Company Quick10K Filing
Quick10K
IPG Photonics
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$153.62 53 $8,160
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-05-30 Shareholder Vote, Other Events, Exhibits
8-K 2019-04-30 Earnings, Exhibits
8-K 2019-02-15 Officers
8-K 2019-02-12 Earnings, Exhibits
8-K 2019-01-25 Exhibits
8-K 2019-01-25 Exhibits
8-K 2018-11-05 Regulation FD, Exhibits
8-K 2018-10-30 Earnings, Amend Bylaw, Exhibits
8-K 2018-10-05 Earnings, Exhibits
8-K 2018-07-31 Earnings, Exhibits
8-K 2018-06-05 Shareholder Vote
8-K 2018-05-01 Earnings, Exhibits
8-K 2018-02-27 Officers
8-K 2018-02-22 Officers, Other Events
8-K 2018-02-16 Earnings, Exhibits
SYMC Symantec 14,170
PBCT People's United Financial 6,770
KRNT Kornit Digital 903
PDEX Pro Dex 74
IGXT Intelgenx Technologies 0
APPO Alphapoint Technology 0
STEMH Stem Holdings 0
ITUS ITUS 0
TRKK Orbital Tracking 0
CAPS Capstone Therapeutics 0
IPGP 2019-03-31
Part I-Financial Information
Item 1. Unaudited Interim Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part Ii-Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex-311q12019.htm
EX-31.2 ex-312q12019.htm
EX-32 ex-32q12019.htm

IPG Photonics Earnings 2019-03-31

IPGP 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
10-QFALSEMar 31, 2019Q12019IPG PHOTONICS CORPLarge Accelerated FilerFALSEFALSE0001111928--12-310.00010.0001175,000,000175,000,00054,538,30754,371,70153,108,21352,941,6071,430,0941,430,09491111191111113xbrli:shares00011119282019-05-0700011119282019-01-012019-03-31iso4217:USD00011119282019-03-3100011119282018-12-31iso4217:USDxbrli:shares00011119282018-01-012018-03-3100011119282017-12-3100011119282018-03-310001111928us-gaap:CommonStockMember2017-12-310001111928us-gaap:TreasuryStockMember2017-12-310001111928us-gaap:AdditionalPaidInCapitalMember2017-12-310001111928us-gaap:RetainedEarningsMember2017-12-310001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001111928us-gaap:NoncontrollingInterestMember2017-12-310001111928us-gaap:CommonStockMember2018-01-012018-03-310001111928us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-310001111928us-gaap:TreasuryStockMember2018-01-012018-03-310001111928us-gaap:RetainedEarningsMember2018-01-010001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-0100011119282018-01-010001111928us-gaap:RetainedEarningsMember2018-01-012018-03-310001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-03-310001111928us-gaap:CommonStockMember2018-03-310001111928us-gaap:TreasuryStockMember2018-03-310001111928us-gaap:AdditionalPaidInCapitalMember2018-03-310001111928us-gaap:RetainedEarningsMember2018-03-310001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-03-310001111928us-gaap:NoncontrollingInterestMember2018-03-310001111928us-gaap:CommonStockMember2018-12-310001111928us-gaap:TreasuryStockMember2018-12-310001111928us-gaap:AdditionalPaidInCapitalMember2018-12-310001111928us-gaap:RetainedEarningsMember2018-12-310001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001111928us-gaap:NoncontrollingInterestMember2018-12-310001111928us-gaap:CommonStockMember2019-01-012019-03-310001111928us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001111928us-gaap:RetainedEarningsMember2019-01-012019-03-310001111928us-gaap:NoncontrollingInterestMember2019-01-012019-03-310001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001111928us-gaap:CommonStockMember2019-03-310001111928us-gaap:TreasuryStockMember2019-03-310001111928us-gaap:AdditionalPaidInCapitalMember2019-03-310001111928us-gaap:RetainedEarningsMember2019-03-310001111928us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001111928us-gaap:NoncontrollingInterestMember2019-03-310001111928us-gaap:AccountingStandardsUpdate201409Member2019-01-0100011119282019-01-010001111928ipgp:PadtecSASubmarineNetworksDivisionMember2019-03-310001111928ipgp:MaterialsProcessingMember2019-01-012019-03-310001111928ipgp:MaterialsProcessingMember2018-01-012018-03-310001111928ipgp:OtherApplicationsMember2019-01-012019-03-310001111928ipgp:OtherApplicationsMember2018-01-012018-03-310001111928ipgp:HighPowerContinuousWaveCWLasersMember2019-01-012019-03-310001111928ipgp:HighPowerContinuousWaveCWLasersMember2018-01-012018-03-310001111928ipgp:MediumPowerCWLasersMember2019-01-012019-03-310001111928ipgp:MediumPowerCWLasersMember2018-01-012018-03-310001111928ipgp:LowPowerCWLasersMember2019-01-012019-03-310001111928ipgp:LowPowerCWLasersMember2018-01-012018-03-310001111928ipgp:PulsedLasersMember2019-01-012019-03-310001111928ipgp:PulsedLasersMember2018-01-012018-03-310001111928ipgp:QuasiContinuousWaveQCWLasersMember2019-01-012019-03-310001111928ipgp:QuasiContinuousWaveQCWLasersMember2018-01-012018-03-310001111928ipgp:AmplifiersLaserSystemsServicePartsAccessoriesAndChangeInDeferredRevenueMember2019-01-012019-03-310001111928ipgp:AmplifiersLaserSystemsServicePartsAccessoriesAndChangeInDeferredRevenueMember2018-01-012018-03-310001111928srt:NorthAmericaMember2019-01-012019-03-310001111928srt:NorthAmericaMember2018-01-012018-03-310001111928country:DE2019-01-012019-03-310001111928country:DE2018-01-012018-03-310001111928ipgp:OtherEuropeanGeographicalAreasMember2019-01-012019-03-310001111928ipgp:OtherEuropeanGeographicalAreasMember2018-01-012018-03-310001111928country:CN2019-01-012019-03-310001111928country:CN2018-01-012018-03-310001111928country:JP2019-01-012019-03-310001111928country:JP2018-01-012018-03-310001111928ipgp:OtherAsianGeographicalAreasMember2019-01-012019-03-310001111928ipgp:OtherAsianGeographicalAreasMember2018-01-012018-03-310001111928ipgp:RestOfWorldMember2019-01-012019-03-310001111928ipgp:RestOfWorldMember2018-01-012018-03-310001111928us-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310001111928us-gaap:TransferredAtPointInTimeMember2018-01-012018-03-310001111928us-gaap:TransferredOverTimeMember2019-01-012019-03-310001111928us-gaap:TransferredOverTimeMember2018-01-012018-03-310001111928us-gaap:AccountingStandardsUpdate201409Memberus-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member2019-01-010001111928us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member2018-01-010001111928us-gaap:AccountingStandardsUpdate201409Memberus-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member2018-01-010001111928ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2019-04-012019-03-310001111928ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2020-01-012019-03-310001111928ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2021-01-012019-03-310001111928ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2022-01-012019-03-3100011119282023-01-01ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2019-03-310001111928ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2024-01-012019-03-310001111928ipgp:TransferredAtPointInTimeCustomerAcceptanceMember2019-03-310001111928us-gaap:TransferredAtPointInTimeMember2019-04-012019-03-310001111928us-gaap:TransferredAtPointInTimeMember2020-01-012019-03-310001111928us-gaap:TransferredAtPointInTimeMember2021-01-012019-03-310001111928us-gaap:TransferredAtPointInTimeMember2022-01-012019-03-3100011119282023-01-01us-gaap:TransferredAtPointInTimeMember2019-03-310001111928us-gaap:TransferredAtPointInTimeMember2024-01-012019-03-310001111928us-gaap:TransferredAtPointInTimeMember2019-03-3100011119282019-04-012019-03-3100011119282020-01-012019-03-3100011119282021-01-012019-03-3100011119282022-01-012019-03-3100011119282023-01-012019-03-3100011119282024-01-012019-03-3100011119282019-03-310001111928us-gaap:MoneyMarketFundsMember2019-03-310001111928us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2019-03-310001111928us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2019-03-310001111928us-gaap:CommercialPaperMember2019-03-310001111928us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2019-03-310001111928us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2019-03-310001111928us-gaap:USTreasurySecuritiesMember2019-03-310001111928us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-03-310001111928us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2019-03-310001111928us-gaap:CorporateDebtSecuritiesMember2019-03-310001111928us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-03-310001111928us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2019-03-310001111928us-gaap:ForeignGovernmentDebtSecuritiesMember2019-03-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-03-310001111928us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-03-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-03-310001111928us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2019-03-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2019-03-310001111928us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2019-03-310001111928us-gaap:AuctionRateSecuritiesMember2019-03-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:AuctionRateSecuritiesMember2019-03-310001111928us-gaap:AuctionRateSecuritiesMemberus-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:AuctionRateSecuritiesMember2019-03-310001111928us-gaap:DerivativeFinancialInstrumentsAssetsMember2019-03-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-03-310001111928us-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-03-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2019-03-310001111928us-gaap:FairValueInputsLevel1Member2019-03-310001111928us-gaap:FairValueInputsLevel2Member2019-03-310001111928us-gaap:FairValueInputsLevel3Member2019-03-310001111928us-gaap:MoneyMarketFundsMember2018-12-310001111928us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2018-12-310001111928us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2018-12-310001111928us-gaap:USTreasurySecuritiesMember2018-12-310001111928us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2018-12-310001111928us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2018-12-310001111928us-gaap:CommercialPaperMember2018-12-310001111928us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2018-12-310001111928us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperMember2018-12-310001111928us-gaap:CorporateDebtSecuritiesMember2018-12-310001111928us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2018-12-310001111928us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMember2018-12-310001111928us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2018-12-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2018-12-310001111928us-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:CommercialPaperNotIncludedWithCashAndCashEquivalentsMember2018-12-310001111928us-gaap:AuctionRateSecuritiesMember2018-12-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:AuctionRateSecuritiesMember2018-12-310001111928us-gaap:AuctionRateSecuritiesMemberus-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:AuctionRateSecuritiesMember2018-12-310001111928us-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310001111928us-gaap:FairValueInputsLevel1Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310001111928us-gaap:FairValueInputsLevel2Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310001111928us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeFinancialInstrumentsAssetsMember2018-12-310001111928us-gaap:FairValueInputsLevel1Member2018-12-310001111928us-gaap:FairValueInputsLevel2Member2018-12-310001111928us-gaap:FairValueInputsLevel3Member2018-12-310001111928us-gaap:ShortTermInvestmentsMemberus-gaap:HeldtomaturitySecuritiesMember2019-03-310001111928us-gaap:ShortTermInvestmentsMemberus-gaap:HeldtomaturitySecuritiesMember2018-12-310001111928us-gaap:ShortTermInvestmentsMemberus-gaap:HeldtomaturitySecuritiesMember2019-01-012019-03-310001111928us-gaap:ShortTermInvestmentsMemberus-gaap:HeldtomaturitySecuritiesMember2018-01-012018-12-310001111928ipgp:LongTermInvestmentMemberus-gaap:HeldtomaturitySecuritiesMember2019-03-310001111928ipgp:LongTermInvestmentMemberus-gaap:HeldtomaturitySecuritiesMember2018-12-310001111928us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AuctionRateSecuritiesMember2019-03-310001111928us-gaap:AvailableforsaleSecuritiesMemberus-gaap:AuctionRateSecuritiesMember2018-12-310001111928us-gaap:AuctionRateSecuritiesMember2018-12-310001111928us-gaap:AuctionRateSecuritiesMember2017-12-310001111928us-gaap:AuctionRateSecuritiesMember2019-01-012019-03-310001111928us-gaap:AuctionRateSecuritiesMember2018-01-012018-03-310001111928us-gaap:AuctionRateSecuritiesMember2019-03-310001111928us-gaap:AuctionRateSecuritiesMember2018-03-310001111928ipgp:ContingentPurchaseConsiderationMember2018-12-310001111928ipgp:ContingentPurchaseConsiderationMember2017-12-310001111928ipgp:ContingentPurchaseConsiderationMember2019-01-012019-03-310001111928ipgp:ContingentPurchaseConsiderationMember2018-01-012018-03-310001111928ipgp:ContingentPurchaseConsiderationMember2019-03-310001111928ipgp:ContingentPurchaseConsiderationMember2018-03-31xbrli:pure0001111928ipgp:GenesisSystemsGroupMember2018-12-310001111928ipgp:GenesisSystemsGroupMember2019-01-012019-03-310001111928ipgp:PadtecSASubmarineNetworksDivisionMember2019-01-012019-03-310001111928ipgp:PadtecSASubmarineNetworksDivisionMemberus-gaap:LicensingAgreementsMember2019-03-310001111928ipgp:PadtecSASubmarineNetworksDivisionMemberipgp:ProductionKnowHowMember2019-01-012019-03-310001111928ipgp:PadtecSASubmarineNetworksDivisionMemberus-gaap:CustomerRelationshipsMember2019-01-012019-03-310001111928us-gaap:PatentsMember2019-03-310001111928us-gaap:PatentsMember2019-01-012019-03-310001111928us-gaap:PatentsMember2018-12-310001111928us-gaap:PatentsMember2018-01-012018-12-310001111928us-gaap:CustomerRelationshipsMember2019-03-310001111928us-gaap:CustomerRelationshipsMember2019-01-012019-03-310001111928us-gaap:CustomerRelationshipsMember2018-12-310001111928us-gaap:CustomerRelationshipsMember2018-01-012018-12-310001111928ipgp:ProductionKnowHowMember2019-03-310001111928ipgp:ProductionKnowHowMember2019-01-012019-03-310001111928ipgp:ProductionKnowHowMember2018-12-310001111928ipgp:ProductionKnowHowMember2018-01-012018-12-310001111928ipgp:TechnologyTrademarkAndTradenameMember2019-03-310001111928ipgp:TechnologyTrademarkAndTradenameMember2019-01-012019-03-310001111928ipgp:TechnologyTrademarkAndTradenameMember2018-12-310001111928ipgp:TechnologyTrademarkAndTradenameMember2018-01-012018-12-310001111928srt:MinimumMember2019-01-012019-03-310001111928srt:MaximumMember2019-01-012019-03-310001111928ipgp:LongTermNoteMember2019-03-310001111928ipgp:LongTermNoteMember2018-12-310001111928us-gaap:UnsecuredDebtMemberipgp:LongTermNoteMember2019-03-310001111928us-gaap:UnsecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-01-012019-03-310001111928us-gaap:UnsecuredDebtMemberus-gaap:InterestRateSwapMember2019-03-310001111928us-gaap:UnsecuredDebtMemberus-gaap:ScenarioForecastMember2023-05-310001111928us-gaap:SecuredDebtMember2019-03-310001111928us-gaap:ScenarioForecastMemberus-gaap:SecuredDebtMember2022-07-310001111928ipgp:ForeignSubsidiaryDrawingsOnUSLineOfCreditMemberus-gaap:LetterOfCreditMember2019-03-31iso4217:EUR0001111928ipgp:EuropeanLineOfCreditMemberus-gaap:LetterOfCreditMember2019-03-310001111928ipgp:EuroOverdraftFacilityMemberus-gaap:LetterOfCreditMember2019-03-310001111928ipgp:ForeignSubsidiaryDrawingsOnUSLineOfCreditMember2019-03-310001111928ipgp:ForeignSubsidiaryDrawingsOnUSLineOfCreditMember2018-12-310001111928ipgp:EuropeanLineOfCreditMember2019-03-310001111928ipgp:EuropeanLineOfCreditMember2018-12-310001111928ipgp:EuroOverdraftFacilityMember2018-12-310001111928ipgp:EuroOverdraftFacilityMember2019-03-310001111928us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-03-310001111928us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2018-12-310001111928us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMember2019-03-310001111928us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMember2018-12-310001111928us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2019-01-012019-03-310001111928us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2018-01-012018-03-310001111928us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-03-310001111928us-gaap:RestrictedStockUnitsRSUMember2018-01-012018-03-310001111928us-gaap:PerformanceSharesMember2019-01-012019-03-310001111928us-gaap:PerformanceSharesMember2018-01-012018-03-310001111928us-gaap:NonqualifiedPlanMemberus-gaap:EmployeeStockOptionMember2019-01-012019-03-310001111928us-gaap:NonqualifiedPlanMemberus-gaap:EmployeeStockOptionMember2018-01-012018-03-3100011119282019-02-1100011119282019-02-12
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019 
OR
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from     to
Commission File Number 001-33155 
IPG PHOTONICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
04-3444218
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification Number)
50 Old Webster Road,
Oxford, Massachusetts
01540
(Address of principal executive offices)
(Zip code)
(508) 373-1100
(Registrant’s telephone number, including area code)
__________________________________________ 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ý    NO  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    YES  ý    NO  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
ý
Accelerated Filer
¨
Non-Accelerated Filer
¨
Smaller Reporting Company
¨
Emerging Growth Company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  ý
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.0001 per shareIPGPNasdaq Global Select Market
As of May 7, 2019, there were 53,143,833 shares of the registrant's common stock outstanding.



TABLE OF CONTENTS
 
Page



Table of Contents
PART I-FINANCIAL INFORMATION
ITEM 1. UNAUDITED INTERIM FINANCIAL STATEMENTS
IPG PHOTONICS CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31,December 31,
20192018
(In thousands, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents$548,938 $544,358 
Short-term investments481,139 500,432 
Accounts receivable, net231,850 255,509 
Inventories417,817 403,579 
Prepaid income taxes50,961 43,782 
Prepaid expenses and other current assets61,389 57,764 
Total current assets1,792,094 1,805,424 
Deferred income taxes, net17,438 19,165 
Goodwill110,349 100,722 
Intangible assets, net93,280 87,139 
Property, plant and equipment, net570,756 543,068 
Other assets44,819 18,932 
Total assets$2,628,736 $2,574,450 
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt$3,688 $3,671 
Accounts payable39,970 36,302 
Accrued expenses and other current liabilities153,151 154,640 
Income taxes payable13,007 51,161 
Total current liabilities209,816 245,774 
Deferred income taxes and other long-term liabilities109,853 80,734 
Long-term debt, net of current portion40,779 41,707 
Total liabilities360,448 368,215 
Commitments and contingencies (Note 12)
IPG Photonics Corporation equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 54,538,307 and 53,108,213 shares issued and outstanding, respectively, at March 31, 2019; 54,371,701 and 52,941,607 shares issued and outstanding, respectively, at December 31, 20185 5 
Treasury stock, at cost, 1,430,094 shares held at both March 31, 2019 and December 31, 2018(224,998)(224,998)
Additional paid-in capital746,926 744,937 
Retained earnings1,903,659 1,848,500 
Accumulated other comprehensive loss(157,751)(162,896)
Total IPG Photonics Corporation equity2,267,841 2,205,548 
Noncontrolling interests447 687 
Total equity2,268,288 2,206,235 
Total liabilities and equity$2,628,736 $2,574,450 
See notes to consolidated financial statements.
1

Table of Contents
IPG PHOTONICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31,
20192018
(In thousands, except per share data)
Net sales$315,047 $359,864 
Cost of sales166,136 156,502 
Gross profit148,911 203,362 
Operating expenses:
Sales and marketing19,275 13,516 
Research and development32,496 28,546 
General and administrative27,212 25,495 
Loss (gain) on foreign exchange1,613 (5,295)
Total operating expenses80,596 62,262 
Operating income68,315 141,100 
Other income, net:
Interest income, net3,952 311 
Other (expense) income, net(9)443 
Total other income3,943 754 
Income before provision for income taxes 72,258 141,854 
Provision for income taxes(17,342)(35,520)
Net income54,916 106,334 
Less: net loss attributable to noncontrolling interests (243) 
Net income attributable to IPG Photonics Corporation$55,159 $106,334 
Net income attributable to IPG Photonics Corporation per share:
Basic$1.04 $1.98 
Diluted$1.02 $1.93 
Weighted average shares outstanding:
Basic53,001 53,694 
Diluted53,874 55,182 
See notes to consolidated financial statements.

2

Table of Contents
IPG PHOTONICS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31,
20192018
(In thousands)
Net income$54,916 $106,334 
Other comprehensive income, net of tax:
Translation adjustments5,158 26,638 
Unrealized (loss) gain on derivatives(13)2 
Effect of adopted accounting standards 10 
Total other comprehensive income5,145 26,650 
Comprehensive income60,061 132,984 
Comprehensive loss attributable to noncontrolling interests(240) 
Comprehensive income attributable to IPG Photonics Corporation$60,301 $132,984 
See notes to consolidated financial statements.

3

Table of Contents
IPG PHOTONICS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
20192018
(In thousands)
Cash flows from operating activities:
Net income$54,916 $106,334 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization22,802 19,223 
Deferred income taxes9,199 7,401 
Stock-based compensation8,138 6,415 
Unrealized loss (gain) on foreign currency transactions267 (1,991)
Other123 4 
Provisions for inventory, warranty & bad debt9,912 9,318 
Changes in assets and liabilities that (used) provided cash:
Accounts receivable22,853 7,942 
Inventories(19,719)(49,744)
Prepaid expenses and other assets1,284 (2,138)
Accounts payable1,955 1,134 
Accrued expenses and other liabilities(10,274)(9,509)
Income and other taxes payable(57,801)5,264 
Net cash provided by operating activities43,655 99,653 
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment(32,988)(39,113)
Proceeds from sales of property, plant and equipment181 210 
Purchases of short-term and long-term investments(178,101)(70,777)
Proceeds from short-term investments202,856 70,161 
Acquisitions of businesses, net of cash acquired(15,115) 
Other15 76 
Net cash used in investing activities(23,152)(39,443)
Cash flow from financing activities:
Proceeds from line-of-credit facilities 255 
Payments on line-of-credit facilities (255)
Principal payments on long-term borrowings(911)(895)
Proceeds from issuance of common stock under employee stock option and purchase plans less payments for taxes related to net share settlement of equity awards(6,149)3,113 
Purchase of treasury stock, at cost (20,071)
Net cash used in financing activities(7,060)(17,853)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash(5,997)16,866 
Net increase in cash, cash equivalents and restricted cash7,446 59,223 
Cash and cash equivalents — Beginning of period
544,358 909,900 
Cash, cash equivalents and restricted cash — End of period (Note 2)$551,804 $969,123 
Supplemental disclosure of cash flow information:
Cash paid for interest$749 $799 
Cash paid for income taxes$51,438 $19,546 
Non-cash transactions:
Demonstration units transferred from inventory to other assets$3,184 $446 
Inventory transferred to machinery and equipment$1,506 $1,618 
Changes in accounts payable related to property, plant and equipment$1,817 $(3,296)
Leased assets obtained in exchange for new operating lease liabilities$6,355 $ 
See notes to consolidated financial statements.
4

Table of Contents
IPG PHOTONICS CORPORATION
CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except share data)Three Months Ended March 31,
Common Stock Treasury Stock Additional Paid In Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Non-
controlling Interest
Total Stockholders' Equity 
SharesAmount Shares Amount 
Balance, January 1, 2018 53,629,439 $5 (378,269)$(48,933)$704,727 $1,443,867 $(77,344)$ $2,022,322 
Exercise of stock options and vesting of RSU's and PSU's 196,308 — — — 3,113 — — — 3,113 
Purchased common stock (82,898)— (82,898)(20,071)— — — — (20,071)
Stock-based compensation— — — — 6,415 — — — 6,415 
Recently adopted accounting standards — — — — — 606 10 — 616 
Net income — — — — — 106,334 — — 106,334 
Foreign currency translation adjustments
— — — — — — 26,638 — 26,638 
Unrealized gain on derivatives, net of tax — — — — — — 2 — 2 
Balance, March 31, 2018 53,742,849 $5 (461,167)$(69,004)$714,255 $1,550,807 $(50,694)$ $2,145,369 
Balance, January 1, 201952,941,607 $5 (1,430,094)$(224,998)$744,937 $1,848,500 $(162,896)$687 $2,206,235 
Exercise of stock options and vesting of RSU's and PSU's 166,606 — — — (6,149)— — — (6,149)
Stock-based compensation— — — — 8,138 — — — 8,138 
Net income  — — — — — 55,159 — (243)54,916 
Foreign currency translation adjustments
— — — — — — 5,158 3 5,161 
Unrealized loss on derivatives, net of tax — — — — — — (13)— (13)
Balance, March 31, 2019 53,108,213 $5 (1,430,094)$(224,998)$746,926 $1,903,659 $(157,751)$447 $2,268,288 

 See notes to consolidated financial statements.

5

Table of Contents
 IPG PHOTONICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data)
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation — The accompanying unaudited consolidated financial statements have been prepared by IPG Photonics Corporation, or "IPG", "its" or the "Company". Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
In accordance with Accounting Standards Codification ("ASC") 842, "Leases," ("ASC 842" or the "new lease standard"), the following significant accounting policy has been adopted as of January 1, 2019.
 Leases —  The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, other current liabilities, and other long-term liabilities on our consolidated balance sheets.
Right of use ("ROU") assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company's leases do not provide an implicit rate, IPG uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The ROU assets also include any lease payments made and initial direct costs incurred and exclude lease incentives.  Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. 
In the opinion of the Company's management, the financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash flows. The results reported in these consolidated financial statements are not necessarily indicative of results that may be expected for the entire year.
Reclassifications — Certain prior year amounts have been reclassified to conform with current period presentation. These reclassifications had no effect on the reported results of operations.
The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC.
2. RECENT ACCOUNTING PRONOUNCEMENTS
Adopted Pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. The Company adopted ASC 842, as of January 1, 2019, using the modified retrospective approach as of the date of adoption. Under this approach, comparative periods have not been restated. In addition, IPG elected the package of three practical expedients permitted under the transition guidance within the new standard, which among other things, allowed for the carry forward of the historical lease classification.
6

Table of Contents
IPG PHOTONICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(In thousands, except share and per share data)
The cumulative effect of the changes made to the Company's consolidated January 1, 2019 balance sheet for the adoption of ASC 842 related to operating leases was as follows:
Balance atBalance at
December 31, 2018Adoption of ASC 842January 1, 2019
Balance Sheet
Prepaid expenses and other current assets$57,764 $(324)$57,440 
Other assets18,932 19,463 38,395 
Accrued expenses and other current liabilities154,640 5,292 159,932 
Deferred income taxes and other long-term liabilities80,734 13,847 94,581 
In the first quarter of 2018, the Company adopted FASB ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"), which enhances and clarifies the guidance on the classification and presentation of restricted cash in the statement of cash flows and requires additional disclosure about restricted cash balances. The Company considers cash to be restricted when withdrawal or general use is legally restricted. The Company records restricted cash in other assets on the consolidated balance sheets and determines classification based on the expected duration of the restriction.  
The reconciliation of the Company's cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents and restricted cash in the consolidated statement of cash flows is as follows:
Balance at
March 31, 2019
Cash and cash equivalents$548,938 
Restricted cash included in other assets2,866 
Cash, cash equivalents and restricted cash$551,804 

3. REVENUE FROM CONTRACTS WITH CUSTOMERS
The following tables represent a disaggregation of revenue from contracts with customers:
Three Months Ended March 31,
20192018
Sales by Application
Materials processing$301,085 $339,214 
Other applications13,962 20,650 
Total$315,047 $359,864 

Sales by Product
High Power Continuous Wave ("CW") Lasers $179,019 $230,574 
Medium and Low Power CW Lasers 15,598 25,399 
Pulsed Lasers 31,437 38,253 
Quasi-Continuous Wave ("QCW") Lasers 14,166 16,200 
Laser and Non-Laser Systems 32,631 9,471 
Other Revenue including Amplifiers, Service, Parts, Accessories and Change in Deferred Revenue 42,196 39,967 
Total$315,047 $359,864 

7

Table of Contents
IPG PHOTONICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(In thousands, except share and per share data)
Three Months Ended March 31,
20192018
Sales by Geography
North America$64,807 $39,177 
Europe:
Germany18,619 33,236 
Other including Eastern Europe/CIS69,200 82,978 
Asia and Australia:
China114,366 149,973 
Japan15,614 19,629 
Other31,738 34,207 
Rest of World703 664 
Total$315,047 $359,864 

Timing of Revenue Recognition
Goods and services transferred at a point in time$292,093 $358,852 
Goods and services transferred over time22,954 1,012 
Total$315,047 $359,864 
The Company enters into contracts to sell lasers and spare parts, for which revenue is generally recognized upon shipment or delivery, depending on the terms of the contract. The Company also provides installation services and extended warranties. The Company frequently receives consideration from a customer prior to transferring goods to the customer under the terms of a sales contract. The Company records customer deposits related to these prepayments, which represent a contract liability. The Company also records deferred revenue related to installation services when consideration is received before the services have been performed. The Company recognizes customer deposits and deferred revenue as net sales after control of the goods or services has been transferred to the customer and all revenue recognition criteria is met. The Company bills customers for extended warranties upon entering into the agreement with the customer, resulting in deferred revenue. The timing of customer payments on contracts for the sale of customized robotic systems generally differs from the timing of revenue recognized, resulting in contract assets and liabilities. Contract assets are included within prepaid expense and other current assets on the consolidated balance sheets. Contract liabilities are included within accrued expenses and other current liabilities on the consolidated balance sheets.
The following table reflects the changes in the Company's contract assets and liabilities for the three months ended March 31, 2019 and 2018:
March 31,January 1,March 31,January 1,
20192019Change20182018Change
Contract assets
Contract assets$5,587 $10,102 $(4,515)$ $ $ 
Contract liabilities
Contract liabilities - current55,237 52,606 2,631 50,341 46,508 3,833 
Contract liabilities - long-term1,649 1,413 236 1,472 182 1,290 
During the three months ended March 31, 2019 and March 31, 2018, the Company recognized revenue of $25,160 and $28,332, respectively, that was included in contract liabilities at the beginning of the period, respectively.
8

Table of Contents
IPG PHOTONICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(In thousands, except share and per share data)
The Company has elected the practical expedient in ASC 606-10-50-14, whereby the performance obligations for contracts with an original expected duration of one year or less are not disclosed. The following table represents the Company's remaining performance obligations from contracts that are recognized over time as of March 31, 2019:
Remaining Performance Obligations
2019 (a)20202021202220232024Total
Revenue expected to be recognized for extended warranty agreements$2,916 $1,263 $539 $275 $91 $5 $5,089 
Revenue to be earned over time from contracts to sell robotic systems29,442 2,929     32,371 
Total$32,358 $4,192 $539 $275 $91 $5 $37,460 
(a) For the nine-month period beginning April 1, 2019
4. FAIR VALUE MEASUREMENTS
The Company's financial instruments consist of cash equivalents, short-term and long-term investments, accounts receivable, auction rate securities, accounts payable, drawings on revolving lines of credit, long-term debt, interest rate swaps and contingent purchase consideration.
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, therefore requiring an entity to develop its own assumptions.
The carrying amounts of money market fund deposits, term deposits, accounts receivable, accounts payable and drawings on revolving lines of credit are considered reasonable estimates of their fair market value due to the short maturity of most of these instruments or as a result of the competitive market interest rates, which have been negotiated. The Company's bond securities are reported at fair value based upon quoted prices for instruments with identical terms in active markets. The Company's commercial paper securities reported at fair value are based upon model-driven valuations in which all significant inputs are observable or can be derived from or corroborated by observable market data for substantially the full term of the asset or liability, and are therefore classified as Level 2. At March 31, 2019 and December 31, 2018, the Company's long-term notes consisted of a variable rate note and a fixed rate note, and the book value is considered a reasonable estimate of fair market value. 
9

Table of Contents
IPG PHOTONICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(In thousands, except share and per share data)
The following table presents fair value information related to the Company's assets and liabilities measured at amortized cost on the consolidated balance sheets with the exception of the interest rate swap, which is measured at fair value: 
Fair Value Measurements at March 31, 2019
TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits and term deposits$175,411 $175,411 $ $ 
Commercial paper57,446  57,446  
Short-term investments:
U.S. Treasury and agency obligations56,203 56,203   
Corporate bonds273,800 273,800   
Non-U.S. government bonds5,476  5,476  
Commercial paper145,717  145,717  
Long-term investments and other assets:
Auction rate securities850   850 
Interest rate swap17  17  
Total$714,920 $505,414 $208,656 $850 
Liabilities
Long-term debt$44,467 $ $44,467 $ 
Contingent purchase consideration294   294 
Total$44,761 $ $44,467 $294 

Fair Value Measurements at December 31, 2018
TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market fund deposits and term deposits$180,965 $180,965 $ $ 
U.S. Treasury and agency obligations6,495 6,495   
Commercial paper78,948  78,948  
Short-term investments:
U.S. Treasury and agency obligations116,800 116,800   
Corporate bonds227,009 227,009   
Commercial paper156,321  156,321  
Long-term investments and other assets:
Corporate bonds
3,859 3,859   
Auction rate securities847   847 
Interest rate swaps31  31  
Total$771,275 $535,128 $235,300 $847 
Liabilities
Long-term debt$45,378 $ $45,378 $ 
Contingent purchase consideration898   898 
Total$46,276 $ $45,378 $898 
The fair value of the short-term investments considered held-to-maturity as of March 31, 2019 and December 31, 2018 was $481,196 and $500,130, respectively, which include an unrealized gain of $57 and unrealized loss of  $302, respectively, as compared to the book value recorded on the consolidated balance sheets for the same periods. There were no long-term investments considered held-to-maturity as of March 31, 2019. The fair value of the long-term investments considered held-to
10

Table of Contents
IPG PHOTONICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
(In thousands, except share and per share data)
-maturity as of December 31, 2018 was $3,859, which represents the book value recorded within other assets on the consolidated balance sheets for the same period. There were no impairments for the investments considered held-to-maturity at March 31, 2019 and December 31, 2018.
The Company entered into an interest rate swap that is designated as a cash flow hedge associated with a new long-term note issued during the second quarter of 2016 that will terminate with the long-term note in May 2023. The fair value at March 31, 2019 for the interest rate swap considered pricing models whose inputs are observable for the securities held by the Company.
Auction rate securities and contingent consideration are measured at fair value on a recurring basis using significant unobservable inputs (Level 3). The fair value of the auction rate securities was determined using prices observed in inactive markets with limited observable data for the securities held by the Company. The auction rate securities are considered available-for-sale securities. They had a cost basis of $850 and $847 at March 31, 2019 and December 31, 2018, respectively. There were no impairments for the investments considered available-for-sale during the quarters ended March 31, 2019 and 2018.
The fair value of contingent consideration was determined using an income approach at the respective business combination date and at the reporting date. That approach is based on significant inputs that are not observable in the market and include key assumptions such as assessing the probability of meeting certain milestones required to earn the contingent consideration.
The following table presents information about the Company's movement in Level 3 assets and liabilities measured at fair value:
Three Months Ended March 31,
20192018
Auction rate securities
Balance, January 1$847 $1,016 
Change in fair value and accretion3 3 
Balance, end of period$850 $1,019 
Contingent purchase consideration
Balance, January 1$898 $902 
Cash payments(632) 
Foreign exchange adjustment28 
Balance, end of period$294 $902