Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 31

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 Company is aware of no ongoing legal proceedings that management estimates could have a material effect on the Company's Condensed Consolidated Financial Statements.Effective January 1, 2025, the Company is self-insured for employee medical benefits in the United States. The employee medical obligations are managed by a third-party provider and the related liabilities are included in the consolidated financial statements. To limit the Company’s potential liabilities for these risks, the Company purchases insurance from a third party that provides stop-loss protection for medical costs in the United States that exceed $225 per person per annum.The Company provides product warranties on its lasers, laser and non-laser systems, and amplifiers. Refer to Note 9, "Product Warranties" for information related to the Company's warranty accrual.

12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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 adjustments. These adjustments are accumulated within the Condensed Consolidated Statements of Comprehensive Income.Total components of accumulated other comprehensive loss were as follows:Foreign currency translation adjustments and otherTotalBalance, January 1, 2025$(119,367)$(119,367)Other comprehensive income, net of tax:Foreign currency translation adjustments and other, net of tax expense of $9727,129 27,129 Total other comprehensive income27,129 27,129 Balance, March 31, 2025$(92,238)$(92,238)Balance, January 1, 2024$(212,530)$(212,530)Other comprehensive loss, net of tax:Foreign currency translation adjustments and other, net of tax benefit of $33(17,728)(17,728)Total other comprehensive loss(17,728)(17,728)Balance, March 31, 2024$(230,258)$(230,258)

13. INCOME TAXES

The provision for income taxes was an expense of $6,857 and $9,503, for the three months ended March 31, 2025, and 2024, respectively. The effective tax rate was 64.6% for the three months ended March 31, 2025. This compares to the effective tax rate for the three months ended March 31, 2024 of 28.3%.The decrease in tax expense was primarily due to lower Income before provision for income taxes for the three