Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 39

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 16
Chunk 39
---
 credit with a principal amount of $75,000, expiring in April 2025. The line of credit bears interest at a variable rate of the Secured Overnight Financing Rate ("SOFR") plus 0.90% to 1.60% depending on the Company's financial performance. Part of this credit facility is available to the Company's foreign subsidiaries including those in India, China, Japan and Brazil based on management discretion. At December 31, 2024, there were no outstanding drawings, however, there were $2,103 of guarantees issued against the line which reduced the total availability. At December 31, 2024, the remaining availability under this line was $72,897. In addition, the Company maintains Euro line of credit facilities with a total principal amount of €6,500 ($6,751 as of December 31, 2024), which are available to certain European subsidiaries. At December 31, 2024 there were no amounts drawn on the Euro lines of credit, and there were $1,533 of guarantees issued against the facility, which reduce the amount of the facility available to draw.

The Company is required to meet certain financial covenants associated with its U.S. revolving line of credit and long-term debt facility. These covenants, tested quarterly, include an interest coverage ratio and a funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. The interest coverage covenant requires that the Company maintains a trailing twelve-month ratio of EBITDA to interest on all obligations that is at least 3.0:1.0. The funded debt to EBITDA covenant requires that the sum of all indebtedness for borrowed money on a consolidated basis be less than three times its trailing twelve months EBITDA. Funded debt is decreased by its cash and available marketable securities not classified as long-term investments in the U.S. in excess of $50,000 up to a maximum of $500,000. 

13. LEASES

The Company leases certain warehouses, office spaces, land, vehicles and equipment under operating lease agreements.  The remaining terms of these leases range from less than 1 year to 17 years. The operating lease expense for the years ended December 31, 2024, 2023 and 2022, totaled $6,364, $4,529 and $8,112, respectively. The cash paid for amounts included in the measurement of lease liabilities included in the operating