Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33155 | |
Entity Registrant Name | IPG PHOTONICS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3444218 | |
Entity Address, Address Line One | 377 Simarano Drive | |
Entity Address, City or Town | Marlborough | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01752 | |
City Area Code | 508 | |
Local Phone Number | 373-1100 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | IPGP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 46,922,454 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001111928 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 528,284 | $ 698,209 |
Short-term investments | 605,207 | 479,374 |
Accounts receivable, net | 229,597 | 211,347 |
Inventories | 479,829 | 509,363 |
Prepaid income taxes | 32,538 | 40,934 |
Prepaid expenses and other current assets | 45,005 | 47,047 |
Total current assets | 1,920,460 | 1,986,274 |
Deferred income taxes, net | 79,583 | 75,152 |
Goodwill | 38,265 | 38,325 |
Intangible assets, net | 28,056 | 34,120 |
Property, plant and equipment, net | 581,970 | 580,561 |
Other assets | 24,530 | 28,848 |
Total assets | 2,672,864 | 2,743,280 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 16,031 |
Accounts payable | 33,126 | 46,233 |
Accrued expenses and other current liabilities | 174,517 | 202,764 |
Income taxes payable | 12,066 | 9,618 |
Total current liabilities | 219,709 | 274,646 |
Other long-term liabilities and deferred income taxes | 69,204 | 83,274 |
Total liabilities | 288,913 | 357,920 |
Commitments and contingencies (Note 11) | ||
IPG Photonics Corporation equity: | ||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,249,626 and 46,921,754 shares issued and outstanding, respectively, at September 30, 2023; 56,017,672 and 48,138,257 shares issued and outstanding, respectively, at December 31, 2022. | 6 | 6 |
Treasury stock, at cost, 9,327,872 and 7,879,415 shares held at September 30, 2023 and December 31, 2022, respectively. | (1,097,537) | (938,009) |
Additional paid-in capital | 978,331 | 951,371 |
Retained earnings | 2,753,966 | 2,576,516 |
Accumulated other comprehensive loss | (250,815) | (204,524) |
Total equity | 2,383,951 | 2,385,360 |
Total liabilities and equity | $ 2,672,864 | $ 2,743,280 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 56,249,626 | 56,017,672 |
Common stock, shares outstanding | 46,921,754 | 48,138,257 |
Treasury stock, common, shares | 9,327,872 | 7,879,415 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 301,401 | $ 349,006 | $ 988,546 | $ 1,096,008 |
Cost of sales | 168,499 | 198,582 | 561,015 | 601,419 |
Gross profit | 132,902 | 150,424 | 427,531 | 494,589 |
Operating expenses: | ||||
Sales and marketing | 22,243 | 19,383 | 63,518 | 58,767 |
Research and development | 24,708 | 25,436 | 70,990 | 89,494 |
General and administrative | 30,958 | 33,813 | 90,746 | 97,888 |
Gain on divestiture | 0 | (21,748) | 0 | (21,748) |
Impairment of long-lived assets | 1,237 | 919 | 1,237 | 919 |
Restructuring charges (recoveries), net | (1,501) | 0 | (357) | 0 |
(Gain) loss on foreign exchange | (449) | (541) | (1,798) | 11,289 |
Total operating expenses | 77,196 | 57,262 | 224,336 | 236,609 |
Operating income | 55,706 | 93,162 | 203,195 | 257,980 |
Other income, net: | ||||
Interest income, net | 11,569 | 3,625 | 28,366 | 4,732 |
Other income, net | 545 | 301 | 1,161 | 683 |
Total other income | 12,114 | 3,926 | 29,527 | 5,415 |
Income before provision for income taxes | 67,820 | 97,088 | 232,722 | 263,395 |
Provision for income taxes | 12,826 | 20,390 | 55,272 | 59,738 |
Net income | 54,994 | 76,698 | 177,450 | 203,657 |
Less: net income attributable to non-controlling interests | 0 | 434 | 0 | 853 |
Net income attributable to IPG Photonics Corporation common stockholders | $ 54,994 | $ 76,264 | $ 177,450 | $ 202,804 |
Net income attributable to IPG Photonics Corporation per common share: | ||||
Basic (in dollars per share) | $ 1.16 | $ 1.48 | $ 3.75 | $ 3.94 |
Diluted net income attributable to IPG Photonics Corporation per common share (in dollars per share) | $ 1.16 | $ 1.47 | $ 3.73 | $ 3.93 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 47,236,901 | 51,628,701 | 47,363,974 | 51,449,367 |
Diluted (in shares) | 47,388,119 | 51,736,990 | 47,535,635 | 51,625,932 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 54,994 | $ 76,698 | $ 177,450 | $ 203,657 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments and other | (31,538) | (71,839) | (46,139) | (16,921) |
Unrealized gain (loss) on derivatives | 0 | 51 | (152) | 383 |
Total other comprehensive loss | (31,538) | (71,788) | (46,291) | (16,538) |
Comprehensive income | 23,456 | 4,910 | 131,159 | 187,119 |
Less: comprehensive income attributable to non-controlling interests | 0 | 428 | 0 | 924 |
Comprehensive income attributable to IPG Photonics Corporation | $ 23,456 | $ 4,482 | $ 131,159 | $ 186,195 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 177,450 | $ 203,657 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 52,678 | 69,852 |
Deferred income taxes | (4,835) | (21,550) |
Stock-based compensation | 27,392 | 29,201 |
Impairment of long-lived assets and restructuring charges (recoveries), net | (486) | 919 |
Unrealized (gain) loss on foreign currency transactions | (4,322) | 8,355 |
Gain on divestiture | 0 | (21,748) |
Provisions for inventory, warranty and bad debt | 43,889 | 58,990 |
Other | (12,997) | 4,195 |
Changes in assets and liabilities that (used) provided cash, net of acquisitions: | ||
Accounts receivable | (25,026) | 42,517 |
Inventories | (20,736) | (148,959) |
Prepaid expenses and other assets | (5,504) | 6,584 |
Accounts payable | (10,231) | (2,837) |
Accrued expenses and other liabilities | (39,646) | (40,327) |
Income and other taxes payable | 12,298 | (17,823) |
Net cash provided by operating activities | 189,924 | 171,026 |
Cash flows from investing activities: | ||
Purchases of and deposits on property, plant and equipment | (85,256) | (84,552) |
Proceeds from sales of property, plant and equipment | 30,425 | 837 |
Purchases of short-term investments | (898,455) | (914,598) |
Proceeds from short-term investments | 789,844 | 1,355,883 |
Acquisitions of businesses, net of cash acquired | 0 | (2,000) |
Proceeds from divestiture, net of cash sold | 0 | 52,141 |
Other | 446 | (246) |
Net cash (used in) provided by investing activities | (162,996) | 407,465 |
Cash flows from financing activities: | ||
Principal payments on long-term borrowings | (16,031) | (17,829) |
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 | (432) | 2,353 |
Purchase of treasury stock, at cost | (159,528) | (382,885) |
Purchase of non-controlling interests | 0 | (2,500) |
Net cash used in financing activities | (175,991) | (400,861) |
Effect of changes in exchange rates on cash and cash equivalents | (20,862) | (17,461) |
Net (decrease) increase in cash and cash equivalents | (169,925) | 160,169 |
Cash and cash equivalents — Beginning of period | 698,209 | 709,105 |
Cash and cash equivalents — End of period | 528,284 | 869,274 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,110 | 2,766 |
Cash paid for income taxes | 55,001 | 83,771 |
Non-cash transactions: | ||
Demonstration units transferred from inventory to other assets | 3,872 | 3,520 |
Inventory transferred to machinery and equipment | 2,215 | 2,439 |
Additions to property, plant and equipment included in accounts payable | 1,692 | 1,989 |
Leased assets obtained in exchange for new operating lease liabilities | $ 2,053 | $ 6,237 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non- controlling Interest |
Balance, beginning of year (in shares) at Dec. 31, 2021 | 53,010,265 | ||||||
Balance, beginning of period at Dec. 31, 2021 | $ 2,747,221 | $ 6 | $ (438,503) | $ 908,423 | $ 2,466,607 | $ (189,951) | $ 639 |
Balance, beginning of period (in shares) at Dec. 31, 2021 | (2,777,981) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes (in shares) | 156,640 | ||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes | 19 | 19 | |||||
Common stock issued under employee stock purchase plan (in shares) | 29,177 | ||||||
Common stock issued under employee stock purchase plan | 2,334 | 2,334 | |||||
Purchased common stock (in shares) | (3,802,440) | (3,802,440) | |||||
Purchased common stock | (382,885) | $ (382,885) | |||||
Stock-based compensation | 29,201 | 29,201 | |||||
Net income | 203,657 | 202,804 | 853 | ||||
Foreign currency translation adjustments and other | (16,921) | (16,992) | 71 | ||||
Purchase of non-controlling interests | (2,500) | (937) | (1,563) | ||||
Unrealized gain (loss) on derivatives, net of tax | 383 | 383 | |||||
Balance, end of period (in shares) at Sep. 30, 2022 | 49,393,642 | ||||||
Balance, end of period at Sep. 30, 2022 | 2,580,509 | $ 6 | $ (821,388) | 939,040 | 2,669,411 | (206,560) | 0 |
Balance, end of period (in shares) at Sep. 30, 2022 | (6,580,421) | ||||||
Balance, beginning of year (in shares) at Jun. 30, 2022 | 50,206,255 | ||||||
Balance, beginning of period at Jun. 30, 2022 | 2,640,351 | $ 6 | $ (750,109) | 930,950 | 2,593,147 | (134,778) | 1,135 |
Balance, beginning of period (in shares) at Jun. 30, 2022 | (5,760,999) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes (in shares) | 6,809 | ||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes | 265 | 265 | |||||
Purchased common stock (in shares) | (819,422) | (819,422) | |||||
Purchased common stock | (71,279) | $ (71,279) | |||||
Stock-based compensation | 8,762 | 8,762 | |||||
Net income | 76,698 | 76,264 | 434 | ||||
Foreign currency translation adjustments and other | (71,839) | (71,833) | (6) | ||||
Purchase of non-controlling interests | (2,500) | (937) | (1,563) | ||||
Unrealized gain (loss) on derivatives, net of tax | 51 | 51 | |||||
Balance, end of period (in shares) at Sep. 30, 2022 | 49,393,642 | ||||||
Balance, end of period at Sep. 30, 2022 | $ 2,580,509 | $ 6 | $ (821,388) | 939,040 | 2,669,411 | (206,560) | 0 |
Balance, end of period (in shares) at Sep. 30, 2022 | (6,580,421) | ||||||
Balance, beginning of year (in shares) at Dec. 31, 2022 | 48,138,257 | 48,138,257 | |||||
Balance, beginning of period at Dec. 31, 2022 | $ 2,385,360 | $ 6 | $ (938,009) | 951,371 | 2,576,516 | (204,524) | 0 |
Balance, beginning of period (in shares) at Dec. 31, 2022 | (7,879,415) | (7,879,415) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes (in shares) | 201,551 | ||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes | $ (2,925) | (2,925) | |||||
Common stock issued under employee stock purchase plan (in shares) | 30,403 | ||||||
Common stock issued under employee stock purchase plan | 2,493 | 2,493 | |||||
Purchased common stock (in shares) | (1,448,457) | (1,448,457) | |||||
Purchased common stock | (159,528) | $ (159,528) | |||||
Stock-based compensation | 27,392 | 27,392 | |||||
Net income | 177,450 | 177,450 | |||||
Foreign currency translation adjustments and other | (46,139) | (46,139) | |||||
Unrealized gain (loss) on derivatives, net of tax | $ (152) | (152) | |||||
Balance, end of period (in shares) at Sep. 30, 2023 | 46,921,754 | 46,921,754 | |||||
Balance, end of period at Sep. 30, 2023 | $ 2,383,951 | $ 6 | $ (1,097,537) | 978,331 | 2,753,966 | (250,815) | 0 |
Balance, end of period (in shares) at Sep. 30, 2023 | (9,327,872) | (9,327,872) | |||||
Balance, beginning of year (in shares) at Jun. 30, 2023 | 47,364,320 | ||||||
Balance, beginning of period at Jun. 30, 2023 | $ 2,398,550 | $ 6 | $ (1,051,040) | 969,889 | 2,698,972 | (219,277) | 0 |
Balance, beginning of period (in shares) at Jun. 30, 2023 | (8,878,184) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes (in shares) | 7,122 | ||||||
Exercise of stock options and vesting of RSUs and PSUs, net of shares withheld for taxes | 300 | 300 | |||||
Purchased common stock | (46,497) | $ (46,497) | |||||
Purchased common stock (in shares) | (449,688) | (449,688) | |||||
Stock-based compensation | 8,142 | 8,142 | |||||
Net income | 54,994 | 54,994 | |||||
Foreign currency translation adjustments and other | (31,538) | (31,538) | |||||
Unrealized gain (loss) on derivatives, net of tax | $ 0 | ||||||
Balance, end of period (in shares) at Sep. 30, 2023 | 46,921,754 | 46,921,754 | |||||
Balance, end of period at Sep. 30, 2023 | $ 2,383,951 | $ 6 | $ (1,097,537) | $ 978,331 | $ 2,753,966 | $ (250,815) | $ 0 |
Balance, end of period (in shares) at Sep. 30, 2023 | (9,327,872) | (9,327,872) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The accompanying unaudited condensed 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 condensed consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These condensed 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, 2022. In the opinion of the Company's management, the 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 condensed consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. Accounts Receivable and Allowance for Doubtful Accounts — 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 estimate of expected credit losses over the life of outstanding receivables. The estimate involves an assessment of customer creditworthiness, historical payment experience, an assumption of future expected credit losses, and the age of outstanding receivables. Activity related to the allowance for doubtful accounts was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 2,169 $ 1,872 $ 2,639 $ 2,108 Provision for bad debts, net of (recoveries) (58) 372 (209) 211 Uncollectible accounts written off (483) — (724) (79) Foreign currency translation (41) (125) (119) (121) Balance, end of period $ 1,587 $ 2,119 $ 1,587 $ 2,119 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 condensed consolidated statements of comprehensive income. Total components of accumulated other comprehensive loss were as follows: Foreign currency translation adjustments and other Unrealized gain on derivatives, net of tax Total Balance, July 1, 2023 $ (219,277) $ — $ (219,277) Other comprehensive loss, net of tax: Foreign currency translation adjustments and other, net of tax benefit of $94 (31,538) — (31,538) Total other comprehensive loss (31,538) — (31,538) Balance, September 30, 2023 $ (250,815) $ — $ (250,815) Balance, July 1, 2022 $ (134,926) $ 148 $ (134,778) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments and other before reclassification, net of tax benefit of $70 (72,041) — (72,041) Reclassification for foreign currency translation adjustments and other included in net income 208 — 208 Unrealized gain on derivatives, net of tax expense of $14 — 51 51 Total other comprehensive (loss) income (71,833) 51 (71,782) Balance, September 30, 2022 $ (206,759) $ 199 $ (206,560) Foreign currency translation adjustments and other Unrealized (loss) gain on derivatives, net of tax Total Balance, January 1, 2023 $ (204,676) $ 152 $ (204,524) Other comprehensive loss, net of tax: Foreign currency translation adjustments and other, net of tax expense of $10 (46,139) — (46,139) Unrealized loss on derivatives, net of tax benefit of $46 — (152) (152) Total other comprehensive loss (46,139) (152) (46,291) Balance, September 30, 2023 $ (250,815) $ — $ (250,815) Balance, January 1, 2022 $ (189,767) $ (184) $ (189,951) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments and other before reclassification, net of tax expense of $72 (17,200) — (17,200) Reclassification for foreign currency translation adjustments and other included in net income 208 — 208 Unrealized gain on derivatives, net of tax expense of $117 — 383 383 Total other comprehensive (loss) income (16,992) 383 (16,609) Balance, September 30, 2022 $ (206,759) $ 199 $ (206,560) Subsequent Events — The Company has considered the impact of subsequent events through the filing date of these financial statements. There were no events through the filing date of these financial statements required to be disclosed. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Sales are derived from products for different applications: fiber lasers, diode lasers, systems and accessories for materials processing; fiber lasers, diodes and amplifiers for advanced applications; and fiber lasers, systems and fibers for medical applications. The following tables represent a disaggregation of revenue from contracts with customers: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales by Application Materials processing $ 265,226 $ 312,546 $ 892,379 $ 994,866 Other applications 36,175 36,460 96,167 101,142 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 Sales by Product High Power Continuous Wave ("CW") Lasers $ 119,512 $ 152,767 $ 419,538 $ 483,455 Medium Power CW Lasers 20,937 20,639 57,146 63,230 Pulsed Lasers 41,420 55,216 150,569 192,000 Quasi-Continuous Wave ("QCW") Lasers 10,856 11,353 35,978 38,212 Laser and Non-Laser Systems 37,493 35,930 117,064 108,970 Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue 71,183 73,101 208,251 210,141 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales by Geography North America $ 71,349 $ 82,119 $ 225,649 $ 247,495 Europe: Germany 23,423 20,622 72,218 70,831 Other Europe 71,946 72,332 225,231 227,739 Asia: China 84,408 117,952 284,262 385,080 Japan 15,829 11,220 54,196 38,847 Other 29,741 39,130 111,457 111,500 Rest of World 4,705 5,631 15,533 14,516 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 Timing of Revenue Recognition Goods and services transferred at a point in time $ 289,477 $ 337,648 $ 952,173 $ 1,056,318 Goods and services transferred over time 11,924 11,358 36,373 39,690 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 One of the Company's customers accounted for 16% and 14% of the Company's net accounts receivable as of September 30, 2023 and December 31, 2022, respectively. The Company enters into contracts to sell lasers and spare parts, for which revenue is generally recognized upon shipment or delivery, depending on the terms of the contract. The Company also provides installation services and extended warranties. The Company frequently receives consideration from a customer prior to transferring goods to the customer under the terms of a sales contract. The Company records customer deposits related to these prepayments, which represent a contract liability. The Company also records deferred revenue related to installation services when consideration is received before the services have been performed. The standalone selling price for installation services is determined based on the estimated number of days of service technician time required for installation at standard service rates. The Company recognizes customer deposits and deferred revenue as net sales after control of the goods or services has been transferred to the customer and all revenue recognition criteria are met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue that is recognized over the period of the extended warranty contract. The Company recognizes revenue over time on contracts for the sale of large scale materials processing systems. The timing of customer payments on these contracts generally differs from the timing of revenue recognized. If revenue recognized exceeds customer payments, a contract asset is recorded and if customer payments exceed revenue recognized, a contract liability is recorded. Contract assets are included within prepaid expense and other current assets on the condensed consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the condensed consolidated balance sheets. Certain deferred revenues related to extended warranties in excess of one year from the balance sheet date are included within other long-term liabilities and deferred income taxes on the condensed consolidated balance sheets. The following table reflects the changes in the Company's contract assets and liabilities for the nine months ended September 30, 2023 and 2022: September 30, January 1, September 30, January 1, 2023 2023 Change 2022 2022 Change Contract assets Contract assets $ 5,623 $ 8,620 $ (2,997) $ 8,995 $ 9,345 $ (350) Contract liabilities Contract liabilities - current 66,961 80,068 (13,107) 81,868 89,659 (7,791) Contract liabilities - long-term 2,851 3,142 (291) 2,711 2,691 20 During the three months ended September 30, 2023 and 2022 the Company recognized revenue of $7,730 and $31,213, respectively, that was included in contract liabilities at the beginning of each period. During the nine months ended September 30, 2023 and 2022 the Company recognized revenue of $51,173 and $65,743, respectively, that was included in contract liabilities at the beginning of each period. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of September 30, 2023: Remaining Performance Obligations 2023 (a) 2024 2025 2026 2027 Thereafter Total Revenue expected to be recognized for extended warranty agreements $ 1,190 $ 2,376 $ 1,092 $ 819 $ 463 $ 88 $ 6,028 Revenue to be earned over time from contracts to sell large scale materials processing systems 10,661 9,321 — — — — 19,982 Total $ 11,851 $ 11,697 $ 1,092 $ 819 $ 463 $ 88 $ 26,010 (a) For the three-month period beginning October 1, 2023. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company's financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, drawings on revolving lines of credit, long-term debt 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 Company classifies its financial instruments according to the prescribed criteria. The fair value of money market fund deposits, term deposits, accounts receivable, accounts payable and drawings on revolving lines of credit is reasonably close to their carrying amounts due to the short maturity of most of these instruments or as a result of the competitive market interest rates, which have been negotiated. The fair value of the Company's commercial paper, corporate bonds, U.S. Treasury and agency obligations and term deposits are based on Level 2 inputs. The following table presents fair value information related to the Company's assets and liabilities measured at amortized cost on the condensed consolidated balance sheets with the exception of the interest rate swap, which was measured at fair value: Fair Value Measurements at September 30, 2023 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market fund deposits $ 146,503 $ 146,503 $ — $ — Term deposits 67,047 — 67,047 — Commercial paper 17,450 — 17,450 — Corporate bonds 13,775 — 13,775 — U.S. Treasury and agency obligations 4,966 — 4,966 — Short-term investments: Commercial paper 283,788 — 283,788 — U.S. Treasury and agency obligations 180,697 — 180,697 — Corporate bonds 137,238 — 137,238 — Term deposits 3,009 — 3,009 — Total assets $ 854,473 $ 146,503 $ 707,970 $ — Fair Value Measurements at December 31, 2022 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market fund deposits $ 195,654 $ 195,654 $ — $ — Commercial paper 94,661 — 94,661 — Term deposits 68,827 — 68,827 — Corporate bonds 1,497 — 1,497 — Short-term investments: Commercial paper 363,991 — 363,991 — Corporate bonds 65,022 — 65,022 — U.S. Treasury and agency obligations 39,611 — 39,611 — Term deposits 10,113 — 10,113 — Other assets: Interest rate swaps 198 — 198 — Total assets $ 839,574 $ 195,654 $ 643,920 $ — Liabilities Term debt $ 16,031 $ — $ 16,031 $ — Total liabilities $ 16,031 $ — $ 16,031 $ — Short-term investments consist of liquid investments with original maturities of greater than three months but less than one year and are recorded at amortized cost. There were no impairments for the investments considered held-to-maturity during the quarters ended September 30, 2023 and 2022. There were no current expected credit loss allowances for the investments considered held-to-maturity at September 30, 2023 and 2022. The Company holds highly-rated held-to-maturity instruments that are within one year of maturity. The following table presents the effective maturity dates of debt investments, which are held-to-maturity: September 30, 2023 December 31, 2022 Book Value Fair Value Book Value Fair Value Investment maturity Less than 1 year $ 605,207 $ 604,732 $ 479,374 $ 478,737 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following: September 30, December 31, 2023 2022 Components and raw materials $ 279,309 $ 322,506 Work-in-process 62,414 18,911 Finished goods 138,106 167,946 Total $ 479,829 $ 509,363 The Company recorded inventory provisions totaling $9,119 and $12,883 for the three months ended September 30, 2023 and 2022, respectively, and $32,434 and $38,363 for the nine months ended September 30, 2023 and 2022. 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, work-in-process and finished goods. |
Restructuring and Impairment of
Restructuring and Impairment of Long-Lived Assets | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND IMPAIRMENT OF LONG-LIVED ASSETS | RESTRUCTURING AND IMPAIRMENT OF LONG-LIVED ASSETS In the fourth quarter of 2022, the Company implemented a restructuring program at its Russian subsidiary. In the third quarter of 2023, the Company substantially completed the restructuring program. As a result, the remaining restructuring accrual was substantially recovered. This resulted in net restructuring recoveries of $1,501 and $357 for the three and nine months ended September 30, 2023, respectively. There was no restructuring related activity for the three or nine months ended September 30, 2022. The remaining restructuring accrual was included in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. Activity related to the restructuring accrual was as follows: Nine Months Ended September 30, 2023 Balance, beginning of period $ 4,869 Charges 1,367 Cash payments (3,630) Recoveries (1,724) Foreign exchange adjustment (864) Balance, end of period $ 18 The non-cash long-lived asset impairment charges of $1,237 for both the three and nine months ended September 30, 2023, and $919 for both the three and nine months ended September 30, 2022, related to the right-of-use ("ROU") asset for a leased building associated with the Company's Submarine Network Division business that was previously divested. Attempts to sublease the space have been unsuccessful. As of September 30, 2023, the ROU asset related to this lease has been reduced to zero. |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Sep. 30, 2023 | |
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: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 38,325 $ 38,609 Goodwill arising from business combinations — 1,000 Goodwill written off related to divestiture — (796) Foreign exchange adjustment (60) (850) Balance, end of period $ 38,265 $ 37,963 Intangible assets, subject to amortization, consisted of the following: September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Net Weighted- Average Lives Gross Carrying Amount Accumulated Net Weighted- Customer relationships $ 48,124 $ (24,875) $ 23,249 11 years $ 48,155 $ (21,734) $ 26,421 11 years Technology, trademark and trade name 29,790 (25,140) 4,650 7 years 30,360 (23,189) 7,171 7 years Production know-how 9,091 (9,029) 62 7 years 9,109 (8,818) 291 7 years Patents 8,034 (7,939) 95 8 years 8,034 (7,797) 237 8 years Total $ 95,039 $ (66,983) $ 28,056 $ 95,658 $ (61,538) $ 34,120 Amortization expense for the three months ended September 30, 2023 and 2022 was $2,020 and $2,447, respectively. Amortization expense for the nine months ended September 30, 2023 and 2022 was $6,062 and $8,377, respectively. The estimated future amortization expense for intangibles for the remainder of 2023 and subsequent years is as follows: 2023 (a) 2024 2025 2026 2027 Thereafter Total $ 1,833 $ 5,553 $ 4,977 $ 4,216 $ 4,004 $ 7,473 $ 28,056 (a) For the three-month period beginning October 1, 2023. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Other Liabilities | OTHER LIABILITIES Accrued expenses and other current liabilities consist of the following: September 30, December 31, 2023 2022 Contract liabilities $ 66,961 $ 80,068 Accrued compensation 64,060 78,251 Current portion of accrued warranty 27,280 28,504 Short-term lease liabilities 4,401 5,234 Other 11,815 10,707 Total $ 174,517 $ 202,764 Other long-term liabilities and deferred income taxes consist of the following: September 30, December 31, 2023 2022 Accrued warranty $ 20,814 $ 24,358 Transition tax related to 2017 U.S. tax reform act 11,010 19,874 Long-term lease liabilities 13,199 16,787 Unrealized tax benefits 17,778 15,841 Deferred income taxes 1,256 1,469 Other 5,147 4,945 Total $ 69,204 $ 83,274 |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTIES | PRODUCT WARRANTIES The Company typically provides one Activity related to the warranty accrual was as follows: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 52,862 $ 49,864 Provision for warranty accrual 9,874 18,280 Warranty claims (13,792) (13,968) Foreign currency translation (850) (4,198) Balance, end of period $ 48,094 $ 49,978 Accrued warranty reported in the accompanying condensed consolidated financial statements as of September 30, 2023 and December 31, 2022 consist of $27,280 and $28,504 in accrued expenses and other current liabilities, respectively, and $20,814 and $24,358 in other long-term liabilities and deferred income taxes, respectively. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Revolving Line of Credit Facilities: The Company maintains a $75,000 U.S. revolving line of credit, which is available to certain foreign subsidiaries and allows for borrowings in the local currencies of those subsidiaries. The Company also maintains a €1,500 ($1,586) Italian overdraft facility. The German €50,000 line-of-credit expired on July 31, 2023. At September 30, 2023 and December 31, 2022, there were no amounts drawn on the U.S. line-of-credit, and there were $2,474 and $2,396, respectively, of guarantees issued against the facility, which reduce the amount of the facility available to draw. At September 30, 2023 and December 31, 2022, there were no amounts drawn on the euro overdraft facility. After providing for the guarantees used, the total unused lines-of-credit and overdraft facility were $74,112 at September 30, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company's previous outstanding derivative financial instrument was an interest rate swap that was classified as a cash flow hedge of its variable rate debt. The interest rate swap matured with the long-term note in May 2023. The derivative gains and losses in the condensed consolidated financial statements related to the Company's previous interest rate swap contract were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Effective portion recognized in other comprehensive income, pretax: Interest rate swap $ — $ 65 $ (198) $ 500 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESFrom time to time, the Company may be involved in legal disputes and other proceedings in the ordinary course of its business. These matters may include allegations of infringement of intellectual property, commercial disputes and employment matters. As of September 30, 2023 and through the filing date of these condensed consolidated financial statements, the Company is aware of no ongoing legal proceedings that management estimates could have a material effect on the Company's Consolidated Financial Statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rates were 18.9% and 21.0% for the three months ended September 30, 2023 and 2022, respectively, and 23.8% and 22.7% for the nine months ended September 30, 2023 and 2022 respectively. There was a net discrete tax detriment of $169 for the three months ended September 30, 2023 and a net discrete tax benefit of $3,644 for the three months ended September 30, 2022. In the third quarter of 2023, the impact of relatively lower profits in high tax jurisdictions helped to reduce the third quarter tax rate by more than the impact of the reduced discrete benefits. There was a net discrete tax detriment of $390 and a net discrete tax benefit of $6,806 for the nine months ended September 30, 2023 and 2022, respectively. The discrete detriment for the three and nine months ended September 2023 did not have a significant effect on the Company's tax rate. The 2022 discrete items include a reduction in taxes as a result of filing amended returns to obtain foreign tax incentives for capital investments in prior years and to changes in tax position agreed to with tax authorities for prior year audits which were partly offset by the impact from tax deductions for equity-based compensation that were less than the compensation expense recognized for books. The Company accounts for its uncertain tax positions in accordance with the accounting standards for income taxes. The Company classifies interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. The following is a summary of the activity of the Company’s unrecognized tax benefits for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 15,841 $ 19,209 Change in prior period positions (1,274) (603) Additions for tax positions in current period 3,738 — Foreign currency translation (527) 865 Balance, end of period $ 17,778 $ 19,471 |
Net Income Attributable to IPG
Net Income Attributable to IPG Photonics Corporation Per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER COMMON SHARE | NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER COMMON SHARE The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per common share following the treasury stock method: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income attributable to IPG Photonics Corporation common stockholders $ 54,994 $ 76,264 $ 177,450 $ 202,804 Basic weighted average common shares 47,236,901 51,628,701 47,363,974 51,449,367 Dilutive effect of common stock equivalents 151,218 108,289 171,661 176,565 Diluted weighted average common shares 47,388,119 51,736,990 47,535,635 51,625,932 Basic net income attributable to IPG Photonics Corporation per common share $ 1.16 $ 1.48 $ 3.75 $ 3.94 Diluted net income attributable to IPG Photonics Corporation per common share $ 1.16 $ 1.47 $ 3.73 $ 3.93 The computation of diluted weighted average common shares excludes common stock equivalents including non-qualified stock options, performance stock units ("PSUs"), restricted stock units ("RSUs") and employee stock purchase plan ("ESPP") because the effect of including them would be anti-dilutive. The weighted average anti-dilutive shares outstanding for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Non-qualified stock options 529,228 672,539 537,065 604,394 Restricted stock units 55,201 373,646 376,382 340,924 Performance stock units — 91,920 53,470 78,999 Total weighed average anti-dilutive shares outstanding 584,429 1,138,105 966,917 1,024,317 On May 2, 2023, the Company announced that its Board of Directors has authorized the purchase of up to $200,000 of IPG common stock. This authorization is in addition to the Company's stock repurchase programs authorized in August 2022. For the three months ended September 30, 2023, the Company repurchased 449,688 under the May 2023 authorization with a weighted average price of $102.37 per share in the open market. For the nine months ended September 30, 2023, the Company repurchased 1,448,457 shares of common stock under the May 2023 authorization and August 2022 authorization with a weighted average price of $109.21 per share in the open market. The impact on the reduction of weighted average shares for the three and nine months ended September 30, 2023 was 131,533 shares and 932,015 shares, respectively. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying unaudited condensed 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 condensed consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These condensed 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, 2022. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts — 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 estimate of expected credit losses over the life of outstanding receivables. The estimate involves an assessment of customer creditworthiness, historical payment experience, an assumption of future expected credit losses, and the age of outstanding receivables. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Doubtful Accounts | Activity related to the allowance for doubtful accounts was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Balance, beginning of period $ 2,169 $ 1,872 $ 2,639 $ 2,108 Provision for bad debts, net of (recoveries) (58) 372 (209) 211 Uncollectible accounts written off (483) — (724) (79) Foreign currency translation (41) (125) (119) (121) Balance, end of period $ 1,587 $ 2,119 $ 1,587 $ 2,119 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Total components of accumulated other comprehensive loss were as follows: Foreign currency translation adjustments and other Unrealized gain on derivatives, net of tax Total Balance, July 1, 2023 $ (219,277) $ — $ (219,277) Other comprehensive loss, net of tax: Foreign currency translation adjustments and other, net of tax benefit of $94 (31,538) — (31,538) Total other comprehensive loss (31,538) — (31,538) Balance, September 30, 2023 $ (250,815) $ — $ (250,815) Balance, July 1, 2022 $ (134,926) $ 148 $ (134,778) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments and other before reclassification, net of tax benefit of $70 (72,041) — (72,041) Reclassification for foreign currency translation adjustments and other included in net income 208 — 208 Unrealized gain on derivatives, net of tax expense of $14 — 51 51 Total other comprehensive (loss) income (71,833) 51 (71,782) Balance, September 30, 2022 $ (206,759) $ 199 $ (206,560) Foreign currency translation adjustments and other Unrealized (loss) gain on derivatives, net of tax Total Balance, January 1, 2023 $ (204,676) $ 152 $ (204,524) Other comprehensive loss, net of tax: Foreign currency translation adjustments and other, net of tax expense of $10 (46,139) — (46,139) Unrealized loss on derivatives, net of tax benefit of $46 — (152) (152) Total other comprehensive loss (46,139) (152) (46,291) Balance, September 30, 2023 $ (250,815) $ — $ (250,815) Balance, January 1, 2022 $ (189,767) $ (184) $ (189,951) Other comprehensive (loss) income, net of tax: Foreign currency translation adjustments and other before reclassification, net of tax expense of $72 (17,200) — (17,200) Reclassification for foreign currency translation adjustments and other included in net income 208 — 208 Unrealized gain on derivatives, net of tax expense of $117 — 383 383 Total other comprehensive (loss) income (16,992) 383 (16,609) Balance, September 30, 2022 $ (206,759) $ 199 $ (206,560) |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables represent a disaggregation of revenue from contracts with customers: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales by Application Materials processing $ 265,226 $ 312,546 $ 892,379 $ 994,866 Other applications 36,175 36,460 96,167 101,142 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 Sales by Product High Power Continuous Wave ("CW") Lasers $ 119,512 $ 152,767 $ 419,538 $ 483,455 Medium Power CW Lasers 20,937 20,639 57,146 63,230 Pulsed Lasers 41,420 55,216 150,569 192,000 Quasi-Continuous Wave ("QCW") Lasers 10,856 11,353 35,978 38,212 Laser and Non-Laser Systems 37,493 35,930 117,064 108,970 Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue 71,183 73,101 208,251 210,141 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales by Geography North America $ 71,349 $ 82,119 $ 225,649 $ 247,495 Europe: Germany 23,423 20,622 72,218 70,831 Other Europe 71,946 72,332 225,231 227,739 Asia: China 84,408 117,952 284,262 385,080 Japan 15,829 11,220 54,196 38,847 Other 29,741 39,130 111,457 111,500 Rest of World 4,705 5,631 15,533 14,516 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 Timing of Revenue Recognition Goods and services transferred at a point in time $ 289,477 $ 337,648 $ 952,173 $ 1,056,318 Goods and services transferred over time 11,924 11,358 36,373 39,690 Total $ 301,401 $ 349,006 $ 988,546 $ 1,096,008 |
Changes in Contract Assets and Liabilities | The following table reflects the changes in the Company's contract assets and liabilities for the nine months ended September 30, 2023 and 2022: September 30, January 1, September 30, January 1, 2023 2023 Change 2022 2022 Change Contract assets Contract assets $ 5,623 $ 8,620 $ (2,997) $ 8,995 $ 9,345 $ (350) Contract liabilities Contract liabilities - current 66,961 80,068 (13,107) 81,868 89,659 (7,791) Contract liabilities - long-term 2,851 3,142 (291) 2,711 2,691 20 |
Schedule of Remaining Performance Obligations | The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of September 30, 2023: Remaining Performance Obligations 2023 (a) 2024 2025 2026 2027 Thereafter Total Revenue expected to be recognized for extended warranty agreements $ 1,190 $ 2,376 $ 1,092 $ 819 $ 463 $ 88 $ 6,028 Revenue to be earned over time from contracts to sell large scale materials processing systems 10,661 9,321 — — — — 19,982 Total $ 11,851 $ 11,697 $ 1,092 $ 819 $ 463 $ 88 $ 26,010 (a) For the three-month period beginning October 1, 2023. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table presents fair value information related to the Company's assets and liabilities measured at amortized cost on the condensed consolidated balance sheets with the exception of the interest rate swap, which was measured at fair value: Fair Value Measurements at September 30, 2023 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market fund deposits $ 146,503 $ 146,503 $ — $ — Term deposits 67,047 — 67,047 — Commercial paper 17,450 — 17,450 — Corporate bonds 13,775 — 13,775 — U.S. Treasury and agency obligations 4,966 — 4,966 — Short-term investments: Commercial paper 283,788 — 283,788 — U.S. Treasury and agency obligations 180,697 — 180,697 — Corporate bonds 137,238 — 137,238 — Term deposits 3,009 — 3,009 — Total assets $ 854,473 $ 146,503 $ 707,970 $ — Fair Value Measurements at December 31, 2022 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market fund deposits $ 195,654 $ 195,654 $ — $ — Commercial paper 94,661 — 94,661 — Term deposits 68,827 — 68,827 — Corporate bonds 1,497 — 1,497 — Short-term investments: Commercial paper 363,991 — 363,991 — Corporate bonds 65,022 — 65,022 — U.S. Treasury and agency obligations 39,611 — 39,611 — Term deposits 10,113 — 10,113 — Other assets: Interest rate swaps 198 — 198 — Total assets $ 839,574 $ 195,654 $ 643,920 $ — Liabilities Term debt $ 16,031 $ — $ 16,031 $ — Total liabilities $ 16,031 $ — $ 16,031 $ — |
Schedule of Effective Maturity Dates of Held to Maturity Investments | The following table presents the effective maturity dates of debt investments, which are held-to-maturity: September 30, 2023 December 31, 2022 Book Value Fair Value Book Value Fair Value Investment maturity Less than 1 year $ 605,207 $ 604,732 $ 479,374 $ 478,737 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consist of the following: September 30, December 31, 2023 2022 Components and raw materials $ 279,309 $ 322,506 Work-in-process 62,414 18,911 Finished goods 138,106 167,946 Total $ 479,829 $ 509,363 |
Restructuring and Impairment _2
Restructuring and Impairment of Long-Lived Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The remaining restructuring accrual was included in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheets. Activity related to the restructuring accrual was as follows: Nine Months Ended September 30, 2023 Balance, beginning of period $ 4,869 Charges 1,367 Cash payments (3,630) Recoveries (1,724) Foreign exchange adjustment (864) Balance, end of period $ 18 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth the changes in the carrying amount of goodwill: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 38,325 $ 38,609 Goodwill arising from business combinations — 1,000 Goodwill written off related to divestiture — (796) Foreign exchange adjustment (60) (850) Balance, end of period $ 38,265 $ 37,963 |
Schedule of Intangible Assets | Intangible assets, subject to amortization, consisted of the following: September 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Net Weighted- Average Lives Gross Carrying Amount Accumulated Net Weighted- Customer relationships $ 48,124 $ (24,875) $ 23,249 11 years $ 48,155 $ (21,734) $ 26,421 11 years Technology, trademark and trade name 29,790 (25,140) 4,650 7 years 30,360 (23,189) 7,171 7 years Production know-how 9,091 (9,029) 62 7 years 9,109 (8,818) 291 7 years Patents 8,034 (7,939) 95 8 years 8,034 (7,797) 237 8 years Total $ 95,039 $ (66,983) $ 28,056 $ 95,658 $ (61,538) $ 34,120 |
Estimated Future Amortization Expense for Intangibles | The estimated future amortization expense for intangibles for the remainder of 2023 and subsequent years is as follows: 2023 (a) 2024 2025 2026 2027 Thereafter Total $ 1,833 $ 5,553 $ 4,977 $ 4,216 $ 4,004 $ 7,473 $ 28,056 (a) For the three-month period beginning October 1, 2023. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | Accrued expenses and other current liabilities consist of the following: September 30, December 31, 2023 2022 Contract liabilities $ 66,961 $ 80,068 Accrued compensation 64,060 78,251 Current portion of accrued warranty 27,280 28,504 Short-term lease liabilities 4,401 5,234 Other 11,815 10,707 Total $ 174,517 $ 202,764 |
Other Noncurrent Liabilities | Other long-term liabilities and deferred income taxes consist of the following: September 30, December 31, 2023 2022 Accrued warranty $ 20,814 $ 24,358 Transition tax related to 2017 U.S. tax reform act 11,010 19,874 Long-term lease liabilities 13,199 16,787 Unrealized tax benefits 17,778 15,841 Deferred income taxes 1,256 1,469 Other 5,147 4,945 Total $ 69,204 $ 83,274 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Summary of Product Warranty Activity | Activity related to the warranty accrual was as follows: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 52,862 $ 49,864 Provision for warranty accrual 9,874 18,280 Warranty claims (13,792) (13,968) Foreign currency translation (850) (4,198) Balance, end of period $ 48,094 $ 49,978 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts | The derivative gains and losses in the condensed consolidated financial statements related to the Company's previous interest rate swap contract were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Effective portion recognized in other comprehensive income, pretax: Interest rate swap $ — $ 65 $ (198) $ 500 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits | The following is a summary of the activity of the Company’s unrecognized tax benefits for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 Balance, beginning of period $ 15,841 $ 19,209 Change in prior period positions (1,274) (603) Additions for tax positions in current period 3,738 — Foreign currency translation (527) 865 Balance, end of period $ 17,778 $ 19,471 |
Net Income Attributable to IP_2
Net Income Attributable to IPG Photonics Corporation Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 common share following the treasury stock method: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income attributable to IPG Photonics Corporation common stockholders $ 54,994 $ 76,264 $ 177,450 $ 202,804 Basic weighted average common shares 47,236,901 51,628,701 47,363,974 51,449,367 Dilutive effect of common stock equivalents 151,218 108,289 171,661 176,565 Diluted weighted average common shares 47,388,119 51,736,990 47,535,635 51,625,932 Basic net income attributable to IPG Photonics Corporation per common share $ 1.16 $ 1.48 $ 3.75 $ 3.94 Diluted net income attributable to IPG Photonics Corporation per common share $ 1.16 $ 1.47 $ 3.73 $ 3.93 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The weighted average anti-dilutive shares outstanding for the three and nine months ended September 30, 2023 and 2022 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Non-qualified stock options 529,228 672,539 537,065 604,394 Restricted stock units 55,201 373,646 376,382 340,924 Performance stock units — 91,920 53,470 78,999 Total weighed average anti-dilutive shares outstanding 584,429 1,138,105 966,917 1,024,317 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 2,169 | $ 1,872 | $ 2,639 | $ 2,108 |
Provision for bad debts, net of (recoveries) | (58) | 372 | (209) | 211 |
Uncollectible accounts written off | (483) | 0 | (724) | (79) |
Foreign currency translation | (41) | (125) | (119) | (121) |
Balance, end of period | $ 1,587 | $ 2,119 | $ 1,587 | $ 2,119 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI [Roll Forward] | ||||
Balance, beginning of period | $ 2,398,550 | $ 2,640,351 | $ 2,385,360 | $ 2,747,221 |
Foreign currency translation adjustments and other, net of tax expense | (31,538) | (72,041) | (46,139) | (17,200) |
Reclassification for foreign currency translation adjustments and other included in net income | 208 | 208 | ||
Unrealized gain (loss) on derivatives, net of tax expense | 51 | (152) | 383 | |
Total other comprehensive (loss) income | (31,538) | (71,782) | (46,291) | (16,609) |
Balance, end of period | 2,383,951 | 2,580,509 | 2,383,951 | 2,580,509 |
Accumulated Other Comprehensive (Loss) Income | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (219,277) | (134,778) | (204,524) | (189,951) |
Balance, end of period | (250,815) | (206,560) | (250,815) | (206,560) |
Foreign currency translation adjustments and other | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | (219,277) | (134,926) | (204,676) | (189,767) |
Foreign currency translation adjustments and other, net of tax expense | (31,538) | (72,041) | (46,139) | (17,200) |
Reclassification for foreign currency translation adjustments and other included in net income | 208 | 208 | ||
Total other comprehensive (loss) income | (31,538) | (71,833) | (46,139) | (16,992) |
Balance, end of period | (250,815) | (206,759) | (250,815) | (206,759) |
Other comprehensive income (loss), tax, portion attributable to parent | 94 | 70 | (10) | (72) |
Unrealized gain on derivatives, net of tax | ||||
AOCI [Roll Forward] | ||||
Balance, beginning of period | 0 | 148 | 152 | (184) |
Unrealized gain (loss) on derivatives, net of tax expense | 51 | (152) | 383 | |
Total other comprehensive (loss) income | 0 | 51 | (152) | 383 |
Balance, end of period | $ 0 | 199 | 0 | 199 |
Other comprehensive income (loss), tax, portion attributable to parent | $ (14) | $ 46 | $ (117) |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Disaggregation of Revenue, By Application) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Sales by Application | ||||
Total | $ 301,401 | $ 349,006 | $ 988,546 | $ 1,096,008 |
Materials processing | ||||
Sales by Application | ||||
Total | 265,226 | 312,546 | 892,379 | 994,866 |
Other applications | ||||
Sales by Application | ||||
Total | $ 36,175 | $ 36,460 | $ 96,167 | $ 101,142 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers (Disaggregation of Revenue, By Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 301,401 | $ 349,006 | $ 988,546 | $ 1,096,008 |
High Power Continuous Wave ("CW") Lasers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 119,512 | 152,767 | 419,538 | 483,455 |
Medium Power CW Lasers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 20,937 | 20,639 | 57,146 | 63,230 |
Pulsed Lasers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 41,420 | 55,216 | 150,569 | 192,000 |
Quasi-Continuous Wave ("QCW") Lasers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 10,856 | 11,353 | 35,978 | 38,212 |
Laser and Non-Laser Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 37,493 | 35,930 | 117,064 | 108,970 |
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 71,183 | $ 73,101 | $ 208,251 | $ 210,141 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers (Disaggregation of Revenue, By Geography) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Sales by Geography | ||||
Total | $ 301,401 | $ 349,006 | $ 988,546 | $ 1,096,008 |
North America | ||||
Sales by Geography | ||||
Total | 71,349 | 82,119 | 225,649 | 247,495 |
Germany | ||||
Sales by Geography | ||||
Total | 23,423 | 20,622 | 72,218 | 70,831 |
Other Europe | ||||
Sales by Geography | ||||
Total | 71,946 | 72,332 | 225,231 | 227,739 |
China | ||||
Sales by Geography | ||||
Total | 84,408 | 117,952 | 284,262 | 385,080 |
Japan | ||||
Sales by Geography | ||||
Total | 15,829 | 11,220 | 54,196 | 38,847 |
Other | ||||
Sales by Geography | ||||
Total | 29,741 | 39,130 | 111,457 | 111,500 |
Rest of World | ||||
Sales by Geography | ||||
Total | $ 4,705 | $ 5,631 | $ 15,533 | $ 14,516 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers (Disaggregation of Revenue, By Timing) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Timing of Revenue Recognition | ||||
Total | $ 301,401 | $ 349,006 | $ 988,546 | $ 1,096,008 |
Goods and services transferred at a point in time | ||||
Timing of Revenue Recognition | ||||
Total | 289,477 | 337,648 | 952,173 | 1,056,318 |
Goods and services transferred over time | ||||
Timing of Revenue Recognition | ||||
Total | $ 11,924 | $ 11,358 | $ 36,373 | $ 39,690 |
Revenue From Contracts With C_7
Revenue From Contracts With Customers (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | |||||
Revenue recognized that was included in the contract liability balance at the beginning of the period | $ 7,730 | $ 31,213 | $ 51,173 | $ 65,743 | |
One Customer | Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 16% | 14% |
Revenue From Contracts With C_8
Revenue From Contracts With Customers (Changes in Contract Assets and Contract Liabilities) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract assets | ||||
Contract assets | $ 5,623 | $ 8,995 | $ 8,620 | $ 9,345 |
Contract assets, change | (2,997) | (350) | ||
Contract liabilities | ||||
Contract liabilities - current | 66,961 | 81,868 | 80,068 | 89,659 |
Contract liabilities - current, change | (13,107) | (7,791) | ||
Contract liabilities - long-term | 2,851 | 2,711 | $ 3,142 | $ 2,691 |
Contract liabilities - long-term, change | $ (291) | $ 20 |
Revenue From Contracts With C_9
Revenue From Contracts With Customers (Schedule of Remaining Performance Obligations) (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 26,010 |
Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 6,028 |
Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 19,982 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 11,851 |
Remaining performance obligations, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,190 |
Remaining performance obligations, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 10,661 |
Remaining performance obligations, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 11,697 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,376 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 9,321 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,092 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,092 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 819 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 819 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 463 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 463 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 88 |
Remaining performance obligations, expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Revenue expected to be recognized for extended warranty agreements | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 88 |
Remaining performance obligations, expected timing | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Revenue to be earned over time from contracts to sell large scale materials processing systems | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligations, expected timing |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Total assets | $ 854,473 | $ 839,574 |
Liabilities | ||
Term debt | 16,031 | |
Total liabilities | 16,031 | |
Commercial paper | ||
Assets | ||
Short-term investments | 283,788 | 363,991 |
U.S. Treasury and agency obligations | ||
Assets | ||
Short-term investments | 180,697 | 39,611 |
Corporate bonds | ||
Assets | ||
Short-term investments | 137,238 | 65,022 |
Term deposits | ||
Assets | ||
Short-term investments | 10,113 | |
Interest rate swap | ||
Assets | ||
Long-term investments and other assets | 198 | |
Term deposits | ||
Assets | ||
Short-term investments | 3,009 | |
U.S. Treasury and agency obligations | ||
Assets | ||
Cash equivalents | 4,966 | |
Money market fund deposits | ||
Assets | ||
Cash equivalents | 146,503 | 195,654 |
Term deposits | ||
Assets | ||
Cash equivalents | 67,047 | 68,827 |
Commercial paper | ||
Assets | ||
Cash equivalents | 17,450 | 94,661 |
Corporate bonds | ||
Assets | ||
Cash equivalents | 13,775 | 1,497 |
Level 1 | ||
Assets | ||
Total assets | 146,503 | 195,654 |
Liabilities | ||
Term debt | 0 | |
Total liabilities | 0 | |
Level 1 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | 0 |
Level 1 | U.S. Treasury and agency obligations | ||
Assets | ||
Short-term investments | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets | ||
Short-term investments | 0 | 0 |
Level 1 | Term deposits | ||
Assets | ||
Short-term investments | 0 | |
Level 1 | Interest rate swap | ||
Assets | ||
Long-term investments and other assets | 0 | |
Level 1 | Term deposits | ||
Assets | ||
Short-term investments | 0 | |
Level 1 | U.S. Treasury and agency obligations | ||
Assets | ||
Cash equivalents | 0 | |
Level 1 | Money market fund deposits | ||
Assets | ||
Cash equivalents | 146,503 | 195,654 |
Level 1 | Term deposits | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 1 | Commercial paper | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 2 | ||
Assets | ||
Total assets | 707,970 | 643,920 |
Liabilities | ||
Term debt | 16,031 | |
Total liabilities | 16,031 | |
Level 2 | Commercial paper | ||
Assets | ||
Short-term investments | 283,788 | 363,991 |
Level 2 | U.S. Treasury and agency obligations | ||
Assets | ||
Short-term investments | 180,697 | 39,611 |
Level 2 | Corporate bonds | ||
Assets | ||
Short-term investments | 137,238 | 65,022 |
Level 2 | Term deposits | ||
Assets | ||
Short-term investments | 10,113 | |
Level 2 | Interest rate swap | ||
Assets | ||
Long-term investments and other assets | 198 | |
Level 2 | Term deposits | ||
Assets | ||
Short-term investments | 3,009 | |
Level 2 | U.S. Treasury and agency obligations | ||
Assets | ||
Cash equivalents | 4,966 | |
Level 2 | Money market fund deposits | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 2 | Term deposits | ||
Assets | ||
Cash equivalents | 67,047 | 68,827 |
Level 2 | Commercial paper | ||
Assets | ||
Cash equivalents | 17,450 | 94,661 |
Level 2 | Corporate bonds | ||
Assets | ||
Cash equivalents | 13,775 | 1,497 |
Level 3 | ||
Assets | ||
Total assets | 0 | 0 |
Liabilities | ||
Term debt | 0 | |
Total liabilities | 0 | |
Level 3 | Commercial paper | ||
Assets | ||
Short-term investments | 0 | 0 |
Level 3 | U.S. Treasury and agency obligations | ||
Assets | ||
Short-term investments | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets | ||
Short-term investments | 0 | 0 |
Level 3 | Term deposits | ||
Assets | ||
Short-term investments | 0 | |
Level 3 | Interest rate swap | ||
Assets | ||
Long-term investments and other assets | 0 | |
Level 3 | Term deposits | ||
Assets | ||
Short-term investments | 0 | |
Level 3 | U.S. Treasury and agency obligations | ||
Assets | ||
Cash equivalents | 0 | |
Level 3 | Money market fund deposits | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 3 | Term deposits | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Assets | ||
Cash equivalents | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||
Held-to-maturity impairment | $ 0 | $ 0 |
Allowance for credit loss | $ 0 | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Effective Maturity Dates of Held to Maturity Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investment maturity | ||
Held-to-maturity maturities, less than 1 year, book value | $ 605,207 | $ 479,374 |
Held-to-maturity maturities, less than 1 year, fair value | $ 604,732 | $ 478,737 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Components and raw materials | $ 279,309 | $ 322,506 |
Work-in-process | 62,414 | 18,911 |
Finished goods | 138,106 | 167,946 |
Total | $ 479,829 | $ 509,363 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | ||||
Inventory provisions | $ 9,119 | $ 12,883 | $ 32,434 | $ 38,363 |
Restructuring and Impairment _3
Restructuring and Impairment of Long-Lived Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring recoveries, net | $ (1,501,000) | $ 0 | $ (357,000) | $ 0 |
Impairment of long-lived assets | 1,237,000 | 919,000 | 1,237,000 | 919,000 |
Operating lease, right-of-use asset | $ 0 | $ 0 | ||
Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring recoveries, net | $ 0 | $ 0 |
Restructuring and Impairment _4
Restructuring and Impairment of Long-Lived Assets (Summary of Restructuring Accrual) (Details) - Restructuring $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 4,869 |
Charges | 1,367 |
Cash payments | (3,630) |
Recoveries | (1,724) |
Foreign exchange adjustment | (864) |
Restructuring reserve, ending balance | $ 18 |
Goodwill and Intangibles (Sched
Goodwill and Intangibles (Schedule of Changes) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 38,325 | $ 38,609 |
Goodwill arising from business combinations | 0 | 1,000 |
Goodwill written off related to divestiture | 0 | (796) |
Foreign exchange adjustment | (60) | (850) |
Balance, end of period | $ 38,265 | $ 37,963 |
Goodwill and Intangibles (Intan
Goodwill and Intangibles (Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 95,039 | $ 95,658 |
Accumulated Amortization | (66,983) | (61,538) |
Net Carrying Amount | 28,056 | 34,120 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 48,124 | 48,155 |
Accumulated Amortization | (24,875) | (21,734) |
Net Carrying Amount | $ 23,249 | $ 26,421 |
Weighted- Average Lives | 11 years | 11 years |
Technology, trademark and trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 29,790 | $ 30,360 |
Accumulated Amortization | (25,140) | (23,189) |
Net Carrying Amount | $ 4,650 | $ 7,171 |
Weighted- Average Lives | 7 years | 7 years |
Production know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9,091 | $ 9,109 |
Accumulated Amortization | (9,029) | (8,818) |
Net Carrying Amount | $ 62 | $ 291 |
Weighted- Average Lives | 7 years | 7 years |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,034 | $ 8,034 |
Accumulated Amortization | (7,939) | (7,797) |
Net Carrying Amount | $ 95 | $ 237 |
Weighted- Average Lives | 8 years | 8 years |
Goodwill and Intangibles (Narra
Goodwill and Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 2,020 | $ 2,447 | $ 6,062 | $ 8,377 |
Goodwill and Intangibles (Estim
Goodwill and Intangibles (Estimated Future Amortization Expense for Intangibles) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,833 | |
2024 | 5,553 | |
2025 | 4,977 | |
2026 | 4,216 | |
2027 | 4,004 | |
Thereafter | 7,473 | |
Net Carrying Amount | $ 28,056 | $ 34,120 |
Other Liabilities (Components o
Other Liabilities (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||||
Contract liabilities | $ 66,961 | $ 80,068 | $ 81,868 | $ 89,659 |
Accrued compensation | 64,060 | 78,251 | ||
Current portion of accrued warranty | 27,280 | 28,504 | ||
Short-term lease liabilities | 4,401 | 5,234 | ||
Other | 11,815 | 10,707 | ||
Total | $ 174,517 | $ 202,764 |
Other Liabilities (Other Long-T
Other Liabilities (Other Long-Term Liabilities and Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued warranty | $ 20,814 | $ 24,358 |
Transition tax related to 2017 U.S. tax reform act | 11,010 | 19,874 |
Long-term lease liabilities | 13,199 | 16,787 |
Unrealized tax benefits | 17,778 | 15,841 |
Deferred income taxes | 1,256 | 1,469 |
Other | 5,147 | 4,945 |
Total | $ 69,204 | $ 83,274 |
Product Warranties (Narrative)
Product Warranties (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Product Warranty Liability [Line Items] | ||
Accrued warranty reported in accrued expenses and other liabilities | $ 27,280 | $ 28,504 |
Accrued warranty | $ 20,814 | $ 24,358 |
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 | 5 years |
Product Warranties (Summary of
Product Warranties (Summary of Product Warranty Activity) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance, beginning of period | $ 52,862 | $ 49,864 |
Provision for warranty accrual | 9,874 | 18,280 |
Warranty claims | (13,792) | (13,968) |
Foreign currency translation | (850) | (4,198) |
Balance, end of period | $ 48,094 | $ 49,978 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) € in Thousands | Sep. 30, 2023 USD ($) | Sep. 30, 2023 EUR (€) | Jul. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | ||||
Total unused credit lines and overdraft facilities | $ 74,112,000 | |||
Foreign Subsidiary Drawings On US Line Of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of credit | 0 | $ 0 | ||
Guarantees issued | 2,474,000 | 2,396,000 | ||
Euro overdraft facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit | 0 | $ 0 | ||
Letter of Credit | Foreign Subsidiary Drawings On US Line Of Credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 75,000,000 | |||
Letter of Credit | Euro overdraft facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 1,586,000 | € 1,500 | ||
Letter of Credit | Euro line-of-credit | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | € | € 50,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Derivative Gains (Losses) in the Consolidated Statements of Income Related to Interest Rate Swap Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate swap | Derivative designated as a cash flow hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion recognized in other comprehensive income, interest rate swap | $ 0 | $ 65 | $ (198) | $ 500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Legal proceedings | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.90% | 21% | 23.80% | 22.70% |
Net discrete tax benefit | $ 3,644 | $ 6,806 | ||
Net discrete tax detriment | $ 169 | $ 390 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of period | $ 15,841 | $ 19,209 |
Change in prior period positions | (1,274) | (603) |
Additions for tax positions in current period | 3,738 | 0 |
Foreign currency translation | (527) | |
Foreign currency translation | 865 | |
Balance, end of period | $ 17,778 | $ 19,471 |
Net Income Attributable to IP_3
Net Income Attributable to IPG Photonics Corporation Per Common Share (Computation of Diluted Net Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to IPG Photonics Corporation common stockholders | $ 54,994 | $ 76,264 | $ 177,450 | $ 202,804 |
Basic weighted average common shares | 47,236,901 | 51,628,701 | 47,363,974 | 51,449,367 |
Dilutive effect of common stock equivalents (in shares) | 151,218 | 108,289 | 171,661 | 176,565 |
Diluted weighted average common shares | 47,388,119 | 51,736,990 | 47,535,635 | 51,625,932 |
Basic net income attributable to IPG Photonics Corporation per common share (in dollars per share) | $ 1.16 | $ 1.48 | $ 3.75 | $ 3.94 |
Diluted net income attributable to IPG Photonics Corporation per common share (in dollars per share) | $ 1.16 | $ 1.47 | $ 3.73 | $ 3.93 |
Net Income Attributable to IP_4
Net Income Attributable to IPG Photonics Corporation Per Common Share (Anti Dilutive Shares Excluded From EPS) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded from computation of diluted weighted average common shares | 584,429 | 1,138,105 | 966,917 | 1,024,317 |
Non-qualified stock options | Non-qualified Plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded from computation of diluted weighted average common shares | 529,228 | 672,539 | 537,065 | 604,394 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded from computation of diluted weighted average common shares | 55,201 | 373,646 | 376,382 | 340,924 |
Performance stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Excluded from computation of diluted weighted average common shares | 0 | 91,920 | 53,470 | 78,999 |
Net Income Attributable to IP_5
Net Income Attributable to IPG Photonics Corporation Per Common Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | May 02, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||
Decrease in weighted average number of shares outstanding treasury stock | 131,533 | 932,015 | |
May 2023 Purchase Plan | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase authorized amount | $ 200 | ||
Stock repurchased during period (in shares) | 449,688 | ||
Stock repurchase average price (in dollars per share) | $ 102.37 | ||
May and August Purchase Plan | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period (in shares) | 1,448,457 | ||
Stock repurchase average price (in dollars per share) | $ 109.21 |