IPG Photonics (IPGP) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017
Entity Registrant Name	IPG PHOTONICS CORP
Entity Central Index Key	1,111,928
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		53,825,548

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 808,111	$ 623,855
Short-term investments	122,304	206,779
Accounts receivable, net	237,332	155,901
Inventories	260,661	239,010
Prepaid income taxes	37,912	34,128
Prepaid expenses and other current assets	44,454	41,289
Total current assets	1,510,774	1,300,962
DEFERRED INCOME TAXES, NET	47,843	42,442
GOODWILL	28,728	19,828
INTANGIBLE ASSETS, NET	32,294	28,789
PROPERTY, PLANT AND EQUIPMENT, NET	389,853	379,375
OTHER ASSETS	21,050	18,603
TOTAL	2,030,542	1,789,999
CURRENT LIABILITIES:
Current portion of long-term debt	1,188	3,188
Accounts payable	28,996	28,048
Accrued expenses and other liabilities	116,499	102,485
Income taxes payable	10,102	24,554
Total current liabilities	156,785	158,275
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES	48,025	36,365
LONG-TERM DEBT, NET OF CURRENT PORTION	21,375	37,635
Total liabilities	226,185	232,275
COMMITMENTS AND CONTINGENCIES (NOTE 12)
IPG PHOTONICS CORPORATION EQUITY:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 53,793,622 and 53,492,316 shares issued and outstanding, respectively, at June 30, 2017; 53,354,579 and 53,251,805 shares issued and outstanding, respectively, at December 31, 2016	5	5
Treasury stock, at cost (301,306 and 102,774 shares held)	(33,058)	(8,946)
Additional paid-in capital	681,263	650,974
Retained earnings	1,275,314	1,094,108
Accumulated other comprehensive loss	(119,167)	(178,583)
Total IPG Photonics Corporation equity	1,804,357	1,557,558
NONCONTROLLING INTERESTS	0	166
Total equity	1,804,357	1,557,724
TOTAL	$ 2,030,542	$ 1,789,999

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	175,000,000	175,000,000
Common stock, shares issued (in shares)	53,793,622	53,354,579
Common stock, shares outstanding (in shares)	53,492,316	53,251,805
Treasury stock, shares (in shares)	301,306	102,774

Consolidated Statements Of Inco

Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
NET SALES	$ 369,373	$ 252,787	$ 655,219	$ 460,035
COST OF SALES	163,077	115,084	291,656	207,921
GROSS PROFIT	206,296	137,703	363,563	252,114
OPERATING EXPENSES:
Sales and marketing	12,136	9,689	22,963	17,723
Research and development	25,960	18,412	48,740	35,901
General and administrative	19,875	16,151	37,601	30,052
Loss (gain) on foreign exchange	7,183	(1,556)	11,636	3,411
Total operating expenses	65,154	42,696	120,940	87,087
OPERATING INCOME	141,142	95,007	242,623	165,027
OTHER INCOME (EXPENSE), Net:
Interest income, net	468	270	776	462
Other income (expense), net	23	141	(506)	148
Total other income (expense)	491	411	270	610
INCOME BEFORE PROVISION FOR INCOME TAXES	141,633	95,418	242,893	165,637
PROVISION FOR INCOME TAXES	(37,530)	(28,387)	(63,858)	(49,277)
NET INCOME	104,103	67,031	179,035	116,360
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(13)	(27)	(26)	(25)
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION	$ 104,116	$ 67,058	$ 179,061	$ 116,385
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE:
Basic (in dollars per share)	$ 1.95	$ 1.26	$ 3.35	$ 2.20
Diluted (in dollars per share)	$ 1.91	$ 1.25	$ 3.29	$ 2.17
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic (in shares)	53,380	53,065	53,403	52,981
Diluted (in shares)	54,471	53,788	54,450	53,705

Consolidated Statements Of Comp

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 104,103	$ 67,031	$ 179,035	$ 116,360
Other comprehensive income, net of tax:
Translation adjustments	32,522	(3,615)	59,221	24,880
Unrealized (loss) gain on derivatives	(30)	151	(46)	151
Loss on available-for-sale investments, net of tax reclassified to net income	0	0	298	0
Total other comprehensive loss	32,492	(3,464)	59,473	25,031
Comprehensive income	136,595	63,567	238,508	141,391
Comprehensive loss attributable to noncontrolling interest	(37)	(19)	(26)	(13)
Comprehensive income attributable to IPG Photonics Corporation	$ 136,632	$ 63,586	$ 238,534	$ 141,404

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 179,035	$ 116,360
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	29,714	23,653
Deferred income taxes	4,533	(9,268)
Stock-based compensation	11,059	10,436
Unrealized (gains) losses on foreign currency transactions	5,538	2,240
Other	688	294
Provisions for inventory, warranty & bad debt	22,754	20,459
Changes in assets and liabilities that (used) provided cash:
Accounts receivable	(73,634)	2,885
Inventories	(25,820)	(34,668)
Prepaid expenses and other current assets	(2,768)	(652)
Accounts payable	1,914	(8,441)
Accrued expenses and other liabilities	2,102	(4,341)
Income and other taxes payable	(22,013)	(10,653)
Net cash provided by operating activities	133,102	108,304
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of and deposits on property, plant and equipment	(43,632)	(70,863)
Proceeds from sales of property, plant and equipment	15,284	184
Purchases of short-term investments	(71,244)	(62,211)
Proceeds from short-term investments	156,171	41,720
Acquisition of businesses, net of cash acquired	(11,307)	(46,527)
Other	(568)	72
Net cash provided by (used in) investing activities	44,704	(137,625)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from line-of-credit facilities	6,761	4,002
Payments on line-of-credit facilities	(6,761)	(4,002)
Purchase of noncontrolling interests	(197)	(950)
Proceeds on long-term borrowings	0	23,750
Principal payments on long-term borrowings	(18,260)	(1,000)
Proceeds from issuance of common stock under employee stock option and purchase plans less payments for taxes related to net share settlement of equity awards	17,152	8,579
Purchase of treasury stock, at cost	(24,112)	0
Net cash (used in) provided by financing activities	(25,417)	30,379
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS	31,867	3,696
NET INCREASE IN CASH AND CASH EQUIVALENTS	184,256	4,754
CASH AND CASH EQUIVALENTS — Beginning of period	623,855	582,532
CASH AND CASH EQUIVALENTS — End of period	808,111	587,286
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	975	349
Cash paid for income taxes	80,956	66,478
Non-cash transactions:
Demonstration units transferred from inventory to other assets	1,845	1,746
Inventory transferred to machinery and equipment	1,531	1,129
(Reductions) additions to property, plant and equipment included in accounts payable	$ (1,892)	$ 806

Consolidated Statements Of Equi

Consolidated Statements Of Equity - USD ($) $ in Thousands	Total	COMMON STOCK	TREASURY STOCK	ADDITIONAL PAID-IN CAPITAL	RETAINED EARNINGS	ACCUMULATED OTHER COMPREHENSIVE LOSS	TOTAL IPG PHOTONICS CORPORATION EQUITY	NONCONTROLLING INTERESTS (NCI)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Effect of adopted accounting standards				$ 0	$ 0
Balance, beginning of year (in shares) at Dec. 31, 2015		52,883,902	0
Balance, beginning of year at Dec. 31, 2015		$ 5	$ 0	607,649	833,356	$ (181,482)		$ 1,137
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		244,895
Exercise of stock options		$ 0		10,316
Common stock issued under employee stock purchase plan (in shares)		19,015
Common stock issued under employee stock purchase plan		$ 0		1,293
Purchased common stock (in shares)		0	0
Purchased common stock		$ 0	$ 0
Stock-based compensation				10,436
Net income attributable to IPG Photonics Corporation	$ 116,385				116,385
Translation adjustments	24,880					24,880
Change in unrealized (loss) gain on derivatives, net of tax	151					151
Unrealized loss on available-for-sale investments, net of tax	0					0
Realized loss on available-for-sale investments, net of tax, reclassified to net income						0
Purchase of NCI								(950)
Net loss attributable to NCI	(25)							(25)
Other comprehensive income attributable to NCI	(13)							12
Balance, end of period (in shares) at Jun. 30, 2016		53,147,812	0
Balance, end of period at Jun. 30, 2016	1,423,163	$ 5	$ 0	629,694	949,741	(156,451)	$ 1,422,989	174
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Effect of adopted accounting standards				2,078	2,145
Balance, beginning of year (in shares) at Dec. 31, 2016		53,251,805	102,774
Balance, beginning of year at Dec. 31, 2016	1,557,724	$ 5	$ (8,946)	650,974	1,094,108	(178,583)		166
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)		419,161
Exercise of stock options		$ 0		15,483
Common stock issued under employee stock purchase plan (in shares)		19,882
Common stock issued under employee stock purchase plan		$ 0		1,669
Purchased common stock (in shares)		(198,532)	(198,532)
Purchased common stock		$ 0	$ (24,112)
Stock-based compensation				11,059
Net income attributable to IPG Photonics Corporation	179,061				179,061
Translation adjustments	59,221					59,164
Change in unrealized (loss) gain on derivatives, net of tax	(46)					(46)
Unrealized loss on available-for-sale investments, net of tax	298					(240)
Realized loss on available-for-sale investments, net of tax, reclassified to net income						538
Purchase of NCI								(197)
Net loss attributable to NCI	(26)							(26)
Other comprehensive income attributable to NCI	(26)							57
Balance, end of period (in shares) at Jun. 30, 2017		53,492,316	301,306
Balance, end of period at Jun. 30, 2017	$ 1,804,357	$ 5	$ (33,058)	$ 681,263	$ 1,275,314	$ (119,167)	$ 1,804,357	$ 0

Basis Of Presentation

Basis Of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis Of Presentation	BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared by IPG Photonics Corporation, or "IPG", "its" or the "Company". Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of the Company's management, the unaudited financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash flows. The results reported in these consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Pronouncement In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805)" ("ASU 2017-01"). ASU 2017-01 revises the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for public companies for annual reporting periods beginning after December 15, 2017, and interim reporting periods within such period. The amendments should be applied prospectively on or after the effective date. No disclosures are required at transition. Early application generally is allowed for transactions that have not been reported in financial statements which have been issued or made available for issuance. The Company has elected to early adopt this standard, and it did not have a material effect on its consolidated financial statements upon adoption. Recently Issued Accounting Pronouncements In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 amends ASC Topic 718 to better define what constitutes a modification of a share-based payment award by defining criteria that must be met for changes to a share-based payment award to not qualify as a modification. Changes to a share-based payment award must be accounted for as a modification under ASC Topic 718 unless all the newly defined criteria are met. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, which would be the Company's fiscal year ending December 31, 2018. The Company is currently evaluating the potential impact that the standard will have on its consolidated financial statements upon adoption. In February 2017, the FASB issued ASU No. 2017-05, "Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)" ("ASU 2017-05"). ASU 2017-05 was issued in conjunction with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), to clarify guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The new guidance clarifies what constitutes an "in substance nonfinancial asset" and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business. The amendments should be applied at the same time as those in ASU 2014-09 with interim and annual reporting periods beginning after December 15, 2017, which would be the Company's fiscal year ending December 31, 2018. The Company is currently evaluating the potential impact that the standard will have on its consolidated financial statements upon adoption. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350)" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. ASU 2017-04 is effective for public companies for annual reporting periods beginning after December 15, 2020, and interim reporting periods within such period. The amendments should be applied prospectively on or after the effective date and require a disclosure as to the nature of and reason for the change in accounting principle upon transition. Early adoption is allowed for all entities as of January 1, 2017, for annual and any interim impairment tests occurring after January 1, 2017. The Company is currently evaluating the potential impact that the standard will have on its consolidated financial statements upon adoption. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740) - Intra-Entity Transfers of Assets other than Inventory" ("ASU 2016-16"). ASU 2016-16 eliminates the current exception that prohibits the recognition of current and deferred income tax consequences for intra-entity asset transfers (other than inventory) until the asset has been sold to an outside party. The amendments will be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings. Deferred tax assets should be assessed to determine if realizable. Disclosures will be required for the (i) reason for and notice of change, (ii) effect of change on income from continuing operations and (iii) cumulative effect of change on retained earnings. Public entities will apply these changes in annual reporting periods beginning after December 15, 2017, and interim reporting periods within such period. Early adoption is permitted. The Company is continuing to evaluate the standard but does not expect that it will have a material effect on its consolidated financial statements upon adoption. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than twelve months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company is continuing to evaluate the standard but does not expect that it will have a material effect on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have but does not expect it to have a material effect on its consolidated financial statements upon adoption. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)" and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date," which defers the effective date of ASU 2014-09 one year to interim and annual reporting periods beginning after December 15, 2017, which would be the Company's fiscal year ending December 31, 2018. In May 2016, the FASB also issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," to provide additional clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The guidance also specifies when a contract should be considered "completed" for purposes of applying the transition guidance. The Company has completed an initial assessment of the new guidance and is in the process of completing documentation of this assessment. The Company does not expect the standard will have a material impact on the amount and timing of revenue recognized in the Company's consolidated financial statements. The Company has elected to use the modified retrospective application approach for transition to the new standard.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consist of the following: June 30, December 31, 2017 2016 Components and raw materials $ 116,399 $ 93,284 Work-in-process 26,755 44,723 Finished components and devices 117,507 101,003 Total $ 260,661 $ 239,010 The Company recorded inventory provisions totaling $5,435 and $5,772 for the three months ended June 30, 2017 and 2016 , respectively, and $9,406 and $9,725 for the six months ended June 30, 2017 and 2016 , 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 components and devices.

Accrued Expenses And Other Liab

Accrued Expenses And Other Liabilities	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses And Other Liabilities	ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: June 30, December 31, 2017 2016 Accrued compensation $ 43,352 $ 43,761 Customer deposits and deferred revenue 44,705 34,571 Current portion of accrued warranty 18,411 15,711 Other 10,031 8,442 Total $ 116,499 $ 102,485

Financing Arrangements

Financing Arrangements	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Financing Arrangements	FINANCING ARRANGEMENTS The Company's borrowings under existing financing arrangements consist of the following: June 30, December 31, 2017 2016 Term debt: Long-term notes $ 22,563 $ 40,823 Less: current portion (1,188 ) (3,188 ) Total long-term debt $ 21,375 $ 37,635 At June 30, 2017 , the amount due on the Company's unsecured long-term note was $22,563 of which $1,188 is the current portion. The interest on this unsecured note is variable at 1.20% above the LIBOR rate and is fixed using an interest rate swap at 2.85% per annum. The unsecured note matures in May 2023, at which time the outstanding debt balance will be $15,438 . The long-term note secured by the Company's corporate aircraft was repaid in the second quarter of 2017 when the Company sold the aircraft. The Company also maintains U.S. and Euro lines-of-credit which are available to certain foreign subsidiaries and allow for borrowings in the local currencies of those subsidiaries. At June 30, 2017 and December 31, 2016 , there were no amounts drawn on the U.S. line-of-credit, and there were $109 and $2,828 , respectively, of guarantees issued against the facility which reduces the amount of the facility available to draw. At June 30, 2017 and December 31, 2016 , there were no amounts drawn on the Euro lines-of-credit, and there were $11,112 and $8,221 , respectively, of guarantees issued against those facilities which reduces the amount available to draw providing for total unused credit lines and overdraft facilities of $75,332 at June 30, 2017 . Subsequent to June 30, 2017, the Company entered into a new Euro credit facility, which replaced an expiring credit facility and increased the available line-of-credit to Euro 50,000 from Euro 30,000 and closed on the purchase of a corporate aircraft for $28,000 that replaced the previous aircraft sold during the second quarter of 2017. The Company financed the entire purchase with proceeds from borrowing on a new long-term note that is secured by the aircraft with a fixed interest rate of 2.75% that matures in July 2022, at which time the outstanding debt balance will be $15,375 .

Net Income Attributable To IPG

Net Income Attributable To IPG Photonics Corporation Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income Attributable To IPG Photonics Corporation Per Share	NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income attributable to IPG Photonics Corporation $ 104,116 $ 67,058 $ 179,061 $ 116,385 Weighted average shares 53,380 53,065 53,403 52,981 Dilutive effect of common stock equivalents 1,091 723 1,047 724 Diluted weighted average common shares 54,471 53,788 54,450 53,705 Basic net income attributable to IPG Photonics Corporation per share $ 1.95 $ 1.26 $ 3.35 $ 2.20 Diluted net income attributable to IPG Photonics Corporation per share $ 1.91 $ 1.25 $ 3.29 $ 2.17 For the three months ended June 30, 2017 and 2016 , respectively, the computation of diluted weighted average common shares excludes of 45,900 and 59,000 common stock equivalents which include 6,400 and 11,000 restricted stock units ("RSUs") and 200 and 0 performance stock units ("PSUs"), respectively. For the six months ended June 30, 2017 and 2016 , it excludes 95,400 and 95,100 common stock equivalents which include 23,200 and 31,300 RSUs and 8,100 and 6,400 PSUs, respectively, because the effect of including them would be anti-dilutive. Under ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), excess tax benefits and deficiencies as a result of stock option exercises and release of RSUs upon vesting are to be recognized as discrete items within income tax expense or benefit in the consolidated statements of comprehensive income in the reporting period in which they occur. The Company recognized excess tax benefits from stock award exercises and restricted stock unit vesting as a discrete tax benefit, which reduced the provision for income taxes for the three months ended June 30, 2017 by $3,394 and for the six months ended June 30, 2017 by $7,524 . The adoption of ASU 2016-09 also increased the calculation of fully diluted shares outstanding for the three months ended June 30, 2017 , by 238,917 shares and for six months ended June 30, 2017 , by 210,776 shares. On July 28, 2016, the Company announced that its Board of Directors authorized a share repurchase program (the “Program”) to mitigate the dilutive impact of shares issued upon exercise or release under the Company's various employee and director equity compensation and employee stock purchase plans. Under the Program, the Company's management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees and directors under its various employee and director equity compensation and employee stock purchase plans from January 1, 2016 through December 31, 2017. The Program limits aggregate share repurchases to no more than $100,000 over a period ending June 30, 2018. For the three months ended June 30, 2017 , the Company repurchased 90,832 shares of its common stock with an average price of $127.41 per share in the open market. Also, for the six months ended June 30, 2017 , the Company repurchased 198,532 shares of its common stock with an average price of $121.45 per share in the open market. The impact on the reduction of weighted average shares for the three months ended June 30, 2017 was 59,256 shares and for the six months ended June 30, 2017 was 99,421 shares. As the Program was announced in July 2016, there were no repurchases made by the Company for the three months ended June 30, 2016 or six months ended June 30, 2016 .

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	DERIVATIVE FINANCIAL 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 no derivatives that are not accounted for as a hedging instrument. Cash flow hedges – The Company entered into a cash flow hedge which is an interest rate swap associated with a long-term note issued during the second quarter of 2016 that will terminate with the long-term note in May 2023. The fair value amounts in the consolidated balance sheet related to the interest rate swap were: Notional Amounts 1 Other Assets Other Long-Term Liabilities June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 $ 22,563 $ 23,156 $ 37 $ 77 $ — $ — (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. The derivative gains and losses in the consolidated statements of income related to the Company's interest rate swap contracts were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Effective portion recognized in other comprehensive income, pretax: Interest rate swap $ (13 ) $ 239 $ (40 ) $ 239 Effective portion reclassified from other comprehensive income to interest expense, pretax: Interest rate swap $ — $ — $ — $ — Ineffective portion recognized in income: Interest rate swap $ — $ — $ — $ —

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The Company's financial instruments consist of cash equivalents, short-term investments, accounts receivable, auction rate securities, accounts payable, drawings on revolving lines of credit, long-term debt, contingent purchase consideration and interest rate swaps. 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, short-term investments, accounts receivable, accounts payable and drawings on revolving lines of credit are considered reasonable estimates of their fair market value due to their short maturities. At June 30, 2017, the Company's long-term notes consisted entirely of a variable rate note, accordingly, the book value of the long-term note is considered a reasonable estimate of its fair market value. The following table presents information about the Company's assets and liabilities measured at fair value: Fair Value Measurements at June 30, 2017 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 390,764 $ 390,764 $ — $ — Short-term investments 122,179 122,179 — — Interest rate swap 37 — 37 — Auction rate securities 1,148 — — 1,148 Total assets $ 514,128 $ 512,943 $ 37 $ 1,148 Liabilities Long-term notes $ 22,563 $ — $ 22,563 $ — Total liabilities $ 22,563 $ — $ 22,563 $ — Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 179,699 $ 179,699 $ — $ — Short-term investments 206,616 206,616 — — Interest rate swap 77 — 77 — Auction rate securities 1,144 — — 1,144 Total assets $ 387,536 $ 386,315 $ 77 $ 1,144 Liabilities Long-term notes $ 41,351 $ — $ 41,351 $ — Total liabilities $ 41,351 $ — $ 41,351 $ — Short-term investments consist of liquid investments including U.S. government and government agency notes, corporate notes, commercial paper and certificates of deposit with original maturities of greater than three months but less than one year and are recorded at amortized cost. The fair value of the short-term investments considered available-for-sale as of December 31, 2016 was $41,591 . This amount included an unrealized loss of $432 . There were no short-term investments considered available-for-sale as of June 30, 2017 . The fair value of the short-term investments considered held-to-maturity as of June 30, 2017 and December 31, 2016 was $122,179 and $165,025 , respectively, which represents an unrealized loss of $125 and $163 , respectively, as compared to the book value recorded on the Consolidated Balance Sheets for the same periods. The fair value of the auction rate securities considered prices observed in inactive secondary markets for the securities held by the Company. The fair value of accrued contingent purchase consideration incurred was determined using an income approach at the acquisition date and reporting date. That approach is based on significant inputs that are not observable in the market. Key assumptions include assessing the probability of meeting certain milestones required to earn the contingent purchase consideration. The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Auction Rate Securities Balance, beginning of period $ 1,146 $ 1,138 $ 1,144 $ 1,136 Change in fair value and accretion 2 2 4 4 Balance, end of period $ 1,148 $ 1,140 $ 1,148 $ 1,140 Contingent Purchase Consideration Balance, beginning of period $ — $ 21 $ — $ 20 Period transactions — — — — Change in fair value and currency fluctuations — (1 ) — — Balance, end of period $ — $ 20 $ — $ 20

Goodwill And Intangibles

Goodwill And Intangibles	6 Months Ended
	Jun. 30, 2017
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 six months ended June 30, 2017 : Amounts Balance at January 1 $ 19,828 Total goodwill arising from acquisition 8,900 Balance at June 30 $ 28,728 Intangible assets, subject to amortization, consisted of the following: June 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Patents $ 8,114 $ (5,103 ) $ 3,011 7 Years $ 8,114 $ (4,926 ) $ 3,188 7 Years Customer relationships 13,958 (4,360 ) 9,598 9 Years 12,727 (3,621 ) 9,106 9 Years Production know-how 6,743 (4,577 ) 2,166 8 Years 6,618 (4,093 ) 2,525 8 Years Technology, trademark and tradename 22,623 (5,104 ) 17,519 8 Years 17,910 (3,940 ) 13,970 8 Years $ 51,438 $ (19,144 ) $ 32,294 $ 45,369 $ (16,580 ) $ 28,789 During the second quarter of 2017, the Company acquired 100% of the shares of OptiGrate Corporation ("OptiGrate"). OptiGrate is located in Oviedo, Florida. OptiGrate is a developer and manufacturer of volume Bragg gratings used in the production of lasers and laser diodes. The Company paid $16,870 to acquire OptiGrate, which represents the fair value on that date. Of the purchase price, $1,849 was held back in escrow for potential post-closing adjustments related to working capital and indemnities provided by the sellers. As a result of the acquisition, the Company recorded intangible assets of $1,010 related to customer relationships and $4,650 of technology, trademark and tradename. Additionally, the Company recorded $8,900 of goodwill related to expected synergies from having in-house supply of these optical components. The goodwill arising from this acquisition will not be deductible for tax purposes. The purchase price allocations included in the Company's financial statements are estimates and are not complete. They are preliminary fair value estimates as of June 30, 2017 and may be subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill or income, as applicable. Subsequent to June 30, 2017, the Company closed the previously announced acquisition of 100% of the shares of Innovative Laser Technologies, LLC ("ILT") for $40,181 in cash, subject to working capital adjustments. ILT is a Minneapolis, Minnesota based company which produces high precision laser-based systems for the medical device industry and other end user markets. Amortization expense for the three months ended June 30, 2017 and 2016 was $1,168 and $901 , respectively. Amortization expense for the six months ended June 30, 2017 and 2016 was $2,233 and $1,444 , respectively. The estimated future amortization expense for intangibles for the remainder of 2017 and subsequent years is as follows: 2017 2018 2019 2020 2021 Thereafter Total $2,633 $5,201 $4,652 $4,141 $4,102 $11,565 $32,294

Product Warranties

Product Warranties	6 Months Ended
	Jun. 30, 2017
Product Warranties Disclosures [Abstract]
Product Warranties	PRODUCT WARRANTIES The Company typically provides one to three -year parts and service warranties on lasers and amplifiers. Most of the Company's sales offices provide support to customers in their respective geographic areas. Warranty reserves have generally been sufficient to cover product warranty repair and replacement costs. The following table summarizes product warranty accrual activity recorded during the six months ended June 30, 2017 and 2016 . 2017 2016 Balance at January 1 $ 33,978 $ 28,210 Provision for warranty accrual 12,626 10,344 Warranty claims (7,476 ) (8,040 ) Foreign currency translation 1,687 442 Balance at June 30 $ 40,815 $ 30,956 Accrued warranty reported in the accompanying consolidated financial statements as of June 30, 2017 and December 31, 2016 consisted of $18,411 and $15,711 in accrued expenses and other liabilities and $22,404 and $18,267 in other long-term liabilities, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES A reconciliation of the total amounts of unrecognized tax benefits is as follows: 2017 2016 Balance at January 1 $ 6,403 $ 7,579 Change in prior period positions (2,240 ) — Change for tax positions in current period — — Balance at June 30 $ 4,163 $ 7,579 Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters, would benefit the Company's effective tax rate, if recognized.

Commitments And Contingencies

Commitments And Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	COMMITMENTS AND CONTINGENCIES From time to time, the Company may be involved in disputes and legal proceedings in the ordinary course of its business. These proceedings may include allegations of infringement of intellectual property, commercial disputes and employment matters. As of June 30, 2017 and through the filing date of these Financial Statements, the Company has no legal proceedings ongoing that management estimates could have a material effect on the Company's Consolidated Financial Statements.

Long-Lived Assets

Long-Lived Assets	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
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. In the fourth quarter of 2016, the Company began assessing the possible sale of its corporate aircraft included within Property, Plant and Equipment, net in its Consolidated Balance Sheets. As a result of this assessment and certain market indications of the aircraft's value if sold, the Company prepared an updated impairment analysis of the carrying value of the aircraft as of March 31, 2017. The impairment analysis was probability weighted considering market data available, future cash flows and whether or not the Company would sell the aircraft. Based on that analysis the Company recorded a $162 impairment charge included in general and administrative expense in its Consolidated Statements of Income for the six months ended June 30, 2017 . There were no impairment losses recorded by the Company for the six months ended June 30, 2016 . The corporate aircraft was sold during the three months ended June 30, 2017 .

Recent Accounting Pronounceme21

Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Pronouncement In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805)" ("ASU 2017-01"). ASU 2017-01 revises the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for public companies for annual reporting periods beginning after December 15, 2017, and interim reporting periods within such period. The amendments should be applied prospectively on or after the effective date. No disclosures are required at transition. Early application generally is allowed for transactions that have not been reported in financial statements which have been issued or made available for issuance. The Company has elected to early adopt this standard, and it did not have a material effect on its consolidated financial statements upon adoption. Recently Issued Accounting Pronouncements In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 amends ASC Topic 718 to better define what constitutes a modification of a share-based payment award by defining criteria that must be met for changes to a share-based payment award to not qualify as a modification. Changes to a share-based payment award must be accounted for as a modification under ASC Topic 718 unless all the newly defined criteria are met. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, which would be the Company's fiscal year ending December 31, 2018. The Company is currently evaluating the potential impact that the standard will have on its consolidated financial statements upon adoption. In February 2017, the FASB issued ASU No. 2017-05, "Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)" ("ASU 2017-05"). ASU 2017-05 was issued in conjunction with ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), to clarify guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. The new guidance clarifies what constitutes an "in substance nonfinancial asset" and changes the accounting for partial sales of nonfinancial assets to be more consistent with the accounting for a sale of a business. The amendments should be applied at the same time as those in ASU 2014-09 with interim and annual reporting periods beginning after December 15, 2017, which would be the Company's fiscal year ending December 31, 2018. The Company is currently evaluating the potential impact that the standard will have on its consolidated financial statements upon adoption. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350)" ("ASU 2017-04"). ASU 2017-04 simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. ASU 2017-04 is effective for public companies for annual reporting periods beginning after December 15, 2020, and interim reporting periods within such period. The amendments should be applied prospectively on or after the effective date and require a disclosure as to the nature of and reason for the change in accounting principle upon transition. Early adoption is allowed for all entities as of January 1, 2017, for annual and any interim impairment tests occurring after January 1, 2017. The Company is currently evaluating the potential impact that the standard will have on its consolidated financial statements upon adoption. In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740) - Intra-Entity Transfers of Assets other than Inventory" ("ASU 2016-16"). ASU 2016-16 eliminates the current exception that prohibits the recognition of current and deferred income tax consequences for intra-entity asset transfers (other than inventory) until the asset has been sold to an outside party. The amendments will be applied on a modified retrospective basis through a cumulative effect adjustment to retained earnings. Deferred tax assets should be assessed to determine if realizable. Disclosures will be required for the (i) reason for and notice of change, (ii) effect of change on income from continuing operations and (iii) cumulative effect of change on retained earnings. Public entities will apply these changes in annual reporting periods beginning after December 15, 2017, and interim reporting periods within such period. Early adoption is permitted. The Company is continuing to evaluate the standard but does not expect that it will have a material effect on its consolidated financial statements upon adoption. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than twelve months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company is continuing to evaluate the standard but does not expect that it will have a material effect on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have but does not expect it to have a material effect on its consolidated financial statements upon adoption. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)" and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date," which defers the effective date of ASU 2014-09 one year to interim and annual reporting periods beginning after December 15, 2017, which would be the Company's fiscal year ending December 31, 2018. In May 2016, the FASB also issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," to provide additional clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The guidance also specifies when a contract should be considered "completed" for purposes of applying the transition guidance. The Company has completed an initial assessment of the new guidance and is in the process of completing documentation of this assessment. The Company does not expect the standard will have a material impact on the amount and timing of revenue recognized in the Company's consolidated financial statements. The Company has elected to use the modified retrospective application approach for transition to the new standard.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Components of Inventories	Inventories consist of the following: June 30, December 31, 2017 2016 Components and raw materials $ 116,399 $ 93,284 Work-in-process 26,755 44,723 Finished components and devices 117,507 101,003 Total $ 260,661 $ 239,010

Accrued Expenses And Other Li23

Accrued Expenses And Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Components of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consist of the following: June 30, December 31, 2017 2016 Accrued compensation $ 43,352 $ 43,761 Customer deposits and deferred revenue 44,705 34,571 Current portion of accrued warranty 18,411 15,711 Other 10,031 8,442 Total $ 116,499 $ 102,485

Financing Arrangements (Tables)

Financing Arrangements (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Borrowings Under Existing Financing Arrangements	The Company's borrowings under existing financing arrangements consist of the following: June 30, December 31, 2017 2016 Term debt: Long-term notes $ 22,563 $ 40,823 Less: current portion (1,188 ) (3,188 ) Total long-term debt $ 21,375 $ 37,635

Net Income Attributable To IP25

Net Income Attributable To IPG Photonics Corporation Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Computation of Diluted Net Income Per Share	The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income attributable to IPG Photonics Corporation $ 104,116 $ 67,058 $ 179,061 $ 116,385 Weighted average shares 53,380 53,065 53,403 52,981 Dilutive effect of common stock equivalents 1,091 723 1,047 724 Diluted weighted average common shares 54,471 53,788 54,450 53,705 Basic net income attributable to IPG Photonics Corporation per share $ 1.95 $ 1.26 $ 3.35 $ 2.20 Diluted net income attributable to IPG Photonics Corporation per share $ 1.91 $ 1.25 $ 3.29 $ 2.17

Derivative Financial Instrume26

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Cash Flow Hedges	The fair value amounts in the consolidated balance sheet related to the interest rate swap were: Notional Amounts 1 Other Assets Other Long-Term Liabilities June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 $ 22,563 $ 23,156 $ 37 $ 77 $ — $ — (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding.
Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts	The derivative gains and losses in the consolidated statements of income related to the Company's interest rate swap contracts were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Effective portion recognized in other comprehensive income, pretax: Interest rate swap $ (13 ) $ 239 $ (40 ) $ 239 Effective portion reclassified from other comprehensive income to interest expense, pretax: Interest rate swap $ — $ — $ — $ — Ineffective portion recognized in income: Interest rate swap $ — $ — $ — $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
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 June 30, 2017 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 390,764 $ 390,764 $ — $ — Short-term investments 122,179 122,179 — — Interest rate swap 37 — 37 — Auction rate securities 1,148 — — 1,148 Total assets $ 514,128 $ 512,943 $ 37 $ 1,148 Liabilities Long-term notes $ 22,563 $ — $ 22,563 $ — Total liabilities $ 22,563 $ — $ 22,563 $ — Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 179,699 $ 179,699 $ — $ — Short-term investments 206,616 206,616 — — Interest rate swap 77 — 77 — Auction rate securities 1,144 — — 1,144 Total assets $ 387,536 $ 386,315 $ 77 $ 1,144 Liabilities Long-term notes $ 41,351 $ — $ 41,351 $ — Total liabilities $ 41,351 $ — $ 41,351 $ —
Fair Value, Assets Measured on Recurring Basis	The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Auction Rate Securities Balance, beginning of period $ 1,146 $ 1,138 $ 1,144 $ 1,136 Change in fair value and accretion 2 2 4 4 Balance, end of period $ 1,148 $ 1,140 $ 1,148 $ 1,140 Contingent Purchase Consideration Balance, beginning of period $ — $ 21 $ — $ 20 Period transactions — — — — Change in fair value and currency fluctuations — (1 ) — — Balance, end of period $ — $ 20 $ — $ 20
Fair Value, Liabilities Measured on Recurring Basis	The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Auction Rate Securities Balance, beginning of period $ 1,146 $ 1,138 $ 1,144 $ 1,136 Change in fair value and accretion 2 2 4 4 Balance, end of period $ 1,148 $ 1,140 $ 1,148 $ 1,140 Contingent Purchase Consideration Balance, beginning of period $ — $ 21 $ — $ 20 Period transactions — — — — Change in fair value and currency fluctuations — (1 ) — — Balance, end of period $ — $ 20 $ — $ 20

Goodwill And Intangibles (Table

Goodwill And Intangibles (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2017 : Amounts Balance at January 1 $ 19,828 Total goodwill arising from acquisition 8,900 Balance at June 30 $ 28,728
Intangible Assets	Intangible assets, subject to amortization, consisted of the following: June 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Patents $ 8,114 $ (5,103 ) $ 3,011 7 Years $ 8,114 $ (4,926 ) $ 3,188 7 Years Customer relationships 13,958 (4,360 ) 9,598 9 Years 12,727 (3,621 ) 9,106 9 Years Production know-how 6,743 (4,577 ) 2,166 8 Years 6,618 (4,093 ) 2,525 8 Years Technology, trademark and tradename 22,623 (5,104 ) 17,519 8 Years 17,910 (3,940 ) 13,970 8 Years $ 51,438 $ (19,144 ) $ 32,294 $ 45,369 $ (16,580 ) $ 28,789
Estimated Future Amortization Expense For Intangibles	The estimated future amortization expense for intangibles for the remainder of 2017 and subsequent years is as follows: 2017 2018 2019 2020 2021 Thereafter Total $2,633 $5,201 $4,652 $4,141 $4,102 $11,565 $32,294

Product Warranties (Tables)

Product Warranties (Tables)	6 Months Ended
	Jun. 30, 2017
Product Warranties Disclosures [Abstract]
Summary of Product Warranty Activity	The following table summarizes product warranty accrual activity recorded during the six months ended June 30, 2017 and 2016 . 2017 2016 Balance at January 1 $ 33,978 $ 28,210 Provision for warranty accrual 12,626 10,344 Warranty claims (7,476 ) (8,040 ) Foreign currency translation 1,687 442 Balance at June 30 $ 40,815 $ 30,956

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Schedule of Unrecognized Tax Benefits	A reconciliation of the total amounts of unrecognized tax benefits is as follows: 2017 2016 Balance at January 1 $ 6,403 $ 7,579 Change in prior period positions (2,240 ) — Change for tax positions in current period — — Balance at June 30 $ 4,163 $ 7,579

Inventories (Components Of Inve

Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Components and raw materials	$ 116,399	$ 93,284
Work-in-process	26,755	44,723
Finished components and devices	117,507	101,003
Total	$ 260,661	$ 239,010

Inventories (Narrative) (Detail

Inventories (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventory provisions	$ 5,435	$ 5,772	$ 9,406	$ 9,725

Accrued Expenses And Other Li33

Accrued Expenses And Other Liabilities (Components Of Accrued Expenses And Other Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued compensation	$ 43,352	$ 43,761
Customer deposits and deferred revenue	44,705	34,571
Current portion of accrued warranty	18,411	15,711
Other	10,031	8,442
Total	$ 116,499	$ 102,485

Financing Arrangements (Borrowi

Financing Arrangements (Borrowings Under Existing Financing Arrangements) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Term debt:
Less: current portion	$ (1,188)	$ (3,188)
Total long-term debt	21,375	37,635
Long-term notes
Term debt:
Long-term notes	$ 22,563	$ 40,823

Financing Arrangements (Narrati

Financing Arrangements (Narrative) (Details)	1 Months Ended	6 Months Ended
	Jul. 31, 2017USD ($)	Jun. 30, 2017USD ($)	May 31, 2023USD ($)	Jul. 31, 2022USD ($)	Aug. 08, 2017EUR (€)	Jun. 30, 2017EUR (€)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Total unused credit lines and overdraft facilities		$ 75,332,000
Subsequent Event | Aircraft
Debt Instrument [Line Items]
Corporate aircraft	$ 28,000,000
Unsecured Debt | Scenario, Forecast
Debt Instrument [Line Items]
Amount due on long-term note			$ 15,438,000
Unsecured Debt | Interest rate swap
Debt Instrument [Line Items]
Fixed interest rate swap		2.85%				2.85%
Unsecured Debt | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate		1.20%
U.S. line-of-credit
Debt Instrument [Line Items]
Line of credit		$ 0					$ 0
Guarantees issued		109,000					2,828,000
Euro line-of-credit
Debt Instrument [Line Items]
Line of credit		0					0
Guarantees issued		11,112,000					$ 8,221,000
Available line-of-credit | €						€ 30,000,000
Euro line-of-credit | Subsequent Event
Debt Instrument [Line Items]
Available line-of-credit | €					€ 50,000,000
Long-term notes
Debt Instrument [Line Items]
Amount due on long-term note		22,563,000
Current portion of long-term note		$ 1,188,000
Long-term notes | Secured Debt | Subsequent Event
Debt Instrument [Line Items]
Fixed interest rate	2.75%
Long-term notes | Secured Debt | Scenario, Forecast
Debt Instrument [Line Items]
Amount due on long-term note				$ 15,375,000

Net Income Attributable To IP36

Net Income Attributable To IPG Photonics Corporation Per Share (Computation of Diluted Net Income) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income attributable to IPG Photonics Corporation	$ 104,116	$ 67,058	$ 179,061	$ 116,385
Weighted average shares (in shares)	53,380	53,065	53,403	52,981
Dilutive effect of common stock equivalents (in shares)	1,091	723	1,047	724
Diluted weighted average common shares (in shares)	54,471	53,788	54,450	53,705
Basic net income attributable to IPG Photonics Corporation per share (in dollars per share)	$ 1.95	$ 1.26	$ 3.35	$ 2.20
Diluted net income attributable to IPG Photonics Corporation per share (in dollars per share)	$ 1.91	$ 1.25	$ 3.29	$ 2.17

Net Income Attributable to IP37

Net Income Attributable to IPG Photonics Corporation Per Share (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jul. 28, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded from computation of diluted weighted average common shares (in shares)	45,900	59,000	95,400	95,100
Share repurchase amount (no more than)					$ 100,000
Stock repurchased during period (in shares)	90,832	0	198,532	0
Stock repurchase average price (in dollars per share)	$ 127.41		$ 121.45
Decrease in weighted average shares outstanding, treasury stock (in shares)	59,256		99,421
Accounting Standards Update 2016-09
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excess tax benefit	$ 3,394,000		$ 7,524,000
Increase in diluted weighted shares outstanding (in shares)	238,917		210,776
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded from computation of diluted weighted average common shares (in shares)	6,400	11,000	23,200	31,300
PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Excluded from computation of diluted weighted average common shares (in shares)	200	0	8,100	6,400

Derivative Financial Instrume38

Derivative Financial Instruments (Narrative) (Details)	Jun. 30, 2017USD ($)
Nondesignated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amounts	$ 0

Derivative Financial Instrume39

Derivative Financial Instruments (Fair Value Of Cash Flow Hedges) (Details) - Interest rate swap - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Notional amounts	$ 22,563	$ 23,156
Other Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value	37	77
Other Long-Term Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value	$ 0	$ 0

Derivative Financial Instrume40

Derivative Financial Instruments (Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts) (Details) - Interest rate swap - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Effective portion recognized in other comprehensive income, pretax	$ (13)	$ 239	$ (40)	$ 239
Effective portion reclassified from other comprehensive income to interest expense, pretax	0	0	0	0
Ineffective portion recognized in income	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements (Assets

Fair Value Measurements (Assets And Liabilities Measured At Fair Value) (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 514,128,000	$ 387,536,000
Liabilities	22,563,000	41,351,000
Available-for-sale Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	41,591,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	512,943,000	386,315,000
Liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	37,000	77,000
Liabilities	22,563,000	41,351,000
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,148,000	1,144,000
Liabilities	0	0
Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	390,764,000	179,699,000
Cash equivalents | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	390,764,000	179,699,000
Cash equivalents | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Cash equivalents | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	122,179,000	206,616,000
Short-term investments | Held-to-maturity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	122,179,000	165,025,000
Short-term investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	122,179,000	206,616,000
Short-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Short-term investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	37,000	77,000
Interest rate swap | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Interest rate swap | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	37,000	77,000
Interest rate swap | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Auction rate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,148,000	1,144,000
Auction rate securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Auction rate securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Auction rate securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,148,000	1,144,000
Long-term notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	22,563,000	41,351,000
Long-term notes | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	0	0
Long-term notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	22,563,000	41,351,000
Long-term notes | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities	$ 0	$ 0

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 514,128,000	$ 387,536,000
Unrealized loss, short-term investments considered available-for-sale		432,000
Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	122,179,000	206,616,000
Available-for-sale Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	41,591,000
Held-to-maturity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss, investments	125,000	163,000
Held-to-maturity Securities | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 122,179,000	$ 165,025,000

Fair Value Measurements (Fair V

Fair Value Measurements (Fair Value of Auction Rate Securities and Contingent Purchase Consideration) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Auction Rate Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 1,146	$ 1,138	$ 1,144	$ 1,136
Change in fair value and accretion	2	2	4	4
Balance, end of period	1,148	1,140	1,148	1,140
Contingent Purchase Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	0	21	0	20
Period transactions	0	0	0	0
Change in fair value and currency fluctuations	0	(1)	0	0
Balance, end of period	$ 0	$ 20	$ 0	$ 20

Goodwill And Intangibles (Sched

Goodwill And Intangibles (Schedule of Changes) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Goodwill [Roll Forward]
Balance at January 1	$ 19,828
Total goodwill arising from acquisition	8,900
Balance at June 30	$ 28,728

Goodwill And Intangibles (Intan

Goodwill And Intangibles (Intangible Assets) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 51,438	$ 45,369
Accumulated Amortization	(19,144)	(16,580)
Net Carrying Amount	32,294	28,789
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,114	8,114
Accumulated Amortization	(5,103)	(4,926)
Net Carrying Amount	$ 3,011	$ 3,188
Weighted- Average Lives	7 years	7 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,958	$ 12,727
Accumulated Amortization	(4,360)	(3,621)
Net Carrying Amount	$ 9,598	$ 9,106
Weighted- Average Lives	9 years	9 years
Production know-how
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 6,743	$ 6,618
Accumulated Amortization	(4,577)	(4,093)
Net Carrying Amount	$ 2,166	$ 2,525
Weighted- Average Lives	8 years	8 years
Technology, trademark and tradename
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 22,623	$ 17,910
Accumulated Amortization	(5,104)	(3,940)
Net Carrying Amount	$ 17,519	$ 13,970
Weighted- Average Lives	8 years	8 years

Goodwill And Intangibles (Narra

Goodwill And Intangibles (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 08, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Business Acquisition [Line Items]
Intangible assets		$ 32,294		$ 32,294		$ 28,789
Goodwill arising from acquisition				8,900
Amortization expense		1,168	$ 901	2,233	$ 1,444
Customer relationships
Business Acquisition [Line Items]
Intangible assets		9,598		9,598		9,106
Technology, trademark and tradename
Business Acquisition [Line Items]
Intangible assets		$ 17,519		$ 17,519		$ 13,970
OptiGrate
Business Acquisition [Line Items]
Percentage of shares acquired		100.00%		100.00%
Consideration transferred		$ 16,870
Escrow, potential working capital and indemnity post-closing adjustments		1,849		$ 1,849
Goodwill arising from acquisition				8,900
OptiGrate | Customer relationships
Business Acquisition [Line Items]
Intangible assets		1,010		1,010
OptiGrate | Technology, trademark and tradename
Business Acquisition [Line Items]
Intangible assets		$ 4,650		$ 4,650
ILT | Subsequent Event
Business Acquisition [Line Items]
Percentage of shares acquired	100.00%
Cash paid	$ 40,181

Goodwill And Intangibles (Estim

Goodwill And Intangibles (Estimated Future Amortization Expense For Intangibles) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 2,633
2,018	5,201
2,019	4,652
2,020	4,141
2,021	4,102
Thereafter	11,565
Net Carrying Amount	$ 32,294	$ 28,789

Product Warranties (Narrative)

Product Warranties (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Product Warranty Liability [Line Items]
Accrued warranty reported in accrued expenses and other liabilities	$ 18,411	$ 15,711
Accrued warranty reported in other long-term liabilities	$ 22,404	$ 18,267
Minimum
Product Warranty Liability [Line Items]
Service warranties on lasers and amplifiers	1 year
Maximum
Product Warranty Liability [Line Items]
Service warranties on lasers and amplifiers	3 years

Product Warranties (Summary Of

Product Warranties (Summary Of Product Warranty Activity) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at January 1	$ 33,978	$ 28,210
Provision for warranty accrual	12,626	10,344
Warranty claims	(7,476)	(8,040)
Foreign currency translation	1,687	442
Balance at June 30	$ 40,815	$ 30,956

Income Taxes (Schedule of Unrec

Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1	$ 6,403	$ 7,579
Change in prior period positions	(2,240)	0
Change for tax positions in current period	0	0
Balance at June 30	$ 4,163	$ 7,579

Commitments And Contingencies (

Commitments And Contingencies (Narrative) (Details)	Jun. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Legal proceedings	$ 0

Long-Lived Assets (Narrative) (

Long-Lived Assets (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017
Property, Plant and Equipment
Long Lived Assets Held-for-sale [Line Items]
Impairment of long-lived assets	$ 0	$ 162,000