Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 64

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 Warranties" for information related to the Company's warranty accrual.

12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Comprehensive income includes charges and credits to equity that are not the result of transactions with stockholders. Included within comprehensive income is the cumulative foreign currency translation adjustments. These adjustments are accumulated within the Condensed Consolidated Statements of Comprehensive Income.Total components of accumulated other comprehensive loss were as follows:Foreign currency translation adjustments and otherTotalBalance, January 1, 2025$(119,367)$(119,367)Other comprehensive income, net of tax:Foreign currency translation adjustments and other, net of tax expense of $9727,129 27,129 Total other comprehensive income27,129 27,129 Balance, March 31, 2025$(92,238)$(92,238)Balance, January 1, 2024$(212,530)$(212,530)Other comprehensive loss, net of tax:Foreign currency translation adjustments and other, net of tax benefit of $33(17,728)(17,728)Total other comprehensive loss(17,728)(17,728)Balance, March 31, 2024$(230,258)$(230,258)

13. INCOME TAXES

The provision for income taxes was an expense of $6,857 and $9,503, for the three months ended March 31, 2025, and 2024, respectively. The effective tax rate was 64.6% for the three months ended March 31, 2025. This compares to the effective tax rate for the three months ended March 31, 2024 of 28.3%.The decrease in tax expense was primarily due to lower Income before provision for income taxes for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.  This decrease was partially offset by an increase in discrete tax expense items for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The discrete tax detriment for the three months ended March 31, 2025 of $4,614 is related primarily to equity-based compensation expense reflected in financial statement income in excess of the deductions allowed for tax purposes.  This 

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Table of ContentsIPG PHOTONICS CORPORATIONNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -