ | 2.86 | ||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | 0.01 | |||||||||
Basic net income attributable to common stockholders | $ | 3.85 | $ | 3.02 | $ | 2.87 | ||||||
Diluted net income attributable to IPG Photonics Corporation per share | $ | 3.79 | $ | 2.97 | $ | 2.8 | ||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | 0.01 | |||||||||
Diluted net income attributable to common stockholders | $ | 3.79 | $ | 2.97 | $ | 2.81 | ||||||
The computation of diluted weighted average common shares excludes options to purchase 46,987 shares, 322,301 shares and 164,858 shares for the years ended December 31, 2014, 2013 and 2012, respectively, because the effect would be anti-dilutive. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES | ||||||||||||
Operating Leases — The Company leases certain facilities under cancelable and noncancelable operating lease agreements which expire through October 2019. In addition, it leases capital equipment under operating leases. Rent expense for the years ended December 31, 2014, 2013 and 2012, totaled $5,516, $4,560 and $3,885, respectively. | |||||||||||||
Commitments under the noncancelable lease agreements as of December 31, 2014 are as follows: | |||||||||||||
Years Ending December 31 | Facilities | Equipment | Total | ||||||||||
2015 | $ | 3,439 | $ | 951 | $ | 4,390 | |||||||
2016 | 2,775 | 573 | 3,348 | ||||||||||
2017 | 2,491 | 336 | 2,827 | ||||||||||
2018 | 1,544 | 145 | 1,689 | ||||||||||
2019 | 1,224 | 27 | 1,251 | ||||||||||
Thereafter | 5 | — | 5 | ||||||||||
Total | $ | 11,478 | $ | 2,032 | $ | 13,510 | |||||||
Employment Agreements — The Company has entered into employment agreements with certain members of senior management. The terms of these agreements are up to three years and include noncompetition, nonsolicitation and nondisclosure provisions, as well as provisions for defined severance for terminations of employment under certain conditions and a change of control of the Company. The Company also maintains a severance plan for certain of its senior management providing for defined severance for terminations of employment under certain conditions and a change of control of the Company. | |||||||||||||
Contractual Obligations — The Company has entered into various purchase obligations that include agreements for construction of buildings, raw materials and equipment. Obligations under these agreements were $22,288 and $3,371 as of December 31, 2014 and 2013, respectively. Also, included is an obligation of $4,500 that the Company has as a result of entering into an agreement to purchase certain intellectual property and know-how related to laser based systems. | |||||||||||||
Legal proceedings — 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 sought damages in an unspecified amount, double damages for misappropriation of trade secrets and treble damages for unfair trade practices and correction of inventorship on one patent. The plaintiff filed in the United States District Court of the District of Massachusetts, a voluntarily dismissal of the lawsuit in August 2014. As of December 31, 2014 and through the date of the Company's subsequent review period of February 28, 2015, the Company has no legal proceedings ongoing that management estimates could have a material effect on the Company's Consolidated Financial Statements. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation Related Costs [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS |
The Company maintains a 401(k) retirement savings plan covering all of its U.S. employees. The Company makes matching contributions equal to 50% of the employee's contributions, subject to a maximum of 6% of eligible compensation. Compensation expense related to its contribution to the plan for the years ended December 31, 2014, 2013 and 2012, approximated $1,445, $1,127 and $848, respectively. | |
The Company has an employee stock purchase plan covering its U.S. and German employees. The plan allows employees who participate to purchase shares of common stock through payroll deductions at a 15% discount to the lower of the stock price on the first day or the last day of the six-month purchase period. Payroll deductions may not exceed 10% of the employee's compensation and are subject to other limitations. Compensation expense related to the employee stock purchase plan was $607, $498 and $452 for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there were 389,314 shares available for issuance under the employee stock purchase plan. |
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS |
On March 13, 2013, the Company acquired the working capital and long term assets of Mobius Photonics Inc. ("Mobius"), 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 which related to production know-how with an estimated useful life of 7 years and $455 of goodwill that is deductible for federal income tax purposes. The acquisition did not have a material effect on the Company's financial results in 2013. | |
On August 31, 2012, the Company's subsidiary, IPGM acquired certain working capital and long-term assets from JPSA, which is a manufacturer of laser-based systems performing fine processing of materials used in semiconductor, LED and solar applications. As a result of the acquisition, the Company recorded $2,898 of goodwill and intangible assets of $3,400, of which $2,400 related to technology and production know-how and the remainder related to customer relationships, non-compete agreements and trade names with weighted-average estimated useful lives of 10 years, 10 years, 5 years and 7 years, respectively. The acquisition did not have a material effect on the Company's financial results in 2012. In addition to cash paid, consideration included contingent consideration based on sales targets that extended for two one-year periods beginning October 1, 2012. Total possible additional payouts under these earn-outs were $18,500. As discussed in the fair value financial instruments disclosures in Note 1, the Company reduced the fair value of the contingent consideration related to IPGM to $0 during 2013. Also, as discussed in Note 13, the Company reduced the Goodwill associated with IPGM to $0 as well. |
Goodwill_And_Intangibles
Goodwill And Intangibles | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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 years ended December 31, 2014 and 2013: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Balance at January 1 | $ | 455 | $ | 2,898 | |||||||||||||||||
Adjustment | — | (95 | ) | ||||||||||||||||||
Impairment | — | (2,803 | ) | ||||||||||||||||||
Total goodwill arising from acquisition | — | 455 | |||||||||||||||||||
Balance at December 31 | $ | 455 | $ | 455 | |||||||||||||||||
The goodwill balance at January 1, 2013 of $2,898 and the adjustment of $95, largely reflected the potential synergies and expansion of the Company's service offerings complementary to its specialized laser systems and UV and short-pulse fiber lasers resulting from the 2012 acquisition from JPSA by IPGM. During 2013, the Company carried out the two-step goodwill impairment test in accordance with the provisions of ASC 350-20-35. That analysis indicated that the fair value of the IPGM reporting unit, 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 goodwill of $455 arising from the Mobius acquisition relates to the expected synergies for the Company's expansion of product offerings with UV fiber lasers. The goodwill arising from the acquisition in 2013 is deductible over 15 years for federal tax purposes. | |||||||||||||||||||||
Intangible assets, subject to amortization, consisted of the following: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Weighted- | Gross Carrying | Accumulated | Net Carrying | Weighted- | ||||||||||||||
Amount | Amortization | Amount | Average Lives | Amount | Amortization | Amount | Average Lives | ||||||||||||||
Patents | $ | 6,641 | $ | (4,221 | ) | $ | 2,420 | 6 Years | $ | 4,667 | $ | (4,091 | ) | $ | 576 | 6 Years | |||||
Customer relationships | 3,660 | (3,308 | ) | 352 | 5 Years | 4,112 | (3,324 | ) | 788 | 5 Years | |||||||||||
Production know-how | 6,844 | (2,630 | ) | 4,214 | 8 Years | 7,063 | (1,747 | ) | 5,316 | 8 Years | |||||||||||
Technology, trademark and tradename | 3,315 | (1,074 | ) | 2,241 | 8 Years | 4,271 | (1,387 | ) | 2,884 | 8 Years | |||||||||||
$ | 20,460 | $ | (11,233 | ) | $ | 9,227 | $ | 20,113 | $ | (10,549 | ) | $ | 9,564 | ||||||||
During the third quarter of 2014, the Company purchased certain intellectual property including patent and product design rights in the amount of $2,000. | |||||||||||||||||||||
Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $2,210, $2,310 and $2,091, respectively. | |||||||||||||||||||||
The estimated future amortization expense for intangibles as of December 31, 2014 is as follows: | |||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||
$1,783 | $1,686 | $1,686 | $1,621 | $1,033 | $1,418 | $9,227 | |||||||||||||||
Impairment — 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 2013, 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 ASC 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. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||
Income before the impact of income taxes for the years ended December 31 consisted of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. | $ | 72,800 | $ | 59,006 | $ | 58,964 | |||||||
Foreign | 211,674 | 159,295 | 150,251 | ||||||||||
Total | $ | 284,474 | $ | 218,301 | $ | 209,215 | |||||||
The Company's provision for income taxes for the years ended December 31 consisted of the following: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | (22,549 | ) | $ | (19,285 | ) | $ | (16,675 | ) | ||||
State | (2,823 | ) | (2,617 | ) | (309 | ) | |||||||
Foreign | (60,143 | ) | (46,787 | ) | (38,941 | ) | |||||||
Total current | $ | (85,515 | ) | $ | (68,689 | ) | $ | (55,925 | ) | ||||
Deferred: | |||||||||||||
Federal | $ | 454 | $ | 3,834 | $ | (2,174 | ) | ||||||
State | 27 | 203 | (140 | ) | |||||||||
Foreign | 1,005 | 2,131 | (3,232 | ) | |||||||||
Total deferred | $ | 1,486 | $ | 6,168 | $ | (5,546 | ) | ||||||
Provision for income taxes | $ | (84,029 | ) | $ | (62,521 | ) | $ | (61,471 | ) | ||||
A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision for the years ended December 31, is as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax at statutory rate | $ | (99,867 | ) | $ | (76,406 | ) | $ | (73,225 | ) | ||||
Non-U.S. rate differential — net | 14,590 | 10,761 | 11,744 | ||||||||||
State income taxes — net | (1,787 | ) | (1,512 | ) | (1,527 | ) | |||||||
Effect of changes in enacted tax rates on deferred tax assets and liabilities | (44 | ) | 186 | (617 | ) | ||||||||
Nondeductible stock compensation expense | (483 | ) | (101 | ) | (1,020 | ) | |||||||
Other nondeductible expenses | (2,063 | ) | (1,666 | ) | (794 | ) | |||||||
Federal and state tax credits | 5,865 | 7,500 | 4,623 | ||||||||||
Change in reserves, including interest and penalties | (7 | ) | (1,273 | ) | (243 | ) | |||||||
Change in valuation allowance | — | — | (314 | ) | |||||||||
Other — net | (233 | ) | (10 | ) | (98 | ) | |||||||
$ | (84,029 | ) | $ | (62,521 | ) | $ | (61,471 | ) | |||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property, plant and equipment | $ | (5,310 | ) | $ | (2,230 | ) | $ | (3,629 | ) | ||||
Inventory provisions | 10,497 | 8,261 | 7,942 | ||||||||||
Allowances and accrued liabilities | 1,570 | 3,634 | (4,829 | ) | |||||||||
Other tax credits | 726 | 769 | 1,673 | ||||||||||
Deferred compensation | 4,218 | (434 | ) | 3,538 | |||||||||
Net operating loss carryforwards | — | 229 | 5 | ||||||||||
Net deferred tax assets | $ | 11,701 | $ | 10,229 | $ | 4,700 | |||||||
It is the Company's practice and intention to reinvest the earnings of non-U.S. subsidiaries in those operations. Accordingly, it has not made any provision for additional U.S. or foreign withholding taxes with respect to repatriation of earnings of non-U.S. subsidiaries. At December 31, 2014 and 2013, the cumulative unremitted earnings that are reinvested in non-U.S. subsidiaries are approximately $522,000 and $346,000, respectively. | |||||||||||||
As of December 31, 2014, 2013 and 2012, the Company has state tax credit carry-forwards of $1,225, $2,074 and $1,419, respectively. The state tax credit carry-forwards begin expiring in 2017. In addition, the Company has UK net operating loss carry-forwards available for future periods of $2,509 related to deductions for stock-based compensation. The UK net operating loss can be carry-forward indefinitely. These amounts are not included in deferred tax assets, because when these net operating loss and state tax credit carry-forwards are utilized they will be credited to additional paid-in capital. | |||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 6,501 | $ | 5,392 | $ | 4,509 | |||||||
Reductions of prior period positions | (795 | ) | (505 | ) | (317 | ) | |||||||
Additions for tax positions in current period | 788 | 1,614 | 1,200 | ||||||||||
Balance at December 31 | $ | 6,494 | $ | 6,501 | $ | 5,392 | |||||||
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. | |||||||||||||
Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company's effective tax rate in the future. The American Taxpayer Relief Act of 2012 (the "Act") was signed into law on January 2, 2013. Because a change in tax law is accounted for in the period of enactment, certain provisions of the Act benefiting the Company's 2012 U.S. federal taxes, including the research and experimentation credit, could not be recognized in the Company's 2012 financial results and instead is reflected in its 2013 financial results. | |||||||||||||
Estimated penalties and interest related to the underpayment of income taxes are ($192), $374 and $352 for the years ended December 31, 2014, 2013 and 2012, respectively, and are included within the provision for income taxes. Total accrued penalties and interest related to the underpayment of income taxes are $670 and $862 at December 31, 2014 and 2013, respectively. | |||||||||||||
The Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. If realized, all of the Company's uncertain tax positions would affect its effective tax rate. Certain of the Company's uncertain tax positions are expected to settle within one year. Open tax years by major jurisdictions are: | |||||||||||||
• United States | 2012 — 2014 | ||||||||||||
• Germany | 2011 — 2014 | ||||||||||||
• Russia | 2010 — 2014 | ||||||||||||
The Company currently has an ongoing audit of our German subsidiary's tax filings for the years 2011-2013. | |||||||||||||
On September 13, 2013, the United States Treasury and Internal Revenue Service issued final tangible personal property regulations that broadly apply to amounts paid to acquire, produce or improve tangible property, as well as dispositions of such property. In review of these regulations, the Company has concluded that there is no material impact on its consolidated financial position, results of operations or cash flows. |
Geographic_And_Product_Informa
Geographic And Product Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Geographic And Product Information [Abstract] | |||||||||||||
Geographic And Product Information | GEOGRAPHIC AND PRODUCT INFORMATION | ||||||||||||
The Company markets and sells its products throughout the world through both direct sales and distribution channels. The geographic sources of the Company's net sales based on billing addresses of its customers are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States and other North America | $ | 113,233 | $ | 116,935 | $ | 108,316 | |||||||
Europe: | |||||||||||||
Germany | 77,404 | 65,147 | 89,848 | ||||||||||
Other including Eastern Europe/CIS | 173,018 | 140,279 | 110,860 | ||||||||||
Asia and Australia: | |||||||||||||
Japan | 72,573 | 67,981 | 69,576 | ||||||||||
China | 245,102 | 192,134 | 138,782 | ||||||||||
Other | 85,426 | 64,346 | 43,445 | ||||||||||
Rest of World | 3,076 | 1,212 | 1,701 | ||||||||||
Total | $ | 769,832 | $ | 648,034 | $ | 562,528 | |||||||
Sales are derived from products for different applications: fiber lasers, diode lasers and diodes for materials processing, fiber lasers and amplifiers for advanced applications, fiber amplifiers for communications applications, and fiber lasers for medical applications. Net sales for these product lines are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Materials Processing | $ | 731,274 | $ | 608,702 | $ | 492,013 | |||||||
Other applications | 38,558 | 39,332 | 70,515 | ||||||||||
Total | $ | 769,832 | $ | 648,034 | $ | 562,528 | |||||||
One customer comprised 11% of net sales during the years ended December 31, 2014 and 2013. No single customer comprised more than 10% of net sales during the year ended December 31, 2012. The Company has historically depended on a few customers for a significant percentage of its annual net sales. The composition of this group can change from year to year. Net sales derived from the Company's five largest customers as a percentage of its annual net sales were 23%, 21% and 16% in 2014, 2013 and 2012, respectively. | |||||||||||||
The geographic locations of the Company's long-lived assets, net, based on physical location of the assets, as of December 31, 2014, 2013 and 2012, are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 155,428 | $ | 110,441 | $ | 86,226 | |||||||
Germany | 51,528 | 52,791 | 47,019 | ||||||||||
Russia | 59,612 | 73,747 | 60,151 | ||||||||||
China | 6,582 | 5,895 | 6,424 | ||||||||||
Other | 12,507 | 13,480 | 15,674 | ||||||||||
$ | 285,657 | $ | 256,354 | $ | 215,494 | ||||||||
Long lived assets include property, plant and equipment and demonstration equipment. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
2014 | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net sales | $ | 170,575 | $ | 192,204 | $ | 199,651 | $ | 207,402 | |||||||||
Gross profit | 89,284 | 104,227 | 109,090 | 113,917 | |||||||||||||
Net income attributable to IPG Photonics Corporation | 40,531 | 48,283 | 55,200 | 56,431 | |||||||||||||
Basic earnings per share | 0.78 | 0.93 | 1.06 | 1.08 | |||||||||||||
Diluted earnings per share | 0.77 | 0.92 | 1.05 | 1.07 | |||||||||||||
2013 | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net sales | $ | 141,852 | $ | 168,171 | $ | 172,152 | $ | 165,859 | |||||||||
Gross profit | 75,641 | 89,922 | 92,813 | 81,522 | |||||||||||||
Net income attributable to IPG Photonics Corporation | 35,127 | 41,720 | 42,338 | 36,595 | |||||||||||||
Basic earnings per share | 0.68 | 0.81 | 0.82 | 0.71 | |||||||||||||
Diluted earnings per share | 0.67 | 0.8 | 0.81 | 0.7 | |||||||||||||
Nature_Of_Business_And_Summary1
Nature Of Business And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Principles of Consolidation | Principles of Consolidation — The Company was incorporated as a Delaware corporation in December 1998. The accompanying financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. | |||||||||||||||
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. | |||||||||||||||
Foreign Currency | Foreign Currency — The financial information for entities outside the United States is measured using local currencies as the functional currency. Assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the respective balance sheet dates. Income and expenses are translated into U.S. dollars based on the average rate of exchange for the corresponding period. Exchange rate differences resulting from translation adjustments are accounted for directly as a component of accumulated other comprehensive loss. | |||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents consist primarily of highly liquid investments, such as bank deposits, marketable securities with original maturities of three months or less with insignificant interest rate risk and marketable securities with remaining maturities of three months or less at the date of acquisition. | |||||||||||||||
Inventories | Inventories — Inventories are stated at the lower of cost or market on a first-in, first-out basis. Inventories include parts and components that may be specialized in nature and subject to rapid obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. Because of the Company's vertical integration, a significant or sudden decrease in sales activity could result in a significant change in the estimates of excess or obsolete inventory valuation. The costs associated with provisions for excess quantities, technological obsolescence, or component rejections are charged to cost of sales as incurred. | |||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is determined using the straight-line method based on the estimated useful lives of the related assets. In the case of leasehold improvements, the estimated useful lives of the related assets do not exceed the remaining terms of the corresponding leases. The following table presents the assigned economic useful lives of property, plant and equipment: | |||||||||||||||
Category | Economic | |||||||||||||||
Useful Life | ||||||||||||||||
Buildings | 30 years | |||||||||||||||
Machinery and equipment | 5-12 years | |||||||||||||||
Office furniture and fixtures | 3-5 years | |||||||||||||||
Expenditures for maintenance and repairs are charged to operations. Interest expense associated with significant capital projects is capitalized as a cost of the project. | ||||||||||||||||
Long-Lived Assets | Long-Lived Assets — Long-lived assets, which consist primarily of property, plant and equipment, are reviewed by management for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In cases in which undiscounted expected future cash flows are less than the carrying value, an impairment loss is recorded equal to the amount by which the carrying value exceeds the fair value of assets. No impairment losses have been recorded during the periods presented. | |||||||||||||||
Included in other long-term assets is certain demonstration equipment. The demonstration equipment is amortized over the respective estimated economic lives, generally 3 years. | ||||||||||||||||
Goodwill | Goodwill — Goodwill is the amount by which the cost of the acquired net assets in a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase. Goodwill is not amortized which is in accordance with the requirements of Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350, Intangibles-Goodwill and Other ("FASB ASC 350"). Goodwill is assessed for impairment at least annually, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. If the book value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. | |||||||||||||||
Intangible Assets | Intangible Assets — Intangible assets result from the Company's various business acquisitions. Intangible assets are reported at cost, net of accumulated amortization, and are amortized on a straight-line basis either over their estimated useful lives of five to ten years or over the period the economic benefits of the intangible asset are consumed. | |||||||||||||||
Revenue Recognition | Revenue Recognition — The Company recognizes revenue in accordance with FASB ASC 605. Revenue from orders with multiple deliverables is divided into separate units of accounting when certain criteria are met. These separate units generally consist of equipment and installation. The consideration for the arrangement is allocated to the separate units of accounting based on their relative selling prices. The selling price of equipment is based on vendor-specific objective evidence and the selling price of installation is based on third-party evidence. Applicable revenue recognition criteria are applied separately for each separate unit of accounting. Revenue for laser and amplifier sources generally is recognized upon the transfer of ownership which is typically at the time of shipment. Installation revenue is recognized upon completion of the installation service which typically occurs within 30 to 90 days of delivery. For laser systems, which may carry customer specific processing requirements, revenue is recognized at the latter of customer acceptance date or shipment date if the customer acceptance is made prior to shipment. Returns and customer credits are infrequent and are recorded as a reduction to revenue. Rights of return generally are not included in sales arrangements. | |||||||||||||||
Accounts Receivable and Allowance For Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts — Accounts Receivable include $25,150 and $17,679 of bank acceptance drafts at December 31, 2014 and 2013, respectively. Bank acceptance drafts are bank guarantees of payment on specified dates. The maturity of these bank acceptance drafts is less than 90 days. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience and the age of outstanding receivables. | |||||||||||||||
Warranties | 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. The Company estimates the warranty accrual considering past claims experience, the number of units still covered by warranty and the average life of the remaining warranty period. The warranty accrual has generally been sufficient to cover product warranty repair and replacement costs. | |||||||||||||||
Advertising Expense | Advertising Expense — The cost of advertising is expensed as incurred. The Company conducts substantially all of its sales and marketing efforts through trade shows, professional and technical conferences, direct sales and our website. The Company's advertising costs were not material for the periods presented. | |||||||||||||||
Research and Development | Research and Development — Research and development costs are expensed as incurred. | |||||||||||||||
Income Taxes | Income Taxes — Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts and tax basis of assets and liabilities and net operating loss carryforwards and credits using enacted rates in effect when those differences are expected to reverse. Valuation allowances are provided against deferred tax assets that are not deemed to be recoverable. The Company recognizes tax positions that are more likely than not to be sustained upon examination by relevant tax authorities. The tax positions are measured at the greatest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement. | |||||||||||||||
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. The reserves are based on a determination of whether and how much of a tax benefit taken by it in its tax filings or positions is more likely than not to be realized following resolution of uncertainties related to the tax benefit, assuming that the matter in question will be raised by the tax authorities. | ||||||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, auction rate securities and accounts receivable. The Company maintains substantially all of its cash and marketable securities in six financial institutions, which it believes to be high-credit quality financial institutions. The Company grants credit to customers in the ordinary course of business and provide a reserve for potential credit losses. Such losses historically have been within management's expectations (see discussion related to significant customers in Note 15). | |||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments — 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, certain derivative instruments and contingent consideration. | |||||||||||||||
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. | ||||||||||||||||
The following table presents information about the Company's assets and liabilities measured at fair value: | ||||||||||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 266,011 | $ | 266,011 | $ | — | $ | — | ||||||||
Auction rate securities | 1,128 | — | — | 1,128 | ||||||||||||
Total assets | $ | 267,139 | $ | 266,011 | $ | — | $ | 1,128 | ||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration | $ | 98 | $ | — | $ | — | $ | 98 | ||||||||
Interest rate swap | 151 | — | 151 | — | ||||||||||||
Total liabilities | $ | 249 | $ | — | $ | 151 | $ | 98 | ||||||||
Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 240,159 | $ | 240,159 | $ | — | $ | — | ||||||||
Auction rate securities | 1,120 | — | — | 1,120 | ||||||||||||
Total assets | $ | 241,279 | $ | 240,159 | $ | — | $ | 1,120 | ||||||||
Liabilities | ||||||||||||||||
Contingent purchase consideration | $ | 375 | $ | — | $ | — | $ | 375 | ||||||||
Interest rate swap | 423 | — | 423 | — | ||||||||||||
Total liabilities | $ | 798 | $ | — | $ | 423 | $ | 375 | ||||||||
Auction rate securities and contingent consideration are measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The fair value of the auction rate securities was determined using prices observed in inactive secondary markets for the securities held by the Company. The auction rate securities are considered available-for-sale securities. They had a cost basis of $1,450 at December 31, 2014 and December 31, 2013. | ||||||||||||||||
The interest rate swap is designated as a cash flow hedge, the fair value of which was estimated based on quoted market prices or pricing models using current market rates. Fair value at December 31, 2014 and December 31, 2013 for the interest rate swap considered prices observed in inactive secondary markets for the securities held by the Company. | ||||||||||||||||
The fair value of contingent consideration was determined using an income approach at the respective business combination dates and at the reporting date. That approach is based on significant inputs that are not observable in the market and include key assumptions such as assessing the probability of meeting certain milestones required to earn the contingent consideration. The business combinations that give rise to contingent consideration are more fully described in Note 12. | ||||||||||||||||
During the second quarter of 2013, the Company reduced the fair value of contingent consideration related to the Company's subsidiary, IPG Microsystems LLC's ("IPGM") acquisition of certain working capital and long-term assets from JP Sercel Associates Inc. ("JPSA") to $0 because management assessed that there was no possibility that milestones in the earn-out agreements would be achieved. Additionally, the Company reduced other contingent consideration for other agreements by $196. Accordingly, $2,659 is included in other income (expense) in the accompanying Consolidated Statements of Income in 2013. | ||||||||||||||||
Comprehensive Income | Comprehensive Income — Comprehensive income includes charges and credits to equity that are not the result of transactions with stockholders. Included within comprehensive income is the cumulative foreign currency translation adjustment and unrealized gains or losses on derivatives. These adjustments are accumulated within the consolidated statements of comprehensive income. | |||||||||||||||
Derivative Instruments | Derivative 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 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 | Cash Flow Hedges — The Company's cash flow hedges is an interest rate swap under which it pays fixed rates of interest. | |||||||||||||||
Business Segment Information | Business Segment Information — The Company operates in one segment which involves the design, development, production and distribution of fiber lasers, laser systems, fiber amplifiers, and related optical components. The Company has a single, company-wide management team that administers all properties as a whole rather than as discrete operating segments. The chief decision maker, who is the Company's chief executive officer, measures financial performance as a single enterprise and not on legal entity or end market basis. Throughout the year, the chief decision maker allocates capital resources on a project-by-project basis across the Company's entire asset base to maximize profitability without regard to legal entity or end market basis. The Company operates in a number of countries throughout the world in a variety of product lines. Information regarding geographic financial information and product lines is provided in Note 15. | |||||||||||||||
Earnings Per Share | Earnings Per Share — 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 IPG Russia. The computation of net income per share is provided in Note 9. | |||||||||||||||
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. | |||||||||||||||
Subsequent Events | Subsequent Events — The Company has considered the impact of subsequent events through the filing date of these financial statements. |
Nature_Of_Business_And_Summary2
Nature Of Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||
Economic Useful Lives Of Property, Plant And Equipment | The following table presents the assigned economic useful lives of property, plant and equipment: | ||||||||||||||||||||||||||||||
Category | Economic | ||||||||||||||||||||||||||||||
Useful Life | |||||||||||||||||||||||||||||||
Buildings | 30 years | ||||||||||||||||||||||||||||||
Machinery and equipment | 5-12 years | ||||||||||||||||||||||||||||||
Office furniture and fixtures | 3-5 years | ||||||||||||||||||||||||||||||
Allowance For Doubtful Accounts | Activity related to the allowance for doubtful accounts was as follows: | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at January 1 | $ | 2,473 | $ | 2,173 | $ | 1,605 | |||||||||||||||||||||||||
Provision for bad debts, net of recoveries | 579 | 323 | 642 | ||||||||||||||||||||||||||||
Uncollectable accounts written off | (617 | ) | (31 | ) | (170 | ) | |||||||||||||||||||||||||
Foreign currency translation | (545 | ) | 8 | 96 | |||||||||||||||||||||||||||
Balance at December 31 | $ | 1,890 | $ | 2,473 | $ | 2,173 | |||||||||||||||||||||||||
Summary Of Product Warranty Activity | Activity related to the warranty accrual was as follows: | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Balance at January 1 | $ | 14,997 | $ | 10,714 | $ | 8,631 | |||||||||||||||||||||||||
Provision for warranty accrual | 15,449 | 11,363 | 8,112 | ||||||||||||||||||||||||||||
Warranty claims | (9,165 | ) | (7,405 | ) | (6,542 | ) | |||||||||||||||||||||||||
Foreign currency translation and other | (2,009 | ) | 325 | 513 | |||||||||||||||||||||||||||
Balance at December 31 | $ | 19,272 | $ | 14,997 | $ | 10,714 | |||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value | The following table presents information about the Company's assets and liabilities measured at fair value: | ||||||||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 266,011 | $ | 266,011 | $ | — | $ | — | |||||||||||||||||||||||
Auction rate securities | 1,128 | — | — | 1,128 | |||||||||||||||||||||||||||
Total assets | $ | 267,139 | $ | 266,011 | $ | — | $ | 1,128 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Contingent purchase consideration | $ | 98 | $ | — | $ | — | $ | 98 | |||||||||||||||||||||||
Interest rate swap | 151 | — | 151 | — | |||||||||||||||||||||||||||
Total liabilities | $ | 249 | $ | — | $ | 151 | $ | 98 | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 240,159 | $ | 240,159 | $ | — | $ | — | |||||||||||||||||||||||
Auction rate securities | 1,120 | — | — | 1,120 | |||||||||||||||||||||||||||
Total assets | $ | 241,279 | $ | 240,159 | $ | — | $ | 1,120 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Contingent purchase consideration | $ | 375 | $ | — | $ | — | $ | 375 | |||||||||||||||||||||||
Interest rate swap | 423 | — | 423 | — | |||||||||||||||||||||||||||
Total liabilities | $ | 798 | $ | — | $ | 423 | $ | 375 | |||||||||||||||||||||||
Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs | The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value: | ||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
Auction Rate Securities | |||||||||||||||||||||||||||||||
Balance, January 1 | $ | 1,120 | $ | 1,112 | |||||||||||||||||||||||||||
Change in fair value and accretion | 8 | 8 | |||||||||||||||||||||||||||||
Balance, December 31 | $ | 1,128 | $ | 1,120 | |||||||||||||||||||||||||||
Contingent Purchase Consideration | |||||||||||||||||||||||||||||||
Balance, January 1 | $ | 375 | $ | 3,023 | |||||||||||||||||||||||||||
Change in fair value and currency fluctuations | (277 | ) | (2,648 | ) | |||||||||||||||||||||||||||
Balance, December 31 | $ | 98 | $ | 375 | |||||||||||||||||||||||||||
Components Of Accumulated Other Comprehensive Income (Loss) | Total components of accumulated other comprehensive loss were as follows: | ||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | (112,411 | ) | $ | (1,677 | ) | |||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax of $67 and $168 | (84 | ) | (256 | ) | |||||||||||||||||||||||||||
Change in carrying value of auction rate securities | 232 | 232 | |||||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (112,263 | ) | $ | (1,701 | ) | |||||||||||||||||||||||||
Fair Value Of Cash Flow Hedges | The fair value amounts in the consolidated balance sheets were: | ||||||||||||||||||||||||||||||
Notional Amounts1 | Other Assets | Other Current Liabilities2 | Deferred | ||||||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||||||||
And Other | |||||||||||||||||||||||||||||||
Long-Term | |||||||||||||||||||||||||||||||
Liabilities2 | |||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
$ | 11,333 | $ | 12,666 | $ | — | $ | — | $ | 151 | $ | — | $ | — | $ | 423 | ||||||||||||||||
(1) Notional amounts represent the gross contract/notional amount of the derivative outstanding. | |||||||||||||||||||||||||||||||
(2) As of December 31, 2014, the remaining balance of the U.S. long-term note outstanding is considered current because the term of the note expires in June 2015. Accordingly, the interest rate swap liability has been reclassified. | |||||||||||||||||||||||||||||||
Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts | The derivative gains and losses in the consolidated statements of income for the years ended December 31, 2014, 2013 and 2012, related to the Company's interest rate swap contract was as follows: | ||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Effective portion recognized in other comprehensive (loss) income, pretax: | |||||||||||||||||||||||||||||||
Interest rate swap | $ | 567 | $ | 881 | $ | 944 | |||||||||||||||||||||||||
Effective portion reclassified from other comprehensive (loss) income to interest expense, pretax: | |||||||||||||||||||||||||||||||
Interest rate swap | $ | (295 | ) | $ | (449 | ) | $ | (576 | ) | ||||||||||||||||||||||
Ineffective portion recognized in income: | |||||||||||||||||||||||||||||||
Interest rate swap | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-Based Compensation | Stock-based compensation is included in the following financial statement captions: | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Cost of sales | $ | 4,153 | $ | 3,187 | $ | 2,184 | ||||||||
Sales and marketing | 1,567 | 1,195 | 1,052 | |||||||||||
Research and development | 3,033 | 1,929 | 1,327 | |||||||||||
General and administrative | 6,419 | 5,409 | 4,002 | |||||||||||
Total stock-based compensation | 15,172 | 11,720 | 8,565 | |||||||||||
Tax benefit recognized | (4,865 | ) | (3,784 | ) | (2,629 | ) | ||||||||
Net stock-based compensation | $ | 10,307 | $ | 7,936 | $ | 5,936 | ||||||||
Weighted Average Assumptions | The Company calculates the fair value of stock option grants using the Black-Scholes option pricing model. Determining the appropriate fair value model and calculating the fair value of stock-based payment awards require the use of highly subjective assumptions, including the expected life of the stock-based payment awards and stock price volatility. The assumptions used in calculating the fair value of stock-based payment awards represent management’s best estimates, but the estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and the Company uses different assumptions, its stock-based compensation expense could be materially different in the future. The weighted average assumptions used in the Black-Scholes model or the calculation of compensation were as follows for the years ended December 31. | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected term | 4.7-6.1 years | 4.4-6.3 years | 4.0-6.6 years | |||||||||||
Volatility | 48%-51% | 51%-54% | 49%-56% | |||||||||||
Risk-free rate of return | 1.46%-1.84% | 0.74%-1.32% | 0.59%-1.23% | |||||||||||
Dividend yield | 0.25% | 0.25% | —% | |||||||||||
Forfeiture rate | 3.04%-5.86% | 0%-5.97% | 0%-6.1% | |||||||||||
Summary Of Option Activity | A summary of option activity, including the employee stock purchase plan, is presented below (see Note 11 for further information): | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Options | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Life | ||||||||||||||
(In years) | (In thousands) | |||||||||||||
Outstanding — January 1, 2014 | 2,674,897 | $ | 37.63 | |||||||||||
Granted | 463,289 | 70.67 | ||||||||||||
Exercised | (414,775 | ) | 16.97 | |||||||||||
Forfeited | (31,535 | ) | 62.94 | |||||||||||
Outstanding — December 31, 2014 | 2,691,876 | $ | 45.48 | 6.62 | $ | 88,500 | ||||||||
Vested or expected to vest — December 31, 2014 | 2,554,160 | $ | 44.58 | 6.53 | $ | 85,697 | ||||||||
Exercisable — December 31, 2014 | 1,027,303 | $ | 24.29 | 4.83 | $ | 52,018 | ||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Components Of Inventories | Inventories consist of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Components and raw materials | $ | 54,925 | $ | 54,539 | ||||
Work-in-process | 58,603 | 64,927 | ||||||
Finished goods | 57,481 | 53,234 | ||||||
Total | $ | 171,009 | $ | 172,700 | ||||
Property_Plant_And_Equipment_T
Property, Plant, And Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Components Of Property, Plant And Equipment | Property, plant, and equipment consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 19,248 | $ | 15,448 | |||||
Buildings | 144,629 | 146,730 | |||||||
Machinery and equipment | 202,075 | 165,050 | |||||||
Office furniture and fixtures | 25,816 | 23,589 | |||||||
Construction-in-progress | 47,285 | 52,911 | |||||||
Total property, plant and equipment | 439,053 | 403,728 | |||||||
Accumulated depreciation | (163,971 | ) | (151,483 | ) | |||||
Total property, plant and equipment — net | $ | 275,082 | $ | 252,245 | |||||
Accrued_Expenses_And_Other_Lia1
Accrued Expenses And Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Components Of Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consist of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued compensation | $ | 31,673 | $ | 25,727 | ||||
Customer deposits and deferred revenue | 16,605 | 18,489 | ||||||
Current portion of accrued warranty | 9,489 | 7,724 | ||||||
Other | 6,290 | 7,396 | ||||||
Total | $ | 64,057 | $ | 59,336 | ||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Borrowings Under Existing Financing Arrangements | The Company's borrowings under existing financing arrangements consist of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Revolving line of credit facilities: | ||||||||
European overdraft facilities | $ | 828 | $ | 1,038 | ||||
Euro line of credit | 1,803 | 2,258 | ||||||
Total | $ | 2,631 | $ | 3,296 | ||||
Term debt: | ||||||||
U.S. long-term note | $ | 11,333 | $ | 12,666 | ||||
Collateralized long-term note | 21,667 | — | ||||||
Less: current portion | (13,333 | ) | (1,333 | ) | ||||
Total long-term debt | $ | 19,667 | $ | 11,333 | ||||
Net_Income_Attributable_To_IPG1
Net Income Attributable To IPG Photonics Corporation Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income attributable to IPG Photonics Corporation | $ | 200,445 | $ | 155,780 | $ | 145,004 | ||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | 493 | |||||||||
Net income attributable to common stockholders | 200,445 | 155,780 | 145,497 | |||||||||
Weighted average shares | 52,104 | 51,548 | 50,477 | |||||||||
Dilutive effect of common stock equivalents | 720 | 827 | 1,059 | |||||||||
Diluted weighted average common shares | 52,824 | 52,375 | 51,536 | |||||||||
Basic net income attributable to IPG Photonics Corporation per share | $ | 3.85 | $ | 3.02 | $ | 2.86 | ||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | 0.01 | |||||||||
Basic net income attributable to common stockholders | $ | 3.85 | $ | 3.02 | $ | 2.87 | ||||||
Diluted net income attributable to IPG Photonics Corporation per share | $ | 3.79 | $ | 2.97 | $ | 2.8 | ||||||
Adjustments to redemption value of redeemable noncontrolling interests | — | — | 0.01 | |||||||||
Diluted net income attributable to common stockholders | $ | 3.79 | $ | 2.97 | $ | 2.81 | ||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments Under Noncancelable Lease Agreements | Commitments under the noncancelable lease agreements as of December 31, 2014 are as follows: | ||||||||||||
Years Ending December 31 | Facilities | Equipment | Total | ||||||||||
2015 | $ | 3,439 | $ | 951 | $ | 4,390 | |||||||
2016 | 2,775 | 573 | 3,348 | ||||||||||
2017 | 2,491 | 336 | 2,827 | ||||||||||
2018 | 1,544 | 145 | 1,689 | ||||||||||
2019 | 1,224 | 27 | 1,251 | ||||||||||
Thereafter | 5 | — | 5 | ||||||||||
Total | $ | 11,478 | $ | 2,032 | $ | 13,510 | |||||||
Goodwill_And_Intangibles_Table
Goodwill And Intangibles (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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 years ended December 31, 2014 and 2013: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Balance at January 1 | $ | 455 | $ | 2,898 | |||||||||||||||||
Adjustment | — | (95 | ) | ||||||||||||||||||
Impairment | — | (2,803 | ) | ||||||||||||||||||
Total goodwill arising from acquisition | — | 455 | |||||||||||||||||||
Balance at December 31 | $ | 455 | $ | 455 | |||||||||||||||||
Intangible Assets | Intangible assets, subject to amortization, consisted of the following: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Weighted- | Gross Carrying | Accumulated | Net Carrying | Weighted- | ||||||||||||||
Amount | Amortization | Amount | Average Lives | Amount | Amortization | Amount | Average Lives | ||||||||||||||
Patents | $ | 6,641 | $ | (4,221 | ) | $ | 2,420 | 6 Years | $ | 4,667 | $ | (4,091 | ) | $ | 576 | 6 Years | |||||
Customer relationships | 3,660 | (3,308 | ) | 352 | 5 Years | 4,112 | (3,324 | ) | 788 | 5 Years | |||||||||||
Production know-how | 6,844 | (2,630 | ) | 4,214 | 8 Years | 7,063 | (1,747 | ) | 5,316 | 8 Years | |||||||||||
Technology, trademark and tradename | 3,315 | (1,074 | ) | 2,241 | 8 Years | 4,271 | (1,387 | ) | 2,884 | 8 Years | |||||||||||
$ | 20,460 | $ | (11,233 | ) | $ | 9,227 | $ | 20,113 | $ | (10,549 | ) | $ | 9,564 | ||||||||
Estimated Future Amortization Expense For Intangibles | The estimated future amortization expense for intangibles as of December 31, 2014 is as follows: | ||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||
$1,783 | $1,686 | $1,686 | $1,621 | $1,033 | $1,418 | $9,227 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income (Loss) Before Impact Of Income Taxes | Income before the impact of income taxes for the years ended December 31 consisted of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. | $ | 72,800 | $ | 59,006 | $ | 58,964 | |||||||
Foreign | 211,674 | 159,295 | 150,251 | ||||||||||
Total | $ | 284,474 | $ | 218,301 | $ | 209,215 | |||||||
Provision For Income Taxes | The Company's provision for income taxes for the years ended December 31 consisted of the following: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | (22,549 | ) | $ | (19,285 | ) | $ | (16,675 | ) | ||||
State | (2,823 | ) | (2,617 | ) | (309 | ) | |||||||
Foreign | (60,143 | ) | (46,787 | ) | (38,941 | ) | |||||||
Total current | $ | (85,515 | ) | $ | (68,689 | ) | $ | (55,925 | ) | ||||
Deferred: | |||||||||||||
Federal | $ | 454 | $ | 3,834 | $ | (2,174 | ) | ||||||
State | 27 | 203 | (140 | ) | |||||||||
Foreign | 1,005 | 2,131 | (3,232 | ) | |||||||||
Total deferred | $ | 1,486 | $ | 6,168 | $ | (5,546 | ) | ||||||
Provision for income taxes | $ | (84,029 | ) | $ | (62,521 | ) | $ | (61,471 | ) | ||||
Reconciliation Of Effective Tax Rate | A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision for the years ended December 31, is as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Tax at statutory rate | $ | (99,867 | ) | $ | (76,406 | ) | $ | (73,225 | ) | ||||
Non-U.S. rate differential — net | 14,590 | 10,761 | 11,744 | ||||||||||
State income taxes — net | (1,787 | ) | (1,512 | ) | (1,527 | ) | |||||||
Effect of changes in enacted tax rates on deferred tax assets and liabilities | (44 | ) | 186 | (617 | ) | ||||||||
Nondeductible stock compensation expense | (483 | ) | (101 | ) | (1,020 | ) | |||||||
Other nondeductible expenses | (2,063 | ) | (1,666 | ) | (794 | ) | |||||||
Federal and state tax credits | 5,865 | 7,500 | 4,623 | ||||||||||
Change in reserves, including interest and penalties | (7 | ) | (1,273 | ) | (243 | ) | |||||||
Change in valuation allowance | — | — | (314 | ) | |||||||||
Other — net | (233 | ) | (10 | ) | (98 | ) | |||||||
$ | (84,029 | ) | $ | (62,521 | ) | $ | (61,471 | ) | |||||
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property, plant and equipment | $ | (5,310 | ) | $ | (2,230 | ) | $ | (3,629 | ) | ||||
Inventory provisions | 10,497 | 8,261 | 7,942 | ||||||||||
Allowances and accrued liabilities | 1,570 | 3,634 | (4,829 | ) | |||||||||
Other tax credits | 726 | 769 | 1,673 | ||||||||||
Deferred compensation | 4,218 | (434 | ) | 3,538 | |||||||||
Net operating loss carryforwards | — | 229 | 5 | ||||||||||
Net deferred tax assets | $ | 11,701 | $ | 10,229 | $ | 4,700 | |||||||
Reconciliation Of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 6,501 | $ | 5,392 | $ | 4,509 | |||||||
Reductions of prior period positions | (795 | ) | (505 | ) | (317 | ) | |||||||
Additions for tax positions in current period | 788 | 1,614 | 1,200 | ||||||||||
Balance at December 31 | $ | 6,494 | $ | 6,501 | $ | 5,392 | |||||||
Open Tax Years By Major Jurisdictions | Open tax years by major jurisdictions are: | ||||||||||||
• United States | 2012 — 2014 | ||||||||||||
• Germany | 2011 — 2014 | ||||||||||||
• Russia | 2010 — 2014 |
Geographic_And_Product_Informa1
Geographic And Product Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Geographic And Product Information [Abstract] | |||||||||||||
Geographic Sources Of Net Sales Based On Billing Addresses Of Customers | The geographic sources of the Company's net sales based on billing addresses of its customers are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States and other North America | $ | 113,233 | $ | 116,935 | $ | 108,316 | |||||||
Europe: | |||||||||||||
Germany | 77,404 | 65,147 | 89,848 | ||||||||||
Other including Eastern Europe/CIS | 173,018 | 140,279 | 110,860 | ||||||||||
Asia and Australia: | |||||||||||||
Japan | 72,573 | 67,981 | 69,576 | ||||||||||
China | 245,102 | 192,134 | 138,782 | ||||||||||
Other | 85,426 | 64,346 | 43,445 | ||||||||||
Rest of World | 3,076 | 1,212 | 1,701 | ||||||||||
Total | $ | 769,832 | $ | 648,034 | $ | 562,528 | |||||||
Net Sales For Product Lines | Net sales for these product lines are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Materials Processing | $ | 731,274 | $ | 608,702 | $ | 492,013 | |||||||
Other applications | 38,558 | 39,332 | 70,515 | ||||||||||
Total | $ | 769,832 | $ | 648,034 | $ | 562,528 | |||||||
Geographic Locations Of Long-Lived Assets, Based On Physical Location Of Assets | The geographic locations of the Company's long-lived assets, net, based on physical location of the assets, as of December 31, 2014, 2013 and 2012, are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
United States | $ | 155,428 | $ | 110,441 | $ | 86,226 | |||||||
Germany | 51,528 | 52,791 | 47,019 | ||||||||||
Russia | 59,612 | 73,747 | 60,151 | ||||||||||
China | 6,582 | 5,895 | 6,424 | ||||||||||
Other | 12,507 | 13,480 | 15,674 | ||||||||||
$ | 285,657 | $ | 256,354 | $ | 215,494 | ||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||
Components Of Selected Quarterly Financial Data | |||||||||||||||||
2014 | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net sales | $ | 170,575 | $ | 192,204 | $ | 199,651 | $ | 207,402 | |||||||||
Gross profit | 89,284 | 104,227 | 109,090 | 113,917 | |||||||||||||
Net income attributable to IPG Photonics Corporation | 40,531 | 48,283 | 55,200 | 56,431 | |||||||||||||
Basic earnings per share | 0.78 | 0.93 | 1.06 | 1.08 | |||||||||||||
Diluted earnings per share | 0.77 | 0.92 | 1.05 | 1.07 | |||||||||||||
2013 | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Net sales | $ | 141,852 | $ | 168,171 | $ | 172,152 | $ | 165,859 | |||||||||
Gross profit | 75,641 | 89,922 | 92,813 | 81,522 | |||||||||||||
Net income attributable to IPG Photonics Corporation | 35,127 | 41,720 | 42,338 | 36,595 | |||||||||||||
Basic earnings per share | 0.68 | 0.81 | 0.82 | 0.71 | |||||||||||||
Diluted earnings per share | 0.67 | 0.8 | 0.81 | 0.7 | |||||||||||||
Nature_Of_Business_And_Summary3
Nature Of Business And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 29, 2012 | |
segment | |||||
Financial_Institution | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, interest cost capitalization | $383,000 | $524,000 | $142,000 | ||
Carrying value of demonstration equipment | 285,657,000 | 256,354,000 | 215,494,000 | ||
Impairment | 0 | 2,803,000 | |||
Bank acceptance drafts included in Accounts Receivable | 25,150,000 | 17,679,000 | |||
Maturity period for bank acceptance drafts | 90 days | ||||
Accrued warranty reported in accrued expenses and other liabilities | 9,489,000 | 7,724,000 | |||
Accrued warranty reported in other long-term liabilities | 9,783,000 | 7,273,000 | |||
Percentage of tax positions to be measured at greatest amount of tax benefit | 50.00% | ||||
High-credit, quality financial institutions | 6 | ||||
Available-for-sale securities | 1,450,000 | 1,450,000 | |||
Accrued contingent purchase consideration | 196,000 | ||||
Number of operating segments | 1 | ||||
Other Income (Expense) | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Accrued contingent purchase consideration | 2,659,000 | ||||
JPSA | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Contingent consideration aggregate fair value | 0 | ||||
Russian Subsidiary, NTO IRE-Polus | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of redeemable noncontrolling interests | 22.50% | ||||
Not Designated as Hedging Instrument | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Outstanding derivative contracts | 0 | ||||
Demonstration Equipment | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Demonstration equipment, useful life (years) | 3 years | ||||
Carrying value of demonstration equipment | 3,612,000 | 5,524,000 | |||
Amortization expenses of equipment | $2,068,000 | $2,725,000 | $2,797,000 | ||
Minimum | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Period for installation completion | 30 days | ||||
Standard product warranty coverage period | 1 year | ||||
Minimum | Intangible Assets | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Economic lives of intangible assets | 5 years | ||||
Maximum | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Period for installation completion | 90 days | ||||
Standard product warranty coverage period | 3 years | ||||
Maximum | Intangible Assets | |||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||||
Economic lives of intangible assets | 10 years |
Nature_Of_Business_And_Summary4
Nature Of Business And Summary Of Significant Accounting Policies (Economic Useful Lives Of Property, Plant And Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Useful life | 30 years |
Minimum | Machinery and equipment | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Useful life | 5 years |
Minimum | Office furniture and fixtures | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Useful life | 3 years |
Maximum | Machinery and equipment | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Useful life | 12 years |
Maximum | Office furniture and fixtures | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Useful life | 5 years |
Nature_Of_Business_And_Summary5
Nature Of Business And Summary Of Significant Accounting Policies (Allowance For Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at January 1 | $2,473 | $2,173 | $1,605 |
Provision for bad debts, net of recoveries | 579 | 323 | 642 |
Uncollectable accounts written off | -617 | -31 | -170 |
Foreign currency translation | -545 | 8 | 96 |
Balance at December 31 | $1,890 | $2,473 | $2,173 |
Nature_Of_Business_And_Summary6
Nature Of Business And Summary Of Significant Accounting Policies (Activity Related To The Warranty Accrual) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at January 1 | $14,997 | $10,714 | $8,631 |
Provision for warranty accrual | 15,449 | 11,363 | 8,112 |
Warranty claims | -9,165 | -7,405 | -6,542 |
Foreign currency translation and other | -2,009 | 325 | 513 |
Balance at December 31 | $19,272 | $14,997 | $10,714 |
Nature_Of_Business_And_Summary7
Nature Of Business And Summary Of Significant Accounting Policies (Assets And Liabilities Measured At Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | $267,139 | $241,279 |
Total liabilities | 249 | 798 |
Level 1 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | 266,011 | 240,159 |
Level 2 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | 151 | 423 |
Level 3 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | 1,128 | 1,120 |
Total liabilities | 98 | 375 |
Cash equivalents | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | 266,011 | 240,159 |
Cash equivalents | Level 1 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | 266,011 | 240,159 |
Auction rate securities | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | 1,128 | 1,120 |
Auction rate securities | Level 3 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total assets | 1,128 | 1,120 |
Contingent purchase consideration | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | 98 | 375 |
Contingent purchase consideration | Level 2 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | 0 | |
Contingent purchase consideration | Level 3 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | 98 | 375 |
Interest rate swap | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | 151 | 423 |
Interest rate swap | Level 2 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | 151 | 423 |
Interest rate swap | Level 3 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Total liabilities | $0 |
Nature_Of_Business_And_Summary8
Nature Of Business And Summary Of Significant Accounting Policies (Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Auction rate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | $1,120 | $1,112 |
Change in fair value and accretion | 8 | 8 |
Balance, December 31 | 1,128 | 1,120 |
Contingent Purchase Consideration | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, January 1 | 375 | 3,023 |
Change in fair value and accretion | -277 | -2,648 |
Balance, December 31 | $98 | $375 |
Nature_Of_Business_And_Summary9
Nature Of Business And Summary Of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Foreign currency translation adjustments | ($112,411) | ($1,677) |
Unrealized loss on derivatives, net of tax of $67 and $168 | -84 | -256 |
Change in carrying value of auction rate securities | 232 | 232 |
Accumulated other comprehensive loss | -112,263 | -1,701 |
Unrealized loss on derivatives, tax | $67 | $168 |
Recovered_Sheet1
Nature Of Business And Summary Of Significant Accounting Policies (Fair Value Of Cash Flow Hedges) (Details) (Interest rate swap, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Notional amount of derivatives | $11,333,000 | [1] | $12,666,000 | [1] |
Other Assets | ||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Derivative asset fair value | 0 | 0 | ||
Other Current Liabilities | ||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Derivative liability fair value | 151,000 | [2] | 0 | [2] |
Deferred Income Taxes And Other Long-Term Liabilities | ||||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||
Derivative liability fair value | $0 | [2] | $423,000 | [2] |
[1] | Notional amounts represent the gross contract/notional amount of the derivative outstanding. | |||
[2] | As of DecemberB 31, 2014, the remaining balance of the U.S. long-term note outstanding is considered current because the term of the note expires in June 2015. Accordingly, the interest rate swap liability has been reclassified. |
Recovered_Sheet2
Nature Of Business And Summary Of Significant Accounting Policies (Derivative Gains And Losses In The Consolidated Statements Of Income) (Details) (Interest rate swap, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest rate swap | |||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Effective portion recognized in other comprehensive (loss) income, pretax: | $567 | $881 | $944 |
Effective portion reclassified from other comprehensive (loss) income to interest expense, pretax: | -295 | -449 | -576 |
Ineffective portion recognized in income: | $0 | $0 | $0 |
StockBased_Compensation_Compon
Stock-Based Compensation (Components Of Stock Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $15,172 | $11,720 | $8,565 |
Tax benefit recognized | -4,865 | -3,784 | -2,629 |
Net stock-based compensation | 10,307 | 7,936 | 5,936 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 4,153 | 3,187 | 2,184 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,567 | 1,195 | 1,052 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 3,033 | 1,929 | 1,327 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $6,419 | $5,409 | $4,002 |
StockBased_Compensation_Weight
Stock-Based Compensation (Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility, minimum | 48.00% | 51.00% | 49.00% |
Volatility, maximum | 51.00% | 54.00% | 56.00% |
Risk free rate of return, minimum | 1.46% | 0.74% | 0.59% |
Risk free rate of return, maximum | 1.84% | 1.32% | 1.23% |
Dividend yield | 0.25% | 0.25% | 0.00% |
Forfeiture rate, minimum | 3.04% | 0.00% | 0.00% |
Forfeiture rate, maximum | 5.86% | 5.97% | 6.10% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 4 years 8 months | 4 years 4 months | 4 years |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 6 years 1 month | 6 years 3 months | 6 years 7 months 6 days |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2000 | Dec. 31, 2011 | Feb. 28, 2006 | Jun. 30, 2006 |
plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of plans | 3 | ||||||
Shares available for future grant | 5,491,656 | ||||||
Intrinsic value of options exercised | $23,491 | $30,063 | $20,792 | ||||
Weighted-average grant fair value for options granted | $39.12 | $28.28 | $26.80 | ||||
Compensation cost related to nonvested awards not yet recorded | 27,310 | ||||||
Nonvested awards, weighted average recognition period | 2 years 4 months 24 days | ||||||
Fair value of awards vested | $7,076 | ||||||
2000 Incentive Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved under plan | 5,833,333 | ||||||
2006 Incentive Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved under plan | 6,084,273 | 4,000,000 | |||||
Non Employee Directors Stock Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares reserved under plan | 486,660 | ||||||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting Period | 1 year | ||||||
Period until expiration | 7 years | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting Period | 5 years | ||||||
Period until expiration | 10 years |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary Of Option Activity) (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Options Outstanding, Beginning Balance | 2,674,897 |
Number of Options, Granted | 463,289 |
Number of Options, Exercised | -414,775 |
Number of Options, Forfeited | -31,535 |
Number of Options Outstanding, Ending Balance | 2,691,876 |
Number of Options, Vested or expected to vest | 2,554,160.37 |
Number of Options, Exercisable | 1,027,303 |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $37.63 |
Weighted-Average Exercise Price, Granted | $70.67 |
Weighted-Average Exercise Price, Exercised | $16.97 |
Weighted-Average Exercise Price, Forfeited | $62.94 |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $45.48 |
Weighted-Average Exercise Price, Vested or expected to vest | $44.58 |
Weighted-Average Exercise Price, Exercisable | $24.29 |
Weighted-Average Remaining Contractual Life (In Years), Outstanding | 6 years 7 months 13 days |
Weighted-Average Remaining Contractual Life (In Years), Vested or expected to vest | 6 years 6 months 11 days |
Weighted-Average Remaining Contractual Life (In Years), Exercisable | 4 years 9 months 29 days |
Aggregate Intrinsic Value, Outstanding | $88,500 |
Aggregate Intrinsic Value, Vested or expected to vest | 85,697 |
Aggregate Intrinsic Value, Exercisable | $52,018 |
Inventories_Components_Of_Inve
Inventories (Components Of Inventories) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | |||
Components and raw materials | $54,925 | $54,539 | |
Work-in-process | 58,603 | 64,927 | |
Finished goods | 57,481 | 53,234 | |
Total | 171,009 | 172,700 | |
Inventory provisions | $11,302 | $15,128 | $8,232 |
Property_Plant_And_Equipment_C
Property, Plant, And Equipment (Components Of Property, Plant, And Equipment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $439,053 | $403,728 | |
Accumulated depreciation | -163,971 | -151,483 | |
Total property, plant and equipment b net | 275,082 | 252,245 | |
Depreciation expense | 31,334 | 26,489 | 21,108 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 19,248 | 15,448 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 144,629 | 146,730 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 202,075 | 165,050 | |
Office furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 25,816 | 23,589 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $47,285 | $52,911 |
Accrued_Expenses_And_Other_Lia2
Accrued Expenses And Other Liabilities (Components Of Accrued Expenses And Other Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation | $31,673 | $25,727 |
Customer deposits and deferred revenue | 16,605 | 18,489 |
Current portion of accrued warranty | 9,489 | 7,724 |
Other | 6,290 | 7,396 |
Total | $64,057 | $59,336 |
Financing_Arrangements_Borrowi
Financing Arrangements (Borrowings Under Existing Financing Arrangements) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Total drawings under credit facility | $2,631,000 | $3,296,000 |
Less: current portion | -13,333,000 | -1,333,000 |
Total long-term debt | 19,667,000 | 11,333,000 |
European overdraft facilities | ||
Debt Instrument [Line Items] | ||
Total drawings under credit facility | 828,000 | 1,038,000 |
Euro line of credit | ||
Debt Instrument [Line Items] | ||
Total drawings under credit facility | 1,803,000 | 2,258,000 |
U.S. long-term note | ||
Debt Instrument [Line Items] | ||
Total drawings under credit facility | 11,333,000 | 12,666,000 |
Collateralized long-term note | ||
Debt Instrument [Line Items] | ||
Total drawings under credit facility | $21,667,000 | $0 |
Financing_Arrangements_Narrati
Financing Arrangements (Narrative) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | ||
USD ($) | USD ($) | Interest rate swap | Interest rate swap | Long Term Note | U.S. Line Of Credit | Euro Line Of Credit | Euro Line Of Credit | Euro Line Of Credit | Euro Line Of Credit | Euro Line Of Credit | Euro Line Of Credit | Euro Overdraft Facilities | Euro Overdraft Facilities | European overdraft facilities | European overdraft facilities | U.S. long-term note | Minimum | Minimum | Maximum | Maximum | Foreign Subsidiaries | Interest rate swap | Extended Term | |||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Russia | Germany | China | Italy | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | U.S. Line Of Credit | U.S. long-term note | U.S. Line Of Credit | U.S. long-term note | U.S. Line Of Credit | U.S. long-term note | U.S. long-term note | |||||
USD ($) | USD ($) | USD ($) | USD ($) | credit_line | USD ($) | |||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||
Aggregate available principal under credit facility | $35,000,000 | $36,466,000 | € 30,000,000 | $19,448,000 | $9,724,000 | $3,647,000 | $3,647,000 | $608,000 | € 500,000 | $1,823,000 | € 1,500,000 | |||||||||||||||
Percentage over LIBOR | 1.13% | 0.90% | 1.63% | 1.30% | ||||||||||||||||||||||
Total drawings under credit facility | 2,631,000 | 3,296,000 | 395,000 | 433,000 | 14,100,000 | |||||||||||||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 87,000 | 4,309,000 | ||||||||||||||||||||||||
Aggregate remaining availability | 34,913,000 | 30,354,000 | 213,000 | 1,390,000 | ||||||||||||||||||||||
Interest rate on credit facility | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||||||||||||||
Number of credit lines | 2 | 2 | ||||||||||||||||||||||||
Monthly principal payments | 167,000 | 111,000 | ||||||||||||||||||||||||
Convertible interest rate percentage | 5.00% | 2.57% | ||||||||||||||||||||||||
Debt service coverage ratio | 1.5 | |||||||||||||||||||||||||
Outstanding derivative contracts | $11,333,000 | [1] | $12,666,000 | [1] | ||||||||||||||||||||||
Interest rate percentage | 2.81% | |||||||||||||||||||||||||
[1] | Notional amounts represent the gross contract/notional amount of the derivative outstanding. |
Redeemable_Noncontrolling_Inte1
Redeemable Noncontrolling Interests and Stockholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 29, 2012 |
Noncontrolling Interest [Line Items] | ||||
Net income (loss) attributable to NCI | $0 | $0 | $2,740 | |
Common stock, shares authorized | 175,000,000 | 175,000,000 | ||
Common stock, par value | $0.00 | $0.00 | ||
Preferred stock, shares authorized | 5,000,000 | |||
Preferred stock, par value | $0.00 | |||
Shares of preferred stock outstanding | 0 | |||
Russian Subsidiary, NTO IRE-Polus | ||||
Noncontrolling Interest [Line Items] | ||||
Percentage of noncontrolling interest | 22.50% |
RelatedParty_Transactions_Deta
Related-Party Transactions (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | |
director | director | ||
Purchased Parts and Services from Company which Outside Director is Affiliated | |||
Related Party Transaction [Line Items] | |||
Number of directors | 1 | 1 | |
Payments to suppliers | $3,687,000 | $130,000 | |
Purchased Parts and Services from Company which Outside Director is Affiliated | Director | |||
Related Party Transaction [Line Items] | |||
Accounts payable due to company | 0 | 1,155,000 | |
Leased Office Space | CEO and Chairman of the Board | Office space | |||
Related Party Transaction [Line Items] | |||
Area of office space | 12,000 | ||
Annual lease payments | 232,000 | ||
Annual increase in lease payments (percentage) | 2.50% | ||
Amount paid in transaction | 20,000 | ||
Leased Aircraft | CEO and Chairman of the Board | Aircraft | |||
Related Party Transaction [Line Items] | |||
Annual lease payments | 684,000 | ||
Amount paid in transaction | 146,000 | ||
Percentage of aircraft | 25.00% | ||
Products and Services sold to Affiliated Entity | CEO and Chairman of the Board | |||
Related Party Transaction [Line Items] | |||
Related party revenue | $2,731,000 | ||
Ownership percentage in Laser Center | 39.00% |
Net_Income_Attributable_To_IPG2
Net Income Attributable To IPG Photonics Corporation Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to IPG Photonics Corporation | $56,431 | $55,200 | $48,283 | $40,531 | $36,595 | $42,338 | $41,720 | $35,127 | $200,445 | $155,780 | $145,004 |
Adjustments to redemption value of redeemable NCI | 0 | 0 | 493 | ||||||||
Net income attributable to common stockholders | $200,445 | $155,780 | $145,497 | ||||||||
Weighted average shares (shares) | 52,104 | 51,548 | 50,477 | ||||||||
Dilutive effect of common stock equivalents (shares) | 720 | 827 | 1,059 | ||||||||
Diluted weighted average common shares | 52,824 | 52,375 | 51,536 | ||||||||
Basic net income attributable to IPG Photonics Corporation per share (in dollars per share) | $3.85 | $3.02 | $2.86 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests (in dollars per share) | $0 | $0 | $0.01 | ||||||||
Basic net income attributable to common stockholders (in dollars per share) | $1.08 | $1.06 | $0.93 | $0.78 | $0.71 | $0.82 | $0.81 | $0.68 | $3.85 | $3.02 | $2.87 |
Diluted net income attributable to IPG Photonics Corporation per share (in dollars per share) | $3.79 | $2.97 | $2.80 | ||||||||
Adjustments to redemption value of redeemable noncontrolling interests (in dollars per share) | $0 | $0 | $0.01 | ||||||||
Diluted net income attributable to common stockholders (in dollars per share) | $1.07 | $1.05 | $0.92 | $0.77 | $0.70 | $0.81 | $0.80 | $0.67 | $3.79 | $2.97 | $2.81 |
Options excluded from computation of diluted weighted average common shares | 46,987 | 322,301 | 164,858 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
patent | ||||
Other Commitments [Line Items] | ||||
Operating lease, rent expense | $5,516 | $4,560 | $3,885 | |
Purchase obligations | 22,288 | 3,371 | ||
Number of patents | 1 | |||
Members of senior management | ||||
Other Commitments [Line Items] | ||||
Period for terms of employment agreement | 3 years | |||
Agreement to purchase certain intellectual property and know-how related to laser based systems | ||||
Other Commitments [Line Items] | ||||
Purchase obligations | $4,500 |
Recovered_Sheet3
Commitments and Contingencies (Commitments Under Noncancelable Lease Agreements) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $4,390 |
2016 | 3,348 |
2017 | 2,827 |
2018 | 1,689 |
2019 | 1,251 |
Thereafter | 5 |
Total | 13,510 |
Facilities | |
Operating Leased Assets [Line Items] | |
2015 | 3,439 |
2016 | 2,775 |
2017 | 2,491 |
2018 | 1,544 |
2019 | 1,224 |
Thereafter | 5 |
Total | 11,478 |
Equipment | |
Operating Leased Assets [Line Items] | |
2015 | 951 |
2016 | 573 |
2017 | 336 |
2018 | 145 |
2019 | 27 |
Thereafter | 0 |
Total | $2,032 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Shares available for issuance | 5,491,656 | ||
401 (K) Retirement Savings Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Percentage of matching contribution by employee | 50.00% | ||
Percentage of eligible compensation for employee contribution | 6.00% | ||
Compensation Expense | $1,445 | $1,127 | $848 |
Employee Stock Purchase Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Percentage of discount on stock purchase price | 15.00% | ||
Purchase period | 6 months | ||
Maximum percentage of payroll deduction of employees compensation | 10.00% | ||
Compensation expense related to employee stock purchase plan | $607 | $498 | $452 |
Shares available for issuance | 389,314,000 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 13, 2013 | Aug. 31, 2012 | Dec. 31, 2012 | |
Review_Period | |||||
Business Acquisition [Line Items] | |||||
Goodwill balance | $455,000 | $455,000 | $2,898,000 | ||
Total goodwill arising from acquisition | 0 | 455,000 | |||
Mobius Photonics | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible asset | 4,480,000 | ||||
Estimated useful life | 7 years | ||||
JPSA | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible asset | 3,400,000 | ||||
Goodwill balance | 0 | ||||
Total goodwill arising from acquisition | 2,898,000 | ||||
Contingent consideration, number of review periods | 2 | ||||
Contingent consideration, duration of review period | 1 year | ||||
Total possible additional payouts under earn-outs | 18,500,000 | ||||
Contingent consideration aggregate fair value | 0 | ||||
Production know-how | JPSA | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible asset | $2,400,000 | ||||
Estimated useful life | 10 years | ||||
Customer relationships | JPSA | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 10 years | ||||
Noncompete Agreements | JPSA | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 5 years | ||||
Trade Names | JPSA | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 7 years |
Goodwill_And_Intangibles_Chang
Goodwill And Intangibles (Changes In The Carrying Amount Of Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Balance at January 1 | $455 | $2,898 |
Adjustment | 0 | -95 |
Impairment | 0 | -2,803 |
Total goodwill arising from acquisition | 0 | 455 |
Balance at December 31 | $455 | $455 |
Goodwill_And_Intangibles_Narra
Goodwill And Intangibles (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Goodwill balance | $455,000 | $455,000 | $2,898,000 | |
Goodwill adjustment | 0 | 95,000 | ||
Total goodwill arising from acquisition | 0 | 455,000 | ||
Amortization expense of intangibles | 2,210,000 | 2,310,000 | 2,091,000 | |
IPG Microsystems | ||||
Business Acquisition [Line Items] | ||||
Goodwill balance | 0 | |||
Patents | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible asset | $2,000,000 |
Goodwill_And_Intangibles_Intan
Goodwill And Intangibles (Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $20,460 | $20,113 |
Accumulated Amortization | -11,233 | -10,549 |
Net Carrying Amount | 9,227 | 9,564 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,641 | 4,667 |
Accumulated Amortization | -4,221 | -4,091 |
Net Carrying Amount | 2,420 | 576 |
Weighted- Average Lives | 6 years | 6 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,660 | 4,112 |
Accumulated Amortization | -3,308 | -3,324 |
Net Carrying Amount | 352 | 788 |
Weighted- Average Lives | 5 years | 5 years |
Production know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,844 | 7,063 |
Accumulated Amortization | -2,630 | -1,747 |
Net Carrying Amount | 4,214 | 5,316 |
Weighted- Average Lives | 8 years | 8 years |
Technology, trademark and tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,315 | 4,271 |
Accumulated Amortization | -1,074 | -1,387 |
Net Carrying Amount | $2,241 | $2,884 |
Weighted- Average Lives | 8 years | 8 years |
Goodwill_And_Intangibles_Estim
Goodwill And Intangibles (Estimated Future Amortization Expense For Intangibles) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $1,783 | |
2016 | 1,686 | |
2017 | 1,686 | |
2018 | 1,621 | |
2019 | 1,033 | |
Thereafter | 1,418 | |
Net Carrying Amount | $9,227 | $9,564 |
Income_Taxes_Income_Loss_Befor
Income Taxes (Income (Loss) Before Impact Of Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. | $72,800 | $59,006 | $58,964 |
Foreign | 211,674 | 159,295 | 150,251 |
INCOME BEFORE PROVISION FOR INCOME TAXES | $284,474 | $218,301 | $209,215 |
Income_Taxes_Provision_For_Inc
Income Taxes (Provision For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal, current | ($22,549) | ($19,285) | ($16,675) |
State, current | -2,823 | -2,617 | -309 |
Foreign, current | -60,143 | -46,787 | -38,941 |
Total current | -85,515 | -68,689 | -55,925 |
Federal, deferred | 454 | 3,834 | -2,174 |
State, deferred | 27 | 203 | -140 |
Foreign, deferred | 1,005 | 2,131 | -3,232 |
Total deferred | 1,486 | 6,168 | -5,546 |
Provision for income taxes | ($84,029) | ($62,521) | ($61,471) |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | ($99,867) | ($76,406) | ($73,225) |
Non-U.S. rate differential b net | 14,590 | 10,761 | 11,744 |
State income taxes b net | -1,787 | -1,512 | -1,527 |
Effect of changes in enacted tax rates on deferred tax assets and liabilities | -44 | 186 | -617 |
Nondeductible stock compensation expense | -483 | -101 | -1,020 |
Other nondeductible expenses | -2,063 | -1,666 | -794 |
Federal and state tax credits | 5,865 | 7,500 | 4,623 |
Change in reserves, including interest and penalties | -7 | -1,273 | -243 |
Change in valuation allowance | 0 | 0 | -314 |
Other b net | -233 | -10 | -98 |
Provision for income taxes | ($84,029) | ($62,521) | ($61,471) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Income Tax Disclosure [Abstract] | |||
Property, plant and equipment | ($5,310) | ($2,230) | ($3,629) |
Inventory provisions | 10,497 | 8,261 | 7,942 |
Allowances and accrued liabilities | 1,570 | 3,634 | -4,829 |
Other tax credits | 726 | 769 | 1,673 |
Deferred compensation | 4,218 | -434 | 3,538 |
Net operating loss carryforwards | 0 | 229 | 5 |
Net deferred tax assets | $11,701 | $10,229 | $4,700 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Tax Credit Carryforward [Line Items] | |||
Cumulative unremitted earnings that are reinvested | $522,000 | $346,000 | |
Estimated penalties and interest related to the underpayment of income taxes | -192 | 374 | 352 |
Accrued penalties and interest related to the underpayment of income taxes | 670 | 862 | |
UK | Foreign Tax Authority | |||
Tax Credit Carryforward [Line Items] | |||
Net operating loss carry-forwards available for future periods | 2,509 | ||
State | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carry forward amount | $1,225 | $2,074 | $1,419 |
Income_Taxes_Reconciliation_Of1
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $6,501 | $5,392 | $4,509 |
Reductions of prior period positions | -795 | -505 | -317 |
Additions for tax positions in current period | 788 | 1,614 | 1,200 |
Balance at December 31 | $6,494 | $6,501 | $5,392 |
Income_Taxes_Open_Tax_Years_By
Income Taxes (Open Tax Years By Major Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | United States | |
Income Tax Contingency [Line Items] | |
Open tax years by major jurisdictions | 2012 |
Minimum | Germany | |
Income Tax Contingency [Line Items] | |
Open tax years by major jurisdictions | 2011 |
Minimum | Russia | |
Income Tax Contingency [Line Items] | |
Open tax years by major jurisdictions | 2010 |
Maximum | United States | |
Income Tax Contingency [Line Items] | |
Open tax years by major jurisdictions | 2014 |
Maximum | Germany | |
Income Tax Contingency [Line Items] | |
Open tax years by major jurisdictions | 2014 |
Maximum | Russia | |
Income Tax Contingency [Line Items] | |
Open tax years by major jurisdictions | 2014 |
Geographic_And_Product_Informa2
Geographic And Product Information (Geographic Sources Of Net Sales Based On Billing Addresses Of Customers) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Geographic And Product Information [Line Items] | |||||||||||
Net sales | $207,402 | $199,651 | $192,204 | $170,575 | $165,859 | $172,152 | $168,171 | $141,852 | $769,832 | $648,034 | $562,528 |
United States and other North America | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | 113,233 | 116,935 | 108,316 | ||||||||
Germany | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | 77,404 | 65,147 | 89,848 | ||||||||
Other including Eastern Europe/CIS | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | 173,018 | 140,279 | 110,860 | ||||||||
Japan | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | 72,573 | 67,981 | 69,576 | ||||||||
China | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | 245,102 | 192,134 | 138,782 | ||||||||
Asia and Australia: | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | 85,426 | 64,346 | 43,445 | ||||||||
Rest of World | |||||||||||
Geographic And Product Information [Line Items] | |||||||||||
Net sales | $3,076 | $1,212 | $1,701 |
Geographic_And_Product_Informa3
Geographic And Product Information (Net Sales For Product Lines) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Information [Line Items] | |||||||||||
Net sales | $207,402 | $199,651 | $192,204 | $170,575 | $165,859 | $172,152 | $168,171 | $141,852 | $769,832 | $648,034 | $562,528 |
Materials Processing | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 731,274 | 608,702 | 492,013 | ||||||||
Other applications | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | $38,558 | $39,332 | $70,515 |
Geographic_And_Product_Informa4
Geographic And Product Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
customer | customer | ||
Concentration Risk [Line Items] | |||
Number of customers | 1 | 1,000 | |
Number of largest customers, sales | 5 | ||
Net sales by largest customers, percentage | 23.00% | 21.00% | 16.00% |
Sales | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 11.00% |
Geographic_And_Product_Informa5
Geographic And Product Information (Geographic Locations Of Our Long-Lived Assets, Based On Physical Location Of Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Geographic And Product Information [Line Items] | |||
Long-lived assets | $285,657 | $256,354 | $215,494 |
United States | |||
Geographic And Product Information [Line Items] | |||
Long-lived assets | 155,428 | 110,441 | 86,226 |
Germany | |||
Geographic And Product Information [Line Items] | |||
Long-lived assets | 51,528 | 52,791 | 47,019 |
Russia | |||
Geographic And Product Information [Line Items] | |||
Long-lived assets | 59,612 | 73,747 | 60,151 |
China | |||
Geographic And Product Information [Line Items] | |||
Long-lived assets | 6,582 | 5,895 | 6,424 |
Other | |||
Geographic And Product Information [Line Items] | |||
Long-lived assets | $12,507 | $13,480 | $15,674 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Components Of Selected Quarterly Financial Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net sales | $207,402 | $199,651 | $192,204 | $170,575 | $165,859 | $172,152 | $168,171 | $141,852 | $769,832 | $648,034 | $562,528 |
Gross profit | 113,917 | 109,090 | 104,227 | 89,284 | 81,522 | 92,813 | 89,922 | 75,641 | 416,518 | 339,898 | 304,727 |
Net income attributable to IPG Photonics Corporation | $56,431 | $55,200 | $48,283 | $40,531 | $36,595 | $42,338 | $41,720 | $35,127 | $200,445 | $155,780 | $145,004 |
Basic earnings per share | $1.08 | $1.06 | $0.93 | $0.78 | $0.71 | $0.82 | $0.81 | $0.68 | $3.85 | $3.02 | $2.87 |
Diluted earnings per share | $1.07 | $1.05 | $0.92 | $0.77 | $0.70 | $0.81 | $0.80 | $0.67 | $3.79 | $2.97 | $2.81 |