Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 58

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 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 three months ended March 31, 2025 and 2024:March 31,January 1,March 31,January 1,20252025Change20242024ChangeContract assetsContract assets$1,078 $4,737 $(3,659)$10,996 $9,383 $1,613 Contract liabilitiesContract liabilities - current61,776 56,454 5,322 60,171 69,219 (9,048)Contract liabilities - long-term3,338 2,882 456 2,732 2,851 (119)During the three months ended March 31, 2025 and 2024 the Company recognized revenue of $21,214 and $30,500, 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 March 31, 2025:Remaining Performance Obligations2025 (a)2026202720282029ThereafterTotalRevenue expected to be recognized for extended warranty agreements$1,928 $1,612 $1,175 $586 $324 $69 $5,694 Revenue to be earned over time from contracts to sell large scale materials processing systems12,137 2,121 — — — — 14,258 Total$14,065 $3,733 $1,175 $586 $324 $69 $19,952 (a) For the nine-month period beginning April 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,