Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 78

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 in excess of the deductions allowed for tax purposes and uncertain tax positions resulting from audits. There was a tax detriment for both periods in 2024 related primarily to $41,482 of losses not benefitted from the loss on divestiture of Russian operations, which occurred in the three months ended September 30, 2024. Excluding the divestiture of Russian operations, the other discrete tax items for the three months ended September 30, 2024 did not have a significant effect on the Company's tax rate. Excluding the divestiture of Russian operations, the other discrete tax detriment of $1,435 for the nine months ended September 30, 2024, related primarily to equity-based compensation which was partially offset by a benefit related to reductions of tax reserves.The Company accounts for its uncertain tax positions in accordance with the accounting standards for income taxes. The Company classifies interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. 

14

Table of ContentsIPG PHOTONICS CORPORATIONNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)(In thousands, except share and per share data)

The following is a summary of the activity of the Company’s unrecognized tax benefits for the nine months ended September 30, 2025 and 2024:Nine Months Ended September 30,20252024Balance, beginning of period$13,855 $17,176 Change in prior period positions2,895 (3,130)Additions for tax positions in current period164 249 Foreign currency translation(527)94 Balance, end of period$16,387 $14,389 

The liability for uncertain tax benefits is included in Other long-term liabilities and deferred income taxes. Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters would benefit the Company's effective tax rate if those tax benefits are recognized. 

14. NET INCOME (LOSS) PER COMMON SHARE

The following table sets forth the computation of diluted net income (loss) per common share following the treasury stock method:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Net income (loss)$7,463 $(233,594)$17,826 $(189,341)Basic weighted average common shares42,198,713 43,837,357 42,426,713 44,901,247