Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 69

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 for the sale of large scale materials processing systems. The timing of customer payments on these contracts generally differs from the timing of revenue recognized. If revenue recognized exceeds customer payments, a contract asset is recorded and if customer payments exceed revenue recognized, a contract liability is recorded. Contract assets are included within prepaid expense and other current assets on the Condensed Consolidated Balance Sheets. Contract liabilities are included within accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. Certain deferred revenues related to extended warranties in excess of one year from the balance sheet date are included within other long-term liabilities and deferred income taxes on the Condensed Consolidated Balance Sheets.The following table reflects the changes in the Company's contract assets and liabilities for the nine months ended September 30, 2025 and 2024:September 30,January 1,September 30,January 1,20252025Change20242024ChangeContract assetsContract assets$2,748 $4,737 $(1,989)$10,835 $9,383 $1,452 Contract liabilitiesContract liabilities - current54,893 56,454 (1,561)52,271 69,219 (16,948)Contract liabilities - long-term3,116 2,882 234 3,015 2,851 164 During the three months ended September 30, 2025 and 2024, the Company recognized revenue of $3,321 and $6,366, respectively, that was included in contract liabilities at the beginning of each year.  During the nine months ended September 30, 2025 and 2024, the Company recognized revenue of $37,360 and $49,582 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 September 30, 2025:Remaining Performance Obligations2025 (a)2026202720282029ThereafterTotalRevenue expected to be recognized for extended warranty agreements$496 $953 $490 $359 $267 $79 $2,644 Revenue to be earned over time from contracts to sell large scale materials processing systems3,825 6,295 330 — — — 10,450 Total$4,321 $7,248 $820 $359 $267 $79 $13,094 (a) For the