Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 48

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 16
Chunk 48
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 current needs for operations and expansion. At December 31, 2024 and 2023, the cumulative undistributed earnings in non-U.S. subsidiaries were approximately  $687,579 and $944,867, respectively, and excluded earnings for possible future distributions for which tax has been accrued.  Of the $257,288 decrease in cumulative undistributed earnings in non-U.S. subsidiaries in 2024, $172,878 relates to the sale of the Company's Russian operations. In determining the Company’s 2024 and 2023 tax provisions, the Company calculated the deferred tax assets and liabilities for each separate tax entity. The Company then considered a number of factors including the positive and negative evidence regarding the realization of deferred tax assets to determine whether a valuation allowance should be recognized with respect to the deferred tax assets. As of December 31, 2024 and 2023, the Company had state tax credit carryforwards (net of federal tax effect) of $24,133 and $20,704, respectively. The state tax credit carryforwards begin expiring in 2025. The Company has determined that some of the state credits will more likely than not expire before they can be used and has recorded a valuation allowance of $21,425 and $17,996 as of December 31, 2024 and 2023, respectively. The Company has tax loss carryforwards in foreign jurisdictions totaling $46,486 and $25,747 as of December 31, 2024 and 2023, respectively. The Company believes it is more likely than not that most of the loss carryforwards will expire before they can be used and has provided a valuation allowance against the tax benefit of the losses in foreign jurisdictions of $11,484 and $6,952 at December 31, 2024 and 2023, respectively. The Company sold its Russian subsidiary in 2024 which decreased the valuation allowance on Russian deferred tax assets by $23,873. There are no significant valuation allowances against other deferred tax assets as of December 31, 2024.The Company provides reserves for potential payments of tax to various tax authorities related to uncertain tax positions and other issues. Reserves recorded are based on a determination of the amount of a tax benefit taken by the Company that is more likely than not to be realized, assuming that the matter in question will be reviewed by the tax authorities. 

F-28

Table of ContentsIPG PHOTONICS CORPORATIONNOTES TO CONSOLID