Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 69

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 included in contract liabilities at the beginning of each year.  During the six months ended June 30, 2025 and 2024, the Company recognized revenue of $34,039 and $43,216 respectively, that was included in contract liabilities at the beginning of each year.The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of June 30, 2025:Remaining Performance Obligations2025 (a)2026202720282029ThereafterTotalRevenue expected to be recognized for extended warranty agreements$1,651 $2,053 $1,325 $655 $359 $94 $6,137 Revenue to be earned over time from contracts to sell large scale materials processing systems6,078 2,282 — — — — 8,360 Total$7,729 $4,335 $1,325 $655 $359 $94 $14,497 (a) For the six-month period beginning July 1, 2025.

4. FAIR VALUE MEASUREMENTS

The Company's financial instruments consist of cash equivalents, short-term investments, accounts receivable, accounts payable, and revolving lines of credit.The valuation techniques used to measure fair value are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company classifies its financial instruments according to the prescribed criteria.The fair value of money market fund deposits, cash equivalent term deposits, accounts receivable, accounts payable and drawings on revolving lines of credit is reasonably close to their carrying amounts due to the short maturity of most of these instruments or as a result of the competitive market interest rates, which have been negotiated. The fair value of the Company's  term deposits, corporate bonds, commercial paper, and U.S. Treasury and agency obligations are based on Level 2 inputs. 

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Table of ContentsIPG PHOTONICS CORPORATIONNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (