IPG PHOTONICS CORP, 10-K filed on 2/21/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Feb. 20, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 4.1
Entity Common Stock, Shares Outstanding   46,098,133  
Documents Incorporated by Reference
Portions of the registrant's Definitive Proxy Statement for its 2024 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A within 120 days of the end of the registrant's fiscal year ended December 31, 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein.
    
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2023    
Entity Central Index Key 0001111928    
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 34
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 514,674 $ 698,209
Short-term investments 662,807 479,374
Accounts receivable, net 219,053 211,347
Inventories 453,874 509,363
Prepaid income taxes 26,038 40,934
Prepaid expenses and other current assets 38,208 47,047
Total current assets 1,914,654 1,986,274
Deferred income taxes, net 88,788 75,152
Goodwill 38,540 38,325
Intangible assets, net 26,234 34,120
Property, plant and equipment, net 602,257 580,561
Other assets 28,425 28,848
Total assets 2,698,898 2,743,280
Current liabilities:    
Current portion of long-term debt 0 16,031
Accounts payable 28,618 46,233
Accrued expenses and other liabilities 181,350 202,764
Income taxes payable 4,893 9,618
Total current liabilities 214,861 274,646
Other long-term liabilities and deferred income taxes 68,652 83,274
Total liabilities 283,513 357,920
Commitments and contingencies (Note 14)
IPG Photonics Corporation equity:    
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,317,438 and 46,320,671 shares issued and outstanding, respectively, at December 31, 2023; 56,017,672 and 48,138,257 shares issued and outstanding, respectively, at December 31, 2022. 6 6
Treasury stock, at cost, 9,996,767 and 7,879,415 shares held at December 31, 2023 and December 31, 2022, respectively. (1,161,505) (938,009)
Additional paid-in capital 994,020 951,371
Retained earnings 2,795,394 2,576,516
Accumulated other comprehensive loss (212,530) (204,524)
Total IPG Photonics Corporation stockholders' equity 2,415,385 2,385,360
Total liabilities and equity $ 2,698,898 $ 2,743,280
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 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 56,317,438 56,017,672
Common stock, shares outstanding 46,320,671 48,138,257
Treasury stock, shares 9,996,767 7,879,415
v3.24.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Net sales $ 1,287,439 $ 1,429,547 $ 1,460,860
Cost of sales 745,741 874,134 764,462
Gross profit 541,698 555,413 696,398
Operating expenses:      
Sales and marketing 85,679 76,643 78,180
Research and development 98,704 116,114 139,573
General and administrative 125,749 131,253 125,882
Gain on divestiture and sale of asset 0 (31,846) 0
Impairment of long-lived assets 1,237 79,949 0
Restructuring charges (recoveries), net (288) 9,697 0
(Gain) loss on foreign exchange (1,356) 4,103 (15,120)
Total operating expenses 309,725 385,913 328,515
Operating income 231,973 169,500 367,883
Other income (expense), net:      
Interest income (expense), net 41,735 12,620 (1,839)
Other income, net 1,167 1,231 437
Total other income (expense) 42,902 13,851 (1,402)
Income before provision for income taxes 274,875 183,351 366,481
Provision for income taxes 55,997 72,589 88,615
Net income 218,878 110,762 277,866
Less: net income (loss) attributable to non-controlling interests 0 853 (550)
Net income attributable to IPG Photonics Corporation common stockholders $ 218,878 $ 109,909 $ 278,416
Net income attributable to IPG Photonics Corporation per common share:      
Basic (in dollars per share) $ 4.64 $ 2.17 $ 5.21
Diluted (in dollars per share) $ 4.63 $ 2.16 $ 5.16
Weighted average shares outstanding:      
Basic (in shares) 47,154,217 50,761,096 53,409,673
Diluted (in shares) 47,320,075 50,924,742 53,930,227
v3.24.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income $ 218,878 $ 110,762 $ 277,866
Other comprehensive (loss) income, net of tax:      
Foreign currency translation adjustments and other (7,854) (14,838) (44,267)
Unrealized (loss) gain on derivatives (152) 336 278
Total other comprehensive (loss) income (8,006) (14,502) (43,989)
Comprehensive income 210,872 96,260 233,877
Less: comprehensive income (loss) attributable to non-controlling interest 0 924 (653)
Comprehensive income attributable to IPG Photonics Corporation $ 210,872 $ 95,336 $ 234,530
v3.24.0.1
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
Common stock, beginning balance (in shares) at Dec. 31, 2020   53,427,234          
Treasury stock, beginning balance (in shares) at Dec. 31, 2020     (2,034,012)        
Beginning balance at Dec. 31, 2020 $ 2,594,111 $ 6 $ (303,614) $ 854,301 $ 2,188,191 $ (146,065) $ 1,292
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options (in shares)   292,849          
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options 10,766     10,766      
Common stock issued under employee stock purchase plan (in shares)   34,151          
Common stock issued under employee stock purchase plan 5,492     5,492      
Purchased common stock (in shares)   (743,969) (743,969)        
Purchased common stock (134,889)   $ (134,889)        
Stock-based compensation 37,864     37,864      
Net income 277,866       278,416   (550)
Foreign currency translation adjustments and other (44,267)         (44,164) (103)
Unrealized gain (loss) on derivatives, net of tax 278         278  
Common stock, ending balance (in shares) at Dec. 31, 2021   53,010,265          
Treasury stock, ending balance (in shares) at Dec. 31, 2021     (2,777,981)        
Ending balance at Dec. 31, 2021 2,747,221 $ 6 $ (438,503) 908,423 2,466,607 (189,951) 639
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options (in shares)   167,193          
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options 693     693      
Common stock issued under employee stock purchase plan (in shares)   62,233          
Common stock issued under employee stock purchase plan 4,890     4,890      
Purchased common stock (in shares)   (5,101,434) (5,101,434)        
Purchased common stock (499,506)   $ (499,506)        
Stock-based compensation 38,302     38,302      
Net income 110,762       109,909   853
Foreign currency translation adjustments and other (14,838)         (14,909) 71
Purchase of non-controlling interests (2,500)     (937)     (1,563)
Unrealized gain (loss) on derivatives, net of tax $ 336         336  
Common stock, ending balance (in shares) at Dec. 31, 2022 48,138,257 48,138,257          
Treasury stock, ending balance (in shares) at Dec. 31, 2022 (7,879,415)   (7,879,415)        
Ending balance at Dec. 31, 2022 $ 2,385,360 $ 6 $ (938,009) 951,371 2,576,516 (204,524) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options (in shares)   241,782          
Vesting of RSUs and PSUs, net of shares withheld for taxes, and exercise of stock options (1,891)     (1,891)      
Common stock issued under employee stock purchase plan (in shares)   57,984          
Common stock issued under employee stock purchase plan 5,038     5,038      
Purchased common stock (in shares)   (2,117,352) (2,117,352)        
Purchased common stock (223,496)   $ (223,496)        
Stock-based compensation 39,502     39,502      
Net income 218,878       218,878    
Foreign currency translation adjustments and other (7,854)         (7,854)  
Unrealized gain (loss) on derivatives, net of tax $ (152)         (152)  
Common stock, ending balance (in shares) at Dec. 31, 2023 46,320,671 46,320,671          
Treasury stock, ending balance (in shares) at Dec. 31, 2023 (9,996,767)   (9,996,767)        
Ending balance at Dec. 31, 2023 $ 2,415,385 $ 6 $ (1,161,505) $ 994,020 $ 2,795,394 $ (212,530) $ 0
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income $ 218,878 $ 110,762 $ 277,866
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation and amortization 69,621 90,564 96,330
Deferred income taxes (13,789) (27,575) (6,885)
Stock-based compensation 39,502 38,302 37,864
Impairment of long-lived assets and restructuring charges (recoveries), net (486) 79,949 0
Unrealized gain on foreign currency transactions (4,334) (592) (8,560)
Gain on divestiture and sale of asset 0 (31,846) 0
Provisions for inventory, warranty and bad debt 61,058 153,652 68,441
Amortization of premium/discount on investments (25,102) (4,557) 2,502
Other 5,194 6,211 6,116
Changes in assets and liabilities that (used) provided cash, net of acquisitions:      
Accounts receivable (10,395) 34,100 (2,091)
Inventories 1,823 (189,013) (149,754)
Prepaid expenses and other current assets (2,025) 22,545 (23,697)
Accounts payable (16,319) (12,174) 30,997
Accrued expenses and other liabilities (44,693) (43,547) 24,715
Income and other taxes payable 17,053 (14,132) 35,856
Net cash provided by operating activities 295,986 212,649 389,700
Cash flows from investing activities:      
Purchases of and deposits on property, plant and equipment (110,483) (110,141) (123,108)
Proceeds from sales of property, plant and equipment 31,241 26,862 1,409
Purchases of short-term investments (1,232,863) (1,117,022) (1,940,605)
Proceeds from sale of short-term investments 1,073,993 1,446,355 1,647,537
Acquisitions of businesses, net of cash acquired 0 (2,000) 0
Proceeds from divestiture, net of cash sold 0 52,941 0
Other 558 (43) (1,515)
Net cash (used in) provided by investing activities (237,554) 296,952 (416,282)
Cash flows from financing activities:      
Principal payments on long-term borrowings (16,031) (18,126) (3,810)
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 3,147 5,583 16,258
Purchase of treasury stock, at cost (223,496) (499,506) (134,889)
Payment of purchase price holdback from business combination 0 0 (2,625)
Purchase of non-controlling interests 0 (2,500) 0
Net cash used in financing activities (236,380) (514,549) (125,066)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash (5,587) (5,948) (17,800)
Net decrease in cash, cash equivalents and restricted cash (183,535) (10,896) (169,448)
Cash, cash equivalents and restricted cash — Beginning of year 698,209 709,105 878,553
Cash, and cash equivalents — End of year 514,674 698,209 709,105
Supplemental disclosure of cash flow information:      
Cash paid for interest 1,284 3,214 2,714
Cash paid for income taxes 62,916 113,200 62,998
Non-cash transactions:      
Demonstration units transferred from inventory to other assets 5,404 5,178 5,729
Inventory transferred to machinery and equipment 2,767 4,172 3,701
Additions to property, plant and equipment included in accounts payable 3,251 1,073 816
Leased assets obtained in exchange for new operating lease liabilities $ 4,457 $ 7,566 $ 7,489
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Summary of Significant Accounting Policies NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business — IPG Photonics Corporation (the "Company" or "IPG") develops, manufactures and sells high-performance fiber lasers, fiber amplifiers, and diode lasers that are used for diverse applications, primarily in materials processing. The Company was incorporated as a Delaware corporation in December 1998. Its world headquarters is located in Marlborough, Massachusetts. It also has facilities and sales offices elsewhere in North and South America, Europe and Asia.
Russian Operations — In October 2022, the European Union (“EU”) issued sanctions that restricted the Company’s Russian subsidiary from supplying laser components to its other manufacturing facilities beginning in January 2023. These EU sanctions, coupled with increased tariffs in the United States on items imported from Russia, negatively affected what had been the Russian subsidiary’s most significant source of revenue, which was selling components and finished goods to other IPG subsidiaries. As a result of these changes in business conditions in Russia at the end of 2022, the Company completed an impairment analysis of assets in Russia during the fourth quarter of 2022 and recorded charges in the accompanying Consolidated Statement of Income. In 2022, the Company recorded $74,055 of inventory provision and related charges included in Cost of sales, $79,030 of impairment of long-lived asset charges included in Impairment of long-lived assets and a $35,518 valuation allowance for deferred tax assets included in provision for income taxes. The long-lived asset impairment charge was based on a probability-weighted average of valuations using the discounted cash flow method under the income approach, the guideline public company method and the guideline transaction method under the market approach, to estimate the fair value of the long-lived assets in Russia. Further, in 2022 the Company implemented a restructuring program at its Russian subsidiary and recorded restructuring charges of $8,542 for personnel-related restructuring charges and other post employment benefits included in Restructuring charges (recoveries), net. In 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 $288 for the year ended December 31, 2023.
Principles of Consolidation — The accompanying financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated.
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Foreign Currency — The financial information for entities outside the United States is measured using local currencies as the functional currency. Assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the respective balance sheet dates. Income and expenses are translated into U.S. dollars based on the average rate of exchange for the corresponding period. Exchange rate differences resulting from translation adjustments are accounted for directly as a component of accumulated other comprehensive (loss) income.
Cash and Cash Equivalents and Short-Term Investments — Cash and cash equivalents consist primarily of highly liquid investments, such as money market fund deposits, term deposits, corporate bonds, and commercial paper with maturities of three months or less at the date of purchase with insignificant interest rate risk. Short-term investments consist of liquid investments including commercial paper, corporate bonds, U.S. government and government agency notes and term deposits with original maturities of greater than three months but less than one year with insignificant interest rate risk. Fixed-term securities included in cash equivalents and short-term investments are held-to-maturity and accounted for at amortized cost.
Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable include $17,313 and $12,977 of bank acceptance drafts at December 31, 2023 and 2022, respectively. Bank acceptance drafts are bank guarantees of payment on specified dates. The weighted average maturity of these bank acceptance drafts is approximately 102 days. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an 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:
202320222021
Balance at January 1$2,639 $2,108 $2,156 
Provision for bad debts, net of recoveries
36 712 434 
Uncollectible accounts written off
(840)(125)(437)
Foreign currency translation(72)(56)(45)
Balance at December 31$1,763 $2,639 $2,108 
Inventories — Inventories are stated at the lower of cost and net realizable value on a first-in, first-out basis. Inventories include parts and components that may be specialized in nature and subject to obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. The costs associated with provisions for excess quantities, technological obsolescence, or scrap related to out of specification components are charged to cost of sales as incurred.
Goodwill — Goodwill is the amount by which the cost of the acquired net assets in a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase. Goodwill is assessed for impairment at least annually, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. If the carrying value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying value of goodwill. If the carrying value of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. The results of the goodwill assessments for the years ended December 31, 2023 and 2022 are discussed in Note 7, "Goodwill and Intangible Assets".
Intangible Assets — Intangible assets result from the Company's various business acquisitions. Intangible assets are reported at cost, less accumulated amortization, and are amortized on a straight-line basis either over their estimated useful lives of one year to thirteen years or over the period the economic benefits of the intangible asset are consumed.
Property, Plant and Equipment — Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is determined using the straight-line method based on the estimated useful lives of the related assets. In the case of leasehold improvements, the estimated useful lives of the related assets do not exceed the remaining terms of the corresponding leases. The following table presents the assigned economic useful lives of property, plant and equipment:
Category  
Economic Useful Life
Buildings  
20-30 years
Machinery and equipment  
5-7 years
Office furniture and fixtures  
5-7 years
Expenditures for maintenance and repairs are charged to operating expenses when they are incurred.
Long-Lived Assets — Long-lived assets, which consist primarily of property, plant and equipment and identifiable intangible assets, are reviewed by management for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When 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. The impact of the long-lived assets impairment for the years ended December 31, 2023, and 2022 are discussed in Note 8, "Property, Plant and Equipment" and Note 13, "Leases".
Included in other long-term assets is certain demonstration equipment. The demonstration equipment is amortized over the respective estimated economic lives, generally 3 years. The carrying value of the demonstration equipment totaled $3,726 and $3,686 at December 31, 2023 and 2022, respectively. Amortization expense of demonstration equipment for the years ended December 31, 2023, 2022 and 2021, was $3,480, $2,387 and $3,596, respectively.
Authorized Capital — The Company has authorized capital stock consisting of 175,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of preferred stock, par value $0.0001 per share. There are no shares of preferred stock outstanding as of December 31, 2023. 
Revenue Recognition — Revenue is recognized when transfer of control to the customer occurs in an amount reflecting the consideration that the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.
The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer's ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is identified as a distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company's standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company's performance obligation is satisfied), which typically occurs at shipment but which can occur over time for certain of the Company's systems contracts.
The Company often receives orders with the customer's schedule of delivery dates for products that may extend across several reporting periods. The Company allocates the transaction price of the contract to each delivery based on the product standalone selling price. The Company invoices for each scheduled delivery upon shipment and recognizes revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14 revenues allocated to future shipments of partially completed contracts are not disclosed.
Rights of return are not generally included in customer contracts. Accordingly, upon application of steps one through five above, product revenue is recognized upon shipment and transfer of control. Returns are infrequent and are recorded as a reduction of revenue.
In certain subsidiaries the Company provides sales commissions to sales representatives based on sales volume. The Company has determined that the incentive portion of its sales commissions qualify as contract costs. The Company has elected the practical expedient in ASC 340-40-25-4 to expense sales commissions when incurred as the amortization period of the asset that would otherwise have been recognized is one year or less.
Revenue Recognition at a Point in Time — Revenues recognized at a point in time consist primarily of product, installation and service sales. The Company sells products to original equipment manufacturers ("OEMs") that supply materials processing laser systems, communications systems, medical laser systems and other laser systems for advanced applications to end users. The Company also sells products to end users that use IPG products directly to build their own systems, which incorporate or use IPG products as an energy or light source. The Company recognizes revenue for laser and spare part sales following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. Installation revenue is recognized upon completion of the installation service, which typically occurs within 90 days of delivery. When sales contracts contain multiple performance obligations, such as the shipment or delivery of products and installation, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product or service is transferred to the customer, in satisfaction of the corresponding performance obligations.
Revenue Recognition over Time — Warranties are limited and provide that the product meets specifications and is free from defects in materials and workmanship. The Company also offers extended warranty agreements, which extend the standard warranty periods. Extended warranties are sold separately from products and represent a distinct performance obligation. Revenue related to the performance obligation for extended warranties is recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company. The customer receives the assurance that the product will operate in accordance with agreed-upon specifications evenly during the extended warranty period regardless of whether they make a claim during that period, and therefore, revenue at time of sale is deferred and recognized over the time period of the extended warranty period.
The Company enters into contracts to sell customized large scale materials processing systems through its subsidiary Genesis Systems Group, LLC, for which revenue is generally recognized over time, depending on the terms of the contract. Recognizing revenue over time for these contracts is based on the Company’s judgment that the customized large scale
materials processing systems do not have an alternative use and the Company has an enforceable right to payment for performance completed to date.
The determination of the revenue to be recognized in a given period for performance obligations over time is based on the input method. The Company generally uses the total cost-to-cost input method of progress because it best depicts the transfer of control to the customer that occurs as costs are incurred. Under the cost-to-cost method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation.
Customer Deposits and Deferred Revenue — When the Company receives consideration from a customer or such consideration is unconditionally due prior to transferring goods or services under the terms of a sales contract, the Company records customer deposits or deferred revenue, which represent contract liabilities. The Company recognizes 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.
Warranties — The Company typically provides one to five-year warranties on lasers and amplifiers. Most of the Company's sales offices provide support to customers in their respective geographic areas. The Company estimates the warranty accrual considering past claims experience, the number of units still covered by warranty and the average life of the remaining warranty period. The warranty accrual has generally been sufficient to cover product warranty repair and replacement costs.
Stock-based Compensation — The Company accounts for stock-based compensation expense using the fair value of the awards granted. The Company issues equity incentive awards in the form of time-based restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). The fair value for RSUs is based on the closing share price of the Company's common stock on the date of grant. PSUs are aligned to specified performance targets such as financial metrics or the relative return of the Company's common stock compared to an index ("TSR PSUs"). The fair value of PSUs aligned to specified financial performance metrics is determined based on the number of units expected to vest upon achievement of the performance conditions. The fair value for PSUs aligned to the TSR is based on a Monte Carlo simulation model. The Company recognizes stock-based compensation as an expense on a straight-line basis, over the requisite service period. The Company accounts for forfeitures as they occur.
The Company has an employee stock purchase plan ("ESPP") offered to its U.S. and German employees. The Company uses the Black-Scholes model to calculate the purchase date fair value of the shares issued under the employee stock purchase plan and recognize expense related to shares purchased ratably over the offering period. The description of the Company's stock-based compensation plans and the assumptions it uses to calculate the fair value of stock-based compensation is described in Note 15, "Stock-based Compensation."
Advertising Expense — The cost of advertising is expensed as incurred. The Company conducts substantially all of its sales and marketing efforts through trade shows, professional and technical conferences, direct sales and the Company's website. The Company's advertising costs were not material for the periods presented.
Research and Development — Research and development costs are expensed as incurred.
Restructuring — The Company records charges associated with approved restructuring plans to reorganize operations, to remove redundant headcount and infrastructure associated with business acquisitions or to improve the efficiency of business processes. Restructuring charges can include severance costs to eliminate a specific number of positions, infrastructure charges to vacate facilities and consolidate operations and contract cancellation costs. The Company records restructuring charges when they are probable and estimable. The Company accrues for severance and other employee separation costs under these plans when the plan is communicated to employees and an amount per employee can be reasonably estimated either by the communicated terms, or by legal requirements, if applicable. The results of restructuring program implemented during the years ended December 31, 2023, and 2022 are discussed in Note 6, "Restructuring".
Income Taxes — Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities and net operating loss and credit carryforwards. These differences are valued using enacted rates in effect when those differences are expected to reverse. Valuation allowances are provided against deferred tax assets that are not deemed to be recoverable. The Company recognizes tax positions that are more likely than not to be sustained upon examination by relevant tax authorities. The tax
positions are measured at the greatest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement.
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. The reserves are based on a determination of whether a tax benefit claimed in our tax filings is more likely than not to be realized following the resolution of any potential tax audits related to the tax benefit, assuming that the matter in question will be reviewed by the tax authorities.
Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains substantially all of its cash and cash equivalents and short-term investments in various financial institutions, which it believes to be high-credit quality financial institutions. The Company grants credit to customers in the ordinary course of business and provides a reserve for potential credit losses. Such losses historically have been within management's expectations.
One of our customers accounted for 14% of our net accounts receivable as of both December 31, 2023 and 2022. The Company has historically depended on a few customers for a significant percentage of its annual net sales. The composition of this group can change from year to year. Net sales derived from the Company's five largest customers as a percentage of its annual net sales were 13%, 15% and 19% in 2023, 2022 and 2021, respectively.
Comprehensive Income — Comprehensive income includes charges and credits to equity that are not the result of transactions with stockholders. Included within comprehensive income is the cumulative foreign currency translation adjustment, and unrealized gains or losses on derivatives. These adjustments are accumulated within the consolidated statements of comprehensive income.
Total components of accumulated other comprehensive loss were as follows:
Foreign currency translation adjustments and other
Unrealized (loss) gain on derivatives, net of tax
Total
Balance, January 1, 2021$(145,603)$(462)$(146,065)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments and other, net of tax benefit of $246
(44,164)— (44,164)
Unrealized gain on derivatives, net of tax of $83
— 278 278 
Total other comprehensive (loss) income
(44,164)278 (43,886)
Balance, December 31, 2021(189,767)(184)(189,951)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $156
(15,117)— (15,117)
Reclassification for foreign currency translation adjustments and other included in net income
208 — 208 
Unrealized gain on derivatives, net of tax of $104
— 336 336 
Total other comprehensive (loss) income(14,909)336 (14,573)
Balance, December 31, 2022(204,676)152 (204,524)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $151
(7,854)— (7,854)
Unrealized (loss) on derivatives, net of tax benefit of $46
— (152)(152)
Total other comprehensive loss
(7,854)(152)(8,006)
Balance, December 31, 2023$(212,530)$— $(212,530)
Derivative Instruments — The Company's primary market exposures are to interest rates and foreign exchange rates. The Company from time to time may use 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.
Business Segment Information — The Company operates in one segment which involves the design, development, production and distribution of fiber lasers, laser and non-laser systems, fiber amplifiers, and related optical components. The Company has a single, company-wide management team that administers all properties as a whole rather than as discrete operating segments. The chief operating decision maker, who is the Company's chief executive officer, measures financial performance as a single enterprise, and not on geography, legal entity, or end market basis. Throughout the year, the chief operating decision maker allocates capital resources on a project-by-project basis across the Company's entire asset base to maximize profitability without regard to geography, legal entity, or end market basis. The Company operates in a number of countries throughout the world in a variety of product lines. Information regarding product lines and geographic financial information is provided in Note 2, "Revenue from Contracts with Customers" and Note 8, "Property, Plant and Equipment."
Earnings Per Share — Basic net income per common share is computed by dividing net income attributable to common shareholders of the Company by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per common share is computed similarly to basic net income per common share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Information about potentially dilutive and antidilutive shares for the reporting period is provided in Note 18, "Net Income Attributable to IPG Photonics Corporation Per Share."
Leases — The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, accrued expenses and other liabilities, and other long-term liabilities and deferred income taxes on the Company's consolidated balance sheets.
Right of use ("ROU") assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, IPG uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The ROU assets include any lease payments made and initial direct costs incurred and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component.
Recent Accounting Pronouncements
Adopted Pronouncements — None.
Pronouncements Currently Under Evaluation - In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an annual and interim basis. Under the new guidance an entity is required to disclose the title and position of the chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The ASU also requires that an entity that has a single reportable segment provide all the disclosures required by this ASU and all existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this ASU and does not expect this standard will have a material impact.
In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-07"), which requires an entity on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance also requires an entity to disclose on an annual basis information about income taxes paid. ASU 2023-07 is effective for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this ASU and does not expect this standard will have a material impact.
v3.24.0.1
Revenue From Contracts With Customers
 12 Months Ended
Dec. 31, 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, amplifiers and diodes for advanced applications, and fiber lasers, systems and fibers for medical applications.
The following tables represent a disaggregation of revenue from contracts with customers for the years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,
202320222021
Sales by Application
Materials processing$1,152,804 $1,291,262 $1,325,404 
Other applications134,635 138,285 135,456 
Total$1,287,439 $1,429,547 $1,460,860 
Sales by Product
High Power Continuous Wave ("CW") Lasers$524,981 $613,734 $687,406 
Medium Power CW Lasers71,672 77,079 80,501 
Pulsed Lasers185,581 250,677 240,978 
Quasi-Continuous Wave ("QCW") Lasers48,648 50,212 60,668 
Laser and Non-Laser Systems161,177 153,471 126,642 
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue295,380 284,374 264,665 
Total$1,287,439 $1,429,547 $1,460,860 
Sales by Geography
North America$313,986 $338,713 $314,984 
Europe:
Germany88,026 85,491 101,738 
Other Europe
291,336 294,481 289,136 
Asia:
China355,321 479,926 548,348 
Japan72,333 57,865 54,077 
Other142,378 152,373 139,148 
Rest of World24,059 20,698 13,429 
Total$1,287,439 $1,429,547 $1,460,860 
Timing of Revenue Recognition
Goods and services transferred at a point in time$1,239,551 $1,377,996 $1,402,498 
Goods and services transferred over time47,888 51,551 58,362 
Total$1,287,439 $1,429,547 $1,460,860 
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 consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the 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 consolidated balance sheets.
The following table reflects the changes in the Company's contract assets and liabilities for the years ended December 31, 2023 and 2022:
December 31,January 1,December 31,January 1,
20232023Change20222022Change
Contract assets
Contract assets$9,383 $8,620 $763 $8,620 $9,345 $(725)
Contract liabilities
Contract liabilities - current69,219 80,068 (10,849)80,068 89,659 (9,591)
Contract liabilities - long-term2,851 3,142 (291)3,142 2,691 451 
During the years ended December 31, 2023 and 2022, the Company recognized revenue of $62,247 and $73,325, respectively, that was included in the contract liabilities at the beginning of the period.
The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of December 31, 2023:
Remaining Performance Obligations
20242025202620272028ThereafterTotal
Revenue expected to be recognized for extended warranty agreements$3,008 $1,287 $910 $552 $98 $4 $5,859 
Revenue to be earned over time from contracts to sell large scale materials processing systems
16,577 2,414 — — — — 18,991 
Total$19,585 $3,701 $910 $552 $98 $4 $24,850 
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
The Company's financial instruments consisted of cash equivalents, short-term investments, accounts receivable, accounts payable, long-term debt, interest rate swaps and revolving lines of credit.
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 carrying amounts of money market fund deposits, cash equivalent term deposits, accounts receivable, and accounts payable and revolving lines of credit are considered reasonable estimates of their fair market value 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 consolidated balance sheets with the exception of the interest rate swap, which was measured at fair value:
 Fair Value Measurements at December 31, 2023
 TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits$171,632 $171,632 $— $— 
Term deposits83,965 — 83,965 — 
Corporate bonds23,516 — 23,516 — 
Commercial paper6,369 — 6,369 — 
Short-term investments:
Commercial paper244,571 — 244,571 — 
Corporate bonds243,915 — 243,915 — 
U.S. Treasury and agency obligations171,316 — 171,316 — 
Term deposits3,009 — 3,009 — 
Total assets$948,293 $171,632 $776,661 $— 
  Fair Value Measurements at December 31, 2022
 TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits
$195,654 $195,654 $— $— 
Commercial paper94,661 — 94,661 — 
Term deposits
68,827 — 68,827 — 
Corporate bonds1,497 — 1,497 — 
Short-term investments:
Commercial paper363,991 — 363,991 — 
Corporate bonds65,022 — 65,022 — 
U.S. Treasury and agency obligations39,611 — 39,611 — 
Term deposits
10,113 — 10,113 — 
Other assets:
Interest rate swap198 — 198 — 
Total assets$839,574 $195,654 $643,920 $— 
Liabilities
Term debt$16,031 $— $16,031 $— 
Total liabilities$16,031 $— $16,031 $— 
There were no impairments for the investments considered held-to-maturity at December 31, 2023 and December 31, 2022. There were no current expected credit loss allowances for the investments considered held-to-maturity at December 31, 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:
December 31, 2023December 31, 2022
Book ValueFair ValueBook ValueFair Value
Investment maturity
Less than 1 year$662,807 $662,811 $479,374 $478,737 
The Company entered into an interest rate swap that is designated as a cash flow hedge associated with a long-term note issued during the second quarter of 2016. In May 2023, the Company's long-term variable rate note matured and the interest rate swap associated with this note matured. At December 31, 2022, the carrying value of the note approximates the estimated fair value of $16,031. The long-term notes were reported at amortized cost on the consolidated balance sheets and were classified within Level 2 of the fair value hierarchy.
v3.24.0.1
Inventories
 12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Inventories INVENTORIES
Inventories consist of the following:
December 31,
 20232022
Components and raw materials$263,652 $322,506 
Work-in-process47,997 18,911 
Finished goods142,225 167,946 
Total
$453,874 $509,363 
The Company recorded inventory provisions of $45,499, $127,960 and $34,285 for the years ended December 31, 2023, 2022 and 2021, respectively. These provisions relate to the recoverability of the value of inventories due to excess quantities and technological changes. These provisions are reported as a reduction to components and raw materials, work-in-process and finished goods. Within the inventory provision and related charges recorded in 2022, $74,055 is related to Russian operations. See Note 1, "Nature of Business and Summary of Significant Accounting Policies", section Russian Operations for further detail.
v3.24.0.1
Divestiture and Sale of Asset
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Divestiture and Sale of Asset DIVESTITURE AND SALE OF ASSET
During the third quarter of 2022, the Company completed the sale of its telecommunications transmission product line for $56,222. The Company recorded a gain on divestiture of $21,918 for the year ended December 31, 2022, which was included in the Company's consolidated statements of income. As part of the transaction and just prior to closing, the Company also acquired the remaining non-controlling interests related to the business that was sold for $2,500.
During the fourth quarter of 2022, the Company completed the sale of its corporate aircraft for $25,693 and recorded a gain of $9,928 which was included in the Company's consolidated statements of income.
v3.24.0.1
Restructuring
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
In the fourth quarter of 2022, the Company implemented a restructuring program at its Russian subsidiary. In 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 $288 for the year ended December 31 2023. The Company incurred restructuring charges of $9,697 for the year ended December 31, 2022.
The restructuring accrual was included in accrued expenses and other liabilities in the Company's consolidated balance sheets. Activities related to the restructuring accrual were as follows:
20232022
Balance at January 1
$4,869 $— 
Charges1,436 9,697 
Cash payments(3,719)(4,493)
Recoveries
(1,724)— 
Foreign exchange adjustment(862)(335)
Balance at December 31
$— $4,869 
v3.24.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS
The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022:
 20232022
Balance at January 1$38,325 $38,609 
Goodwill arising from business combinations— 1,000 
Goodwill written off related to divestiture— (796)
Foreign exchange adjustment 215 (488)
Balance at December 31$38,540 $38,325 
The Company performed the 2023 and 2022 annual impairment test as of October 1, 2023 and 2022, respectively, and no impairments were recorded as a result of the tests. The carrying balance of goodwill at December 31, 2023, and 2022 was net of accumulated impairments of $81,709.
Intangible assets, subject to amortization, consisted of the following: 
 December 31, 2023December 31, 2022
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Weighted- Average Lives
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Weighted- Average Lives
Customer relationships$48,216 $(25,973)$22,243 11 years$48,155 $(21,734)$26,421 11 years
Technology, trademark and trade name29,903 (25,960)3,943 7 years30,360 (23,189)7,171 7 years
Production know-how9,155 (9,155)— 7 years9,109 (8,818)291 7 years
Patents8,035 (7,987)48 8 years8,034 (7,797)237 8 years
Total
$95,309 $(69,075)$26,234 $95,658 $(61,538)$34,120 
Amortization expense for the years ended December 31, 2023, 2022 and 2021 was $7,895, $10,454 and $12,427, respectively.
The estimated future amortization expense for intangibles as of December 31, 2023 is as follows:
20242025202620272028ThereafterTotal
$5,556 $4,978 $4,217 $4,005 $3,636 $3,842 $26,234 
v3.24.0.1
Property, Plant and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following: 
 December 31,
 20232022
Land$52,506 $52,618 
Buildings446,031 434,698 
Machinery and equipment457,968 424,197 
Office furniture and fixtures81,313 73,636 
Construction-in-progress118,341 103,655 
Total property, plant and equipment1,156,159 1,088,804 
Accumulated depreciation(553,902)(508,243)
Total property, plant and equipment — net$602,257 $580,561 
The Company recorded depreciation expense of $58,245, $76,063 and $78,563 for the years ended December 31, 2023, 2022 and 2021, respectively. In 2022, the Company recorded an impairment charge of $79,030 for long-lived asset in Russia.
See Note 1, "Nature of Business and Summary of Significant Accounting Policies", section Russian Operations for further detail.
Long-lived assets include property, plant and equipment, related deposits on such assets and demonstration equipment. The geographic locations of the Company's long-lived assets, net, based on physical location of the assets, as of December 31, 2023 and 2022 are as follows:
 December 31,
 20232022
United States$384,088 $388,111 
Germany132,218 111,726 
Belarus31,833 39,380 
Italy
10,747 9,340 
Japan9,024 5,043 
China4,328 5,406 
Other41,494 31,258 
Total$613,732 $590,264 
v3.24.0.1
Other Liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Other Liabilities OTHER LIABILITIES
Accrued expenses and other liabilities consist of the following:
December 31,
 20232022
Contract liabilities$69,219 $80,068 
Accrued compensation67,053 78,251 
Current portion of accrued warranty27,283 28,504 
Short-term lease liabilities4,597 5,234 
Other13,198 10,707 
Total$181,350 $202,764 
Other long-term liabilities and deferred income taxes consist of the following:
December 31,
20232022
Accrued warranty$19,926 $24,358 
Long-term lease liabilities13,664 16,787 
Unrecognized tax benefits
17,17615,841 
Transition tax related to 2017 U.S. tax reform act11,009 19,874 
Deferred income taxes1,508 1,469 
Other5,369 4,945 
Total$68,652 $83,274 
v3.24.0.1
Product Warranties
 12 Months Ended
Dec. 31, 2023
Product Warranties Disclosures [Abstract]  
Product Warranties PRODUCT WARRANTIES
Activity related to the warranty accrual was as follows:
202320222021
Balance at January 1$52,862 $49,864 $45,669 
Provision for warranty accrual13,596 22,565 33,289 
Warranty claims(19,801)(17,829)(26,568)
Foreign currency translation552 (1,738)(2,526)
Balance at December 31$47,209 $52,862 $49,864 
Accrued warranty reported in the accompanying consolidated financial statements as of December 31, 2023 and December 31, 2022 consists of $27,283 and $28,504 in accrued expenses and other liabilities and $19,926 and $24,358 in other long-term liabilities and deferred income taxes, respectively.
v3.24.0.1
Financing Arrangements
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Financing Arrangements FINANCING ARRANGEMENTS
Term Debt:
The Company's unsecured long-term note matured and was paid in May 2023, at which time the outstanding principal balance was $15,438. At December 31, 2023, the Company has no long-term debt outstanding.
Revolving Line of Credit Facilities:
The Company maintains an unsecured revolving line of credit with a principal amount of $75,000, expiring in April 2025. The line of credit bears interest at a variable rate of the Bloomberg Short-term Bank Yield Index ("BSBY") plus 0.80% to 1.20% depending on the Company's financial performance. Part of this credit facility is available to the Company's foreign subsidiaries including those in India, China, Japan and Brazil based on management discretion. At December 31, 2023, there were no outstanding drawings, however, there were $2,487 of guarantees issued against the line which reduced the total availability. At December 31, 2023, the remaining availability under this line was $72,513. In addition, the Company maintains Euro line of credit facilities with a total principal amount of €6,500 ($7,173 as of December 31, 2023), which are available to certain European subsidiaries.
The Company is required to meet certain financial covenants associated with its U.S. revolving line of credit and long-term debt facility. These covenants, tested quarterly, include an interest coverage ratio and a funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. The interest coverage covenant requires that the Company maintains a trailing twelve-month ratio of EBITDA to interest on all obligations that is at least 3.0:1.0. The funded debt to EBITDA covenant requires that the sum of all indebtedness for borrowed money on a consolidated basis be less than three times its trailing twelve months EBITDA. Funded debt is decreased by its cash and available marketable securities not classified as long-term investments in the U.S. in excess of $50,000 up to a maximum of $500,000.
v3.24.0.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments DERIVATIVE INSTRUMENTS
The Company's previous outstanding derivative financial instrument was an interest rate swap that was classified as a cash flow hedge of its variable rate debt. The interest rate swap matured with the long-term note in May 2023.
The derivative gains and losses in the consolidated financial statements related to the Company's previous interest rate swap contracts were as follows:
 Year Ended December 31,
 202320222021
Effective portion recognized in other comprehensive (loss) income, pre-tax:
Interest rate swap$(198)$440 $361 
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases LEASES
The Company leases certain warehouses, office spaces, land, vehicles and equipment under operating lease agreements. The remaining terms of these leases range from less than 1 year to 41 years. The operating lease expense for the years ended December 31, 2023, 2022 and 2021, totaled $4,529, $8,112 and $7,975, respectively. The cash paid for amounts included in the measurement of lease liabilities included in the operating cash flows from operating leases was $6,110, 7,192 and 6,854 for the years ended December 31, 2023, 2022 and 2021, respectively. The Company does not have any finance lease arrangements.
The Company's operating lease assets and lease liabilities consist of the following as of December 31, 2023 and 2022:
Year Ended December 31,
AccountClassification20232022
Right-of-use assetsOther assets$13,947 $15,564 
Short-term lease liabilitiesAccrued expenses and other liabilities4,597 5,234 
Long-term lease liabilitiesOther long-term liabilities and deferred income taxes13,664 16,787 
Total lease liabilities$18,261 $22,021 
The Company incurred $1,237 of non-cash impairment charges related to long-lived assets during the year ended December 31, 2023, 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 December 31, 2023, the ROU asset related to this lease has been reduced to zero.
The table below presents the maturities of operating lease liabilities as of December 31, 2023:
2024$5,224 
20254,291 
20263,283 
20272,084 
20281,758 
Thereafter4,356 
Total future minimum lease payments20,996 
Less: imputed interest(2,735)
Present value of lease liabilities$18,261 
Other information relevant to the Company's operating leases consist of the following as of December 31, 2023 and 2022:
Year Ended December 31,
20232022
Weighted-average remaining lease term6.66 years7.35 years
Weighted-average discount rate4.39 %4.33 %
v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Employment Agreements — The Company has entered into employment agreements with certain members of senior management. The terms of these agreements are up to two years and include non-competition, non-solicitation and nondisclosure provisions, as well as provisions for defined severance for terminations of employment under certain conditions and a change of control of the Company. The Company also maintains a severance plan for certain of its senior management providing for defined severance for terminations of employment under certain conditions and a change of control of the Company.
Contractual Obligations — The Company has entered into various purchase obligations that include agreements for construction of buildings, raw materials and equipment. Obligations under these agreements were $27,404 and $25,070 as of
December 31, 2023 and 2022, respectively, and the obligations related to raw materials and equipment are generally expected to be fulfilled within one year.
Legal Proceedings — From 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 December 31, 2023 and through the date of the Company's subsequent review period of February 21, 2024, the Company is aware of no ongoing legal proceedings that management estimates could have a material effect on the Company's Consolidated Financial Statements.
Following the submission of a limited number of voluntary self-disclosures regarding compliance with export control laws and regulations to the Bureau of Industry and Security of the U.S. Department of Commerce ("BIS"), the Company received subpoenas from the U.S. Department of Justice ("DOJ") and BIS in October 2021 and October 2022, respectively. The Company has been informed by the DOJ and BIS that the Company has satisfied its obligations under the subpoenas. The Company believes that those investigations are concluded.
v3.24.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
Stock-based compensation, including the employee stock purchase plan, is included in the following financial statement captions: 
 Year Ended December 31,
 202320222021
Cost of sales$7,929 $11,741 $11,245 
Sales and marketing5,421 4,889 4,320 
Research and development9,396 7,585 9,533 
General and administrative16,858 14,120 12,883 
Total stock-based compensation39,604 38,335 37,981 
Tax effect of stock-based compensation(8,660)(8,261)(8,071)
Net stock-based compensation$30,944 $30,074 $29,910 
Incentive Plans — In 2006, the Company's stockholders approved the 2006 Incentive Compensation Plan (as amended and restated from time to time, the "2006 Plan"), which provides for the issuance of stock options, PSUs, RSUs, other equity-based awards and cash awards to the Company's directors, employees, consultants and advisors. Also in 2006, the Company's stockholders approved the Non-Employee Directors Stock Plan (the "Directors Plan") for non-employee directors, which was subsequently merged into the 2006 Plan. The Company's stockholders approved amendments to the 2006 Plan in May 2006 and May 2023, including an increase in the authorized shares. A total of 11,563,465 shares are reserved under the 2006 Plan. At December 31, 2023, 3,107,336 shares of the Company's stock were available for future grant under the 2006 Plan. The Company may grant stock options only at an exercise price equal to or greater than the fair market value of its common stock on the date of grant. Equity awards generally vest over periods of one to four years and, in the case of stock options, generally expire ten years after the date of the grant. The vesting of awards under the 2006 Plan accelerate following the occurrence of certain change of control events if the participant's employment is terminated within two years by the Company without cause or by the participant for good reason or if an entity acquires control of the Company and does not agree to assume existing awards or replace with equivalent value awards. Awards granted to non-employee directors automatically become vested upon a change of control. All shares issued under the 2006 Plan are registered shares, newly issued by the Company.
The Company granted certain RSUs and PSUs to executive officers and other senior managers. The RSUs provide for time-based vesting of a fixed number of shares over three years. The PSUs provide the holder with the right to receive shares of the Company's common stock after the applicable award vesting period, generally three years. The final number of shares, if any, delivered upon vesting of PSUs are determined over the relevant performance period, generally three years. Outstanding PSUs are based on either TSR or financial metrics. In the case of TSR PSUs, performance is measured by the Company's total shareholder return over the performance period compared to the S&P 1500 Composite / Electronic Equipment & Instruments Index. In the case of all other PSUs, performance is measured against internal financial metrics established by the Company's Board. The final number of shares to be delivered under the PSUs range from 0% to 200% of the target award amount.
The Company has not granted stock options since 2020. The following table summarizes the option activity for the year ended December 31, 2023:
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Contractual Life
Aggregate Intrinsic Value
Outstanding at January 1, 2023881,887 $138.16 
Granted— — 
Exercised(84,146)66.90 
Forfeited(28,579)180.77 
Outstanding at December 31, 2023769,162 $144.38 3.21 years$6,271 
Exercisable at December 31, 2023769,162 $144.38 3.21 years$6,271 
The intrinsic value of the options exercised during the years ended December 31, 2023, 2022 and 2021 was $4,085, $6,069 and $28,353, respectively. All option awards were vested during the year ended December 31, 2023. Cash received from option exercises during the year ended December 31, 2023 was $5,630. Tax benefit received from option exercises during the year ended December 31, 2023 was $1,017.
The following table summarizes the RSUs activity for the year ended December 31, 2023:
Number of Shares
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2023422,736 $154.22 
Granted265,661 128.71 
Vested(190,133)148.94 
Forfeited
(22,333)146.59 
Nonvested at December 31, 2023475,931 $142.51 
The fair value of each restricted stock unit is the market price of Company stock on the date of grant. The weighted average grant date fair value of restricted stock units granted during the years ended December 31, 2023, 2022 and 2021 was $128.71, $131.32 and $229.13, respectively. The intrinsic value of the RSUs that vested during the years ended December 31, 2023, 2022 and 2021, was $23,082, $14,750 and $26,036, respectively. The total compensation cost related to nonvested RSU awards not yet recorded at December 31, 2023 was $41,522 which is expected to be recognized over a weighted-average of 1.8 years. The aggregate fair value of awards vested during the years ended December 31, 2023, 2022 and 2021 was $28,319, $22,779, $18,042, respectively.
The fair value of TSR PSUs was determined using the Monte Carlo simulation model incorporating the following assumptions:
2021
Performance term (years)3.0
Volatility
29% - 51%
Risk-free rate of return
0.23% - 0.26%
Dividend yield—%
Fair value per share
$248.49 - $165.15
The following table summarizes TSR PSUs activity for the year ended December 31, 2023:
Number of Shares
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 202339,090 $195.82 
Granted— — 
Vested(1,331)248.49 
Canceled / Forfeited
(22,851)168.82 
Nonvested at December 31, 202314,908 $233.75 
The Company has not granted TSR PSUs since 2021. For the year ended December 31, 2021, the weighted average grant date fair value for new grants was $236.11. TSR PSUs are expensed at 100% of the target goal. The intrinsic value of the TSR PSUs vested during the years ended December 31, 2023, 2022 and 2021 was $128, nil, nil. The aggregate fair value of awards vested during the years ended December 31, 2023, 2022 and 2021 was $331, nil, and nil, respectively. The total compensation cost related to nonvested awards not yet recorded at December 31, 2023 was $220 which is expected to be recognized over a weighted average of 0.3 year.
The following table summarizes financial metric-based PSUs activity for the year ended December 31, 2023:
Number of Shares
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 202397,552 $153.56 
Granted64,706 131.13 
Vested(27,561)144.32 
Canceled / Forfeited
(6,351)146.63 
Nonvested at December 31, 2023128,346 $144.61 
For the years ended December 31, 2023, 2022 and 2021, the weighted average grant date fair value for new grants was $131.13, $136.64, and $228.62. The financial metric-based PSUs are expensed at 50% to 80% of the target goals. The total compensation cost related to nonvested awards not yet recorded at December 31, 2023 was $6,098, which is expected to be recognized over a weighted average period of 2.0 years.
The Company has an employee stock purchase plan ("ESPP") offered to its U.S. and German employees. The plan allows employees who participate to purchase shares of common stock through payroll deductions at a 15% discount to the lower of the stock price on the first day or the last day of the six-month purchase period. Payroll deductions may not exceed 10% of the employee's compensation and are subject to other limitations.
The assumptions used in the Black-Scholes model for the calculation of the ESPP fair values were as follows:
202320222021
Performance term (year)0.50.50.5
Volatility
35% - 37%
41% - 52%
33% - 42%
Risk-free rate of return
4.76% - 5.47%
0.19% - 2.52%
0.09% - 0.05%
Dividend yield0.10%0.10%0.10%
Fair value per share
$23.42 - $33.55
$45.91 - $26.68
$53.09 - $56.43
Compensation expense related to the employee stock purchase plan was $1,595, $1,924 and $1,861 for the years ended December 31, 2023, 2022 and 2021, respectively. During the years ended December 31, 2023, 2022 and 2021, 57,984, 62,233 and 34,151 shares, respectively, were issued at an average price of $86.89, $78.57 and $160.81, respectively, under the employee stock purchase plan. As of December 31, 2023, there were 140,176 shares available for issuance under the employee stock purchase plan.
v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Compensation Related Costs [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
The Company maintains a defined contribution retirement plan offered to its eligible U.S. employees, as well as plans at certain foreign and domestic subsidiaries. The Company makes matching contributions to each plan, which amounted to approximately $6,496, $6,344 and $6,081, respectively, for the years ended December 31, 2023, 2022 and 2021.
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Income before the impact of income taxes consisted of the following:
Year Ended December 31,
202320222021
U.S.$131,601 $135,041 $103,980 
Foreign143,274 48,310 262,501 
Total$274,875 $183,351 $366,481 
The Company's provision for income taxes consisted of the following:
Year Ended December 31,
202320222021
Current:
Federal$22,908 $39,435 $13,842 
State4,623 3,697 273 
Foreign42,255 57,032 81,385 
Total current69,786 100,164 95,500 
Deferred:
Federal(10,306)(25,979)(179)
State(1,635)(2,121)844 
Foreign(1,848)525 (7,550)
Total deferred(13,789)(27,575)(6,885)
Provision for income taxes$55,997 $72,589 $88,615 
A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision were as follows:
Year Ended December 31,
202320222021
Tax at statutory rate$57,724 $38,504 $76,955 
Non-U.S. rate differential — net12,685 21,352 18,710 
State income taxes — net3,380 4,904 2,050 
Stock-based compensation — tax detriment (benefit)
1,835 2,736 (5,440)
Foreign derived intangible income benefit ("FDII")(9,322)(14,576)(4,704)
Prior year and audit adjustments
(4,793)(2,240)(2,119)
Withholding tax on intercompany dividend— 1,005 2,883 
Federal and state tax credits(6,375)(5,238)(7,482)
Foreign investment tax credit— (9,559)(324)
Change in reserves, including interest and penalties2,379 (3,355)4,072 
Change in valuation allowance(2,548)36,993 1,681 
Other — net1,032 2,063 2,333 
Provision for income taxes$55,997 $72,589 $88,615 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:
Year Ended December 31,
20232022
Property, plant and equipment$(5,019)$6,275 
Intangible assets43,020 27,044 
Inventory provisions46,808 43,628 
Allowances and accrued liabilities951 2,584 
Withholding tax on intercompany dividend(1,504)(1,461)
Other tax credits20,864 18,554 
Deferred compensation22,682 27,114 
Net operating loss carryforwards8,299 7,410 
Valuation allowance(48,821)(57,465)
Net deferred tax assets$87,280 $73,683 
The Company accrues taxes on dividend distributions to the extent that foreign subsidiaries have cash in excess of their operational needs. The Company has recorded $1,504 and $1,461 as a deferred tax liability on December 31, 2023 and 2022, respectively, for certain withholding and dividend taxes related to possible future distributions of excess cash from certain non-U.S. subsidiaries to their respective parent companies. In 2023, the German subsidiary paid a dividend of $107,941 to the U.S. parent company. There was no federal or withholding tax due on the distribution from Germany to the U.S., but in 2023 the Company has accrued a nominal amount of state tax expected to be paid in 2024 relating to the distribution.
With regard to the other non-U.S. subsidiaries, the Company continues to consider the earnings from these entities to be indefinitely reinvested to the extent the cash balance in each subsidiary is not greater than the current needs for operations and expansion. At December 31, 2023 and 2022, the cumulative undistributed earnings in non-U.S. subsidiaries were approximately $944,867 and $967,674, respectively.
In determining the Company’s 2023 and 2022 tax provisions, the Company calculated the deferred tax assets and liabilities for each separate tax entity. The Company then considered a number of factors including the positive and negative
evidence regarding the realization of deferred tax assets to determine whether a valuation allowance should be recognized with respect to the deferred tax assets.
As of December 31, 2023 and 2022, the Company had state tax credit carryforwards (net of federal tax benefit) of $20,704 and $18,398, respectively. The state tax credit carryforwards begin expiring in 2024. The Company has determined that some of the state credits will more likely than not expire before they can be used and has recorded a valuation allowance of $17,996 and $15,690 as of December 31, 2023 and 2022, respectively.
The Company has tax loss carryforwards in foreign jurisdictions totaling $25,747 and $22,134 as of December 31, 2023 and 2022, respectively. The Company believes it is more likely than not that most of the loss carryforwards will expire before they can be used and has provided a valuation allowance against the tax benefit of the losses in foreign jurisdictions of $6,952 and $5,942 at December 31, 2023 and 2022, respectively. In addition, the Company has a valuation allowance primarily from its Russian subsidiary against other deferred tax assets of $23,873 and $35,833 at December 31, 2023 and 2022, respectively. The Company's acquisition of Menara Networks, Inc. in 2016 included net operating loss carryforwards of $22,242. As of December 31, 2023 and 2022, the Company had $790 and $1,844 of these net operating loss carryforwards remaining, respectively. No valuation allowance has been provided for these loss carryforwards as the Company expects them to be fully utilized to offset future income.
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves recorded are based on a determination of the amount of a tax benefit taken by the Company that is more likely than not to be realized, assuming that the matter in question will be reviewed by the tax authorities.
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
202320222021
Balance at January 1$15,841 $19,209 $14,706 
Change in prior period positions(1,306)(3,921)(1,969)
Additions for tax positions in current period3,041 735 6,400 
Foreign exchange adjustments(400)(182)72 
Balance at December 31$17,176 $15,841 $19,209 
The liability for uncertain tax benefits is included in other long-term liabilities and deferred income taxes at December 31, 2023 and 2022. Substantially all of the uncertain tax benefits reserved for as of December 31, 2023 will benefit the Company's effective tax rate, if recognized.
Estimated penalties and interest related to the potential underpayment of income taxes were a net expense of $646 and net benefit of $168 for the years ended December 31, 2023 and 2022, respectively, and are included within the provision for income taxes. Total accrued penalties and interest related to the underpayment of income taxes were $2,043 and $1,476 at December 31, 2023 and 2022, respectively.
The Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The Company is currently under a tax audit in the U.S. for the years 2019 and 2020. Open tax years by major jurisdictions are:
Jurisdiction
Open Tax Years
United States
2019 - 2023
Germany
2021 - 2023
Russia
2021 - 2023
v3.24.0.1
Net Income Attributable To IPG Photonics Corporation Per Share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Net Income Attributable To IPG Photonics Corporation Per Share NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE
The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: 
Year Ended December 31,
 202320222021
Net income attributable to IPG Photonics Corporation common stockholders$218,878 $109,909 $278,416 
Basic weighted average common shares47,154,217 50,761,096 53,409,673 
Dilutive effect of common stock equivalents165,858 163,646 520,554 
Diluted weighted average common shares47,320,075 50,924,742 53,930,227 
Basic net income attributable to IPG Photonics Corporation per common share$4.64 $2.17 $5.21 
Diluted net income attributable to IPG Photonics Corporation per common share$4.63 $2.16 $5.16 
The computation of diluted weighted average common shares excludes certain common stock equivalents, including non-qualified stock options, PSUs, RSUs and the ESPP because the effect of including them would be anti-dilutive. The weighted average anti-dilutive shares outstanding for the years ended December 31, 2023, 2022 and 2021, respectively, were as follows:
Year Ended December 31,
202320222021
Non-qualified stock options533,402 594,290 216,190 
Restricted stock units246,481 344,810 103,998 
Performance stock units51,851 81,348 25,451 
Employee stock purchase plan30,951 — — 
Total weighed average anti-dilutive shares outstanding862,685 1,020,448 345,639 
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 previously authorized stock repurchase programs.
For the years ended December 31, 2023, 2022 and 2021, respectively, the Company repurchased 2,117,352 shares, 5,101,434 shares, and 743,969 shares of its common stock with an average price of $104.68, $97.89 and $181.28 per share in the open market, respectively. The August 2022 authorization to repurchase common stock was completed in 2023. As of December 31, 2023 the remaining amount authorized under the May 2023 authorization was up to $90,518. The impact on the reduction of weighted average shares for years ended December 31, 2023, 2022 and 2021 was 1,167,412 shares, 2,393,478 shares and 244,451 shares, respectively.
v3.24.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS
On February 13, 2024, the Company announced that its board of directors has authorized the purchase of up to $300,000 of IPG common stock. Share repurchases may be made periodically in open-market transactions, and are subject to market conditions, legal requirements and other factors. The share repurchase program authorization does not obligate the Company to repurchase any dollar amount or number of its shares, and repurchases may be commenced or suspended from time to time without prior notice.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net income attributable to IPG Photonics Corporation common stockholders $ 218,878 $ 109,909 $ 278,416
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation
Principles of Consolidation — The accompanying financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated.
Use of Estimates
Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Foreign Currency Foreign Currency — The financial information for entities outside the United States is measured using local currencies as the functional currency. Assets and liabilities are translated into U.S. dollars at the exchange rate in effect on the respective balance sheet dates. Income and expenses are translated into U.S. dollars based on the average rate of exchange for the corresponding period. Exchange rate differences resulting from translation adjustments are accounted for directly as a component of accumulated other comprehensive (loss) income.
Cash and Cash Equivalents and Short-Term Investments Cash and Cash Equivalents and Short-Term Investments — Cash and cash equivalents consist primarily of highly liquid investments, such as money market fund deposits, term deposits, corporate bonds, and commercial paper with maturities of three months or less at the date of purchase with insignificant interest rate risk. Short-term investments consist of liquid investments including commercial paper, corporate bonds, U.S. government and government agency notes and term deposits with original maturities of greater than three months but less than one year with insignificant interest rate risk. Fixed-term securities included in cash equivalents and short-term investments are held-to-maturity and accounted for at amortized cost.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable include $17,313 and $12,977 of bank acceptance drafts at December 31, 2023 and 2022, respectively. Bank acceptance drafts are bank guarantees of payment on specified dates. The weighted average maturity of these bank acceptance drafts is approximately 102 days. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance is based upon an 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.
Inventories
Inventories — Inventories are stated at the lower of cost and net realizable value on a first-in, first-out basis. Inventories include parts and components that may be specialized in nature and subject to obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. The costs associated with provisions for excess quantities, technological obsolescence, or scrap related to out of specification components are charged to cost of sales as incurred.
Goodwill Goodwill — Goodwill is the amount by which the cost of the acquired net assets in a business acquisition exceeded the fair values of the net identifiable assets on the date of purchase. Goodwill is assessed for impairment at least annually, on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill may be impaired. The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. If the carrying value of a reporting unit exceeds its fair value, the implied fair value of goodwill is compared with the carrying value of goodwill. If the carrying value of goodwill exceeds the implied fair value, an impairment loss is recorded in an amount equal to that excess. The results of the goodwill assessments for the years ended December 31, 2023 and 2022 are discussed in Note 7, "Goodwill and Intangible Assets".
Intangible Assets
Intangible Assets — Intangible assets result from the Company's various business acquisitions. Intangible assets are reported at cost, less accumulated amortization, and are amortized on a straight-line basis either over their estimated useful lives of one year to thirteen years or over the period the economic benefits of the intangible asset are consumed.
Property, Plant and Equipment
Property, Plant and Equipment — Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is determined using the straight-line method based on the estimated useful lives of the related assets. In the case of leasehold improvements, the estimated useful lives of the related assets do not exceed the remaining terms of the corresponding leases. The following table presents the assigned economic useful lives of property, plant and equipment:
Category  
Economic Useful Life
Buildings  
20-30 years
Machinery and equipment  
5-7 years
Office furniture and fixtures  
5-7 years
Expenditures for maintenance and repairs are charged to operating expenses when they are incurred.
Long-Lived Assets Long-Lived Assets — Long-lived assets, which consist primarily of property, plant and equipment and identifiable intangible assets, are reviewed by management for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When 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.
Revenue Recognition
Revenue Recognition — Revenue is recognized when transfer of control to the customer occurs in an amount reflecting the consideration that the Company expects to be entitled. In order to achieve this core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.
The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be contracts with a customer. As part of its consideration of the contract, the Company evaluates certain factors including the customer's ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is identified as a distinct performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. As the Company's standard payment terms are less than one year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Company's performance obligation is satisfied), which typically occurs at shipment but which can occur over time for certain of the Company's systems contracts.
The Company often receives orders with the customer's schedule of delivery dates for products that may extend across several reporting periods. The Company allocates the transaction price of the contract to each delivery based on the product standalone selling price. The Company invoices for each scheduled delivery upon shipment and recognizes revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14 revenues allocated to future shipments of partially completed contracts are not disclosed.
Rights of return are not generally included in customer contracts. Accordingly, upon application of steps one through five above, product revenue is recognized upon shipment and transfer of control. Returns are infrequent and are recorded as a reduction of revenue.
In certain subsidiaries the Company provides sales commissions to sales representatives based on sales volume. The Company has determined that the incentive portion of its sales commissions qualify as contract costs. The Company has elected the practical expedient in ASC 340-40-25-4 to expense sales commissions when incurred as the amortization period of the asset that would otherwise have been recognized is one year or less.
Revenue Recognition at a Point in Time — Revenues recognized at a point in time consist primarily of product, installation and service sales. The Company sells products to original equipment manufacturers ("OEMs") that supply materials processing laser systems, communications systems, medical laser systems and other laser systems for advanced applications to end users. The Company also sells products to end users that use IPG products directly to build their own systems, which incorporate or use IPG products as an energy or light source. The Company recognizes revenue for laser and spare part sales following the transfer of control of such products to the customer, which typically occurs upon shipment or delivery depending on the terms of the underlying contracts. Installation revenue is recognized upon completion of the installation service, which typically occurs within 90 days of delivery. When sales contracts contain multiple performance obligations, such as the shipment or delivery of products and installation, the Company allocates the transaction price to each performance obligation identified in the contract based on relative standalone selling prices and recognizes the related revenue as control of each individual product or service is transferred to the customer, in satisfaction of the corresponding performance obligations.
Revenue Recognition over Time — Warranties are limited and provide that the product meets specifications and is free from defects in materials and workmanship. The Company also offers extended warranty agreements, which extend the standard warranty periods. Extended warranties are sold separately from products and represent a distinct performance obligation. Revenue related to the performance obligation for extended warranties is recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company. The customer receives the assurance that the product will operate in accordance with agreed-upon specifications evenly during the extended warranty period regardless of whether they make a claim during that period, and therefore, revenue at time of sale is deferred and recognized over the time period of the extended warranty period.
The Company enters into contracts to sell customized large scale materials processing systems through its subsidiary Genesis Systems Group, LLC, for which revenue is generally recognized over time, depending on the terms of the contract. Recognizing revenue over time for these contracts is based on the Company’s judgment that the customized large scale
materials processing systems do not have an alternative use and the Company has an enforceable right to payment for performance completed to date.
The determination of the revenue to be recognized in a given period for performance obligations over time is based on the input method. The Company generally uses the total cost-to-cost input method of progress because it best depicts the transfer of control to the customer that occurs as costs are incurred. Under the cost-to-cost method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation.
Customer Deposits and Deferred Revenue — When the Company receives consideration from a customer or such consideration is unconditionally due prior to transferring goods or services under the terms of a sales contract, the Company records customer deposits or deferred revenue, which represent contract liabilities. The Company recognizes 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.
Warranties Warranties — The Company typically provides one to five-year warranties on lasers and amplifiers. Most of the Company's sales offices provide support to customers in their respective geographic areas. The Company estimates the warranty accrual considering past claims experience, the number of units still covered by warranty and the average life of the remaining warranty period. The warranty accrual has generally been sufficient to cover product warranty repair and replacement costs.
Stock-Based Compensation
Stock-based Compensation — The Company accounts for stock-based compensation expense using the fair value of the awards granted. The Company issues equity incentive awards in the form of time-based restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). The fair value for RSUs is based on the closing share price of the Company's common stock on the date of grant. PSUs are aligned to specified performance targets such as financial metrics or the relative return of the Company's common stock compared to an index ("TSR PSUs"). The fair value of PSUs aligned to specified financial performance metrics is determined based on the number of units expected to vest upon achievement of the performance conditions. The fair value for PSUs aligned to the TSR is based on a Monte Carlo simulation model. The Company recognizes stock-based compensation as an expense on a straight-line basis, over the requisite service period. The Company accounts for forfeitures as they occur.
The Company has an employee stock purchase plan ("ESPP") offered to its U.S. and German employees. The Company uses the Black-Scholes model to calculate the purchase date fair value of the shares issued under the employee stock purchase plan and recognize expense related to shares purchased ratably over the offering period. The description of the Company's stock-based compensation plans and the assumptions it uses to calculate the fair value of stock-based compensation is described in Note 15, "Stock-based Compensation."
Advertising Expenses
Advertising Expense — The cost of advertising is expensed as incurred. The Company conducts substantially all of its sales and marketing efforts through trade shows, professional and technical conferences, direct sales and the Company's website. The Company's advertising costs were not material for the periods presented.
Research and Development
Research and Development — Research and development costs are expensed as incurred.
Restructuring Restructuring — The Company records charges associated with approved restructuring plans to reorganize operations, to remove redundant headcount and infrastructure associated with business acquisitions or to improve the efficiency of business processes. Restructuring charges can include severance costs to eliminate a specific number of positions, infrastructure charges to vacate facilities and consolidate operations and contract cancellation costs. The Company records restructuring charges when they are probable and estimable. The Company accrues for severance and other employee separation costs under these plans when the plan is communicated to employees and an amount per employee can be reasonably estimated either by the communicated terms, or by legal requirements, if applicable. The results of restructuring program implemented during the years ended December 31, 2023, and 2022 are discussed in Note 6, "Restructuring".
Income Taxes
Income Taxes — Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities and net operating loss and credit carryforwards. These differences are valued using enacted rates in effect when those differences are expected to reverse. Valuation allowances are provided against deferred tax assets that are not deemed to be recoverable. The Company recognizes tax positions that are more likely than not to be sustained upon examination by relevant tax authorities. The tax
positions are measured at the greatest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement.
The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. The reserves are based on a determination of whether a tax benefit claimed in our tax filings is more likely than not to be realized following the resolution of any potential tax audits related to the tax benefit, assuming that the matter in question will be reviewed by the tax authorities.
Concentration of Credit Risk
Concentration of Credit Risk — Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. The Company maintains substantially all of its cash and cash equivalents and short-term investments in various financial institutions, which it believes to be high-credit quality financial institutions. The Company grants credit to customers in the ordinary course of business and provides a reserve for potential credit losses. Such losses historically have been within management's expectations.
Comprehensive Income
Comprehensive Income — Comprehensive income includes charges and credits to equity that are not the result of transactions with stockholders. Included within comprehensive income is the cumulative foreign currency translation adjustment, and unrealized gains or losses on derivatives. These adjustments are accumulated within the consolidated statements of comprehensive income.
Derivative Instruments
Derivative Instruments — The Company's primary market exposures are to interest rates and foreign exchange rates. The Company from time to time may use 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.
Business Segment Information
Business Segment Information — The Company operates in one segment which involves the design, development, production and distribution of fiber lasers, laser and non-laser systems, fiber amplifiers, and related optical components. The Company has a single, company-wide management team that administers all properties as a whole rather than as discrete operating segments. The chief operating decision maker, who is the Company's chief executive officer, measures financial performance as a single enterprise, and not on geography, legal entity, or end market basis. Throughout the year, the chief operating decision maker allocates capital resources on a project-by-project basis across the Company's entire asset base to maximize profitability without regard to geography, legal entity, or end market basis. The Company operates in a number of countries throughout the world in a variety of product lines. Information regarding product lines and geographic financial information is provided in Note 2, "Revenue from Contracts with Customers" and Note 8, "Property, Plant and Equipment."
Earnings Per Share Earnings Per Share — Basic net income per common share is computed by dividing net income attributable to common shareholders of the Company by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per common share is computed similarly to basic net income per common share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Information about potentially dilutive and antidilutive shares for the reporting period is provided in Note 18, "Net Income Attributable to IPG Photonics Corporation Per Share."
Leases Leases — The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, accrued expenses and other liabilities, and other long-term liabilities and deferred income taxes on the Company's consolidated balance sheets. Right of use ("ROU") assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, IPG uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The ROU assets include any lease payments made and initial direct costs incurred and exclude lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Adopted Pronouncements — None.
Pronouncements Currently Under Evaluation - In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses on an annual and interim basis. Under the new guidance an entity is required to disclose the title and position of the chief operating decision maker ("CODM") and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The ASU also requires that an entity that has a single reportable segment provide all the disclosures required by this ASU and all existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this ASU and does not expect this standard will have a material impact.
In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-07"), which requires an entity on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance also requires an entity to disclose on an annual basis information about income taxes paid. ASU 2023-07 is effective for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of this ASU and does not expect this standard will have a material impact.
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 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:
202320222021
Balance at January 1$2,639 $2,108 $2,156 
Provision for bad debts, net of recoveries
36 712 434 
Uncollectible accounts written off
(840)(125)(437)
Foreign currency translation(72)(56)(45)
Balance at December 31$1,763 $2,639 $2,108 
Property, Plant and Equipment The following table presents the assigned economic useful lives of property, plant and equipment:
Category  
Economic Useful Life
Buildings  
20-30 years
Machinery and equipment  
5-7 years
Office furniture and fixtures  
5-7 years
Schedule of Accumulated Other Comprehensive Income (Loss)
Total components of accumulated other comprehensive loss were as follows:
Foreign currency translation adjustments and other
Unrealized (loss) gain on derivatives, net of tax
Total
Balance, January 1, 2021$(145,603)$(462)$(146,065)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments and other, net of tax benefit of $246
(44,164)— (44,164)
Unrealized gain on derivatives, net of tax of $83
— 278 278 
Total other comprehensive (loss) income
(44,164)278 (43,886)
Balance, December 31, 2021(189,767)(184)(189,951)
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $156
(15,117)— (15,117)
Reclassification for foreign currency translation adjustments and other included in net income
208 — 208 
Unrealized gain on derivatives, net of tax of $104
— 336 336 
Total other comprehensive (loss) income(14,909)336 (14,573)
Balance, December 31, 2022(204,676)152 (204,524)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments and other before reclassification, net of tax of $151
(7,854)— (7,854)
Unrealized (loss) on derivatives, net of tax benefit of $46
— (152)(152)
Total other comprehensive loss
(7,854)(152)(8,006)
Balance, December 31, 2023$(212,530)$— $(212,530)
v3.24.0.1
Revenue From Contracts With Customers (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables represent a disaggregation of revenue from contracts with customers for the years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,
202320222021
Sales by Application
Materials processing$1,152,804 $1,291,262 $1,325,404 
Other applications134,635 138,285 135,456 
Total$1,287,439 $1,429,547 $1,460,860 
Sales by Product
High Power Continuous Wave ("CW") Lasers$524,981 $613,734 $687,406 
Medium Power CW Lasers71,672 77,079 80,501 
Pulsed Lasers185,581 250,677 240,978 
Quasi-Continuous Wave ("QCW") Lasers48,648 50,212 60,668 
Laser and Non-Laser Systems161,177 153,471 126,642 
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue295,380 284,374 264,665 
Total$1,287,439 $1,429,547 $1,460,860 
Sales by Geography
North America$313,986 $338,713 $314,984 
Europe:
Germany88,026 85,491 101,738 
Other Europe
291,336 294,481 289,136 
Asia:
China355,321 479,926 548,348 
Japan72,333 57,865 54,077 
Other142,378 152,373 139,148 
Rest of World24,059 20,698 13,429 
Total$1,287,439 $1,429,547 $1,460,860 
Timing of Revenue Recognition
Goods and services transferred at a point in time$1,239,551 $1,377,996 $1,402,498 
Goods and services transferred over time47,888 51,551 58,362 
Total$1,287,439 $1,429,547 $1,460,860 
Changes in Contract Assets and Liabilities
The following table reflects the changes in the Company's contract assets and liabilities for the years ended December 31, 2023 and 2022:
December 31,January 1,December 31,January 1,
20232023Change20222022Change
Contract assets
Contract assets$9,383 $8,620 $763 $8,620 $9,345 $(725)
Contract liabilities
Contract liabilities - current69,219 80,068 (10,849)80,068 89,659 (9,591)
Contract liabilities - long-term2,851 3,142 (291)3,142 2,691 451 
Schedule of Remaining Performance Obligations
The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of December 31, 2023:
Remaining Performance Obligations
20242025202620272028ThereafterTotal
Revenue expected to be recognized for extended warranty agreements$3,008 $1,287 $910 $552 $98 $4 $5,859 
Revenue to be earned over time from contracts to sell large scale materials processing systems
16,577 2,414 — — — — 18,991 
Total$19,585 $3,701 $910 $552 $98 $4 $24,850 
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 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 consolidated balance sheets with the exception of the interest rate swap, which was measured at fair value:
 Fair Value Measurements at December 31, 2023
 TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits$171,632 $171,632 $— $— 
Term deposits83,965 — 83,965 — 
Corporate bonds23,516 — 23,516 — 
Commercial paper6,369 — 6,369 — 
Short-term investments:
Commercial paper244,571 — 244,571 — 
Corporate bonds243,915 — 243,915 — 
U.S. Treasury and agency obligations171,316 — 171,316 — 
Term deposits3,009 — 3,009 — 
Total assets$948,293 $171,632 $776,661 $— 
  Fair Value Measurements at December 31, 2022
 TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits
$195,654 $195,654 $— $— 
Commercial paper94,661 — 94,661 — 
Term deposits
68,827 — 68,827 — 
Corporate bonds1,497 — 1,497 — 
Short-term investments:
Commercial paper363,991 — 363,991 — 
Corporate bonds65,022 — 65,022 — 
U.S. Treasury and agency obligations39,611 — 39,611 — 
Term deposits
10,113 — 10,113 — 
Other assets:
Interest rate swap198 — 198 — 
Total assets$839,574 $195,654 $643,920 $— 
Liabilities
Term debt$16,031 $— $16,031 $— 
Total liabilities$16,031 $— $16,031 $— 
Maturities of Debt Securities
The following table presents the effective maturity dates of debt investments, which are held-to-maturity:
December 31, 2023December 31, 2022
Book ValueFair ValueBook ValueFair Value
Investment maturity
Less than 1 year$662,807 $662,811 $479,374 $478,737 
v3.24.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Components of Inventories
Inventories consist of the following:
December 31,
 20232022
Components and raw materials$263,652 $322,506 
Work-in-process47,997 18,911 
Finished goods142,225 167,946 
Total
$453,874 $509,363 
v3.24.0.1
Restructuring (Tables)
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Accrual Activities related to the restructuring accrual were as follows:
20232022
Balance at January 1
$4,869 $— 
Charges1,436 9,697 
Cash payments(3,719)(4,493)
Recoveries
(1,724)— 
Foreign exchange adjustment(862)(335)
Balance at December 31
$— $4,869 
v3.24.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022:
 20232022
Balance at January 1$38,325 $38,609 
Goodwill arising from business combinations— 1,000 
Goodwill written off related to divestiture— (796)
Foreign exchange adjustment 215 (488)
Balance at December 31$38,540 $38,325 
Schedule of Intangible Assets
Intangible assets, subject to amortization, consisted of the following: 
 December 31, 2023December 31, 2022
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Weighted- Average Lives
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Weighted- Average Lives
Customer relationships$48,216 $(25,973)$22,243 11 years$48,155 $(21,734)$26,421 11 years
Technology, trademark and trade name29,903 (25,960)3,943 7 years30,360 (23,189)7,171 7 years
Production know-how9,155 (9,155)— 7 years9,109 (8,818)291 7 years
Patents8,035 (7,987)48 8 years8,034 (7,797)237 8 years
Total
$95,309 $(69,075)$26,234 $95,658 $(61,538)$34,120 
Estimated Future Amortization For Intangibles
The estimated future amortization expense for intangibles as of December 31, 2023 is as follows:
20242025202620272028ThereafterTotal
$5,556 $4,978 $4,217 $4,005 $3,636 $3,842 $26,234 
v3.24.0.1
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Components of Property Plant and Equipment
Property, plant and equipment consist of the following: 
 December 31,
 20232022
Land$52,506 $52,618 
Buildings446,031 434,698 
Machinery and equipment457,968 424,197 
Office furniture and fixtures81,313 73,636 
Construction-in-progress118,341 103,655 
Total property, plant and equipment1,156,159 1,088,804 
Accumulated depreciation(553,902)(508,243)
Total property, plant and equipment — net$602,257 $580,561 
Schedule of Long-Lived Assets
Long-lived assets include property, plant and equipment, related deposits on such assets and demonstration equipment. The geographic locations of the Company's long-lived assets, net, based on physical location of the assets, as of December 31, 2023 and 2022 are as follows:
 December 31,
 20232022
United States$384,088 $388,111 
Germany132,218 111,726 
Belarus31,833 39,380 
Italy
10,747 9,340 
Japan9,024 5,043 
China4,328 5,406 
Other41,494 31,258 
Total$613,732 $590,264 
v3.24.0.1
Other Liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
Accrued expenses and other liabilities consist of the following:
December 31,
 20232022
Contract liabilities$69,219 $80,068 
Accrued compensation67,053 78,251 
Current portion of accrued warranty27,283 28,504 
Short-term lease liabilities4,597 5,234 
Other13,198 10,707 
Total$181,350 $202,764 
Other Noncurrent Liabilities
Other long-term liabilities and deferred income taxes consist of the following:
December 31,
20232022
Accrued warranty$19,926 $24,358 
Long-term lease liabilities13,664 16,787 
Unrecognized tax benefits
17,17615,841 
Transition tax related to 2017 U.S. tax reform act11,009 19,874 
Deferred income taxes1,508 1,469 
Other5,369 4,945 
Total$68,652 $83,274 
v3.24.0.1
Product Warranties (Tables)
 12 Months Ended
Dec. 31, 2023
Product Warranties Disclosures [Abstract]  
Schedule of Product Warranty Liability
Activity related to the warranty accrual was as follows:
202320222021
Balance at January 1$52,862 $49,864 $45,669 
Provision for warranty accrual13,596 22,565 33,289 
Warranty claims(19,801)(17,829)(26,568)
Foreign currency translation552 (1,738)(2,526)
Balance at December 31$47,209 $52,862 $49,864 
v3.24.0.1
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Gains (Losses) in the Consolidated Statements of Income Related to Interest Rate Swap Contracts
 Year Ended December 31,
 202320222021
Effective portion recognized in other comprehensive (loss) income, pre-tax:
Interest rate swap$(198)$440 $361 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Summary of Lease Assets and Liabilities
The Company's operating lease assets and lease liabilities consist of the following as of December 31, 2023 and 2022:
Year Ended December 31,
AccountClassification20232022
Right-of-use assetsOther assets$13,947 $15,564 
Short-term lease liabilitiesAccrued expenses and other liabilities4,597 5,234 
Long-term lease liabilitiesOther long-term liabilities and deferred income taxes13,664 16,787 
Total lease liabilities$18,261 $22,021 
Schedule of Operating Lease Maturities
The table below presents the maturities of operating lease liabilities as of December 31, 2023:
2024$5,224 
20254,291 
20263,283 
20272,084 
20281,758 
Thereafter4,356 
Total future minimum lease payments20,996 
Less: imputed interest(2,735)
Present value of lease liabilities$18,261 
Other information relevant to the Company's operating leases consist of the following as of December 31, 2023 and 2022:
Year Ended December 31,
20232022
Weighted-average remaining lease term6.66 years7.35 years
Weighted-average discount rate4.39 %4.33 %
v3.24.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
Stock-based compensation, including the employee stock purchase plan, is included in the following financial statement captions: 
 Year Ended December 31,
 202320222021
Cost of sales$7,929 $11,741 $11,245 
Sales and marketing5,421 4,889 4,320 
Research and development9,396 7,585 9,533 
General and administrative16,858 14,120 12,883 
Total stock-based compensation39,604 38,335 37,981 
Tax effect of stock-based compensation(8,660)(8,261)(8,071)
Net stock-based compensation$30,944 $30,074 $29,910 
Summary of Option Activity The following table summarizes the option activity for the year ended December 31, 2023:
Number of Options
Weighted-Average Exercise Price
Weighted-Average Remaining Contractual Life
Aggregate Intrinsic Value
Outstanding at January 1, 2023881,887 $138.16 
Granted— — 
Exercised(84,146)66.90 
Forfeited(28,579)180.77 
Outstanding at December 31, 2023769,162 $144.38 3.21 years$6,271 
Exercisable at December 31, 2023769,162 $144.38 3.21 years$6,271 
Summary of Restricted Stock Unit Activity
The following table summarizes the RSUs activity for the year ended December 31, 2023:
Number of Shares
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2023422,736 $154.22 
Granted265,661 128.71 
Vested(190,133)148.94 
Forfeited
(22,333)146.59 
Nonvested at December 31, 2023475,931 $142.51 
Summary of Performance Units Fair Value Assessment
The fair value of TSR PSUs was determined using the Monte Carlo simulation model incorporating the following assumptions:
2021
Performance term (years)3.0
Volatility
29% - 51%
Risk-free rate of return
0.23% - 0.26%
Dividend yield—%
Fair value per share
$248.49 - $165.15
Summary of Performance Stock Unit Activity
The following table summarizes TSR PSUs activity for the year ended December 31, 2023:
Number of Shares
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 202339,090 $195.82 
Granted— — 
Vested(1,331)248.49 
Canceled / Forfeited
(22,851)168.82 
Nonvested at December 31, 202314,908 $233.75 
The following table summarizes financial metric-based PSUs activity for the year ended December 31, 2023:
Number of Shares
Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 202397,552 $153.56 
Granted64,706 131.13 
Vested(27,561)144.32 
Canceled / Forfeited
(6,351)146.63 
Nonvested at December 31, 2023128,346 $144.61 
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The assumptions used in the Black-Scholes model for the calculation of the ESPP fair values were as follows:
202320222021
Performance term (year)0.50.50.5
Volatility
35% - 37%
41% - 52%
33% - 42%
Risk-free rate of return
4.76% - 5.47%
0.19% - 2.52%
0.09% - 0.05%
Dividend yield0.10%0.10%0.10%
Fair value per share
$23.42 - $33.55
$45.91 - $26.68
$53.09 - $56.43
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income before the impact of income taxes consisted of the following:
Year Ended December 31,
202320222021
U.S.$131,601 $135,041 $103,980 
Foreign143,274 48,310 262,501 
Total$274,875 $183,351 $366,481 
Schedule of Components of Income Tax Expense (Benefit)
The Company's provision for income taxes consisted of the following:
Year Ended December 31,
202320222021
Current:
Federal$22,908 $39,435 $13,842 
State4,623 3,697 273 
Foreign42,255 57,032 81,385 
Total current69,786 100,164 95,500 
Deferred:
Federal(10,306)(25,979)(179)
State(1,635)(2,121)844 
Foreign(1,848)525 (7,550)
Total deferred(13,789)(27,575)(6,885)
Provision for income taxes$55,997 $72,589 $88,615 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of income tax expense at the U.S. federal statutory income tax rate to the recorded tax provision were as follows:
Year Ended December 31,
202320222021
Tax at statutory rate$57,724 $38,504 $76,955 
Non-U.S. rate differential — net12,685 21,352 18,710 
State income taxes — net3,380 4,904 2,050 
Stock-based compensation — tax detriment (benefit)
1,835 2,736 (5,440)
Foreign derived intangible income benefit ("FDII")(9,322)(14,576)(4,704)
Prior year and audit adjustments
(4,793)(2,240)(2,119)
Withholding tax on intercompany dividend— 1,005 2,883 
Federal and state tax credits(6,375)(5,238)(7,482)
Foreign investment tax credit— (9,559)(324)
Change in reserves, including interest and penalties2,379 (3,355)4,072 
Change in valuation allowance(2,548)36,993 1,681 
Other — net1,032 2,063 2,333 
Provision for income taxes$55,997 $72,589 $88,615 
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows:
Year Ended December 31,
20232022
Property, plant and equipment$(5,019)$6,275 
Intangible assets43,020 27,044 
Inventory provisions46,808 43,628 
Allowances and accrued liabilities951 2,584 
Withholding tax on intercompany dividend(1,504)(1,461)
Other tax credits20,864 18,554 
Deferred compensation22,682 27,114 
Net operating loss carryforwards8,299 7,410 
Valuation allowance(48,821)(57,465)
Net deferred tax assets$87,280 $73,683 
Summary of Income Tax Contingencies
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
202320222021
Balance at January 1$15,841 $19,209 $14,706 
Change in prior period positions(1,306)(3,921)(1,969)
Additions for tax positions in current period3,041 735 6,400 
Foreign exchange adjustments(400)(182)72 
Balance at December 31$17,176 $15,841 $19,209 
Summary of Income Tax Examinations
The Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The Company is currently under a tax audit in the U.S. for the years 2019 and 2020. Open tax years by major jurisdictions are:
Jurisdiction
Open Tax Years
United States
2019 - 2023
Germany
2021 - 2023
Russia
2021 - 2023
v3.24.0.1
Net Income Attributable To IPG Photonics Corporation Per Share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: 
Year Ended December 31,
 202320222021
Net income attributable to IPG Photonics Corporation common stockholders$218,878 $109,909 $278,416 
Basic weighted average common shares47,154,217 50,761,096 53,409,673 
Dilutive effect of common stock equivalents165,858 163,646 520,554 
Diluted weighted average common shares47,320,075 50,924,742 53,930,227 
Basic net income attributable to IPG Photonics Corporation per common share$4.64 $2.17 $5.21 
Diluted net income attributable to IPG Photonics Corporation per common share$4.63 $2.16 $5.16 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share The weighted average anti-dilutive shares outstanding for the years ended December 31, 2023, 2022 and 2021, respectively, were as follows:
Year Ended December 31,
202320222021
Non-qualified stock options533,402 594,290 216,190 
Restricted stock units246,481 344,810 103,998 
Performance stock units51,851 81,348 25,451 
Employee stock purchase plan30,951 — — 
Total weighed average anti-dilutive shares outstanding862,685 1,020,448 345,639 
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies (Narrative) (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
segment
$ / shares
customer
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Restructuring charges (recoveries), net $ (288) $ 9,697 $ 0
Inventory provisions 45,499 127,960 34,285
Impairment of long-lived assets 1,237 79,949 $ 0
Bank acceptances drafts $ 17,313 12,977  
Bank acceptances, weighted-average maturity period 102 days    
Long-lived assets $ 613,732 $ 590,264  
Common stock, shares authorized | shares 175,000,000 175,000,000  
Common stock, par value (in dollars per share) | $ / shares $ 0.0001 $ 0.0001  
Preferred stock, shares authorized | shares 5,000,000    
Preferred stock, par value (in dollars per share) | $ / shares $ 0.0001    
Preferred stock, shares outstanding | shares 0    
Number of largest customers | customer 5    
Net sales by major customers, percentage 13.00% 15.00% 19.00%
Number of operating segments | segment 1    
Russia      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Inventory provisions   $ 74,055  
Impairment of long-lived assets   79,030  
Valuation allowance, deferred tax asset, increase (decrease), amount   35,518  
Restructuring charges   8,542  
Restricted Stock Units (RSUs)      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Vesting period 3 years    
Minimum      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Period for installation completion 1 year    
Standard product warranty coverage period 1 year    
Vesting period 1 year    
Maximum      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Period for installation completion 90 days    
Standard product warranty coverage period 5 years    
Vesting period 4 years    
Intangible Assets | Minimum      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Weighted- Average Lives 1 year    
Intangible Assets | Maximum      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Weighted- Average Lives 13 years    
Demonstration Equipment      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Property, plant and equipment useful life 3 years    
Long-lived assets $ 3,726 3,686  
Amortization $ 3,480 $ 2,387 $ 3,596
Accounts Receivable | Customer Concentration Risk | One Customer      
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]      
Percentage of net sales 14.00%    
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies (Allowance For Doubtful Accounts) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Allowance for Doubtful Accounts Receivable [Roll Forward]      
Balance at January 1 $ 2,639 $ 2,108 $ 2,156
Provision for bad debts, net of recoveries 36 712 434
Uncollectible accounts written off (840) (125) (437)
Foreign currency translation (72) (56) (45)
Balance at December 31 $ 1,763 $ 2,639 $ 2,108
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies (Economic Useful Lives Of Property, Plant And Equipment) (Details)
Dec. 31, 2023
Buildings | Minimum  
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]  
Property, plant and equipment useful life 20 years
Buildings | Maximum  
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]  
Property, plant and equipment useful life 30 years
Machinery and equipment | Minimum  
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]  
Property, plant and equipment useful life 5 years
Machinery and equipment | Maximum  
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]  
Property, plant and equipment useful life 7 years
Office furniture and fixtures | Minimum  
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]  
Property, plant and equipment useful life 5 years
Office furniture and fixtures | Maximum  
Nature Of Business And Summary Of Significant Accounting Policies [Line Items]  
Property, plant and equipment useful life 7 years
v3.24.0.1
Nature of Business and Summary of Significant Accounting Policies (Components Of Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 2,385,360 $ 2,747,221 $ 2,594,111
Foreign currency translation adjustments and other before reclassification, net of tax (7,854) (15,117) (44,164)
Reclassification for foreign currency translation adjustments and other included in net income   208  
Unrealized gain (loss) on derivatives, net of tax (152) 336 278
Total other comprehensive (loss) income (8,006) (14,573) (43,886)
Ending balance 2,415,385 2,385,360 2,747,221
AOCI Attributable to Parent      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (204,524) (189,951) (146,065)
Ending balance (212,530) (204,524) (189,951)
Foreign currency translation adjustments and other      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (204,676) (189,767) (145,603)
Foreign currency translation adjustments and other before reclassification, net of tax (7,854) (15,117) (44,164)
Reclassification for foreign currency translation adjustments and other included in net income   208  
Total other comprehensive (loss) income (7,854) (14,909) (44,164)
Ending balance (212,530) (204,676) (189,767)
Other comprehensive income (loss), tax, portion attributable to parent 151 156 (246)
Unrealized (loss) gain on derivatives, net of tax      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 152 (184) (462)
Unrealized gain (loss) on derivatives, net of tax (152) 336 278
Total other comprehensive (loss) income (152) 336 278
Ending balance 0 152 (184)
Tax (benefit) expense, foreign currency translation adjustments and other $ (46) $ 104 $ 83
v3.24.0.1
Revenue From Contracts With Customers (Disaggregation of Revenue, By Application) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total $ 1,287,439 $ 1,429,547 $ 1,460,860
Materials processing      
Disaggregation of Revenue [Line Items]      
Total 1,152,804 1,291,262 1,325,404
Other applications      
Disaggregation of Revenue [Line Items]      
Total $ 134,635 $ 138,285 $ 135,456
v3.24.0.1
Revenue From Contracts With Customers (Disaggregation of Revenue, By Product) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total $ 1,287,439 $ 1,429,547 $ 1,460,860
High Power Continuous Wave ("CW") Lasers      
Disaggregation of Revenue [Line Items]      
Total 524,981 613,734 687,406
Medium Power CW Lasers      
Disaggregation of Revenue [Line Items]      
Total 71,672 77,079 80,501
Pulsed Lasers      
Disaggregation of Revenue [Line Items]      
Total 185,581 250,677 240,978
Quasi-Continuous Wave ("QCW") Lasers      
Disaggregation of Revenue [Line Items]      
Total 48,648 50,212 60,668
Laser and Non-Laser Systems      
Disaggregation of Revenue [Line Items]      
Total 161,177 153,471 126,642
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue      
Disaggregation of Revenue [Line Items]      
Total $ 295,380 $ 284,374 $ 264,665
v3.24.0.1
Revenue From Contracts With Customers (Disaggregation of Revenue, By Geography) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total $ 1,287,439 $ 1,429,547 $ 1,460,860
North America      
Disaggregation of Revenue [Line Items]      
Total 313,986 338,713 314,984
Germany      
Disaggregation of Revenue [Line Items]      
Total 88,026 85,491 101,738
Other Europe      
Disaggregation of Revenue [Line Items]      
Total 291,336 294,481 289,136
China      
Disaggregation of Revenue [Line Items]      
Total 355,321 479,926 548,348
Japan      
Disaggregation of Revenue [Line Items]      
Total 72,333 57,865 54,077
Other      
Disaggregation of Revenue [Line Items]      
Total 142,378 152,373 139,148
Rest of World      
Disaggregation of Revenue [Line Items]      
Total $ 24,059 $ 20,698 $ 13,429
v3.24.0.1
Revenue From Contracts With Customers (Disaggregation of Revenue, By Timing) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total $ 1,287,439 $ 1,429,547 $ 1,460,860
Goods and services transferred at a point in time      
Disaggregation of Revenue [Line Items]      
Total 1,239,551 1,377,996 1,402,498
Goods and services transferred over time      
Disaggregation of Revenue [Line Items]      
Total $ 47,888 $ 51,551 $ 58,362
v3.24.0.1
Revenue From Contracts With Customer (Changes in Contract Assets and Contract Liabilities) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Contract assets      
Contract assets $ 9,383 $ 8,620 $ 9,345
Contract assets, change 763 (725)  
Contract liabilities      
Contract liabilities - current 69,219 80,068 89,659
Contract liabilities - current, change (10,849) (9,591)  
Contract liabilities - long-term 2,851 3,142 $ 2,691
Contract liabilities - long-term, change $ (291) $ 451  
v3.24.0.1
Revenue From Contracts With Customers (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]    
Revenue recognized that was included in the contract liability balance at the beginning of the period $ 62,247 $ 73,325
Minimum    
Disaggregation of Revenue [Line Items]    
Period for installation completion 1 year  
v3.24.0.1
Revenue From Contracts With Customers (Schedule of Remaining Performance Obligations) (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 24,850
Revenue expected to be recognized for extended warranty agreements  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations 5,859
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 18,991
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 19,585
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 $ 3,008
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 $ 16,577
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 $ 3,701
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 $ 1,287
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 $ 2,414
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 $ 910
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 $ 910
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 $ 552
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 $ 552
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 $ 98
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 $ 98
Remaining performance obligations, expected timing 1 year
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 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Revenue expected to be recognized for extended warranty agreements  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 4
Remaining performance obligations, expected timing
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | 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
v3.24.0.1
Fair Value Measurements (Assets and Liabilities Measured at Fair Value) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets    
Total assets $ 948,293 $ 839,574
Liabilities    
Term debt   16,031
Total liabilities   16,031
U.S. Treasury and agency obligations    
Assets    
Short-term investments 171,316 39,611
Corporate bonds    
Assets    
Cash equivalents 23,516 1,497
Short-term investments 243,915 65,022
Commercial paper    
Assets    
Short-term investments 244,571 363,991
Term deposits    
Assets    
Short-term investments 3,009 10,113
Money market fund deposits    
Assets    
Cash equivalents 171,632  
Money market fund deposits    
Assets    
Cash equivalents   195,654
Commercial paper    
Assets    
Cash equivalents 6,369 94,661
U.S. Treasury and agency obligations    
Assets    
Cash equivalents   68,827
Term deposits    
Assets    
Cash equivalents 83,965  
Interest rate swap    
Assets    
Long-term investments and other assets   198
Level 1    
Assets    
Total assets 171,632 195,654
Liabilities    
Term debt   0
Total liabilities   0
Level 1 | U.S. Treasury and agency obligations    
Assets    
Short-term investments 0 0
Level 1 | Corporate bonds    
Assets    
Cash equivalents 0 0
Short-term investments 0 0
Level 1 | Commercial paper    
Assets    
Short-term investments 0 0
Level 1 | Term deposits    
Assets    
Short-term investments 0 0
Level 1 | Money market fund deposits    
Assets    
Cash equivalents 171,632  
Level 1 | Money market fund deposits    
Assets    
Cash equivalents   195,654
Level 1 | Commercial paper    
Assets    
Cash equivalents 0 0
Level 1 | U.S. Treasury and agency obligations    
Assets    
Cash equivalents   0
Level 1 | Term deposits    
Assets    
Cash equivalents 0  
Level 1 | Interest rate swap    
Assets    
Long-term investments and other assets   0
Level 2    
Assets    
Total assets 776,661 643,920
Liabilities    
Term debt   16,031
Total liabilities   16,031
Level 2 | U.S. Treasury and agency obligations    
Assets    
Short-term investments 171,316 39,611
Level 2 | Corporate bonds    
Assets    
Cash equivalents 23,516 1,497
Short-term investments 243,915 65,022
Level 2 | Commercial paper    
Assets    
Short-term investments 244,571 363,991
Level 2 | Term deposits    
Assets    
Short-term investments 3,009 10,113
Level 2 | Money market fund deposits    
Assets    
Cash equivalents 0  
Level 2 | Money market fund deposits    
Assets    
Cash equivalents   0
Level 2 | Commercial paper    
Assets    
Cash equivalents 6,369 94,661
Level 2 | U.S. Treasury and agency obligations    
Assets    
Cash equivalents   68,827
Level 2 | Term deposits    
Assets    
Cash equivalents 83,965  
Level 2 | Interest rate swap    
Assets    
Long-term investments and other assets   198
Level 3    
Assets    
Total assets 0 0
Liabilities    
Term debt   0
Total liabilities   0
Level 3 | U.S. Treasury and agency obligations    
Assets    
Short-term investments 0 0
Level 3 | Corporate bonds    
Assets    
Cash equivalents 0 0
Short-term investments 0 0
Level 3 | Commercial paper    
Assets    
Short-term investments 0 0
Level 3 | Term deposits    
Assets    
Short-term investments 0 0
Level 3 | Money market fund deposits    
Assets    
Cash equivalents 0  
Level 3 | Money market fund deposits    
Assets    
Cash equivalents   0
Level 3 | Commercial paper    
Assets    
Cash equivalents 0 0
Level 3 | U.S. Treasury and agency obligations    
Assets    
Cash equivalents   0
Level 3 | Term deposits    
Assets    
Cash equivalents $ 0  
Level 3 | Interest rate swap    
Assets    
Long-term investments and other assets   $ 0
v3.24.0.1
Fair Value Measurements (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Fair Value Disclosures [Abstract]    
Held-to-maturity impairment $ 0 $ 0
Debt securities, held-to-maturity, allowance for credit loss, current $ 0 0
Term debt   $ 16,031,000
v3.24.0.1
Fair Value Measurements (Schedule of Effective Maturity Dates of Held To Maturity Investments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Held-to-maturity, Maturity, Amortized Cost, Net [Abstract]    
Held-to-maturity Debt Maturities, Less than 1 year, Book Value $ 662,807 $ 479,374
Held-to-maturity Debt Maturities, Less than 1 year, Fair Value $ 662,811 $ 478,737
v3.24.0.1
Inventories (Components Of Inventories) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]    
Components and raw materials $ 263,652 $ 322,506
Work-in-process 47,997 18,911
Finished goods 142,225 167,946
Total $ 453,874 $ 509,363
v3.24.0.1
Inventories (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Inventory [Line Items]      
Inventory provisions $ 45,499 $ 127,960 $ 34,285
Russia      
Inventory [Line Items]      
Inventory provisions   $ 74,055  
v3.24.0.1
Divestiture and Sale of Asset (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2022
Acquired Finite-Lived Intangible Assets [Line Items]          
Gain (loss) on disposition of assets   $ 0 $ 31,846 $ 0  
Payments to noncontrolling interests     2,500    
Discontinued Operations, Disposed of by Sale          
Acquired Finite-Lived Intangible Assets [Line Items]          
Disposal group, including discontinued operation, consideration         $ 56,222
Gain (loss) on disposition of assets     21,918    
Corporate Aircraft | Discontinued Operations, Disposed of by Sale          
Acquired Finite-Lived Intangible Assets [Line Items]          
Disposal group, including discontinued operation, consideration $ 25,693   $ 25,693    
Gain (loss) on disposition of assets $ 9,928        
v3.24.0.1
Restructuring (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring and Related Activities [Abstract]      
Restructuring charges (recoveries), net $ (288) $ 9,697 $ 0
v3.24.0.1
Restructuring (Summary of Restructuring Accrual) (Details) - 2023 - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Restructuring Reserve [Roll Forward]    
Restructuring reserve, beginning balance $ 4,869 $ 0
Charges 1,436 9,697
Cash payments (3,719) (4,493)
Recoveries (1,724) 0
Foreign exchange adjustment (862) (335)
Restructuring reserve, ending balance $ 0 $ 4,869
v3.24.0.1
Goodwill and Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]    
Balance at January 1 $ 38,325 $ 38,609
Goodwill arising from business combinations 0 1,000
Goodwill written off related to divestiture 0 (796)
Foreign exchange adjustment 215 (488)
Balance at December 31 $ 38,540 $ 38,325
v3.24.0.1
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]        
Goodwill impairment $ 0      
Goodwill, impaired, accumulated impairment loss   $ 81,709 $ 81,709  
Amortization expense for intangible assets   $ 7,895 $ 10,454 $ 12,427
v3.24.0.1
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 95,309 $ 95,658
Accumulated Amortization (69,075) (61,538)
Net Carrying Amount 26,234 34,120
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 48,216 48,155
Accumulated Amortization (25,973) (21,734)
Net Carrying Amount $ 22,243 $ 26,421
Weighted- Average Lives 11 years 11 years
Technology, trademark and trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 29,903 $ 30,360
Accumulated Amortization (25,960) (23,189)
Net Carrying Amount $ 3,943 $ 7,171
Weighted- Average Lives 7 years 7 years
Production know-how    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 9,155 $ 9,109
Accumulated Amortization (9,155) (8,818)
Net Carrying Amount $ 0 $ 291
Weighted- Average Lives 7 years 7 years
Patents    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 8,035 $ 8,034
Accumulated Amortization (7,987) (7,797)
Net Carrying Amount $ 48 $ 237
Weighted- Average Lives 8 years 8 years
v3.24.0.1
Goodwill and Intangible Assets (Estimated Future Amortization Expense For Intangibles) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 5,556  
2025 4,978  
2026 4,217  
2027 4,005  
2028 3,636  
Thereafter 3,842  
Net Carrying Amount $ 26,234 $ 34,120
v3.24.0.1
Property, Plant and Equipment (Components Of Property, Plant, And Equipment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 1,156,159 $ 1,088,804
Accumulated depreciation (553,902) (508,243)
Total property, plant and equipment — net 602,257 580,561
Land    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 52,506 52,618
Buildings    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 446,031 434,698
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 457,968 424,197
Office furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 81,313 73,636
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 118,341 $ 103,655
v3.24.0.1
Property, Plant and Equipment (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]      
Depreciation $ 58,245 $ 76,063 $ 78,563
Impairment of long-lived assets $ 1,237 79,949 $ 0
Russia      
Property, Plant and Equipment [Line Items]      
Impairment of long-lived assets   $ 79,030  
v3.24.0.1
Property, Plant and Equipment (Long-Lived Assets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Long-lived assets $ 613,732 $ 590,264
United States    
Property, Plant and Equipment [Line Items]    
Long-lived assets 384,088 388,111
Germany    
Property, Plant and Equipment [Line Items]    
Long-lived assets 132,218 111,726
Belarus    
Property, Plant and Equipment [Line Items]    
Long-lived assets 31,833 39,380
Italy    
Property, Plant and Equipment [Line Items]    
Long-lived assets 10,747 9,340
Japan    
Property, Plant and Equipment [Line Items]    
Long-lived assets 9,024 5,043
China    
Property, Plant and Equipment [Line Items]    
Long-lived assets 4,328 5,406
Other    
Property, Plant and Equipment [Line Items]    
Long-lived assets $ 41,494 $ 31,258
v3.24.0.1
Other Liabilities (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Payables and Accruals [Abstract]      
Contract liabilities $ 69,219 $ 80,068 $ 89,659
Accrued compensation 67,053 78,251  
Current portion of accrued warranty 27,283 28,504  
Short-term lease liabilities 4,597 5,234  
Other 13,198 10,707  
Total $ 181,350 $ 202,764  
v3.24.0.1
Other Liabilities (Other Long-Term Liabilities and Deferred Income Taxes) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accrued warranty $ 19,926 $ 24,358
Long-term lease liabilities 13,664 16,787
Unrecognized tax benefits 17,176 15,841
Transition tax related to 2017 U.S. tax reform act 11,009 19,874
Deferred income taxes 1,508 1,469
Other 5,369 4,945
Total $ 68,652 $ 83,274
v3.24.0.1
Product Warranties (Summary of Product Warranty Activity) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]      
Balance at January 1 $ 52,862 $ 49,864 $ 45,669
Provision for warranty accrual 13,596 22,565 33,289
Warranty claims (19,801) (17,829) (26,568)
Foreign currency translation 552 (1,738) (2,526)
Balance at December 31 $ 47,209 $ 52,862 $ 49,864
v3.24.0.1
Product Warranties (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Product Warranties Disclosures [Abstract]    
Current portion of accrued warranty $ 27,283 $ 28,504
Accrued warranty $ 19,926 $ 24,358
v3.24.0.1
Financing Arrangements (Narrative) (Details)
€ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
May 31, 2023
USD ($)
U S Line Of Credit      
Line of Credit Facility [Line Items]      
Line of credit $ 0    
Guarantees issued $ 2,487,000    
US Long Term Note      
Line of Credit Facility [Line Items]      
Debt Instrument, Debt Service Coverage Ratio 3.0    
Debt Instrument, Maximum Indebtedness Multiplier Against EBITDA Covenant 3    
US Long Term Note | Minimum      
Line of Credit Facility [Line Items]      
Debt Instrument, Covenant Compliance, Debt Service Coverage $ 50,000,000    
US Long Term Note | Maximum      
Line of Credit Facility [Line Items]      
Debt Instrument, Covenant Compliance, Debt Service Coverage 500,000,000    
Letter of Credit | U S Line Of Credit      
Line of Credit Facility [Line Items]      
Borrowing capacity 75,000,000    
Remaining borrowing capacity $ 72,513,000    
Letter of Credit | U S Line Of Credit | Minimum      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 0.80%    
Letter of Credit | U S Line Of Credit | Maximum      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 1.20%    
Letter of Credit | Euro Line Of Credit      
Line of Credit Facility [Line Items]      
Borrowing capacity $ 7,173,000 € 6,500  
Unsecured Debt      
Line of Credit Facility [Line Items]      
Notes Payable $ 0   $ 15,438
v3.24.0.1
Derivative Instruments (Derivative Gains (Losses) in the Consolidated Statements of Income Related to Interest Rate Swap Contracts) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Designated as cash flow hedge | Interest rate swap      
Effective portion recognized in other comprehensive income (loss), pretax:      
Effective portion recognized in other comprehensive income (loss), pretax $ (198) $ 440 $ 361
v3.24.0.1
Leases (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Commitments [Line Items]      
Rent expense $ 4,529,000 $ 8,112,000 $ 7,975,000
Operating lease payments 6,110,000 7,192,000 $ 6,854,000
Right-of-use assets 13,947,000 $ 15,564,000  
Submarine Network Division      
Other Commitments [Line Items]      
Right-of-use assets $ 0    
Minimum      
Other Commitments [Line Items]      
Remaining lease term 1 year    
Maximum      
Other Commitments [Line Items]      
Remaining lease term 41 years    
v3.24.0.1
Leases (Lease Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Right-of-use assets $ 13,947 $ 15,564
Short-term lease liabilities 4,597 5,234
Long-term lease liabilities 13,664 16,787
Total lease liabilities $ 18,261 $ 22,021
Operating lease, right-of-use asset, statement of financial position Other assets Other assets
Operating lease, liability, current, statement of financial position Accrued expenses and other liabilities Accrued expenses and other liabilities
Operating lease, liability, noncurrent, statement of financial position Other long-term liabilities and deferred income taxes Other long-term liabilities and deferred income taxes
v3.24.0.1
Leases (Future Minimum Payments) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2024 $ 5,224  
2025 4,291  
2026 3,283  
2027 2,084  
2028 1,758  
Thereafter 4,356  
Total future minimum lease payments 20,996  
Less: imputed interest (2,735)  
Present value of lease liabilities $ 18,261 $ 22,021
Lease, Cost [Abstract]    
Weighted-average remaining lease term 6 years 7 months 28 days 7 years 4 months 6 days
Weighted-average discount rate 4.39% 4.33%
v3.24.0.1
Commitments and Contingencies (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Feb. 21, 2024
Dec. 31, 2022
Other Commitments [Line Items]      
Purchase obligations $ 27,404,000   $ 25,070,000
Management      
Other Commitments [Line Items]      
Duration of employment agreement 2 years    
Subsequent Event      
Other Commitments [Line Items]      
Estimated litigation liability   $ 0  
v3.24.0.1
Stock-Based Compensation (Components Of Stock Based Compensation) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation $ 39,604 $ 38,335 $ 37,981
Tax effect of stock-based compensation (8,660) (8,261) (8,071)
Net stock-based compensation 30,944 30,074 29,910
Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation 7,929 11,741 11,245
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation 5,421 4,889 4,320
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation 9,396 7,585 9,533
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total stock-based compensation $ 16,858 $ 14,120 $ 12,883
v3.24.0.1
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Termination period 2 years    
Intrinsic value of options exercised $ 4,085 $ 6,069 $ 28,353
Proceeds from stock options exercised 5,630    
Exercise of option, tax benefit $ 1,017    
Period for discount from market price 6 months    
Stock issued during period, shares, employee stock ownership plan 57,984 62,233 34,151
Shares issued, price per share (in usd per share) $ 86.89 $ 78.57 $ 160.81
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
Weighted-average grant-date fair value, granted (in dollars per share) $ 128.71 $ 131.32 $ 229.13
Intrinsic value of RSUs exercised $ 23,082 $ 14,750 $ 26,036
Aggregate fair value of awards vested 28,319 22,779 18,042
Compensation cost not yet recognized $ 41,522    
Compensation cost not yet recognized, period of recognition 1 year 9 months 18 days    
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
Intrinsic value of RSUs exercised $ 128 0 0
Aggregate fair value of awards vested 331 $ 0 $ 0
Compensation cost not yet recognized $ 220    
Compensation cost not yet recognized, period of recognition 3 months 18 days    
Financial Metric-Based PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value, granted (in dollars per share) $ 131.13 $ 136.64 $ 228.62
Compensation cost not yet recognized $ 6,098    
Compensation cost not yet recognized, period of recognition 2 years    
TSR Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value, granted (in dollars per share) $ 0   $ 236.11
Employee Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for grant 140,176    
Discount form market price 15.00%    
Maximum employee subscription rate 10.00%    
Compensation expense for employee stock purchase plan $ 1,595 $ 1,924 $ 1,861
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 1 year    
Minimum | Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award units earned, percentage 0.00%    
Target goal, percentage 50.00%    
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 4 years    
Expiration period 10 years    
Maximum | Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award units earned, percentage 200.00%    
Target goal, percentage 80.00%    
2006 Incentive Compensation Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares reserved for future issuance 11,563,465    
Shares available for grant 3,107,336    
v3.24.0.1
Stock-Based Compensation (Summary Of Option Activity) (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
$ / shares
shares
Number of Options  
Outstanding (in shares) | shares 881,887
Granted (in shares) | shares 0
Exercised (in shares) | shares (84,146)
Forfeited (in shares) | shares (28,579)
Outstanding (in shares) | shares 769,162
Exercisable (in shares) | shares 769,162
Weighted-Average Exercise Price  
Outstanding (in dollars per share) | $ / shares $ 138.16
Granted (in dollars per share) | $ / shares 0
Exercised (in dollars per share) | $ / shares 66.90
Forfeited (in dollars per share) | $ / shares 180.77
Outstanding (in dollars per share) | $ / shares 144.38
Exercisable (in dollars per share) | $ / shares $ 144.38
Weighted-Average Remaining Contractual Life  
Outstanding, weighted-average remaining contractual life 3 years 2 months 15 days
Exercisable, weighted-average remaining contractual life 3 years 2 months 15 days
Aggregate Intrinsic Value  
Outstanding, aggregate intrinsic value | $ $ 6,271
Exercisable, aggregate intrinsic value | $ $ 6,271
v3.24.0.1
Stock-Based Compensation (Summary of Stock Unit Activity) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted stock units      
Number of Shares      
Nonvested, beginning balance (in shares) 422,736    
Granted (in shares) 265,661    
Vested (in shares) (190,133)    
Canceled (in shares) (22,333)    
Nonvested, ending balance (in shares) 475,931 422,736  
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, nonvested, beginning balance (in dollars per share) $ 154.22    
Weighted-average grant-date fair value, granted (in dollars per share) 128.71 $ 131.32 $ 229.13
Weighted-average grant-date fair value, vested (in dollars per share) 148.94    
Weighted-average grant-date fair value, canceled (in dollars per share) 146.59    
Weighted-average grant-date fair value, nonvested, ending balance (in dollars per share) $ 142.51 $ 154.22  
TSR Performance Shares      
Number of Shares      
Nonvested, beginning balance (in shares) 39,090    
Granted (in shares) 0    
Vested (in shares) (1,331)    
Canceled (in shares) (22,851)    
Nonvested, ending balance (in shares) 14,908 39,090  
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, nonvested, beginning balance (in dollars per share) $ 195.82    
Weighted-average grant-date fair value, granted (in dollars per share) 0   236.11
Weighted-average grant-date fair value, vested (in dollars per share) 248.49    
Weighted-average grant-date fair value, canceled (in dollars per share) 168.82    
Weighted-average grant-date fair value, nonvested, ending balance (in dollars per share) $ 233.75 $ 195.82  
Financial Metric-Based PSUs      
Number of Shares      
Nonvested, beginning balance (in shares) 97,552    
Granted (in shares) 64,706    
Vested (in shares) (27,561)    
Canceled (in shares) (6,351)    
Nonvested, ending balance (in shares) 128,346 97,552  
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, nonvested, beginning balance (in dollars per share) $ 153.56    
Weighted-average grant-date fair value, granted (in dollars per share) 131.13 $ 136.64 $ 228.62
Weighted-average grant-date fair value, vested (in dollars per share) 144.32    
Weighted-average grant-date fair value, canceled (in dollars per share) 146.63    
Weighted-average grant-date fair value, nonvested, ending balance (in dollars per share) $ 144.61 $ 153.56  
v3.24.0.1
Stock-Based Compensation (Weighted-Average Assumptions) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
TSR Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance term (years)     3 years
Volatility, minimum     29.00%
Volatility, maximum     51.00%
Dividend yield     0.00%
TSR Performance Shares | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free rate of return     0.23%
Weighted-average fair value per share (in dollars per share)     $ 248.49
TSR Performance Shares | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free rate of return     0.26%
Weighted-average fair value per share (in dollars per share)     $ 165.15
Employee Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Performance term (years) 6 months 6 months 6 months
Volatility, minimum 35.00% 41.00% 33.00%
Volatility, maximum 37.00% 52.00% 42.00%
Dividend yield 0.10% 0.10% 0.10%
Employee Stock | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free rate of return 4.76% 0.19% 0.09%
Weighted-average fair value per share (in dollars per share) $ 23.42 $ 45.91 $ 53.09
Employee Stock | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free rate of return 5.47% 2.52% 0.05%
Weighted-average fair value per share (in dollars per share) $ 33.55 $ 26.68 $ 56.43
v3.24.0.1
Employee Benefit Plans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Compensation Related Costs [Abstract]      
Compensation expense $ 6,496 $ 6,344 $ 6,081
v3.24.0.1
Income Taxes (Income Before Impact Of Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
U.S. $ 131,601 $ 135,041 $ 103,980
Foreign 143,274 48,310 262,501
Income before provision for income taxes $ 274,875 $ 183,351 $ 366,481
v3.24.0.1
Income Taxes (Provision For Income Taxes) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
Federal $ 22,908 $ 39,435 $ 13,842
State 4,623 3,697 273
Foreign 42,255 57,032 81,385
Total current 69,786 100,164 95,500
Deferred:      
Federal (10,306) (25,979) (179)
State (1,635) (2,121) 844
Foreign (1,848) 525 (7,550)
Total deferred (13,789) (27,575) (6,885)
Provision for income taxes $ 55,997 $ 72,589 $ 88,615
v3.24.0.1
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Tax at statutory rate $ 57,724 $ 38,504 $ 76,955
Non-U.S. rate differential — net 12,685 21,352 18,710
State income taxes — net 3,380 4,904 2,050
Stock-based compensation — tax detriment (benefit) 1,835 2,736 (5,440)
Foreign derived intangible income benefit ("FDII") (9,322) (14,576) (4,704)
Prior year and audit adjustments (4,793) (2,240) (2,119)
Withholding tax on intercompany dividend 0 1,005 2,883
Federal and state tax credits (6,375) (5,238) (7,482)
Foreign investment tax credit 0 (9,559) (324)
Change in reserves, including interest and penalties 2,379 (3,355) 4,072
Change in valuation allowance (2,548) 36,993 1,681
Other — net 1,032 2,063 2,333
Provision for income taxes $ 55,997 $ 72,589 $ 88,615
v3.24.0.1
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Property, plant and equipment $ (5,019)  
Property, plant and equipment   $ 6,275
Intangible assets 43,020 27,044
Inventory provisions 46,808 43,628
Allowances and accrued liabilities 951 2,584
Withholding tax on intercompany dividend (1,504) (1,461)
Other tax credits 20,864 18,554
Deferred compensation 22,682 27,114
Net operating loss carryforwards 8,299 7,410
Valuation allowance (48,821) (57,465)
Net deferred tax assets $ 87,280 $ 73,683
v3.24.0.1
Income Taxes (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2016
Income Tax Contingency [Line Items]      
Deferred tax liabilities, withholding and dividend tax, foreign $ (1,504,000) $ (1,461,000)  
Undistributed earnings of foreign subsidiaries 944,867,000 967,674,000  
Operating Loss Carryforwards 25,747,000 22,134,000  
Operating Loss Carryforwards, Valuation Allowance 6,952,000 5,942,000  
Penalties and interest expense 646,000 (168,000)  
Accrued penalties and interest 2,043,000 1,476,000  
Menara Networks [Member]      
Income Tax Contingency [Line Items]      
Operating Loss Carryforwards 790,000 1,844,000 $ 22,242,000
Operating Loss Carryforwards, Valuation Allowance 0    
Foreign Tax Authority      
Income Tax Contingency [Line Items]      
Valuation allowance, deferred tax asset, increase (decrease), amount 23,873,000 35,833,000  
State      
Income Tax Contingency [Line Items]      
Tax credit carry-forwards 20,704,000 18,398,000  
Tax credit carryforward, valuation allowance 17,996,000 $ 15,690,000  
German Subsidiary      
Income Tax Contingency [Line Items]      
Proceeds from dividends received $ 107,941,000    
v3.24.0.1
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at January 1 $ 15,841 $ 19,209 $ 14,706
Change in prior period positions (1,306) (3,921) (1,969)
Additions for tax positions in current period 3,041 735 6,400
Foreign exchange adjustments     72
Foreign exchange adjustments (400) (182)  
Balance at December 31 $ 17,176 $ 15,841 $ 19,209
v3.24.0.1
Income Taxes (Open Tax Years By Major Jurisdictions) (Details)
 12 Months Ended
Dec. 31, 2023
Minimum | United States  
Income Tax Contingency [Line Items]  
Open tax year 2019
Minimum | Germany  
Income Tax Contingency [Line Items]  
Open tax year 2021
Minimum | Russia  
Income Tax Contingency [Line Items]  
Open tax year 2021
Maximum | United States  
Income Tax Contingency [Line Items]  
Open tax year 2023
Maximum | Germany  
Income Tax Contingency [Line Items]  
Open tax year 2023
Maximum | Russia  
Income Tax Contingency [Line Items]  
Open tax year 2023
v3.24.0.1
Net Income Attributable To IPG Photonics Corporation Per Share (Computation Diluted Net Income Per Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]      
Net income attributable to IPG Photonics Corporation common stockholders $ 218,878 $ 109,909 $ 278,416
Basic weighted average shares 47,154,217 50,761,096 53,409,673
Dilutive effect of common stock equivalents (in shares) 165,858 163,646 520,554
Diluted weighted average common shares 47,320,075 50,924,742 53,930,227
Basic net income attributable to IPG Phontonics Corporation per share (in dollars per share) $ 4.64 $ 2.17 $ 5.21
Diluted net income attributable to IPG Photonics Corporation per share (in dollars per share) $ 4.63 $ 2.16 $ 5.16
v3.24.0.1
Net Income Attributable To IPG Photonics Corporation Per Share (Anti Dilutive Shares Excluded From EPS) (Details) - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total weighed average anti-dilutive shares outstanding 862,685 1,020,448 345,639
Non-qualified stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total weighed average anti-dilutive shares outstanding 533,402 594,290 216,190
Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total weighed average anti-dilutive shares outstanding 246,481 344,810 103,998
Performance stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total weighed average anti-dilutive shares outstanding 51,851 81,348 25,451
Employee stock purchase plan      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total weighed average anti-dilutive shares outstanding 30,951 0 0
v3.24.0.1
Net Income Attributable To IPG Photonics Corporation Per Share (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
May 02, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Shares repurchased 2,117,352 5,101,434 743,969  
Shares repurchased, average cost per share (in dollars per share) $ 104.68 $ 97.89 $ 181.28  
Decrease in weighted average number of treasury shares 1,167,412 2,393,478 244,451  
May 2023 Purchase Plan        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Stock repurchase program, authorized amount       $ 200,000
Remaining authorized repurchase amount $ 90,518      
v3.24.0.1
Subsequent Events (Details)
$ in Millions
Feb. 13, 2024
USD ($)
Subsequent Event  
Subsequent Event [Line Items]  
Stock repurchase program, authorized amount $ 300