Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 65

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 (Continued)(In thousands, except share and per share data)

compares to a net discrete tax detriment of $1,997 for the three months ended March 31, 2024 which relates primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes partially offset by a decrease in uncertain tax positions due to the conclusion of tax audits.The Company accounts for its uncertain tax positions in accordance with the accounting standards for income taxes. The Company classifies interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes.  The following is a summary of the activity of the Company’s unrecognized tax benefits for the three months ended March 31, 2025 and 2024:Three Months Ended March 31,20252024Balance, beginning of period$13,855 $17,176 Change in prior period positions— (2,000)Additions for tax positions in current period55 76 Foreign currency translation(192)— Balance, end of period$13,718 $15,252 

The liability for uncertain tax benefits is included in Other long-term liabilities and deferred income taxes at March 31, 2025 and December 31, 2024. Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters would benefit the Company's effective tax rate if those tax benefits are recognized. 

14. NET INCOME PER COMMON SHARE

The following table sets forth the computation of diluted net income per common share following the treasury stock method:Three Months Ended March 31,20252024Net income$3,758 $24,099 Basic weighted average common shares42,604,799 45,960,476 Dilutive effect of common stock equivalents226,987 214,042 Diluted weighted average common shares42,831,786 46,174,518 Basic net income per common share$0.09 $0.52 Diluted net income per common share$0.09 $0.52 The computation of diluted weighted average common shares excludes common stock equivalents including non-qualified stock options, performance stock units ("PSUs"), restricted stock units ("RSUs") and employee stock purchase plan ("ESPP") because the effect of including them would be anti-dilutive. The weighted average anti-dilutive shares outstanding for the three months ended March 31, 2025 and 2024 were