Net Income Attributable To IPG Photonics Corporation Per Share

9 Months Ended

Sep. 30, 2018

Net Income Attributable To IPG Photonics Corporation Per Share

NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE

The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2018		2017		2018		2017
Net income attributable to IPG Photonics Corporation	$	100,517	$	115,597	$	328,468	$	294,658



Weighted average shares	53,571		53,440		53,677		53,453
Dilutive effect of common stock equivalents	1,125		1,258		1,318		1,117
Diluted weighted average common shares	54,696		54,698		54,995		54,570
Basic net income attributable to IPG Photonics Corporation per share	$	1.88	$	2.16	$	6.12	$	5.51


Diluted net income attributable to IPG Photonics Corporation per share	$	1.84	$	2.11	$	5.97	$	5.40

For the three months ended September 30, 2018 and 2017, respectively, the computation of diluted weighted average common shares excludes 20,400 and 8,800 common stock equivalents because the effect of including them would be anti-dilutive. The shares excluded for the three months ended September 30, 2018 and 2017, respectively are comprised of 10,500 and 3,800 restricted stock units ("RSUs") and 5,100 and 0 performance stock units ("PSUs"), and 4,800 and 5,000 non-qualified stock options, respectively. For the nine months ended September 30, 2018 and 2017, respectively, the computation of diluted weighted average common shares excludes 28,100 and 53,600 common stock equivalents because the effect of including them would be anti-dilutive.The shares excluded for the nine months ended September 30, 2018 and 2017, respectively, are comprised of 18,400 and 14,900 RSUs, 3,800 and 35,900 non-qualified stock options and 5,900 and 2,800 performance stock units.

On July 31, 2018, the Company announced that its Board of Directors authorized a new $125 million anti-dilutive stock repurchase program following the completion of its previous $100 million repurchase program. Under the new anti-dilutive program, IPG management is authorized to repurchase shares of common stock in an amount not to exceed the greater of (a) the number of shares issued to employees and directors under the Company's various employee and director equity compensation

and employee stock purchase plans from January 1, 2018 through March 31, 2019 and (b) $125 million, exclusive of any fees, commissions or other expenses.

For the three months ended September 30, 2018 and 2017, the Company repurchased 371,228 shares and 17,328 shares of its common stock with an average price of $163.95 per share and $161.55 per share in the open market, respectively. The impact on the reduction of weighted average shares for the three months ended September 30, 2018 and 2017 was 119,911 shares and 9,964 shares, respectively. During the nine months ended September 30, 2018 and 2017, the Company repurchased a total of 585,806 shares and 215,860 shares of its common stock with an average price of $191.06 per share and $124.67 per share in the open market, respectively. The impact on the reduction of weighted average shares for the nine months ended September 30, 2018 and 2017 was 177,159 shares and 136,184 shares, respectively.