Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 36

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 16
Chunk 36
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 Company obtains additional information during the measurement period.The Company has a continued employment arrangement with one of the sellers subject to a potential earn-out payment based upon the achievement of certain financial and non-financial milestones. The Company has treated this potential payment as compensation expense that will be recorded pro-ratably over the employment arrangement period of 24 months. The amount the Company has accrued related to this arrangement is not material as of December 31, 2024.  Pro forma results of operations for the acquisition of cleanLASER have not been presented because the effects of the acquisition is not material to the Company's consolidated financial results. Revenue and earnings attributable to the acquired operation since the date of the acquisition is included in the Company's Consolidated Statements of Operations and not presented separately because it is not material.

8. GOODWILL AND INTANGIBLE ASSETS

The following table sets forth the changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023: 20242023Balance at January 1$38,540 $38,325 Goodwill arising from business combination29,652 — Foreign exchange adjustment (951)215 Balance at December 31$67,241 $38,540 

F-19

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

The Company performed the 2024 and 2023 annual impairment test as of October 1, 2024 and 2023, respectively, and no impairments were recorded as a result of the tests. The carrying balance of goodwill at December 31, 2024, and 2023 was net of accumulated impairments of $44,589.Intangible assets, subject to amortization, consisted of the following:  December 31, 2024December 31, 2023Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted- Average LivesGross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted- Average LivesCustomer relationships$62,671 $(29,747)$32,924 11 years$48,216 $(25,973)$22,243 11 yearsTechnology, and Production know-how40,823 (22,891)17,932 8 years26,928 (25,509)1,419 7 yearsTrademark and trade name15,665 (