Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 31

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 16
Chunk 31
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 (10,849)Contract liabilities - long-term2,882 2,851 31 2,851 3,142 (291)During the years ended December 31, 2024 and 2023, the Company recognized revenue of $54,105 and $62,247, respectively, that was included in the contract liabilities at the beginning of the period.The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of December 31, 2024: Remaining Performance Obligations20252026202720282029ThereafterTotalRevenue expected to be recognized for extended warranty agreements$2,542 $1,410 $947 $355 $132 $38 $5,424 Revenue to be earned over time from contracts to sell large scale materials processing systems11,425 1,238 — — — — 12,663 Total$13,967 $2,648 $947 $355 $132 $38 $18,087 

3. FAIR VALUE MEASUREMENTS

The Company's financial instruments consisted 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 carrying amounts of money market fund deposits, cash equivalent term deposits, accounts receivable, and accounts payable and revolving lines of credit are considered reasonable estimates of their fair market value 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 commercial paper, U.S. Treasury and agency obligations, term deposits, and corporate bonds are based on Level 2 inputs.

F-16

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