Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 40

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 16
Chunk 40
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 cash flows from operating leases was $5,668, $6,110 and $7,192 for the years ended December 31, 2024, 2023 and 2022, 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, 2024 and 2023:Year Ended December 31,AccountClassification20242023Right-of-use assetsOther assets$14,524 $13,947 Short-term lease liabilitiesAccrued expenses and other liabilities4,835 4,597 Long-term lease liabilitiesOther long-term liabilities and deferred income taxes13,124 13,664 Total lease liabilities$17,959 $18,261 

F-22

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

The table below presents the maturities of operating lease liabilities as of December 31, 2024:2025$5,515 20264,491 20273,453 20282,780 20291,545 Thereafter2,141 Total future minimum lease payments19,925 Less: imputed interest(1,966)Present value of lease liabilities$17,959 Other information relevant to the Company's operating leases consist of the following as of December 31, 2024 and 2023:Year Ended December 31,20242023Weighted-average remaining lease term5.41 years6.66 yearsWeighted-average discount rate4.62 %4.39 %

14. 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 $71,238 and $27,404 as of December 31, 2024 and 2023