Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 45

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 16
Chunk 45
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 the years ended December 31, 2024, 2023 and 2022, the weighted average grant date fair value for new grants was $86.54, $131.13, and $136.64. Expense for the financial metric-based PSUs was recognized at 0% to 38% of the target goals. The total compensation cost related to nonvested awards not yet recorded at December 31, 2024 was $3,259, which is expected to be recognized over a weighted average period of 2.3 years. The Company has an employee stock purchase plan ("ESPP") offered to its U.S. and German employees. The plan allows employees who participate to purchase shares of common stock through payroll deductions at a 15% discount to the lower of the stock price on the first day or the last day of the six-month purchase period. Payroll deductions may not exceed 10% of the employee's compensation and are subject to other limitations. The assumptions used in the Black-Scholes model for the calculation of the ESPP fair values were as follows:202420232022Performance term (year)0.50.50.5Volatility36% - 38%35% - 37%41% - 52%Risk-free rate of return5.26% - 5.37%4.76% - 5.47%0.19% - 2.52%Dividend yield0.10%0.10%0.10%Fair value per share$20.45 - $26.92$23.42 - $33.55$26.68 - $45.91

Compensation expense related to the employee stock purchase plan was $1,602, $1,595 and $1,924 for the years ended December 31, 2024, 2023 and 2022, respectively. During the years ended December 31, 2024, 2023 and 2022, 74,061, 57,984 and 62,233 shares, respectively, were issued at an average price of $66.48, $86.89 and $78.57, respectively, under the employee stock purchase plan. As of December 31, 2024, there were 66,115 shares available for issuance under the employee stock purchase plan. 

16. EMPLOYEE BENEFIT PLANS

The Company maintains a defined contribution retirement plan offered to its eligible U.S. employees