Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 73

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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rued compensation$73,259 $56,568 Contract liabilities60,615 56,454 Current portion of accrued warranty20,304 21,398 Short-term lease liabilities4,769 4,835 Other11,843 12,793 Total$170,790 $152,048 Other long-term liabilities and deferred income taxes consist of the following:June 30,December 31, 20252024Unrecognized tax benefits$13,360 $13,855 Accrued warranty12,986 12,954 Long-term lease liabilities12,093 13,124 Deferred income taxes11,047 14,206 Other8,458 5,635 Total$57,944 $59,774 

9. PRODUCT WARRANTIES

The Company typically provides one to five years parts and service warranties on lasers, laser and non-laser systems, and amplifiers. Most of the Company's sales offices provide support to customers in their respective geographic areas. Warranty reserves have generally been sufficient to cover product warranty repair and replacement costs. Activity related to the warranty accrual was as follows:Six Months Ended June 30,20252024Balance, beginning of period$34,352 $47,209 Provision for warranty accrual3,877 2,853 Warranty claims(7,388)(8,268)Foreign currency translation2,449 (720)Balance, end of period$33,290 $41,074 Accrued warranty reported in the accompanying Condensed Consolidated Financial Statements as of June 30, 2025 and December 31, 2024 consist of $20,304 and $21,398 in Accrued expenses and other current liabilities, respectively, and $12,986 and $12,954 in Other long-term liabilities and deferred income taxes, respectively.

10. FINANCING ARRANGEMENTS

Revolving Line of Credit Facilities:On June 24, 2025, the Company entered into a new credit agreement with Bank of America, N.A. which matures on June 24, 2030. The credit agreement provides a $200,000 unsecured, revolving credit facility, of which $25,000 may be used for the issuance of letters of credit. The new facility replaced the previous $75,000 U.S. revolving line of credit with a scheduled maturity date of June 30, 2025. 

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