Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 36

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes. This compares to a discrete tax benefit of $85 for the three months ended June 30, 2024 which is related primarily to a decrease in uncertain tax positions due to the conclusion of tax audits which was partially offset by equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes.

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

The discrete tax detriment of $4,889 for the six months ended June 30, 2025 relates primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes.  This compares to a discrete tax detriment of $1,912 for the six months ended June 30, 2024 related primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes, which was partially offset by a decrease in uncertain tax positions due to the conclusion of tax audits.The Company accounts for its uncertain tax positions in accordance with the accounting standards for income taxes. The Company classifies interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes.  The following is a summary of the activity of the Company’s unrecognized tax benefits for the six months ended June 30, 2025 and 2024:Six Months Ended June 30,20252024Balance, beginning of period$13,855 $17,176 Change in prior period positions— (1,759)Additions for tax positions in current period109 170 Foreign currency translation(604)(60)Balance, end of period$13,360 $15,527 

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 that would benefit the Company's effective tax rate if those tax benefits are recognized. 

14. NET INCOME PER COMMON SHARE

The following table sets forth the computation of diluted net income per common share following the treasury stock method:Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net income$6,605 $20,154 $10,363 $44,253 Basic weighted