Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 07, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'INTER PARFUMS INC | ' | ' |
Entity Central Index Key | '0000822663 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $480,478,921 |
Entity Common Stock, Shares Outstanding | ' | 30,924,461 | ' |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $125,650 | $307,335 |
Short-term investments | 181,677 | ' |
Accounts receivable, net | 79,932 | 149,340 |
Inventories | 117,347 | 142,614 |
Receivables, other | 2,418 | 2,534 |
Other current assets | 4,775 | 5,897 |
Income tax receivable | 6,435 | 1,968 |
Deferred tax assets | 7,257 | 13,132 |
Total current assets | 525,491 | 622,820 |
Equipment and leasehold improvements, net | 10,444 | 12,289 |
Trademarks, licenses and other intangible assets, net | 116,243 | 113,041 |
Other assets | 11,880 | 11,770 |
Total assets | 664,058 | 759,920 |
Current liabilities: | ' | ' |
Loans payable - banks | 6,104 | 27,776 |
Accounts payable - trade | 56,736 | 73,113 |
Accrued expenses | 58,333 | 68,768 |
Income taxes payable | 1,270 | 84,030 |
Dividends payable | 3,704 | 2,453 |
Total current liabilities | 126,147 | 256,140 |
Deferred tax liability | 2,555 | 3,799 |
Commitments and contingencies | ' | ' |
Inter Parfums, Inc. shareholders' equity: | ' | ' |
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued | ' | ' |
Common stock, $0.001 par value. Authorized 100,000,000 shares; outstanding, 30,863,421 and 30,680,634 shares at December 31, 2013 and 2012, respectively | 31 | 31 |
Additional paid-in capital | 57,877 | 54,679 |
Retained earnings | 359,459 | 349,672 |
Accumulated other comprehensive income | 25,860 | 12,498 |
Treasury stock, at cost, 9,940,977 and 9,976,524 common shares at December 31, 2013 and 2012 | -36,016 | -35,404 |
Total Inter Parfums, Inc. shareholders' equity | 407,211 | 381,476 |
Noncontrolling interest | 128,145 | 118,505 |
Total equity | 535,356 | 499,981 |
Total liabilities and equity | $664,058 | $759,920 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEET [Abstract] | ' | ' |
Preferred stock, par | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 30,863,421 | 30,680,634 |
Treasury shares, shares | 9,940,977 | 9,976,524 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ' | ' | ' |
Net sales | $563,579 | $654,117 | $615,220 |
Cost of sales | 234,800 | 246,931 | 231,746 |
Gross margin | 328,779 | 407,186 | 383,474 |
Selling, general and administrative expenses | 250,025 | 325,799 | 315,698 |
Gain on termination of license | ' | -198,838 | ' |
Impairment of goodwill | ' | 1,811 | 837 |
Total operating expenses | 250,025 | 128,772 | 316,535 |
Income from operations | 78,754 | 278,414 | 66,939 |
Other expenses (income): | ' | ' | ' |
Interest expense | 1,380 | 1,654 | 2,197 |
(Gain) loss on foreign currency | 1,168 | 3,128 | -1,546 |
Interest and dividend income | -4,440 | -1,133 | -1,105 |
Other expenses (income) | -1,892 | 3,649 | -454 |
Income before income taxes | 80,646 | 274,765 | 67,393 |
Income taxes | 29,680 | 97,875 | 24,444 |
Net income | 50,966 | 176,890 | 42,949 |
Less: Net income attributable to the noncontrolling interest | 11,755 | 45,754 | 10,646 |
Net income attributable to Inter Parfums, Inc. | $39,211 | $131,136 | $32,303 |
Net income attributable to Inter Parfums, Inc. common shareholders: | ' | ' | ' |
Basic | $1.27 | $4.29 | $1.06 |
Diluted | $1.27 | $4.26 | $1.05 |
Weighted average number of shares outstanding: | ' | ' | ' |
Basic | 30,763,955 | 30,574,772 | 30,514,529 |
Diluted | 30,953,882 | 30,715,684 | 30,677,825 |
Dividends declared per share | $0.96 | $0.32 | $0.32 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Comprehensive income: | ' | ' | ' |
Net income | $50,966 | $176,890 | $42,949 |
Other comprehensive income: | ' | ' | ' |
Net derivative instrument gain, net of tax | ' | 22 | 18 |
Transfer from OCI into earnings | -327 | ' | ' |
Translation adjustments, net of tax | 19,027 | 6,419 | -9,680 |
Other comprehensive income | 18,700 | 6,441 | -9,662 |
Comprehensive income | 69,666 | 183,331 | 33,287 |
Comprehensive income attributable to noncontrolling interests: | ' | ' | ' |
Net income | 11,755 | 45,754 | 10,646 |
Net derivative instrument gain, net of tax | ' | 6 | 7 |
Transfer from OCI into earnings | -87 | ' | ' |
Translation adjustments, net of tax | 5,425 | 1,684 | -2,659 |
Comprehensive income attributable to noncontrolling interests | 17,093 | 47,444 | 7,994 |
Comprehensive income attributable to Inter Parfums, Inc. | $52,573 | $135,887 | $25,293 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] | Treasury stock [Member] | Noncontrolling interest [Member] |
In Thousands | |||||||
Balance at Dec. 31, 2010 | ' | $30 | $48,887 | $205,453 | $14,757 | ($34,151) | $64,970 |
Net income | 42,949 | ' | ' | 32,303 | ' | ' | 10,646 |
Foreign currency translation adjustments | ' | ' | ' | ' | -7,021 | ' | -2,659 |
Net derivative instrument gain, net of tax | ' | ' | ' | ' | 11 | ' | 7 |
Transfer from OCI into earnings | ' | ' | ' | ' | ' | ' | ' |
Shares issued upon exercise of stock options | ' | 1 | 1,092 | ' | ' | ' | ' |
Shares received as proceeds of option exercises | ' | ' | ' | ' | ' | ' | ' |
Sale of subsidiary shares to noncontrolling interests | ' | ' | 626 | ' | ' | ' | 2,130 |
Dividends | ' | ' | ' | -9,768 | ' | ' | -3,149 |
Purchase of subsidiary shares from noncontrolling interests | ' | ' | -417 | ' | ' | ' | -333 |
Stock compensation | ' | ' | 695 | 176 | ' | ' | 64 |
Balance at Dec. 31, 2011 | 324,350 | 31 | 50,883 | 228,164 | 7,747 | -34,151 | 71,676 |
Net income | 176,890 | ' | ' | 131,136 | ' | ' | 45,754 |
Foreign currency translation adjustments | ' | ' | ' | ' | 4,735 | ' | 1,684 |
Net derivative instrument gain, net of tax | ' | ' | ' | ' | 16 | ' | 6 |
Transfer from OCI into earnings | ' | ' | ' | ' | ' | ' | ' |
Shares issued upon exercise of stock options | ' | ' | 2,568 | ' | ' | 409 | ' |
Shares received as proceeds of option exercises | ' | ' | ' | ' | ' | -1,662 | ' |
Sale of subsidiary shares to noncontrolling interests | ' | ' | 737 | ' | ' | ' | 2,659 |
Dividends | ' | ' | ' | -9,789 | ' | ' | -3,333 |
Purchase of subsidiary shares from noncontrolling interests | ' | ' | ' | ' | ' | ' | ' |
Stock compensation | ' | ' | 491 | 161 | ' | ' | 59 |
Balance at Dec. 31, 2012 | 499,981 | 31 | 54,679 | 349,672 | 12,498 | -35,404 | 118,505 |
Net income | 50,966 | ' | ' | 39,211 | ' | ' | 11,755 |
Foreign currency translation adjustments | ' | ' | ' | ' | 13,602 | ' | 5,425 |
Net derivative instrument gain, net of tax | ' | ' | ' | ' | ' | ' | ' |
Transfer from OCI into earnings | ' | ' | ' | ' | -240 | ' | -87 |
Shares issued upon exercise of stock options | ' | ' | 2,882 | ' | ' | 203 | ' |
Shares received as proceeds of option exercises | ' | ' | ' | ' | ' | -815 | ' |
Sale of subsidiary shares to noncontrolling interests | ' | ' | -173 | ' | ' | ' | 830 |
Dividends | ' | ' | ' | -29,582 | ' | ' | -8,341 |
Purchase of subsidiary shares from noncontrolling interests | ' | ' | ' | ' | ' | ' | ' |
Stock compensation | ' | ' | 489 | 158 | ' | ' | 58 |
Balance at Dec. 31, 2013 | $535,356 | $31 | $57,877 | $359,459 | $25,860 | ($36,016) | $128,145 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $50,966 | $176,890 | $42,949 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 11,110 | 15,554 | 13,073 |
Impairment of goodwill | ' | 1,811 | 837 |
Provision for doubtful accounts | 574 | 914 | 2,838 |
Noncash stock compensation | 838 | 832 | 1,060 |
Gain on termination of license | ' | -198,838 | ' |
Excess tax benefits from stock-based compensation arrangements | -700 | -100 | -110 |
Deferred tax expense (benefit) | 4,844 | -7,903 | -1,009 |
Change in fair value of derivatives | ' | -68 | -272 |
Changes in: | ' | ' | ' |
Accounts receivable | 71,776 | 27,302 | -88,915 |
Inventories | 29,240 | 13,568 | -60,494 |
Other assets | 426 | -9,611 | 993 |
Accounts payable and accrued expenses | -33,156 | -40,773 | 72,664 |
Income taxes, net | -86,724 | 81,063 | -7,335 |
Net cash provided by (used in) operating activities | 49,194 | 60,641 | -23,721 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of short-term investments | -381,843 | ' | -10,823 |
Proceeds from sale of short-term investments | 207,082 | ' | 62,111 |
Proceeds from termination of license, net of transaction fees and other settlements | ' | 235,650 | ' |
Purchases of equipment and leasehold improvements | -5,015 | -9,474 | -9,946 |
Payment for intangible assets acquired | -7,769 | -19,717 | -4,605 |
Proceeds from sale of equipment | 2,801 | ' | ' |
Proceeds from sale of trademark | 3,481 | ' | ' |
Net cash provided by (used in) investing activities | -181,263 | 206,459 | 36,737 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from (repayments of) loans payable - banks | -21,835 | 15,300 | 7,230 |
Repayment of long-term debt | ' | -4,379 | -11,673 |
Purchase of treasury stock | -98 | -90 | ' |
Proceeds from exercise of options including tax benefits | 1,668 | 1,305 | 983 |
Excess tax benefits from stock-based compensation arrangements | 700 | 100 | 110 |
Proceeds from sale of stock of subsidiary | 657 | 3,396 | 2,756 |
Payment for acquisition of noncontrolling interests | ' | ' | -750 |
Dividends paid | -28,331 | -9,780 | -9,304 |
Dividends paid to noncontrolling interest | -8,341 | -3,333 | -3,149 |
Net cash provided by (used in) financing activities | -55,580 | 2,519 | -13,797 |
Effect of exchange rate changes on cash | 5,964 | 1,860 | -911 |
Net increase (decrease) in cash and cash equivalents | -181,685 | 271,479 | -1,692 |
Cash and cash equivalents - beginning of year | 307,335 | 35,856 | 37,548 |
Cash and cash equivalents - end of year | 125,650 | 307,335 | 35,856 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest | 1,524 | 1,799 | 1,972 |
Income taxes | $104,992 | $20,584 | $32,716 |
The_Company_and_its_Significan
The Company and its Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
The Company and its Significant Accounting Policies [Abstract] | ' | ||||||||||||
The Company and its Significant Accounting Policies | ' | ||||||||||||
-1 | The Company and its Significant Accounting Policies | ||||||||||||
Business of the Company | |||||||||||||
Inter Parfums, Inc. and its subsidiaries (the "Company") are in the fragrance business, and manufacture and distribute a wide array of fragrances and fragrance related products. | |||||||||||||
Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. Burberry was our most significant license and net sales of Burberry products represented 23%, 46% and 50% of net sales in 2013, 2012 and 2011, respectively (see Note (2) "Termination of Burberry License"). In addition, the Company owns the Lanvin brand name for its class of trade and licenses the Montblanc and Jimmy Choo brand names. As a percentage of net sales, product sales for each of these brands were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Lanvin | 15 | % | 12 | % | 13 | % | |||||||
Montblanc | 15 | % | 9 | % | 7 | % | |||||||
Jimmy Choo | 13 | % | 8 | % | 7 | % | |||||||
No other brand represented 10% or more of consolidated net sales. | |||||||||||||
Basis of Preparation | |||||||||||||
The consolidated financial statements include the accounts of the Company, including 73% owned Interparfums SA ("IPSA"), a subsidiary whose stock is publicly traded in France. In 2013, the Company formed a wholly-owned Hong Kong subsidiary, Inter Parfums USA Hong Kong Limited for the purpose of entering into a license with one of China's leading luxury brands and to operate an Asian sales and marketing office. All material intercompany balances and transactions have been eliminated. | |||||||||||||
Management Estimates | |||||||||||||
Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported and disclosures included in the consolidated financial statements. Actual results could differ from those assumptions and estimates. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these notes to the consolidated financial statements. | |||||||||||||
Foreign Currency Translation | |||||||||||||
For foreign subsidiaries with operations denominated in a foreign currency, assets and liabilities are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Gains and losses from translation adjustments are accumulated in a separate component of shareholders' equity. | |||||||||||||
Cash and Cash Equivalents and Short-Term Investments | |||||||||||||
All highly liquid investments purchased with a maturity of three months or less are considered to be cash equivalents. From time to time, the Company has short-term investments which consist of certificates of deposit with maturities greater than three months. The Company monitors concentrations of credit risk associated with financial institutions with which the Company conducts significant business. The Company believes its credit risk is minimal, as the Company primarily conducts business with large, well-established financial institutions. Substantially all cash and cash equivalents are held at financial institutions outside the United States and are readily convertible into U.S. dollars. | |||||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable represent payments due to the Company for previously recognized net sales, reduced by allowances for sales returns and doubtful accounts or balances which are estimated to be uncollectible, which aggregated $6.4 million and $10.6 million as of December 31, 2013 and 2012, respectively. Accounts receivable balances are written-off against the allowance for doubtful accounts when they become uncollectible. Recoveries of accounts receivable previously recorded against the allowance are recorded in the consolidated statement of income when received. We generally grant credit based upon our analysis of the customer's financial position, as well as previously established buying patterns. | |||||||||||||
Inventories | |||||||||||||
Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and is stated at the lower of cost or market, with cost being determined on the first-in, first-out method. Cost components include raw materials, components, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company's customers. Overhead included in inventory aggregated $3.6 million, $4.0 million and $4.4 million as of December 31, 2013, 2012 and 2011, respectively. Included in inventories is an inventory reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based upon sales forecasts and the physical condition of the inventories. In addition, and as necessary, specific reserves for future known or anticipated events may be established. Inventory reserves aggregated $6.8 million and $19.9 million as of December 31, 2013 and 2012, respectively. The inventory reserves as of December 31, 2012, included a reserve of approximately $10.0 million on the Burberry inventories as reported in Note 2 of these Notes to Consolidated Financial Statements. | |||||||||||||
Derivatives | |||||||||||||
All derivative instruments are recorded as either assets or liabilities and measured at fair value. The Company uses derivative instruments to principally manage a variety of market risks. For derivatives designated as hedges of the exposure to changes in fair value of the recognized asset or liability or a firm commitment (referred to as fair value hedges), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect of that accounting is to include in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For cash flow hedges, the effective portion of the derivative's gain or loss is initially reported in equity (as a component of accumulated other comprehensive income) and is subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge is reported in earnings immediately. The Company also holds certain instruments for economic purposes that are not designated for hedge accounting treatment. For these derivative instruments, changes in their fair value are recorded in earnings immediately. | |||||||||||||
Equipment and Leasehold Improvements | |||||||||||||
Equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives for equipment, which range between three and ten years and the shorter of the lease term or estimated useful asset lives for leasehold improvements. Depreciation provided on equipment used to produce inventory, such as tools and molds, is included in cost of sales. | |||||||||||||
Long-Lived Assets | |||||||||||||
Indefinite-lived intangible assets principally consist of trademarks which are not amortized. The Company evaluates indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more likely than not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.7%. The cash flow projections are based upon a number of assumptions, including, future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded. | |||||||||||||
Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. | |||||||||||||
Concentration of Credit Risk | |||||||||||||
The Company is a worldwide manufacturer, marketer and distributor of fragrance and fragrance related products, and sells its products to department stores, perfumeries, specialty retailers, mass-market retailers, supermarkets and domestic and international wholesalers and distributors. The Company grants credit to all qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. | |||||||||||||
No one customer represented 10% or more of net sales in 2013, 2012 or 2011. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company sells its products to department stores, perfumeries, specialty retailers, mass-market retailers, supermarkets and domestic and international wholesalers and distributors. Sales of such products by our domestic subsidiaries are denominated in U.S. dollars and sales of such products by our foreign subsidiaries are primarily denominated in either euro or U.S. dollars. The Company recognizes revenues when merchandise is shipped and the risk of loss passes to the customer. Net sales are comprised of gross revenues less returns, trade discounts and allowances. The Company does not bill its customers' freight and handling charges. All shipping and handling costs, which aggregated $6.1 million, $8.4 million and $8.8 million in 2013, 2012 and 2011, respectively, are included in selling, general and administrative expenses in the consolidated statements of income. | |||||||||||||
Sales Returns | |||||||||||||
Generally, the Company does not permit customers to return their unsold products. However, in 2011, we took over U.S. distribution of our European based prestige products, and for U.S. based customers, we allow returns if properly requested, authorized and approved. The Company regularly reviews and revises, as deemed necessary, its estimate of reserves for future sales returns based primarily upon historic trends and relevant current data including information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that we have considered, and will continue to consider, include, but are not limited to, the financial condition of our customers, store closings by retailers, changes in the retail environment and our decision to continue to support new and existing products. The Company records estimated reserves for sales returns as a reduction of sales, cost of sales and accounts receivable. Returned products are recorded as inventories and are valued based upon estimated realizable value. The physical condition and marketability of returned products are the major factors we consider in estimating realizable value. Actual returns, as well as estimated realizable values of returned products, may differ significantly, either favorably or unfavorably, from our estimates, if factors such as economic conditions, inventory levels or competitive conditions differ from our expectations. | |||||||||||||
Payments to Customers | |||||||||||||
The Company records revenues generated from purchase with purchase and gift with purchase promotions as sales and the costs of its purchase with purchase and gift with purchase promotions as cost of sales. Certain other incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been recorded as a reduction of net sales. | |||||||||||||
Advertising and Promotion | |||||||||||||
Advertising and promotional costs are expensed as incurred and recorded as a component of cost of goods sold (in the case of free goods given to customers) or selling, general and administrative expenses. Advertising and promotional costs included in selling, general and administrative expenses were $94.0 million, $132.7 million and $127.8 million for 2013, 2012 and 2011, respectively. Costs relating to purchase with purchase and gift with purchase promotions that are reflected in cost of sales aggregated $25.7 million, $46.5 million and $48.4 million in 2013, 2012 and 2011, respectively. Accrued expenses include approximately $22.4 million and $24.4 million in advertising liabilities as of December 31, 2013 and 2012, respectively. | |||||||||||||
Package Development Costs | |||||||||||||
Package development costs associated with new products and redesigns of existing product packaging are expensed as incurred. | |||||||||||||
Operating Leases | |||||||||||||
The Company recognizes rent expense from operating leases with various step rent provisions, rent concessions and escalation clauses on a straight-line basis over the applicable lease term. The Company considers lease renewals in the useful life of its leasehold improvements when such renewals are reasonably assured. In the event the Company receives capital improvement funding from its landlord, these amounts are recorded as deferred liabilities and amortized over the remaining lease term as a reduction of rent expense. | |||||||||||||
License Agreements | |||||||||||||
The Company's license agreements provide the Company with worldwide rights to manufacture, market and sell fragrance and fragrance related products using the licensors' trademarks. The licenses typically have an initial term of approximately 5 years to 15 years, and are potentially renewable subject to the Company's compliance with the license agreement provisions. The remaining terms, including the potential renewal periods, range from approximately 1 year to 14 years. Under each license, the Company is required to pay royalties in the range of 5% to 10% to the licensor, at least annually, based on net sales to third parties. | |||||||||||||
In certain cases, the Company may pay an entry fee to acquire, or enter into, a license where the licensor or another licensee was operating a pre-existing fragrance business. In those cases, the entry fee is capitalized as an intangible asset and amortized over its useful life. | |||||||||||||
Most license agreements require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. | |||||||||||||
In addition, the Company is exposed to certain concentration risk. Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently anticipated tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is more-likely-than-not that the deferred tax assets will not be realized in the relevant jurisdiction. If the Company determines that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of net earnings at that time. | |||||||||||||
Issuance of Common Stock by Consolidated Subsidiary | |||||||||||||
The difference between the Company's share of the proceeds received by the subsidiary and the carrying amount of the portion of the Company's investment deemed sold, is reflected as an equity adjustment in the consolidated balance sheets. | |||||||||||||
Treasury Stock | |||||||||||||
The Board of Directors may authorize share repurchases of the Company's common stock (Share Repurchase Authorizations). Share repurchases under Share Repurchase Authorizations may be made through open market transactions, negotiated purchase or otherwise, at times and in such amounts within the parameters authorized by the Board. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee stock option plans. Treasury shares are accounted for under the cost method and reported as a reduction of equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In July 2013, new accounting guidance was issued regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carry-forward, a similar tax loss, or a tax credit exists. This guidance is effective for interim and annual periods beginning after December 15, 2014. The adoption of this new guidance is not expected to have a material effect on the Company's financial position, results of operations or cash flows. | |||||||||||||
There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements. |
Termination_of_Burberry_Licens
Termination of Burberry License | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Termination of Burberry License [Abstract] | ' | ||||
Termination of Burberry License | ' | ||||
-2 | Termination of Burberry License | ||||
Burberry exercised its option to buy-out the license rights effective December 31, 2012. On October 11, 2012, the Company and Burberry entered into a transition agreement that provided for certain license rights and obligations to continue through March 31, 2013. The Company continued to operate certain aspects of the business for the brand including product development, testing, and distribution. The transition agreement provided for non-exclusivity for manufacturing, a cap on sales of Burberry products, a reduced advertising requirement and no minimum royalty amounts. | |||||
The Company had determined that the transaction was substantially completed as of December 31, 2012. The following table sets forth a summary of the gain on termination of license which is included in income from operations on the accompanying statement of income for the year ended December 31, 2012: | |||||
Exit payment (received December 21, 2012) | $ | 239,075 | |||
Expenses of termination: | |||||
Inventory reserves | 10,037 | ||||
Wages including $13.8 million in Interparfums SA profit sharing requirements | 14,391 | ||||
Write-off of intangible assets | 7,675 | ||||
Writedown of fixed assets | 3,483 | ||||
Write-off of unused modeling rights | 1,226 | ||||
Legal, professional and other agreed settlements | 3,425 | ||||
40,237 | |||||
Gain on termination of license | $ | 198,838 | |||
The transition agreement provided that Burberry inventories at March 31, 2013 should be less than $20.0 million in the aggregate. Actual Burberry inventory as of March 31, 2013 aggregated approximately $18 million. During the second quarter of 2013, the Company and Burberry reached an agreement regarding inventory and Burberry agreed to purchase $7.8 million of inventory at cost. Remaining inventories were sold off in the ordinary course of business pursuant to our sell-off rights, destroyed or given to Burberry at no charge. | |||||
As of September 30, 2013, the $10 million inventory reserve, recorded in 2012 upon recognition of the gain on termination of license, was fully consumed during 2013. | |||||
Accounts receivables and accounts payables were collected and paid in the ordinary course of business. In addition, Burberry purchased fixed assets for $2.8 million as agreed in the transition agreement. |
Recent_Agreements
Recent Agreements | 12 Months Ended | ||
Dec. 31, 2013 | |||
Recent Agreements [Abstract] | ' | ||
Recent Agreements | ' | ||
-3 | Recent Agreements | ||
Oscar de la Renta | |||
In October 2013, the Company entered into a 12-year exclusive worldwide license to create, produce and distribute perfumes and related products under the Oscar de la Renta brand. The agreement closed on December 2, 2013 and is subject to certain minimum advertising expenditures as is customary in our industry. The Company has purchased certain inventories and paid an up-front entry fee of $5.0 million. The Company has taken over distribution of fragrances within the brand's current perfume portfolio, and plans to launch its first fragrance under the Oscar de la Renta brand in 2014. | |||
Agent Provocateur | |||
In July 2013, the Company entered into a 10.5-year exclusive worldwide license to create, produce and distribute perfumes and related products under London-based luxury lingerie brand, Agent Provocateur. The agreement commenced on August 1, 2013 and is subject to certain minimum advertising expenditures as is customary in our industry. The Company plans to launch its first fragrance under the Agent Provocateur brand in 2014. In addition, Inter Parfums has taken over distribution of selected fragrances within the brand's current perfume portfolio, and plans to revitalize the Agent Provocateur signature scent. | |||
Shanghai Tang | |||
In July 2013, the Company created a wholly-owned Hong Kong subsidiary, Inter Parfums USA Hong Kong Limited, which entered into a 12-year exclusive worldwide license to create, produce and distribute perfumes and related products under China's leading luxury brand, Shanghai Tang. The agreement commenced on July 1, 2013 and is subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. The Company plans to launch its first fragrance under the Shanghai Tang brand in Spring 2014. | |||
Dunhill | |||
In December 2012, we entered into a 10-year exclusive worldwide license to create, produce and distribute perfumes and fragrance-related products under the Alfred Dunhill Limited ("Dunhill") brand. Our rights under the agreement commenced on April 3, 2013 when we took over production and distribution of the existing Dunhill fragrance collections. The agreement is subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. The Company paid an upfront entry fee of $0.9 million. | |||
Karl Lagerfeld | |||
In October 2012, we entered into a 20-year exclusive worldwide license agreement to create, produce and distribute perfumes under the Karl Lagerfeld brand. Our rights under such license agreement are subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. In connection with our entry into this license, the Company paid a license entry fee to the licensor of €9.6 million, (approximately $12.5 million). In addition, the Company has made an advance royalty payment to the licensor of €9.6 million, (approximately $12.5 million). This advance royalty payment is to be credited against future royalty payments as follows: every year in which the royalties due are higher than €0.5 million, the amount of royalties exceeding €0.5 million will be credited up to €0.5 million in each such year. The advance royalty has been discounted to its net present value which is included in other assets on the accompanying balance sheet and the resulting discount of approximately $4.4 million has been added to intangible assets and will be amortized together with the license entry fee, over the initial term of the license. | |||
Repetto | |||
In December 2011, we entered into a 13-year exclusive worldwide license agreement to create, produce and distribute perfumes and ancillary products under the Repetto brand. Our rights under the agreement commenced on January 1, 2012. The agreement is subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. | |||
The Gap, Inc. | |||
In July 2011, we renewed our exclusive agreement with The Gap, Inc. to develop, produce, manufacture and distribute fragrances for Gap and Banana Republic brand names to be sold in Gap and Banana Republic retail stores in the United States and Canada. In July 2011, we also renewed our license agreement with The Gap, Inc. for international distribution of fragrances through Gap and Banana Republic stores as well as select specialty and department stores outside the United States, including duty-free and other travel related retailers. | |||
These renewal agreements, which took effect on January 1, 2012 and run through December 31, 2014, contain terms and conditions similar to those of the original agreements. | |||
Pierre Balmain | |||
In July 2011, we entered into a 12-year exclusive worldwide license agreement to create, produce and distribute perfumes and ancillary products under the Balmain brand. Our rights under the agreement commenced on January 1, 2012 when we took over the production and distribution of existing Balmain fragrances. The agreement is subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. The Company paid an up front entry fee of €2.1 million (approximately $2.7 million) for this license. | |||
Anna Sui | |||
In June 2011, we entered into a 10-year exclusive worldwide fragrance license agreement, with two five-year renewal options, to create, produce and distribute perfumes and fragrance-related products under the Anna Sui brand. Our rights under the agreement commenced on January 1, 2012 when we took over production and distribution of the existing Anna Sui fragrance collections. The agreement is subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. The Company paid an upfront entry fee of $2.0 million for this license which was recorded and paid in 2012. | |||
S. T. Dupont | |||
In April 2011, we renewed our license agreement with S.T. Dupont for the creation, development and distribution of fragrance products through December 31, 2016. Our initial 11-year license agreement with S.T. Dupont was signed in June 1997, and had previously been extended in 2006 for an additional three years until June 2011. | |||
Lane Bryant | |||
In March 2011, we entered into an exclusive agreement with a unit of Charming Shoppes, Inc. for its flagship brand, Lane Bryant. Under the agreement, Inter Parfums designs and manufactures personal care products for the Lane Bryant brand, while Lane Bryant is responsible for marketing, promoting and selling these products. The initial term of the contract, which may be extended by mutual consent, runs through December 31, 2015. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
-4 | Inventories | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials and component parts | $ | 47,800 | $ | 47,732 | |||||
Finished goods | 69,547 | 94,882 | |||||||
$ | 117,347 | $ | 142,614 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
-5 | Fair Value of Financial Instruments | ||||||||||||||||
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. | |||||||||||||||||
(In thousands) | Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | |||||||||||||||||
Short-term investments | $ | 181,677 | $ | - | $ | 181,677 | $ | - | |||||||||
Foreign currency forward exchange contracts not accounted for using hedge accounting | 157 | - | 157 | - | |||||||||||||
$ | 181,834 | $ | - | $ | 181,834 | $ | - | ||||||||||
(In thousands) | Fair Value Measurements at December 31, 2012 | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward exchange contracts not accounted for using hedge accounting | $ | 784 | $ | - | $ | 784 | $ | - | |||||||||
The carrying amount of cash and cash equivalents including money market funds, short-term investments, accounts receivable, other receivables, accounts payable and accrued expenses approximates fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company's indebtedness approximate current market rates. | |||||||||||||||||
Foreign currency forward exchange contracts are valued based on quotations from financial institutions. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||
Derivative Financial Instruments | ' | ||||||||||
-6 | Derivative Financial Instruments | ||||||||||
The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. The Company did not enter into any cash flow hedges during the three-year period ended December 31, 2013. | |||||||||||
The following table presents gains and losses in derivatives not designated as hedges and the location of those gains and losses in the financial statements (in thousands): | |||||||||||
Derivatives not Designated | Location of Gain (Loss) | December 31, | December 31, | ||||||||
as Hedging Instruments | recognized in Income on | 2013 | 2012 | ||||||||
Derivative | |||||||||||
Interest rate swaps | Interest expense | $ | - | $ | 68 | ||||||
Foreign exchange contracts | Gain (loss) on foreign currency | $ | 11 | $ | 153 | ||||||
All derivative instruments are reported as either assets or liabilities on the balance sheet measured at fair value. The valuation of foreign currency forward exchange contracts not accounted for using hedge accounting in 2013 and 2012 resulted in an asset and is included in other current assets on the accompanying balance sheets. Generally, increases or decreases in the fair value of derivative instruments will be recognized as gains or losses in earnings in the period of change. If the derivative instrument is designated and qualifies as a cash flow hedge, the changes in fair value of the derivative instrument will be recorded as a separate component of shareholders' equity. | |||||||||||
At December 31, 2013, the Company had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $8.3 million and GB £2.1 million which all have maturities of less than one year. |
Equipment_and_Leasehold_Improv
Equipment and Leasehold Improvements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equipment and Leasehold Improvements [Abstract] | ' | ||||||||
Equipment and Leasehold Improvements | ' | ||||||||
-7 | Equipment and Leasehold Improvements | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Equipment | $ | 25,597 | $ | 41,447 | |||||
Leasehold improvements | 2,952 | 2,465 | |||||||
28,549 | 43,912 | ||||||||
Less accumulated depreciation and amortization | 18,105 | 31,623 | |||||||
$ | 10,444 | $ | 12,289 | ||||||
Depreciation and amortization expense was $4.9 million, $8.6 million and $6.0 million for 2013, 2012 and 2011, respectively. |
Trademarks_Licenses_and_Other_
Trademarks, Licenses and Other Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Trademarks, Licenses and Other Intangible Assets [Abstract] | ' | ||||||||||||
Trademarks, Licenses and Other Intangible Assets | ' | ||||||||||||
-8 | Trademarks, Licenses and Other Intangible Assets | ||||||||||||
2013 | Gross | Accumulated | Net Book | ||||||||||
Amount | Amortization | Value | |||||||||||
Trademarks (indefinite lives) | $ | 4,257 | $ | - | $ | 4,257 | |||||||
Trademarks (finite lives) | 53,319 | 102 | 53,217 | ||||||||||
Licenses (finite lives) | 80,842 | 24,747 | 56,095 | ||||||||||
Other intangible assets (finite lives) | 11,964 | 9,290 | 2,674 | ||||||||||
Subtotal | 146,125 | 34,139 | 111,986 | ||||||||||
Total | $ | 150,382 | $ | 34,139 | $ | 116,243 | |||||||
2012 | Gross | Accumulated | Net Book | ||||||||||
Amount | Amortization | Value | |||||||||||
Trademarks (indefinite lives) | $ | 6,631 | $ | - | $ | 6,631 | |||||||
Trademarks (finite lives) | 53,115 | 382 | 52,733 | ||||||||||
Licenses (finite lives) | 69,373 | 18,387 | 50,986 | ||||||||||
Other intangible assets (finite lives) | 15,469 | 12,778 | 2,691 | ||||||||||
Subtotal | 137,957 | 31,547 | 106,410 | ||||||||||
Total | $ | 144,588 | $ | 31,547 | $ | 113,041 | |||||||
Amortization expense was $6.2 million, $7.0 million and $7.9 million for 2013, 2012 and 2011, respectively. Amortization expense is expected to approximate $6.9 million in 2014 and 2015, and $5.9 million in 2016, 2017 and 2018. The weighted average amortization period for trademarks, licenses and other intangible assets with finite lives are 18 years, 13 years and 2 years, respectively, and 14 years in the aggregate. | |||||||||||||
There were no impairment charges for trademarks with indefinite useful lives in 2013, 2012 and 2011. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.7%. The cash flow projections are based upon a number of assumptions, including, future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. The Company believes that the assumptions the Company has made in projecting future cash flows for the evaluations described above are reasonable and currently no impairment indicators exist for our indefinite-lived assets. However, if future actual results do not meet our expectations, the Company may be required to record an impairment charge, the amount of which could be material to our results of operations. | |||||||||||||
The cost of trademarks, licenses and other intangible assets with finite lives is being amortized by the straight-line method over the term of the respective license or the intangible assets estimated useful life which range from three to twenty years. If the residual value of a finite life intangible asset exceeds its carrying value, then the asset is not amortized. The Company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||
Trademarks (finite lives) primarily represents Lanvin brand names and trademarks and in connection with their purchase, Lanvin was granted the right to repurchase the brand names and trademarks in 2025 for the greater of €70 million (approximately $97 million) or one times the average of the annual sales for the years ending December 31, 2023 and 2024 (residual value). Because the residual value of the intangible asset exceeds its carrying value, the asset is not amortized. | |||||||||||||
In December 2013, the Company sold its Nickel brand and trademarks for $3.5 million, which was approximately equal to the then current book value of the goodwill and trademark; therefore, there was no material gain or loss as a result of the sale. |
Loans_Payable_Banks
Loans Payable - Banks | 12 Months Ended | ||
Dec. 31, 2013 | |||
Loans Payable - Banks [Abstract] | ' | ||
Loans Payable - Banks | ' | ||
-9 | Loans Payable - Banks | ||
Loans payable - banks consist of the following: | |||
The Company and its domestic subsidiaries have available a $15 million unsecured revolving line of credit due on demand, which bears interest at the prime rate minus 0.5% (the prime rate was 3.25% as of December 31, 2013). The line of credit which has a maturity date of May 1, 2014 is expected to be renewed on an annual basis. Borrowings outstanding pursuant to this line of credit were approximately $6.1 million as of December 31, 2013 and zero as of December 31, 2012. | |||
The Company's foreign subsidiaries have available credit lines, including several bank overdraft facilities totaling approximately $25 million. These credit lines bear interest at EURIBOR plus 0.6%, 0.7% or 0.8% (EURIBOR was 0.3% at December 31, 2013). Outstanding amounts were zero as of December 31, 2013 and $27.8 million as of December 31, 2012. | |||
The weighted average interest rate on short-term borrowings was 2.8% and 0.8% as of December 31, 2013 and 2012, respectively. |
Commitments
Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments [Abstract] | ' | ||||
Commitments | ' | ||||
-10 | Commitments | ||||
Leases | |||||
The Company leases its office and warehouse facilities under operating leases which are subject to various step rent provisions, rent concessions and escalation clauses expiring at various dates through 2023. Escalation clauses are not material and have been excluded from minimum future annual rental payments. Rental expense, which is calculated on a straight-line basis, amounted to $10.8 million, $11.8 million and $12.7 million in 2013, 2012 and 2011, respectively. Minimum future annual rental payments are as follows: | |||||
2014 | $ | 4,993 | |||
2015 | 4,888 | ||||
2016 | 4,902 | ||||
2017 | 4,581 | ||||
2018 | 4,103 | ||||
Thereafter | 10,024 | ||||
$ | 33,491 | ||||
License Agreements | |||||
The Company is party to a number of license and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2032. In connection with certain of these license agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows: | |||||
2014 | $ | 102,123 | |||
2015 | 115,400 | ||||
2016 | 120,843 | ||||
2017 | 119,158 | ||||
2018 | 121,627 | ||||
Thereafter | 540,209 | ||||
$ | 1,119,360 | ||||
Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2013, without consideration for potential renewal periods. The above figures do not reflect the fact that our distributors share our advertising obligations. Royalty expense included in selling, general, and administrative expenses, aggregated $40.5 million, $58.8 million and $51.3 million, in 2013, 2012 and 2011, respectively, and represented 7.2%, 9.0% and 8.3% of net sales for the years ended December 31, 2013, 2012 and 2011. |
Equity
Equity | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Equity | ' | ||||||||||||||||||||||||
-11 | Equity | ||||||||||||||||||||||||
Share-Based Payments: | |||||||||||||||||||||||||
The Company maintains a stock option program for key employees, executives and directors. The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options. Options granted under the plans typically have a six-year term and vest over a four to five-year period. The fair value of shares vested in 2013 and 2012 aggregated $0.5 million and $0.9 million, respectively. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. It is generally the Company's policy to issue new shares upon exercise of stock options. | |||||||||||||||||||||||||
The following table sets forth information with respect to nonvested options for 2013: | |||||||||||||||||||||||||
Number of Shares | Weighted Average Grant | ||||||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||||||
Nonvested options - beginning of year | 346,075 | $ | 5.02 | ||||||||||||||||||||||
Nonvested options granted | 136,350 | $ | 9.2 | ||||||||||||||||||||||
Nonvested options vested or forfeited | (114,955 | ) | $ | 4.67 | |||||||||||||||||||||
Nonvested options - end of year | 367,470 | $ | 6.68 | ||||||||||||||||||||||
Share-based payment expenses decreased income before income taxes by $0.8 million in 2013 and 2012 and $1.1 million in 2011, decreased net income attributable to Inter Parfums, Inc. by $0.50 million in 2013 and 2012 and $0.60 million in 2011, respectively, and reduced diluted earnings per share by $0.01 in 2013 and 2012, and $0.02 in 2011. | |||||||||||||||||||||||||
The following table summarizes stock option activity and related information for the years ended December 31, 2013, 2012 and 2011 and does not include information relating to options of IPSA granted by IPSA, our majority-owned subsidiary: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Options | Weighted | Options | Weighted | Options | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Shares under option - beginning of year | 716,235 | $ | 14.41 | 823,275 | $ | 13.2 | 807,620 | $ | 12.78 | ||||||||||||||||
Options granted | 136,350 | 34.84 | 128,850 | 19.25 | 118,900 | 15.66 | |||||||||||||||||||
Options exercised | (204,240 | ) | 11.68 | (226,160 | ) | 12.72 | (95,625 | ) | 12.66 | ||||||||||||||||
Options cancelled | (4,750 | ) | 17.47 | (9,730 | ) | 15.37 | (7,620 | ) | 14.37 | ||||||||||||||||
Shares under option - end of year | 643,595 | 19.58 | 716,235 | 14.41 | 823,275 | 13.2 | |||||||||||||||||||
At December 31, 2013, options for 461,075 shares were available for future grant under the plans. The aggregate intrinsic value of options outstanding is $10.4 million as of December 31, 2013 and unrecognized compensation cost related to stock options outstanding on Inter Parfums, Inc. common stock aggregated $2.3 million, which will be recognized over the next five years. The amount of unrecognized compensation cost related to stock options outstanding of our majority-owned subsidiary, IPSA, was €0.1 million (approximately $0.15 million). Options under IPSA plans vest four years after grant. | |||||||||||||||||||||||||
The weighted average fair values of options granted by Inter Parfums, Inc. during 2013, 2012 and 2011 were $9.20, $5.54 and $4.59 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value. The assumptions used in the Black-Scholes pricing model for the years ended December 31, 2013, 2012 and 2011 are set forth in the following table: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted-average expected stock-price volatility | 37 | % | 38 | % | 40 | % | |||||||||||||||||||
Weighted-average expected option life | 5.0 years | 5.0 years | 4.5 years | ||||||||||||||||||||||
Weighted-average risk-free interest rate | 1.7 | % | 0.7 | % | 0.9 | % | |||||||||||||||||||
Weighted-average dividend yield | 2.7 | % | 1.7 | % | 1.7 | % | |||||||||||||||||||
Expected volatility is estimated based on historic volatility of the Company's common stock. The expected term of the option is estimated based on historic data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors would maintain its current payout ratio as a percentage of earnings. | |||||||||||||||||||||||||
Cash proceeds, tax benefits and intrinsic value related to stock options exercised were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Cash proceeds from stock options exercised | $ | 1,668 | $ | 1,305 | $ | 1,210 | |||||||||||||||||||
Tax benefits | $ | 700 | $ | 100 | $ | - | |||||||||||||||||||
Intrinsic value of stock options exercised | $ | 4,088 | $ | 1,359 | $ | 720 | |||||||||||||||||||
The following table summarizes additional stock option information as of December 31, 2013: | |||||||||||||||||||||||||
Options outstanding | |||||||||||||||||||||||||
Number | weighted average remaining | Options | |||||||||||||||||||||||
Exercise prices | outstanding | contractual life | exercisable | ||||||||||||||||||||||
$6.15 - $6.93 | 47,930 | 0.99 years | 47,930 | ||||||||||||||||||||||
$11.30 - $11.41 | 39,225 | 0.12 years | 39,225 | ||||||||||||||||||||||
$12.14 | 78,120 | 2.00 years | 60,010 | ||||||||||||||||||||||
$13.45 | 3,000 | 1.08 years | 1,875 | ||||||||||||||||||||||
$15.59 - $15.62 | 113,010 | 3.90 years | 44,550 | ||||||||||||||||||||||
$17.07 - $17.94 | 6,750 | 2.68 years | 1,625 | ||||||||||||||||||||||
$19.03 - $19.33 | 219,210 | 4.11 years | 80,910 | ||||||||||||||||||||||
$21.76 | 5,000 | 4.09 years | - | ||||||||||||||||||||||
$22.20 | 4,000 | 5.09 years | - | ||||||||||||||||||||||
$35.75 | 127,350 | 6.00 years | - | ||||||||||||||||||||||
Totals | 643,595 | 3.69 Years | 276,125 | ||||||||||||||||||||||
As of December 31, 2013, the weighted average exercise price of options exercisable was $13.76 and the weighted average remaining contractual life of options exercisable is 2.32 years. The aggregate intrinsic value of options exercisable at December 31, 2013 is $6.1 million. | |||||||||||||||||||||||||
The Chief Executive Officer and the President each exercised 13,875, 28,500 and 60,000 outstanding stock options of the Company's common stock in 2014, 2013 and 2012, respectively. The aggregate exercise prices of $0.3 million in 2014, $0.7 million in 2013 and $1.6 million in 2012 were paid by them tendering to the Company in 2014, 2013 and 2012, an aggregate of 10,080, 18,880 and 82,322 shares, respectively, of the Company's common stock, previously owned by them, valued at fair market value on the dates of exercise. All shares issued pursuant to these option exercises were issued from treasury stock of the Company. In addition, the Chief Executive Officer tendered in 2014, 2013 and 2012 an additional 1,193, 2,573 and 4,710 shares, respectively, for payment of certain withholding taxes resulting from his option exercises. | |||||||||||||||||||||||||
Dividends | |||||||||||||||||||||||||
The quarterly dividend of $3.7 million ($0.12 per share) declared in December 2013 was paid in January 2014. The next quarterly dividend of $0.12 per share will be paid on April 15, 2014 to shareholders of record on March 31, 2014. |
Net_Income_Attributable_to_Int
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | ' | ||||||||||||
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | ' | ||||||||||||
-12 | Net Income Attributable to Inter Parfums, Inc. Common Shareholders | ||||||||||||
Net income attributable to Inter Parfums, Inc. per common share ("basic EPS") is computed by dividing net income attributable to Inter Parfums, Inc. by the weighted-average number of shares outstanding. Net income attributable to Inter Parfums, Inc. per share assuming dilution ("diluted EPS"), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options and warrants using the treasury stock method. | |||||||||||||
The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Inter Parfums, Inc. | $ | 39,211 | $ | 131,136 | $ | 32,303 | |||||||
Effect of dilutive securities of consolidated subsidiary | - | (168 | ) | (82 | ) | ||||||||
Numerator for diluted earnings per share | $ | 39,211 | $ | 130,968 | $ | 32,221 | |||||||
Denominator: | |||||||||||||
Weighted average shares | 30,763,955 | 30,574,772 | 30,514,529 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options and warrants | 189,927 | 140,912 | 163,296 | ||||||||||
Denominator for diluted earnings per share | 30,953,882 | 30,715,684 | 30,677,825 | ||||||||||
Earnings per share: | |||||||||||||
Net income attributable to Inter Parfums, Inc. common shareholders: | |||||||||||||
Basic | $ | 1.27 | $ | 4.29 | $ | 1.06 | |||||||
Diluted | 1.27 | 4.26 | 1.05 | ||||||||||
Not included in the above computations is the effect of anti-dilutive potential common shares which consist of outstanding options to purchase 32,000, 230,000, and 118,000 shares of common stock for 2013, 2012, and 2011, respectively. |
Segment_and_Geographic_Areas
Segment and Geographic Areas | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment and Geographical Areas [Abstract] | ' | ||||||||||||
Segment and Geographic Areas | ' | ||||||||||||
-13 | Segments and Geographic Areas | ||||||||||||
The Company manufactures and distributes one product line, fragrances and fragrance related products. The Company manages its business in two segments, European based operations and United States based operations. The European assets are located, and operations are primarily conducted, in France. European operations primarily represent the sale of the prestige brand name fragrances, and United States operations represent the sale of specialty retail and prestige brand name fragrances. Information on the Company's operations by segments is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
United States | $ | 99,158 | $ | 83,106 | $ | 62,976 | |||||||
Europe | 464,562 | 571,877 | 552,415 | ||||||||||
Eliminations of intercompany sales | (141 | ) | (866 | ) | (171 | ) | |||||||
$ | 563,579 | $ | 654,117 | $ | 615,220 | ||||||||
Net income attributable to Inter Parfums, Inc.: | |||||||||||||
United States | $ | 6,806 | $ | 5,078 | $ | 2,108 | |||||||
Europe | 32,392 | 126,045 | 30,217 | ||||||||||
Eliminations | 13 | 13 | (22 | ) | |||||||||
$ | 39,211 | $ | 131,136 | $ | 32,303 | ||||||||
Depreciation and amortization expense: | |||||||||||||
United States | $ | 1,216 | $ | 958 | $ | 507 | |||||||
Europe | 9,894 | 14,596 | 12,566 | ||||||||||
$ | 11,110 | $ | 15,554 | $ | 13,073 | ||||||||
Interest and dividend income: | |||||||||||||
United States | $ | 16 | $ | 7 | $ | 10 | |||||||
Europe | 4,424 | 1,126 | 1,095 | ||||||||||
$ | 4,440 | $ | 1,133 | $ | 1,105 | ||||||||
Interest expense: | |||||||||||||
United States | $ | 13 | $ | 38 | $ | 11 | |||||||
Europe | 1,367 | 1,616 | 2,186 | ||||||||||
$ | 1,380 | $ | 1,654 | $ | 2,197 | ||||||||
Income tax expense (benefit): | |||||||||||||
United States | $ | 4,512 | $ | 3,804 | $ | 1,405 | |||||||
Europe | 25,159 | 94,063 | 23,053 | ||||||||||
Eliminations | 9 | 8 | (14 | ) | |||||||||
$ | 29,680 | $ | 97,875 | $ | 24,444 | ||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total assets: | |||||||||||||
United States | $ | 76,980 | $ | 64,278 | $ | 59,841 | |||||||
Europe | 596,153 | 704,464 | 465,747 | ||||||||||
Eliminations of investment in subsidiary | (9,075 | ) | (8,822 | ) | (9,554 | ) | |||||||
$ | 664,058 | $ | 759,920 | $ | 516,034 | ||||||||
Additions to long-lived assets: | |||||||||||||
United States | $ | 7,629 | $ | 3,131 | $ | 572 | |||||||
Europe | 5,155 | 26,060 | 13,979 | ||||||||||
$ | 12,784 | $ | 29,191 | $ | 14,551 | ||||||||
Total long-lived assets: | |||||||||||||
United States | $ | 13,823 | $ | 7,572 | $ | 5,400 | |||||||
Europe | 112,864 | 118,712 | 117,638 | ||||||||||
$ | 126,687 | $ | 126,284 | $ | 123,038 | ||||||||
Deferred tax assets: | |||||||||||||
United States | $ | 341 | $ | 762 | $ | 1,505 | |||||||
Europe | 6,916 | 12,361 | 5,748 | ||||||||||
Eliminations | - | 9 | 17 | ||||||||||
$ | 7,257 | $ | 13,132 | $ | 7,270 | ||||||||
United States export sales were approximately $50.4 million, $38.8 million and $24.9 million in 2013, 2012 and 2011, respectively. Consolidated net sales to customers by region are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
North America | $ | 154,300 | $ | 175,400 | $ | 150,000 | |||||||
Europe | 215,600 | 241,300 | 246,000 | ||||||||||
Central and South America | 42,400 | 53,000 | 61,000 | ||||||||||
Middle East | 43,300 | 62,100 | 57,000 | ||||||||||
Asia | 98,600 | 115,300 | 95,000 | ||||||||||
Other | 9,400 | 7,000 | 6,200 | ||||||||||
$ | 563,600 | $ | 654,100 | $ | 615,200 | ||||||||
Consolidated net sales to customers in major countries are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 150,000 | $ | 167,000 | $ | 138,000 | |||||||
United Kingdom | $ | 46,000 | $ | 48,000 | $ | 45,000 | |||||||
France | $ | 47,000 | $ | 46,000 | $ | 48,000 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
-14 | Income Taxes | ||||||||||||
The Company or its subsidiaries file income tax returns in the U.S. federal, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state, and local or non-U.S. income tax examinations by tax authorities for years before 2009. | |||||||||||||
The Company follows the provisions of uncertain tax positions as addressed in FASB Accounting Standards Codification 740-10-65-1. The Company did not recognize any increase in the liability for unrecognized tax benefits and has no uncertain tax position at December 31, 2013. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties as a component of the provision for income taxes. No interest or penalties were recognized during the periods presented and there is no accrual for interest and penalties at December 31, 2013. | |||||||||||||
The components of income before income taxes consist of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. operations | $ | 11,340 | $ | 8,904 | $ | 3,478 | |||||||
Foreign operations | 69,306 | 265,861 | 63,915 | ||||||||||
$ | 80,646 | $ | 274,765 | $ | 67,393 | ||||||||
The provision for current and deferred income tax expense (benefit) consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 3,638 | $ | 2,511 | $ | 1,269 | |||||||
State and local | 454 | 558 | 286 | ||||||||||
Foreign | 20,744 | 102,717 | 23,898 | ||||||||||
24,836 | 105,786 | 25,453 | |||||||||||
Deferred: | |||||||||||||
Federal | 370 | 703 | (170 | ) | |||||||||
State and local | 59 | 40 | 3 | ||||||||||
Foreign | 4,415 | (8,654 | ) | (842 | ) | ||||||||
4,844 | (7,911 | ) | (1,009 | ) | |||||||||
Total income tax expense | $ | 29,680 | $ | 97,875 | $ | 24,444 | |||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Foreign net operating loss carry-forwards | $ | 707 | $ | 591 | |||||||||
Inventory and accounts receivable | 626 | 703 | |||||||||||
Profit sharing | 4,805 | 6,352 | |||||||||||
Stock option compensation | 526 | 540 | |||||||||||
Effect of inventory profit elimination | 1,710 | 5,560 | |||||||||||
Other | (410 | ) | (23 | ) | |||||||||
Total gross deferred tax assets | 7,964 | 13,723 | |||||||||||
Valuation allowance | (707 | ) | (591 | ) | |||||||||
Net deferred tax assets | 7,257 | 13,132 | |||||||||||
Deferred tax liabilities (long-term): | |||||||||||||
Trademarks and licenses | (2,555 | ) | (3,502 | ) | |||||||||
Other | - | (297 | ) | ||||||||||
Total deferred tax liabilities | (2,555 | ) | (3,799 | ) | |||||||||
Net deferred tax assets | $ | 4,702 | $ | 9,333 | |||||||||
Valuation allowances are provided for foreign net operating loss carry-forwards, as future profitable operations from certain foreign subsidiaries might not be sufficient to realize the full amount of net operating loss carry-forwards. | |||||||||||||
No other valuation allowances have been provided as management believes that it is more likely than not that the asset will be realized in the reduction of future taxable income. | |||||||||||||
The Company has not provided for U.S. deferred income taxes on $329 million of undistributed earnings of its non-U.S. subsidiaries as of December 31, 2013 since the Company intends to reinvest most of these earnings in its foreign operations indefinitely and the Company believes it has sufficient foreign tax credits available to offset any potential tax on amounts that have been and are planned to be repatriated. | |||||||||||||
Differences between the United States Federal statutory income tax rate and the effective income tax rate were as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory rates | 34 | % | 34 | % | 34 | % | |||||||
State and local taxes, net of Federal benefit | 0.4 | 0.1 | 0.3 | ||||||||||
Effect of foreign taxes greater than (less than) U.S. statutory rates | 2 | 1.4 | 2 | ||||||||||
Other | 0.4 | 0.1 | - | ||||||||||
Effective rates | 36.8 | % | 35.6 | % | 36.3 | % |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
-15 | Accumulated Other Comprehensive Income | ||||||||||||
The components of accumulated other comprehensive income consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net derivative instruments, beginning of year | $ | 240 | $ | 224 | $ | 213 | |||||||
Transfer from OCI into earnings | (240 | ) | - | - | |||||||||
Gain on derivative instruments | - | 16 | 11 | ||||||||||
Net derivative instruments, end of year | - | 240 | 224 | ||||||||||
Cumulative translation adjustments, beginning of year | 12,258 | 7,523 | 14,544 | ||||||||||
Translation adjustments | 13,602 | 4,735 | (7,021 | ) | |||||||||
Cumulative translation adjustments, end of year | 25,860 | 12,258 | 7,523 | ||||||||||
Accumulated other comprehensive income | $ | 25,860 | $ | 12,498 | $ | 7,747 |
Net_Income_Attributable_to_Int1
Net Income Attributable to Inter Parfums, Inc. and Transfers From the Noncontrolling Interest | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interst [Abstract] | ' | ||||||||||||
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | ' | ||||||||||||
-16 | Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income attributable to Inter Parfums, Inc. | $ | 39,211 | $ | 131,136 | $ | 32,303 | |||||||
Increase (decrease) in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions | (173 | ) | 737 | 209 | |||||||||
Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest | $ | 39,038 | $ | 131,873 | $ | 32,512 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||||||
Additions | |||||||||||||||||||||
-1 | -2 | ||||||||||||||||||||
Charged to | |||||||||||||||||||||
Balance at | Charged to | other | |||||||||||||||||||
beginning of | costs and | accounts - | Deductions - | Balance at | |||||||||||||||||
Description | period | expenses | describe | describe | end of period | ||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 6,074 | 574 | 123 | (d) | 4,238 | (a) | 2,533 | |||||||||||||
Year ended December 31, 2012 | $ | 5,320 | 914 | 120 | (d) | 280 | (a) | 6,074 | |||||||||||||
Year ended December 31, 2011 | $ | 4,367 | 2,838 | (211 | )(d) | 1,674 | (a) | 5,320 | |||||||||||||
Sales return accrual: | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 4,526 | 3,751 | - | 4,434 | (b) | 3,843 | ||||||||||||||
Year ended December 31, 2012 | $ | 4,172 | 4,249 | - | 3,895 | (b) | 4,526 | ||||||||||||||
Year ended December 31, 2011 | $ | 1,560 | 4,129 | - | 1,517 | (b) | 4,172 | ||||||||||||||
Inventory Reserve: | |||||||||||||||||||||
Year ended December 31, 2013 | $ | 19,923 | 6,794 | 323 | (d) | 20,249 | (c) | 6,791 | |||||||||||||
Year ended December 31, 2012 | $ | 7,460 | 17,957 | 449 | (d) | 5,943 | (c) | 19,923 | |||||||||||||
Year ended December 31, 2011 | $ | 6,242 | 3,880 | (272 | )(d) | 2,390 | (c) | 7,460 | |||||||||||||
(a) Write-off of bad debts. | |||||||||||||||||||||
(b) Write-off of sales returns. | |||||||||||||||||||||
(c) Disposal of inventory | |||||||||||||||||||||
(d) Foreign currency translation adjustment |
The_Company_and_its_Significan1
The Company and its Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
The Company and its Significant Accounting Policies [Abstract] | ' | ||||||||||||
Business of the Company | ' | ||||||||||||
Business of the Company | |||||||||||||
Inter Parfums, Inc. and its subsidiaries (the "Company") are in the fragrance business, and manufacture and distribute a wide array of fragrances and fragrance related products. | |||||||||||||
Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. Burberry was our most significant license and net sales of Burberry products represented 23%, 46% and 50% of net sales in 2013, 2012 and 2011, respectively (see Note (2) "Termination of Burberry License"). In addition, the Company owns the Lanvin brand name for its class of trade and licenses the Montblanc and Jimmy Choo brand names. As a percentage of net sales, product sales for each of these brands were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Lanvin | 15 | % | 12 | % | 13 | % | |||||||
Montblanc | 15 | % | 9 | % | 7 | % | |||||||
Jimmy Choo | 13 | % | 8 | % | 7 | % | |||||||
No other brand represented 10% or more of consolidated net sales. | |||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Preparation | |||||||||||||
The consolidated financial statements include the accounts of the Company, including 73% owned Interparfums SA ("IPSA"), a subsidiary whose stock is publicly traded in France. In 2013, the Company formed a wholly-owned Hong Kong subsidiary, Inter Parfums USA Hong Kong Limited for the purpose of entering into a license with one of China's leading luxury brands and to operate an Asian sales and marketing office. All material intercompany balances and transactions have been eliminated. | |||||||||||||
Management Estimates | ' | ||||||||||||
Management Estimates | |||||||||||||
Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported and disclosures included in the consolidated financial statements. Actual results could differ from those assumptions and estimates. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these notes to the consolidated financial statements. | |||||||||||||
Functional Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
For foreign subsidiaries with operations denominated in a foreign currency, assets and liabilities are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Gains and losses from translation adjustments are accumulated in a separate component of shareholders' equity. | |||||||||||||
Cash and Cash Equivalents and Short-Term Investments | ' | ||||||||||||
Cash and Cash Equivalents and Short-Term Investments | |||||||||||||
All highly liquid investments purchased with a maturity of three months or less are considered to be cash equivalents. From time to time, the Company has short-term investments which consist of certificates of deposit with maturities greater than three months. The Company monitors concentrations of credit risk associated with financial institutions with which the Company conducts significant business. The Company believes its credit risk is minimal, as the Company primarily conducts business with large, well-established financial institutions. Substantially all cash and cash equivalents are held at financial institutions outside the United States and are readily convertible into U.S. dollars. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable represent payments due to the Company for previously recognized net sales, reduced by allowances for sales returns and doubtful accounts or balances which are estimated to be uncollectible, which aggregated $6.4 million and $10.6 million as of December 31, 2013 and 2012, respectively. Accounts receivable balances are written-off against the allowance for doubtful accounts when they become uncollectible. Recoveries of accounts receivable previously recorded against the allowance are recorded in the consolidated statement of income when received. We generally grant credit based upon our analysis of the customer's financial position, as well as previously established buying patterns. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and is stated at the lower of cost or market, with cost being determined on the first-in, first-out method. Cost components include raw materials, components, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company's customers. Overhead included in inventory aggregated $3.6 million, $4.0 million and $4.4 million as of December 31, 2013, 2012 and 2011, respectively. Included in inventories is an inventory reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based upon sales forecasts and the physical condition of the inventories. In addition, and as necessary, specific reserves for future known or anticipated events may be established. Inventory reserves aggregated $6.8 million and $19.9 million as of December 31, 2013 and 2012, respectively. The inventory reserves as of December 31, 2012, included a reserve of approximately $10.0 million on the Burberry inventories as reported in Note 2 of these Notes to Consolidated Financial Statements. | |||||||||||||
Derivatives | ' | ||||||||||||
Derivatives | |||||||||||||
All derivative instruments are recorded as either assets or liabilities and measured at fair value. The Company uses derivative instruments to principally manage a variety of market risks. For derivatives designated as hedges of the exposure to changes in fair value of the recognized asset or liability or a firm commitment (referred to as fair value hedges), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect of that accounting is to include in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For cash flow hedges, the effective portion of the derivative's gain or loss is initially reported in equity (as a component of accumulated other comprehensive income) and is subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge is reported in earnings immediately. The Company also holds certain instruments for economic purposes that are not designated for hedge accounting treatment. For these derivative instruments, changes in their fair value are recorded in earnings immediately. | |||||||||||||
Equipment and Leasehold Improvements | ' | ||||||||||||
Equipment and Leasehold Improvements | |||||||||||||
Equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives for equipment, which range between three and ten years and the shorter of the lease term or estimated useful asset lives for leasehold improvements. Depreciation provided on equipment used to produce inventory, such as tools and molds, is included in cost of sales. | |||||||||||||
Goodwill and Other Long-Lived Assets | ' | ||||||||||||
Long-Lived Assets | |||||||||||||
Indefinite-lived intangible assets principally consist of trademarks which are not amortized. The Company evaluates indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more likely than not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.7%. The cash flow projections are based upon a number of assumptions, including, future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded. | |||||||||||||
Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. | |||||||||||||
Concentration of Credit Risk | ' | ||||||||||||
Concentration of Credit Risk | |||||||||||||
The Company is a worldwide manufacturer, marketer and distributor of fragrance and fragrance related products, and sells its products to department stores, perfumeries, specialty retailers, mass-market retailers, supermarkets and domestic and international wholesalers and distributors. The Company grants credit to all qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. | |||||||||||||
No one customer represented 10% or more of net sales in 2013, 2012 or 2011. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company sells its products to department stores, perfumeries, specialty retailers, mass-market retailers, supermarkets and domestic and international wholesalers and distributors. Sales of such products by our domestic subsidiaries are denominated in U.S. dollars and sales of such products by our foreign subsidiaries are primarily denominated in either euro or U.S. dollars. The Company recognizes revenues when merchandise is shipped and the risk of loss passes to the customer. Net sales are comprised of gross revenues less returns, trade discounts and allowances. The Company does not bill its customers' freight and handling charges. All shipping and handling costs, which aggregated $6.1 million, $8.4 million and $8.8 million in 2013, 2012 and 2011, respectively, are included in selling, general and administrative expenses in the consolidated statements of income. | |||||||||||||
Sales Returns | ' | ||||||||||||
Sales Returns | |||||||||||||
Generally, the Company does not permit customers to return their unsold products. However, in 2011, we took over U.S. distribution of our European based prestige products, and for U.S. based customers, we allow returns if properly requested, authorized and approved. The Company regularly reviews and revises, as deemed necessary, its estimate of reserves for future sales returns based primarily upon historic trends and relevant current data including information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that we have considered, and will continue to consider, include, but are not limited to, the financial condition of our customers, store closings by retailers, changes in the retail environment and our decision to continue to support new and existing products. The Company records estimated reserves for sales returns as a reduction of sales, cost of sales and accounts receivable. Returned products are recorded as inventories and are valued based upon estimated realizable value. The physical condition and marketability of returned products are the major factors we consider in estimating realizable value. Actual returns, as well as estimated realizable values of returned products, may differ significantly, either favorably or unfavorably, from our estimates, if factors such as economic conditions, inventory levels or competitive conditions differ from our expectations. | |||||||||||||
Payments to Customers | ' | ||||||||||||
Payments to Customers | |||||||||||||
The Company records revenues generated from purchase with purchase and gift with purchase promotions as sales and the costs of its purchase with purchase and gift with purchase promotions as cost of sales. Certain other incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been recorded as a reduction of net sales. | |||||||||||||
Advertising and Promotion | ' | ||||||||||||
Advertising and Promotion | |||||||||||||
Advertising and promotional costs are expensed as incurred and recorded as a component of cost of goods sold (in the case of free goods given to customers) or selling, general and administrative expenses. Advertising and promotional costs included in selling, general and administrative expenses were $94.0 million, $132.7 million and $127.8 million for 2013, 2012 and 2011, respectively. Costs relating to purchase with purchase and gift with purchase promotions that are reflected in cost of sales aggregated $25.7 million, $46.5 million and $48.4 million in 2013, 2012 and 2011, respectively. Accrued expenses include approximately $22.4 million and $24.4 million in advertising liabilities as of December 31, 2013 and 2012, respectively. | |||||||||||||
Package Development Costs | ' | ||||||||||||
Package Development Costs | |||||||||||||
Package development costs associated with new products and redesigns of existing product packaging are expensed as incurred. | |||||||||||||
Operating Leases | ' | ||||||||||||
Operating Leases | |||||||||||||
The Company recognizes rent expense from operating leases with various step rent provisions, rent concessions and escalation clauses on a straight-line basis over the applicable lease term. The Company considers lease renewals in the useful life of its leasehold improvements when such renewals are reasonably assured. In the event the Company receives capital improvement funding from its landlord, these amounts are recorded as deferred liabilities and amortized over the remaining lease term as a reduction of rent expense. | |||||||||||||
License Agreements | ' | ||||||||||||
License Agreements | |||||||||||||
The Company's license agreements provide the Company with worldwide rights to manufacture, market and sell fragrance and fragrance related products using the licensors' trademarks. The licenses typically have an initial term of approximately 5 years to 15 years, and are potentially renewable subject to the Company's compliance with the license agreement provisions. The remaining terms, including the potential renewal periods, range from approximately 1 year to 14 years. Under each license, the Company is required to pay royalties in the range of 5% to 10% to the licensor, at least annually, based on net sales to third parties. | |||||||||||||
In certain cases, the Company may pay an entry fee to acquire, or enter into, a license where the licensor or another licensee was operating a pre-existing fragrance business. In those cases, the entry fee is capitalized as an intangible asset and amortized over its useful life. | |||||||||||||
Most license agreements require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. | |||||||||||||
In addition, the Company is exposed to certain concentration risk. Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently anticipated tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is more-likely-than-not that the deferred tax assets will not be realized in the relevant jurisdiction. If the Company determines that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of net earnings at that time. | |||||||||||||
Issuance of Common Stock by Consolidated Subsidiary | ' | ||||||||||||
Issuance of Common Stock by Consolidated Subsidiary | |||||||||||||
The difference between the Company's share of the proceeds received by the subsidiary and the carrying amount of the portion of the Company's investment deemed sold, is reflected as an equity adjustment in the consolidated balance sheets. | |||||||||||||
Treasury Stock | ' | ||||||||||||
Treasury Stock | |||||||||||||
The Board of Directors may authorize share repurchases of the Company's common stock (Share Repurchase Authorizations). Share repurchases under Share Repurchase Authorizations may be made through open market transactions, negotiated purchase or otherwise, at times and in such amounts within the parameters authorized by the Board. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee stock option plans. Treasury shares are accounted for under the cost method and reported as a reduction of equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice. | |||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In July 2013, new accounting guidance was issued regarding financial statement presentation of an unrecognized tax benefit when a net operating loss carry-forward, a similar tax loss, or a tax credit exists. This guidance is effective for interim and annual periods beginning after December 15, 2014. The adoption of this new guidance is not expected to have a material effect on the Company's financial position, results of operations or cash flows. | |||||||||||||
There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements. |
The_Company_and_its_Significan2
The Company and its Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
The Company and its Significant Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Product Sales as a Percentage of Net Sales | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Lanvin | 15 | % | 12 | % | 13 | % | |||||||
Montblanc | 15 | % | 9 | % | 7 | % | |||||||
Jimmy Choo | 13 | % | 8 | % | 7 | % |
Termination_of_Burberry_Licens1
Termination of Burberry License (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Termination of Burberry License [Abstract] | ' | ||||
Gain on Sale of License Termination | ' | ||||
Exit payment (received December 21, 2012) | $ | 239,075 | |||
Expenses of termination: | |||||
Inventory reserves | 10,037 | ||||
Wages including $13.8 million in Interparfums SA profit sharing requirements | 14,391 | ||||
Write-off of intangible assets | 7,675 | ||||
Writedown of fixed assets | 3,483 | ||||
Write-off of unused modeling rights | 1,226 | ||||
Legal, professional and other agreed settlements | 3,425 | ||||
40,237 | |||||
Gain on termination of license | $ | 198,838 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials and component parts | $ | 47,800 | $ | 47,732 | |||||
Finished goods | 69,547 | 94,882 | |||||||
$ | 117,347 | $ | 142,614 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
(In thousands) | Fair Value Measurements at December 31, 2013 | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | |||||||||||||||||
Short-term investments | $ | 181,677 | $ | - | $ | 181,677 | $ | - | |||||||||
Foreign currency forward exchange contracts not accounted for using hedge accounting | 157 | - | 157 | - | |||||||||||||
$ | 181,834 | $ | - | $ | 181,834 | $ | - | ||||||||||
(In thousands) | Fair Value Measurements at December 31, 2012 | ||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Assets: | |||||||||||||||||
Foreign currency forward exchange contracts not accounted for using hedge accounting | $ | 784 | $ | - | $ | 784 | $ | - |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||
Schedule of Derivative Financial Instruments | ' | ||||||||||
Derivatives not Designated | Location of Gain (Loss) | December 31, | December 31, | ||||||||
as Hedging Instruments | recognized in Income on | 2013 | 2012 | ||||||||
Derivative | |||||||||||
Interest rate swaps | Interest expense | $ | - | $ | 68 | ||||||
Foreign exchange contracts | Gain (loss) on foreign currency | $ | 11 | $ | 153 |
Equipment_and_Leasehold_Improv1
Equipment and Leasehold Improvements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equipment and Leasehold Improvements [Abstract] | ' | ||||||||
Schedule of Equipment and Leasehold Improvements | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Equipment | $ | 25,597 | $ | 41,447 | |||||
Leasehold improvements | 2,952 | 2,465 | |||||||
28,549 | 43,912 | ||||||||
Less accumulated depreciation and amortization | 18,105 | 31,623 | |||||||
$ | 10,444 | $ | 12,289 |
Trademarks_Licenses_and_Other_1
Trademarks, Licenses and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Trademarks, Licenses and Other Intangible Assets [Abstract] | ' | ||||||||||||
Schedule of Trademarks, Licenses and Other Intangible Assets | ' | ||||||||||||
2013 | Gross | Accumulated | Net Book | ||||||||||
Amount | Amortization | Value | |||||||||||
Trademarks (indefinite lives) | $ | 4,257 | $ | - | $ | 4,257 | |||||||
Trademarks (finite lives) | 53,319 | 102 | 53,217 | ||||||||||
Licenses (finite lives) | 80,842 | 24,747 | 56,095 | ||||||||||
Other intangible assets (finite lives) | 11,964 | 9,290 | 2,674 | ||||||||||
Subtotal | 146,125 | 34,139 | 111,986 | ||||||||||
Total | $ | 150,382 | $ | 34,139 | $ | 116,243 | |||||||
2012 | Gross | Accumulated | Net Book | ||||||||||
Amount | Amortization | Value | |||||||||||
Trademarks (indefinite lives) | $ | 6,631 | $ | - | $ | 6,631 | |||||||
Trademarks (finite lives) | 53,115 | 382 | 52,733 | ||||||||||
Licenses (finite lives) | 69,373 | 18,387 | 50,986 | ||||||||||
Other intangible assets (finite lives) | 15,469 | 12,778 | 2,691 | ||||||||||
Subtotal | 137,957 | 31,547 | 106,410 | ||||||||||
Total | $ | 144,588 | $ | 31,547 | $ | 113,041 |
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments | ' | ||||
2014 | $ | 4,993 | |||
2015 | 4,888 | ||||
2016 | 4,902 | ||||
2017 | 4,581 | ||||
2018 | 4,103 | ||||
Thereafter | 10,024 | ||||
$ | 33,491 | ||||
Schedule of Future Minimum Annual Commitments | ' | ||||
2014 | $ | 102,123 | |||
2015 | 115,400 | ||||
2016 | 120,843 | ||||
2017 | 119,158 | ||||
2018 | 121,627 | ||||
Thereafter | 540,209 | ||||
$ | 1,119,360 |
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Nonvested Option Activity | ' | ||||||||||||||||||||||||
Number of Shares | Weighted Average Grant | ||||||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||||||
Nonvested options - beginning of year | 346,075 | $ | 5.02 | ||||||||||||||||||||||
Nonvested options granted | 136,350 | $ | 9.2 | ||||||||||||||||||||||
Nonvested options vested or forfeited | (114,955 | ) | $ | 4.67 | |||||||||||||||||||||
Nonvested options - end of year | 367,470 | $ | 6.68 | ||||||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Options | Weighted | Options | Weighted | Options | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Shares under option - beginning of year | 716,235 | $ | 14.41 | 823,275 | $ | 13.2 | 807,620 | $ | 12.78 | ||||||||||||||||
Options granted | 136,350 | 34.84 | 128,850 | 19.25 | 118,900 | 15.66 | |||||||||||||||||||
Options exercised | (204,240 | ) | 11.68 | (226,160 | ) | 12.72 | (95,625 | ) | 12.66 | ||||||||||||||||
Options cancelled | (4,750 | ) | 17.47 | (9,730 | ) | 15.37 | (7,620 | ) | 14.37 | ||||||||||||||||
Shares under option - end of year | 643,595 | 19.58 | 716,235 | 14.41 | 823,275 | 13.2 | |||||||||||||||||||
Summary of Options Exercised | ' | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Cash proceeds from stock options exercised | $ | 1,668 | $ | 1,305 | $ | 1,210 | |||||||||||||||||||
Tax benefits | $ | 700 | $ | 100 | $ | - | |||||||||||||||||||
Intrinsic value of stock options exercised | $ | 4,088 | $ | 1,359 | $ | 720 | |||||||||||||||||||
Schedule of Assumptions Used to Estimate Fair Value of Stock Options | ' | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted-average expected stock-price volatility | 37 | % | 38 | % | 40 | % | |||||||||||||||||||
Weighted-average expected option life | 5.0 years | 5.0 years | 4.5 years | ||||||||||||||||||||||
Weighted-average risk-free interest rate | 1.7 | % | 0.7 | % | 0.9 | % | |||||||||||||||||||
Weighted-average dividend yield | 2.7 | % | 1.7 | % | 1.7 | % | |||||||||||||||||||
Schedule of Information about Options Outstanding and Exercisable by Exercise Price | ' | ||||||||||||||||||||||||
Options outstanding | |||||||||||||||||||||||||
Number | weighted average remaining | Options | |||||||||||||||||||||||
Exercise prices | outstanding | contractual life | exercisable | ||||||||||||||||||||||
$6.15 - $6.93 | 47,930 | 0.99 years | 47,930 | ||||||||||||||||||||||
$11.30 - $11.41 | 39,225 | 0.12 years | 39,225 | ||||||||||||||||||||||
$12.14 | 78,120 | 2.00 years | 60,010 | ||||||||||||||||||||||
$13.45 | 3,000 | 1.08 years | 1,875 | ||||||||||||||||||||||
$15.59 - $15.62 | 113,010 | 3.90 years | 44,550 | ||||||||||||||||||||||
$17.07 - $17.94 | 6,750 | 2.68 years | 1,625 | ||||||||||||||||||||||
$19.03 - $19.33 | 219,210 | 4.11 years | 80,910 | ||||||||||||||||||||||
$21.76 | 5,000 | 4.09 years | - | ||||||||||||||||||||||
$22.20 | 4,000 | 5.09 years | - | ||||||||||||||||||||||
$35.75 | 127,350 | 6.00 years | - | ||||||||||||||||||||||
Totals | 643,595 | 3.69 Years | 276,125 |
Net_Income_Attributable_to_Int2
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income attributable to Inter Parfums, Inc. | $ | 39,211 | $ | 131,136 | $ | 32,303 | |||||||
Effect of dilutive securities of consolidated subsidiary | - | (168 | ) | (82 | ) | ||||||||
Numerator for diluted earnings per share | $ | 39,211 | $ | 130,968 | $ | 32,221 | |||||||
Denominator: | |||||||||||||
Weighted average shares | 30,763,955 | 30,574,772 | 30,514,529 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options and warrants | 189,927 | 140,912 | 163,296 | ||||||||||
Denominator for diluted earnings per share | 30,953,882 | 30,715,684 | 30,677,825 | ||||||||||
Earnings per share: | |||||||||||||
Net income attributable to Inter Parfums, Inc. common shareholders: | |||||||||||||
Basic | $ | 1.27 | $ | 4.29 | $ | 1.06 | |||||||
Diluted | 1.27 | 4.26 | 1.05 |
Segment_and_Geographic_Areas_T
Segment and Geographic Areas (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment and Geographical Areas [Abstract] | ' | ||||||||||||
Schedule of Information by Operating Segment | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales: | |||||||||||||
United States | $ | 99,158 | $ | 83,106 | $ | 62,976 | |||||||
Europe | 464,562 | 571,877 | 552,415 | ||||||||||
Eliminations of intercompany sales | (141 | ) | (866 | ) | (171 | ) | |||||||
$ | 563,579 | $ | 654,117 | $ | 615,220 | ||||||||
Net income attributable to Inter Parfums, Inc.: | |||||||||||||
United States | $ | 6,806 | $ | 5,078 | $ | 2,108 | |||||||
Europe | 32,392 | 126,045 | 30,217 | ||||||||||
Eliminations | 13 | 13 | (22 | ) | |||||||||
$ | 39,211 | $ | 131,136 | $ | 32,303 | ||||||||
Depreciation and amortization expense: | |||||||||||||
United States | $ | 1,216 | $ | 958 | $ | 507 | |||||||
Europe | 9,894 | 14,596 | 12,566 | ||||||||||
$ | 11,110 | $ | 15,554 | $ | 13,073 | ||||||||
Interest and dividend income: | |||||||||||||
United States | $ | 16 | $ | 7 | $ | 10 | |||||||
Europe | 4,424 | 1,126 | 1,095 | ||||||||||
$ | 4,440 | $ | 1,133 | $ | 1,105 | ||||||||
Interest expense: | |||||||||||||
United States | $ | 13 | $ | 38 | $ | 11 | |||||||
Europe | 1,367 | 1,616 | 2,186 | ||||||||||
$ | 1,380 | $ | 1,654 | $ | 2,197 | ||||||||
Income tax expense (benefit): | |||||||||||||
United States | $ | 4,512 | $ | 3,804 | $ | 1,405 | |||||||
Europe | 25,159 | 94,063 | 23,053 | ||||||||||
Eliminations | 9 | 8 | (14 | ) | |||||||||
$ | 29,680 | $ | 97,875 | $ | 24,444 | ||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total assets: | |||||||||||||
United States | $ | 76,980 | $ | 64,278 | $ | 59,841 | |||||||
Europe | 596,153 | 704,464 | 465,747 | ||||||||||
Eliminations of investment in subsidiary | (9,075 | ) | (8,822 | ) | (9,554 | ) | |||||||
$ | 664,058 | $ | 759,920 | $ | 516,034 | ||||||||
Additions to long-lived assets: | |||||||||||||
United States | $ | 7,629 | $ | 3,131 | $ | 572 | |||||||
Europe | 5,155 | 26,060 | 13,979 | ||||||||||
$ | 12,784 | $ | 29,191 | $ | 14,551 | ||||||||
Total long-lived assets: | |||||||||||||
United States | $ | 13,823 | $ | 7,572 | $ | 5,400 | |||||||
Europe | 112,864 | 118,712 | 117,638 | ||||||||||
$ | 126,687 | $ | 126,284 | $ | 123,038 | ||||||||
Deferred tax assets: | |||||||||||||
United States | $ | 341 | $ | 762 | $ | 1,505 | |||||||
Europe | 6,916 | 12,361 | 5,748 | ||||||||||
Eliminations | - | 9 | 17 | ||||||||||
$ | 7,257 | $ | 13,132 | $ | 7,270 | ||||||||
Schedule of Net Sales by Region | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
North America | $ | 154,300 | $ | 175,400 | $ | 150,000 | |||||||
Europe | 215,600 | 241,300 | 246,000 | ||||||||||
Central and South America | 42,400 | 53,000 | 61,000 | ||||||||||
Middle East | 43,300 | 62,100 | 57,000 | ||||||||||
Asia | 98,600 | 115,300 | 95,000 | ||||||||||
Other | 9,400 | 7,000 | 6,200 | ||||||||||
$ | 563,600 | $ | 654,100 | $ | 615,200 | ||||||||
Schedule of Net Sales by Major Customer | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 150,000 | $ | 167,000 | $ | 138,000 | |||||||
United Kingdom | $ | 46,000 | $ | 48,000 | $ | 45,000 | |||||||
France | $ | 47,000 | $ | 46,000 | $ | 48,000 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Schedule of Income Before Income Taxes | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. operations | $ | 11,340 | $ | 8,904 | $ | 3,478 | |||||||
Foreign operations | 69,306 | 265,861 | 63,915 | ||||||||||
$ | 80,646 | $ | 274,765 | $ | 67,393 | ||||||||
Schedule of Current and Deferred Income Tax Expense (Benefit) | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 3,638 | $ | 2,511 | $ | 1,269 | |||||||
State and local | 454 | 558 | 286 | ||||||||||
Foreign | 20,744 | 102,717 | 23,898 | ||||||||||
24,836 | 105,786 | 25,453 | |||||||||||
Deferred: | |||||||||||||
Federal | 370 | 703 | (170 | ) | |||||||||
State and local | 59 | 40 | 3 | ||||||||||
Foreign | 4,415 | (8,654 | ) | (842 | ) | ||||||||
4,844 | (7,911 | ) | (1,009 | ) | |||||||||
Total income tax expense | $ | 29,680 | $ | 97,875 | $ | 24,444 | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Foreign net operating loss carry-forwards | $ | 707 | $ | 591 | |||||||||
Inventory and accounts receivable | 626 | 703 | |||||||||||
Profit sharing | 4,805 | 6,352 | |||||||||||
Stock option compensation | 526 | 540 | |||||||||||
Effect of inventory profit elimination | 1,710 | 5,560 | |||||||||||
Other | (410 | ) | (23 | ) | |||||||||
Total gross deferred tax assets | 7,964 | 13,723 | |||||||||||
Valuation allowance | (707 | ) | (591 | ) | |||||||||
Net deferred tax assets | 7,257 | 13,132 | |||||||||||
Deferred tax liabilities (long-term): | |||||||||||||
Trademarks and licenses | (2,555 | ) | (3,502 | ) | |||||||||
Other | - | (297 | ) | ||||||||||
Total deferred tax liabilities | (2,555 | ) | (3,799 | ) | |||||||||
Net deferred tax assets | $ | 4,702 | $ | 9,333 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory rates | 34 | % | 34 | % | 34 | % | |||||||
State and local taxes, net of Federal benefit | 0.4 | 0.1 | 0.3 | ||||||||||
Effect of foreign taxes greater than (less than) U.S. statutory rates | 2 | 1.4 | 2 | ||||||||||
Other | 0.4 | 0.1 | - | ||||||||||
Effective rates | 36.8 | % | 35.6 | % | 36.3 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Components of Accumulated Other Comprehensive Income | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net derivative instruments, beginning of year | $ | 240 | $ | 224 | $ | 213 | |||||||
Transfer from OCI into earnings | (240 | ) | - | - | |||||||||
Gain on derivative instruments | - | 16 | 11 | ||||||||||
Net derivative instruments, end of year | - | 240 | 224 | ||||||||||
Cumulative translation adjustments, beginning of year | 12,258 | 7,523 | 14,544 | ||||||||||
Translation adjustments | 13,602 | 4,735 | (7,021 | ) | |||||||||
Cumulative translation adjustments, end of year | 25,860 | 12,258 | 7,523 | ||||||||||
Accumulated other comprehensive income | $ | 25,860 | $ | 12,498 | $ | 7,747 |
Net_Income_Attributable_to_Int3
Net Income Attributable to Inter Parfums, Inc. and Transfers From the Noncontrolling Interest (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interst [Abstract] | ' | ||||||||||||
Schedule of Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | ' | ||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income attributable to Inter Parfums, Inc. | $ | 39,211 | $ | 131,136 | $ | 32,303 | |||||||
Increase (decrease) in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions | (173 | ) | 737 | 209 | |||||||||
Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest | $ | 39,038 | $ | 131,873 | $ | 32,512 |
The_Company_and_its_Significan3
The Company and its Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Burberry [Member] | Burberry [Member] | Minimum [Member] | Maximum [Member] | ||||
The Company and its Significant Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage in Interparfums SA | 73.00% | ' | ' | ' | ' | ' | ' |
Allowances for sales returns and doubtful accounts | $6.40 | $10.60 | ' | ' | ' | ' | ' |
Overhead | 3.6 | 4 | 4.4 | ' | ' | ' | ' |
Shipping and handling costs | 6.1 | 8.4 | 8.8 | ' | ' | ' | ' |
Advertising costs | 94 | 132.7 | 127.8 | ' | ' | ' | ' |
Customer incentives cost | 25.7 | 46.5 | 48.4 | ' | ' | ' | ' |
Accrued advertising liabilities | 22.4 | 24.4 | ' | ' | ' | ' | ' |
Weighted average cost of capital | 6.70% | ' | ' | ' | ' | ' | ' |
Equipment and License Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | '3 years | '10 years |
License agreement term | ' | ' | ' | ' | ' | '5 years | '15 years |
License agreement renwal term | ' | ' | ' | ' | ' | '1 year | '14 years |
Royalty expense, percentage of net sales | 7.20% | 9.00% | 8.30% | ' | ' | 5.00% | 10.00% |
Inventory reserves | $6.80 | $19.90 | ' | $0 | $10 | ' | ' |
The_Company_and_its_Significan4
The Company and its Significant Accounting Policies (Product Sales Concentration) (Details) (Net sales [Member], Product Concentration Risk [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Burberry [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 23.00% | 46.00% | 50.00% |
Lanvin [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 15.00% | 12.00% | 13.00% |
Montblanc [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 15.00% | 9.00% | 7.00% |
Jimmy Choo [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Percentage | 13.00% | 8.00% | 7.00% |
Termination_of_Burberry_Licens2
Termination of Burberry License (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Licensing Agreements [Line Items] | ' | ' | ' | ' | ' |
Inventory reserves | ' | $6.80 | ' | ' | $19.90 |
Burberry [Member] | ' | ' | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' | ' | ' |
Estimated inventory | ' | ' | ' | 20 | ' |
Estimated aggregate inventories | ' | ' | ' | 18 | ' |
Inventory purchased by Burberry at cost | 7.8 | ' | ' | ' | ' |
Inventory reserves | ' | ' | 0 | ' | 10 |
Proceeds from sale of fixed assets | ' | $2.80 | ' | ' | ' |
Termination_of_Burberry_Licens3
Termination of Burberry License (Summary of the Gain on Termination of the License) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Licensing Agreements [Line Items] | ' | ' | ' |
Gain on termination of license | ' | $198,838 | ' |
Burberry [Member] | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' |
Exit payment | ' | 239,075 | ' |
Inventory reserves | ' | 10,037 | ' |
Wages including $13.8 million in Interparfums SA profit sharing requirements | ' | 14,391 | ' |
Write-off of intangible assets | ' | 7,675 | ' |
Writedown of fixed assets | ' | 3,483 | ' |
Write-off of unsued modeling rights | ' | 1,226 | ' |
Legal, professional and other agreed settlements | ' | 3,425 | ' |
Expenses of termination | ' | 40,237 | ' |
Gain on termination of license | ' | 198,838 | ' |
Burberry [Member] | Interparfums SA [Member] | ' | ' | ' |
Licensing Agreements [Line Items] | ' | ' | ' |
Wages including $13.8 million in Interparfums SA profit sharing requirements | ' | $13,800 | ' |
Recent_Agreements_Details
Recent Agreements (Details) | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Oscar de la Renta [Member] | Agent Provocateur [Member] | Shanghai Tang [Member] | Dunhill [Member] | Karl Lagerfeld [Member] | Karl Lagerfeld [Member] | Repetto [Member] | Pierre Balmain [Member] | Pierre Balmain [Member] | Anna Sui [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | ||||
Licensing Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
License agreement term | '12 years | '10 years 6 months | '12 years | '10 years | '20 years | '20 years | '13 years | '12 years | '12 years | '10 years |
License agreement renwal term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years |
License entry fee | $5 | ' | ' | $0.90 | $12.50 | € 9.60 | ' | $2.70 | € 2.10 | $2 |
Advance royalty payment | ' | ' | ' | ' | 12.5 | 9.6 | ' | ' | ' | ' |
Royalties due, minimum amount to use prepaid credit | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' | ' |
Credit against future royalty payments, maximum amount | ' | ' | ' | ' | ' | 0.5 | ' | ' | ' | ' |
Advance royalty payment, net present value | ' | ' | ' | ' | $4.40 | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials and component parts | $47,800 | $47,732 |
Finished goods | 69,547 | 94,882 |
Inventories | $117,347 | $142,614 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Short-term investments | $181,677 | ' |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 157 | 784 |
Total assets | 181,834 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets: | ' | ' |
Short-term investments | ' | ' |
Foreign currency forward exchange contracts not accounted for using hedge accounting | ' | ' |
Total assets | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Short-term investments | 181,677 | ' |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 157 | 784 |
Total assets | 181,834 | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets: | ' | ' |
Short-term investments | ' | ' |
Foreign currency forward exchange contracts not accounted for using hedge accounting | ' | ' |
Total assets | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | 12 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | |
USD ($) | GBP (£) | Interest rate swaps [Member] | Interest rate swaps [Member] | Foreign exchange contracts [Member] | Foreign exchange contracts [Member] | ||
Interest expense [Member] | Interest expense [Member] | Gain (loss) on foreign currency [Member] | Gain (loss) on foreign currency [Member] | ||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in income on derivative | ' | ' | ' | ' | $68,000 | $11,000 | $153,000 |
Notional amount | ' | $8,300,000 | £ 2,100,000 | ' | ' | ' | ' |
Maximum maturity period | '1 year | ' | ' | ' | ' | ' | ' |
Equipment_and_Leasehold_Improv2
Equipment and Leasehold Improvements (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equipment and Leasehold Improvements [Abstract] | ' | ' | ' |
Depreciation and amortization expense | $4,900,000 | $8,600,000 | $6,000,000 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Equipment and leasehold improvements | 28,549,000 | 43,912,000 | ' |
Less accumulated depreciation and amortization | 18,105,000 | 31,623,000 | ' |
Equipment and leasehold improvements, net | 10,444,000 | 12,289,000 | ' |
Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Equipment and leasehold improvements | 25,597,000 | 41,447,000 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Equipment and leasehold improvements | $2,952,000 | $2,465,000 | ' |
Trademarks_Licenses_and_Other_2
Trademarks, Licenses and Other Intangible Assets (Narrative) (Details) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Lanvin [Member] | Lanvin [Member] | Minimum [Member] | Maximum [Member] | Trademarks [Member] | Licenses [Member] | Other Intangible Assets [Member] | |
USD ($) | EUR (€) | |||||||||
Trademarks, Licenses and Other Intangible Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | $6,200,000 | $7,000,000 | $7,900,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average cost of capital | 6.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of intangible assets | 3,481,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future amortization expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 6,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 6,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | '14 years | ' | ' | ' | ' | '3 years | '20 years | '18 years | '13 years | '2 years |
Licensing Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase price | ' | ' | ' | $97,000,000 | € 70,000,000 | ' | ' | ' | ' | ' |
Trademarks_Licenses_and_Other_3
Trademarks, Licenses and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Trademarks, Licenses and Other Intangible Assets [Abstract] | ' | ' |
Trademarks (indefinite lives) | $4,257 | $6,631 |
Total Gross Amount | 150,382 | 144,588 |
Total Accumulated Amortization | 34,139 | 31,547 |
Total Net Book Value | 116,243 | 113,041 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 146,125 | 137,957 |
Accumulated Amortization | 34,139 | 31,547 |
Net Book Value | 111,986 | 106,410 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 53,319 | 53,115 |
Accumulated Amortization | 102 | 382 |
Net Book Value | 53,217 | 52,733 |
Licenses [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 80,842 | 69,373 |
Accumulated Amortization | 24,747 | 18,387 |
Net Book Value | 56,095 | 50,986 |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 11,964 | 15,469 |
Accumulated Amortization | 9,290 | 12,778 |
Net Book Value | $2,674 | $2,691 |
Loans_Payable_Banks_Details
Loans Payable - Banks (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loans Payable - Banks [Abstract] | ' | ' |
Weighted average interest rate on short-term borrowings | 2.80% | 0.80% |
Foreign Subsidiaries [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit, maximum borrowing amount | ' | $25 |
Line of credit, amount outstanding | 0 | 27.8 |
Foreign Subsidiaries [Member] | EURIBOR [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Variable rate | 0.30% | ' |
Foreign Subsidiaries [Member] | EURIBOR [Member] | Minimum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread over variable interest rate | 0.60% | ' |
Foreign Subsidiaries [Member] | EURIBOR [Member] | Median [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread over variable interest rate | 0.70% | ' |
Foreign Subsidiaries [Member] | EURIBOR [Member] | Maximum [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread over variable interest rate | 0.80% | ' |
Parent and Domestic Subsidiaries [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Line of credit, maximum borrowing amount | 15 | ' |
Line of credit, amount outstanding | $6.10 | $0 |
Maturity | 1-May-14 | ' |
Parent and Domestic Subsidiaries [Member] | Prime Rate [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Basis spread over variable interest rate | 0.50% | ' |
Variable rate | 3.25% | ' |
Commitments_Leases_Details
Commitments (Leases) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments [Abstract] | ' | ' | ' |
Rent expense | $10,800,000 | $11,800,000 | $12,700,000 |
Minimum future annual rental payments: | ' | ' | ' |
2014 | 4,993,000 | ' | ' |
2015 | 4,888,000 | ' | ' |
2016 | 4,902,000 | ' | ' |
2017 | 4,581,000 | ' | ' |
2018 | 4,103,000 | ' | ' |
Thereafter | 10,024,000 | ' | ' |
Total | $33,491,000 | ' | ' |
Commitments_License_Agreements
Commitments (License Agreements) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Future minimum annual commitments: | ' | ' | ' |
2014 | $102,123,000 | ' | ' |
2015 | 115,400,000 | ' | ' |
2016 | 120,843,000 | ' | ' |
2017 | 119,158,000 | ' | ' |
2018 | 121,627,000 | ' | ' |
Thereafter | 540,209,000 | ' | ' |
Total | 1,119,360,000 | ' | ' |
Royalty expense, percentage of net sales | 7.20% | 9.00% | 8.30% |
Royalty expense | $40,500,000 | $58,800,000 | $51,300,000 |
Equity_Narrative_Details
Equity (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Inter Parfums, Inc. [Member] | Interparfums SA [Member] | Interparfums SA [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | President [Member] | President [Member] | President [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '5 years |
Employee stock options, fair value of shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | $900,000 | ' | ' | ' |
Decrease in income before income tax due to share-based payment expense | ' | 800,000 | 800,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in income attributable to Inter Parfums, Inc due to share-based payment expense | ' | 500,000 | 500,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in diluted earnings per share due to share-based payment expense | ' | $10,000 | $10,000 | $20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 461,075 | ' | ' | ' | ' |
Aggregate intrinsic value of options outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,400,000 | ' | ' | ' | ' |
Unrecognized compensation cost related to stock options | ' | ' | ' | ' | 2,300,000 | 150,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | ' | ' | '5 years | '4 years | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value | ' | $9.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9.20 | $5.54 | $4.59 | ' | ' |
Options exercisable, weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13.76 | ' | ' | ' | ' |
Weighted average remaining contractual life of options outstanding, options exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 3 months 26 days | ' | ' | ' | ' |
Aggregate intrinsic value of exercisable options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,100,000 | ' | ' | ' | ' |
Shares issued upon exercise of stock options, shares | ' | 204,240 | 226,160 | 95,625 | ' | ' | ' | 13,875 | 28,500 | 60,000 | 13,875 | 28,500 | 60,000 | ' | ' | ' | ' | ' |
Exercises, aggregate exercise prices | ' | 4,088,000 | 1,359,000 | 720,000 | ' | ' | ' | 300,000 | 700,000 | 1,600,000 | 300,000 | 700,000 | 1,600,000 | ' | ' | ' | ' | ' |
Shares tendered for options exercised | ' | ' | ' | ' | ' | ' | ' | 10,080 | 18,880 | 82,322 | 10,080 | 18,880 | 82,322 | ' | ' | ' | ' | ' |
Shares tendered for tax withholding | ' | ' | ' | ' | ' | ' | ' | 1,193 | 2,573 | 4,710 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared | $3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared per share | $0.12 | $0.96 | $0.32 | $0.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared, date | '2013-12 | '2013-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared, payment date | '2014-01 | '2014-01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared, date | 31-Mar-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared, date to be paid | 15-Apr-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Schedule_of_Nonvested_O
Equity (Schedule of Nonvested Option Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Nonvested Options, Number of Shares | ' |
Beginning of year | 346,075 |
Granted | 136,350 |
Vested or forfeited | -114,955 |
End of year | 367,470 |
Weighted Average Grant Date Fair Value | ' |
Beginning of year | $5.02 |
Granted | $9.20 |
Vested or forfeited | $4.67 |
End of year | $6.68 |
Equity_Schedule_of_Stock_Optio
Equity (Schedule of Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shares | ' | ' | ' |
Shares under option - beginning of year | 716,235 | 823,275 | 807,620 |
Options granted | 136,350 | 128,850 | 118,900 |
Options exercised | -204,240 | -226,160 | -95,625 |
Options cancelled | -4,750 | -9,730 | -7,620 |
Shares under option - end of year | 643,595 | 716,235 | 823,275 |
Weighted Average Exercise Price | ' | ' | ' |
Shares under option - beginning of year | $14.41 | $13.20 | $12.78 |
Options granted | $34.84 | $19.25 | $15.66 |
Options exercised | $11.68 | $12.72 | $12.66 |
Options cancelled | $17.47 | $15.37 | $14.37 |
Shares under option - end of year | $19.58 | $14.41 | $13.20 |
Equity_Schedule_of_Assumptions
Equity (Schedule of Assumptions Used to Estimate Fair Value of Stock Options) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equity [Abstract] | ' | ' | ' |
Weighted-average expected stock-price volatility | 37.00% | 38.00% | 40.00% |
Weighted-average expected option life | '5 years | '5 years | '4 years 6 months |
Weighted-average risk-free interest rate | 1.70% | 0.70% | 0.90% |
Weighted-average dividend yield | 2.70% | 1.70% | 1.70% |
Equity_Summary_of_Stock_Option
Equity (Summary of Stock Options Exercised) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Cash proceeds from stock options exercised | $1,668 | $1,305 | $1,210 |
Exercise of stock options, income tax benefit | 700 | 100 | ' |
Intrinsic value of stock options exercised | $4,088 | $1,359 | $720 |
Equity_Summary_of_Stock_Option1
Equity (Summary of Stock Options by Exercise Price Range) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $6.15 |
Exercise price range, maximum | $33.75 |
Number outstanding | 643,595 |
Options outstanding weighted average remaining contractual life | '3 years 8 months 9 days |
Options exercisable | 276,125 |
$6.15 - $6.93 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $6.15 |
Exercise price range, maximum | $6.93 |
Number outstanding | 47,930 |
Options outstanding weighted average remaining contractual life | '11 months 27 days |
Options exercisable | 47,930 |
$11.30 - $11.41 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $11.30 |
Exercise price range, maximum | $11.41 |
Number outstanding | 39,225 |
Options outstanding weighted average remaining contractual life | '1 month 13 days |
Options exercisable | 39,225 |
$12.14 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $12.14 |
Exercise price range, maximum | $12.14 |
Number outstanding | 78,120 |
Options outstanding weighted average remaining contractual life | '2 years |
Options exercisable | 60,010 |
$13.45 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $13.45 |
Exercise price range, maximum | $13.45 |
Number outstanding | 3,000 |
Options outstanding weighted average remaining contractual life | '1 year 29 days |
Options exercisable | 1,875 |
$15.59 - $15.62 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $15.59 |
Exercise price range, maximum | $15.62 |
Number outstanding | 113,010 |
Options outstanding weighted average remaining contractual life | '3 years 10 months 24 days |
Options exercisable | 44,550 |
$17.07 - $17.94 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $17.07 |
Exercise price range, maximum | $17.94 |
Number outstanding | 6,750 |
Options outstanding weighted average remaining contractual life | '2 years 8 months 5 days |
Options exercisable | 1,625 |
$19.03 - $19.33 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $19.03 |
Exercise price range, maximum | $19.33 |
Number outstanding | 219,210 |
Options outstanding weighted average remaining contractual life | '4 years 1 month 10 days |
Options exercisable | 80,910 |
$21.76 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $21.76 |
Exercise price range, maximum | $21.76 |
Number outstanding | 5,000 |
Options outstanding weighted average remaining contractual life | '4 years 1 month 2 days |
Options exercisable | ' |
$22.20 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $22.20 |
Exercise price range, maximum | $22.20 |
Number outstanding | 4,000 |
Options outstanding weighted average remaining contractual life | '5 years 1 month 2 days |
Options exercisable | ' |
$35.75 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise price range, minimum | $33.75 |
Exercise price range, maximum | $33.75 |
Number outstanding | 127,350 |
Options outstanding weighted average remaining contractual life | '6 years |
Options exercisable | ' |
Net_Income_Attributable_to_Int4
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' |
Net income (loss) attributable to Inter Parfums, Inc. | $39,211 | $131,136 | $32,303 |
Effect of dilutive securities of consolidated subsidiary | ' | -168 | -82 |
Numerator for diluted earnings per share | $39,211 | $130,968 | $32,221 |
Denominator: | ' | ' | ' |
Weighted average shares | 30,763,955 | 30,574,772 | 30,514,529 |
Effect of dilutive securities, stock options and warrants | 189,927 | 140,912 | 163,296 |
Denominator for diluted earnings per share | 30,953,882 | 30,715,684 | 30,677,825 |
Earnings per share: | ' | ' | ' |
Basic | $1.27 | $4.29 | $1.06 |
Diluted | $1.27 | $4.26 | $1.05 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potentially antidilutive common shares | 32,000 | 230,000 | 118,000 |
Segment_and_Geographic_Areas_S
Segment and Geographic Areas (Schedule of Information by Operating Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | $563,579 | $654,117 | $615,220 |
Net income attributable to Inter Parfums, Inc. | 39,211 | 131,136 | 32,303 |
Depreciation and amortization expense | 11,110 | 15,554 | 13,073 |
Interest and dividend income | 4,440 | 1,133 | 1,105 |
Interest expense | 1,380 | 1,654 | 2,197 |
Income tax expense (benefit) | 29,680 | 97,875 | 24,444 |
Total assets | 664,058 | 759,920 | 516,034 |
Additions to long-lived assets | 12,784 | 29,191 | 14,551 |
Total long-lived assets | 126,687 | 126,284 | 123,038 |
Deferred tax assets | 7,257 | 13,132 | 7,270 |
United States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 99,158 | 83,106 | 62,976 |
Net income attributable to Inter Parfums, Inc. | 6,806 | 5,078 | 2,108 |
Depreciation and amortization expense | 1,216 | 958 | 507 |
Interest and dividend income | 16 | 7 | 10 |
Interest expense | 13 | 38 | 11 |
Income tax expense (benefit) | 4,512 | 3,804 | 1,405 |
Total assets | 76,980 | 64,278 | 59,841 |
Additions to long-lived assets | 7,629 | 3,131 | 572 |
Total long-lived assets | 13,823 | 7,572 | 5,400 |
Deferred tax assets | 341 | 762 | 1,505 |
Europe [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | 464,562 | 571,877 | 552,415 |
Net income attributable to Inter Parfums, Inc. | 32,392 | 126,045 | 30,217 |
Depreciation and amortization expense | 9,894 | 14,596 | 12,566 |
Interest and dividend income | 4,424 | 1,126 | 1,095 |
Interest expense | 1,367 | 1,616 | 2,186 |
Income tax expense (benefit) | 25,159 | 94,063 | 23,053 |
Total assets | 596,153 | 704,464 | 465,747 |
Additions to long-lived assets | 5,155 | 26,060 | 13,979 |
Total long-lived assets | 112,864 | 118,712 | 117,638 |
Deferred tax assets | 6,916 | 12,361 | 5,748 |
Eliminations [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Net sales | -141 | -866 | -171 |
Net income attributable to Inter Parfums, Inc. | 13 | 13 | -22 |
Income tax expense (benefit) | 9 | 8 | -14 |
Total assets | -9,075 | -8,822 | -9,554 |
Deferred tax assets | ' | $9 | $17 |
Segments_and_Geographic_Areas_
Segments and Geographic Areas (Schedule of Net Sales by Region) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment and Geographical Areas [Abstract] | ' | ' | ' |
Export sales | $50,400,000 | $38,800,000 | $24,900,000 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 563,600,000 | 654,100,000 | 615,200,000 |
North America [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 154,300,000 | 175,400,000 | 150,000,000 |
Europe [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 215,600,000 | 241,300,000 | 246,000,000 |
Central and South America [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 42,400,000 | 53,000,000 | 61,000,000 |
Middle East [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 43,300,000 | 62,100,000 | 57,000,000 |
Asia [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | 98,600,000 | 115,300,000 | 95,000,000 |
Other [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Net sales | $9,400,000 | $7,000,000 | $6,200,000 |
Segments_and_Geographic_Areas_1
Segments and Geographic Areas (Schedule of Net Sales by Major Customer) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Net sales | $563,600 | $654,100 | $615,200 |
Unites States [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Net sales | 150,000 | 167,000 | 138,000 |
United Kingdom [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Net sales | 46,000 | 48,000 | 45,000 |
France [Member] | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Net sales | $47,000 | $46,000 | $48,000 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Income Taxes [Abstract] | ' |
Deferred tax liability not recognized for undistributed earnings of foreign subsidiaries | $329 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Components Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
U.S. operations | $11,340 | $8,904 | $3,478 |
Foreign operations | 69,306 | 265,861 | 63,915 |
Income before income taxes | $80,646 | $274,765 | $67,393 |
Income_Taxes_Schedule_of_Incom1
Income Taxes (Schedule of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $3,638 | $2,511 | $1,269 |
State and local | 454 | 558 | 286 |
Foreign | 20,744 | 102,717 | 23,898 |
Current income tax expense | 24,836 | 105,786 | 25,453 |
Deferred: | ' | ' | ' |
Federal | 370 | 703 | -170 |
State and local | 59 | 40 | 3 |
Foreign | 4,415 | -8,654 | -842 |
Deferred income tax (benefit) | 4,844 | -7,911 | -1,009 |
Total income tax expense | $29,680 | $97,875 | $24,444 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | ' | ' | ' |
Foreign net operating loss carry-forwards | $707 | $591 | ' |
Inventory and accounts receivable | 626 | 703 | ' |
Profit sharing | 4,805 | 6,352 | ' |
Stock option compensation | 526 | 540 | ' |
Effect of inventory profit elimination | 1,710 | 5,560 | ' |
Other | -410 | -23 | ' |
Total gross deferred tax assets | 7,964 | 13,723 | ' |
Valuation allowance | -707 | -591 | ' |
Net deferred tax assets | 7,257 | 13,132 | 7,270 |
Deferred tax liabilities (long-term): | ' | ' | ' |
Trademarks and licenses | -2,555 | -3,502 | ' |
Other | ' | -297 | ' |
Total deferred tax liabilities | -2,555 | -3,799 | ' |
Net deferred tax assets | $4,702 | $9,333 | ' |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of the Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Abstract] | ' | ' | ' |
Statutory rates | 34.00% | 34.00% | 34.00% |
State and local taxes, net of Federal benefit | 0.40% | 0.10% | 0.30% |
Effect of foreign taxes greater than (less than) U.S. statutory rates | 2.00% | 1.40% | 2.00% |
Other | 0.40% | 0.10% | ' |
Effective rates | 36.80% | 35.60% | 36.30% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
End of year | $25,860 | $12,498 | $7,747 |
Net derivative instruments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning of year | 240 | 224 | 213 |
Transfer from OCI into earnings | -240 | ' | ' |
Other comprehensive income (loss) before transfers from OCI into earnings | ' | 16 | 11 |
End of year | ' | 240 | 224 |
Cumulative translation adjustments [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning of year | 12,258 | 7,523 | 14,544 |
Other comprehensive income (loss) before transfers from OCI into earnings | 13,602 | 4,735 | -7,021 |
End of year | $25,860 | $12,258 | $7,523 |
Net_Income_Attributable_to_Int5
Net Income Attributable to Inter Parfums, Inc. and Transfers From the Noncontrolling Interest (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interst [Abstract] | ' | ' | ' |
Net income (loss) attributable to Inter Parfums, Inc. | $39,211 | $131,136 | $32,303 |
Increase (decrease) in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions | -173 | 737 | 209 |
Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest | $39,038 | $131,873 | $32,512 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for Doubtful Accounts [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | $6,074 | $5,320 | $4,367 | |||
Charged to costs and expenses | 574 | 914 | 2,838 | |||
Charged to other accounts | 123 | [1] | 120 | [1] | -211 | [1] |
Deductions | 4,238 | [2] | 280 | [2] | 1,674 | [2] |
Balance at end of period | 2,533 | 6,074 | 5,320 | |||
Sales Return Accrual [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 4,526 | 4,172 | 1,560 | |||
Charged to costs and expenses | 3,751 | 4,249 | 4,129 | |||
Charged to other accounts | ' | ' | ' | |||
Deductions | 4,434 | [3] | 3,895 | [3] | 1,517 | [3] |
Balance at end of period | 3,843 | 4,526 | 4,172 | |||
Inventory Reserve [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 19,923 | 7,460 | 6,242 | |||
Charged to costs and expenses | 6,794 | 17,957 | 3,880 | |||
Charged to other accounts | 323 | [1] | 449 | [1] | -272 | [1] |
Deductions | 20,249 | [4] | 5,943 | [4] | 2,390 | [4] |
Balance at end of period | $6,791 | $19,923 | $7,460 | |||
[1] | Foreign currency translation adjustment | |||||
[2] | Write-off of bad debts | |||||
[3] | Write-off of sales returns | |||||
[4] | Disposal of inventory |