Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INTER PARFUMS INC | |
Entity Central Index Key | 822663 | |
Amendment Flag | FALSE | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Current Fiscal Year End Date | -19 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 30,983,441 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $87,242 | $90,138 |
Short-term investments | 155,938 | 190,152 |
Accounts receivable, net | 96,387 | 90,124 |
Inventories | 104,554 | 102,326 |
Receivables, other | 1,473 | 1,542 |
Other current assets | 4,665 | 4,504 |
Income taxes receivable | 333 | 929 |
Deferred tax assets | 6,953 | 6,848 |
Total current assets | 457,545 | 486,563 |
Equipment and leasehold improvements, net | 8,253 | 9,187 |
Trademarks, licenses and other intangible assets, net | 88,012 | 98,531 |
Other assets | 9,953 | 10,225 |
Total assets | 563,763 | 604,506 |
Current liabilities: | ||
Loans payable - banks | 425 | 298 |
Accounts payable - trade | 53,373 | 46,646 |
Accrued expenses | 38,678 | 49,194 |
Income taxes payable | 5,466 | 3,773 |
Dividends payable | 4,028 | 3,717 |
Total current liabilities | 101,970 | 103,628 |
Deferred tax liability | 1,894 | 2,154 |
Inter Parfums, Inc. shareholders' equity: | ||
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued | ||
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 30,982,101 and 30,977,293 shares at March 31, 2015 and December 31, 2014, respectively | 31 | 31 |
Additional paid-in capital | 60,470 | 60,200 |
Retained earnings | 380,100 | 374,121 |
Accumulated other comprehensive income (loss) | -51,059 | -15,823 |
Treasury stock, at cost, 9,897,995 shares at March 31, 2015 and December 31, 2014, respectively | -36,464 | -36,464 |
Total Inter Parfums, Inc. shareholders' equity | 353,078 | 382,065 |
Noncontrolling interest | 106,821 | 116,659 |
Total equity | 459,899 | 498,724 |
Total liabilities and equity | $563,763 | $604,506 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [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 | 30,982,101 | 30,977,293 |
Treasury shares, shares | 9,897,995 | 9,897,995 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ||
Net sales | $109,249 | $121,730 |
Cost of sales | 41,639 | 52,500 |
Gross margin | 67,610 | 69,230 |
Selling, general and administrative expenses | 46,544 | 51,807 |
Income from operations | 21,066 | 17,423 |
Other expenses (income): | ||
Interest expense | 158 | 273 |
Loss (gain) on foreign currency | 2,006 | -49 |
Interest and dividend income | -1,196 | -1,111 |
Other expenses (income) | 968 | -887 |
Income before income taxes | 20,098 | 18,310 |
Income taxes | 6,793 | 6,160 |
Net income | 13,305 | 12,150 |
Less: Net income attributable to the noncontrolling interest | 3,298 | 3,256 |
Net income attributable to Inter Parfums, Inc. | $10,007 | $8,894 |
Net income attributable to Inter Parfums, Inc. common shareholders: | ||
Basic | $0.32 | $0.29 |
Diluted | $0.32 | $0.29 |
Weighted average number of shares outstanding: | ||
Basic | 30,979 | 30,900 |
Diluted | 31,072 | 31,058 |
Dividends declared per share | $0.13 | $0.12 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Comprehensive income (loss): | ||
Net income | $13,305 | $12,150 |
Other comprehensive income (loss): | ||
Net derivative instrument loss, net of tax | -608 | |
Translation adjustments, net of tax | -47,868 | -1,397 |
Comprehensive income (loss) | -35,171 | 10,753 |
Comprehensive income (loss) attributable to the noncontrolling interests: | ||
Net income | 3,298 | 3,256 |
Other comprehensive income (loss): | ||
Net derivative instrument loss, net of tax | -165 | |
Translation adjustments, net of tax | -13,075 | -478 |
Comprehensive income (loss) attributable to the noncontrolling interests | -9,942 | 2,778 |
Comprehensive income (loss) attributable to Inter Parfums, Inc. | ($25,229) | $7,975 |
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 (loss) [Member] | Treasury stock [Member] | Noncontrolling interest [Member] |
In Thousands | |||||||
Balance at Dec. 31, 2013 | $31 | $57,877 | $359,459 | $25,860 | ($36,016) | $128,145 | |
Net income | 12,150 | 8,894 | 3,256 | ||||
Foreign currency translation adjustment | -919 | -478 | |||||
Net derivative instrument loss, net of tax | |||||||
Shares issued upon exercise of stock options | 908 | 101 | |||||
Shares received as proceeds of option exercises | -351 | ||||||
Sale of subsidiary shares to noncontrolling interest | -319 | 1,309 | |||||
Dividends | -3,712 | ||||||
Stock-based compensation | 168 | 29 | 10 | ||||
Balance at Mar. 31, 2014 | 544,252 | 31 | 58,634 | 364,670 | 24,941 | -36,266 | 132,242 |
Balance at Dec. 31, 2014 | 498,724 | 31 | 60,200 | 374,121 | -15,823 | -36,464 | 116,659 |
Net income | 13,305 | 10,007 | 3,298 | ||||
Foreign currency translation adjustment | -34,793 | -13,075 | |||||
Net derivative instrument loss, net of tax | -443 | -165 | |||||
Shares issued upon exercise of stock options | 82 | ||||||
Shares received as proceeds of option exercises | |||||||
Sale of subsidiary shares to noncontrolling interest | -6 | 104 | |||||
Dividends | -4,028 | ||||||
Stock-based compensation | 194 | ||||||
Balance at Mar. 31, 2015 | $459,899 | $31 | $60,470 | $380,100 | ($51,059) | ($36,464) | $106,821 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $13,305 | $12,150 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 2,228 | 2,545 |
Provision for doubtful accounts | 47 | 8 |
Noncash stock compensation | 194 | 230 |
Deferred tax expense (benefit) | -503 | 447 |
Changes in: | ||
Accounts receivable | -14,397 | -20,927 |
Inventories | -11,679 | -850 |
Other assets | -1,564 | -1,821 |
Accounts payable and accrued expenses | 8,480 | -17,616 |
Income taxes, net | 2,578 | -1,425 |
Net cash used in operating activities | -1,311 | -27,259 |
Cash flows from investing activities: | ||
Purchases of short-term investments | -56,437 | -142,110 |
Proceeds from sale of short-term investments | 69,593 | 96,146 |
Purchases of equipment and leasehold improvements | -687 | -709 |
Payment for intangible assets acquired | -774 | -522 |
Net cash provided by (used in) investing activities | 11,695 | -47,195 |
Cash flows from financing activities: | ||
Proceeds from (repayments of) loans payable - banks, net | 168 | -2,866 |
Proceeds from exercise of options | 82 | 695 |
Proceeds from sale of stock of subsidiary | 98 | 990 |
Dividends paid | -3,717 | -3,704 |
Purchase of treasury stock | -37 | |
Net cash used in financing activities | -3,369 | -4,922 |
Effect of exchange rate changes on cash | -9,911 | -680 |
Net decrease in cash and cash equivalents | -2,896 | -80,056 |
Cash and cash equivalents - beginning of period | 90,138 | 125,650 |
Cash and cash equivalents - end of period | 87,242 | 45,594 |
Cash paid for: | ||
Interest | 168 | 248 |
Income taxes | $7,365 | $5,086 |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | ||
Mar. 31, 2015 | |||
Significant Accounting Policies [Abstract] | |||
Significant Accounting Policies | 1 | Significant Accounting Policies: | |
The accounting policies we follow are set forth in the notes to our financial statements included in our Form 10-K which was filed with the Securities and Exchange Commission for the year ended December 31, 2014. We also discuss such policies in Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended | ||
Mar. 31, 2015 | |||
Recent Accounting Pronouncements [Abstract] | |||
Recent Accounting Pronouncements | 2 | Recent Accounting Pronouncements: | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update which supersedes the most current revenue recognition requirements. The new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption not permitted. We are currently evaluating the standard to determine the impact of its adoption on our consolidated financial statements. | |||
There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements. |
New_Agreements
New Agreements | 3 Months Ended | ||
Mar. 31, 2015 | |||
New Agreements [Abstract] | |||
New Agreements | 3 | New Agreements: | |
In March 2015, the Company, through its majority owned Paris-based subsidiary, Interparfums SA, entered into an agreement with The Procter & Gamble Company to acquire the Rochas brand. This transaction will cover all brand names and registered trademarks for Rochas (Femme, Madame, Eau de Rochas, etc.), mainly for class 3 (cosmetics) and class 25 (fashion). The cost of the acquisition of $108 million is payable in cash on the closing date and is expected to be financed entirely through a medium term loan. This transaction is expected to be completed within the first half of 2015, subject to customary closing conditions. | |||
In April 2015, the Company, through its majority owned Paris-based subsidiary, Interparfums SA, entered into an 11-year exclusive worldwide license with Coach, Inc. to create, produce and distribute new perfumes and fragrance related products, including new men's and women's scents under the Coach brand name. Interparfums SA will distribute these fragrances globally to department stores, specialty stores and duty free shops, as well as in Coach retail stores beginning in 2016. The agreement is subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. |
Inventories
Inventories | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Inventories [Abstract] | |||||||||||||
Inventories | 4 | Inventories: | |||||||||||
Inventories consist of the following: | |||||||||||||
(In thousands) | March 31, | December 31, | |||||||||||
2015 | 2014 | ||||||||||||
Raw materials and component parts | $ | 31,282 | $ | 36,383 | |||||||||
Finished goods | 73,272 | 65,943 | |||||||||||
$ | 104,554 | $ | 102,326 |
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||
Fair Value of Financial Instruments | 5 | Fair Value Measurement: | |||||||||||||||||||
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 March 31, 2015 | ||||||||||||||||||||
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 | $ | 155,938 | $ | — | $ | 155,938 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Foreign currency forward exchange contracts accounted for using hedge | $ | 981 | $ | — | $ | 981 | $ | — | |||||||||||||
accounting | |||||||||||||||||||||
Foreign currency forward exchange contracts not accounted for using hedge | 1,241 | — | 1,241 | — | |||||||||||||||||
accounting | |||||||||||||||||||||
$ | 2,222 | $ | — | $ | 2,222 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
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 | $ | 190,152 | $ | — | $ | 190,152 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Foreign currency forward exchange contracts not accounted for using hedge | $ | 355 | $ | — | $ | 355 | $ | — | |||||||||||||
accounting | |||||||||||||||||||||
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 | 3 Months Ended | ||
Mar. 31, 2015 | |||
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 transactions expected to be denominated in a foreign currency. In connection with the Rochas acquisition, the purchase price of $108 million is payable in cash on the closing date and is expected to be financed entirely through a medium term loan. As the payment at closing is due in dollars and we plan to finance it with debt in euro, the Company entered into foreign currency exchange contracts to secure the exchange rate for the $108 million purchase price at $1.067 per 1 euro. This derivative has been designated and qualifies as a cash flow hedge. The Company did not have any other cash flow hedges during the three months ended March 31, 2015 and 2014. Gains and losses in derivatives not designated as hedges are included in (loss) gain on foreign currency on the accompanying income statement and were immaterial for the three months ended March 31, 2015 and 2014. | |||
All derivative instruments are reported as either assets or liabilities on the balance sheet measured at fair value. The valuation of all foreign currency forward exchange contracts as of March 31, 2015 and December 31, 2014 resulted in a liability that is included in accrued expenses 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 change in fair value of the derivative instrument is recorded as a separate component of shareholders' equity. | |||
At March 31, 2015, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $126.7 million, GB pounds £2.2 million and JPY ¥220.7 million which all have maturities of less than one year. |
ShareBased_Payments
Share-Based Payments | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Share-Based Payments [Abstract] | ||||||||||
Share-Based Payments | 7 | 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 during both the three months ended March 31, 2015 and 2014 aggregated $0.03 million. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. It is generally our policy to issue new shares upon exercise of stock options. | ||||||||||
The following table sets forth information with respect to nonvested options for the three month period ended March 31, 2015: | ||||||||||
Weighted Average | ||||||||||
Number of Shares | Grant Date Fair Value | |||||||||
Nonvested options – beginning of period | 385,505 | $ | 7.14 | |||||||
Nonvested options granted | 14,000 | $ | 6.73 | |||||||
Nonvested options vested or forfeited | (7,085 | ) | $ | 6.39 | ||||||
Nonvested options – end of period | 392,420 | $ | 7.14 | |||||||
Share-based payment expense decreased income before income taxes by $0.19 million and $0.23 million for the three months ended March 31, 2015 and 2014, respectively, and decreased net income attributable to Inter Parfums, Inc. by $0.12 million and $0.11 million for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||
The following table summarizes stock option information as of March 31, 2015: | ||||||||||
Weighted Average | ||||||||||
Shares | Exercise Price | |||||||||
Outstanding at January 1, 2015 | 639,495 | $ | 23.19 | |||||||
Options granted | 14,000 | 25.67 | ||||||||
Options cancelled | (2,170 | ) | 25.49 | |||||||
Options exercised | (4,808 | ) | 17.14 | |||||||
Outstanding at March 31, 2015 | 646,517 | $ | 23.28 | |||||||
Options exercisable | 254,097 | $ | 18.5 | |||||||
Options available for future grants | 316,705 | |||||||||
As of March 31, 2015, the weighted average remaining contractual life of options outstanding is 3.69 years (2.39 years for options exercisable), the aggregate intrinsic value of options outstanding and options exercisable is $6.4 million and $3.7 million, respectively, and unrecognized compensation cost related to stock options outstanding of Inter Parfums, Inc. aggregated $2.5 million. | ||||||||||
Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the three months ended March 31, 2015 and March 31, 2014 were as follows: | ||||||||||
March 31, | March 31, | |||||||||
(In thousands) | 2015 | 2014 | ||||||||
Cash proceeds from stock options exercised | $ | 82 | $ | 695 | ||||||
Tax benefits | 0 | 0 | ||||||||
Intrinsic value of stock options exercised | 66 | 1,455 | ||||||||
The weighted average fair values of the options granted by Inter Parfums, Inc. during the three months ended March 31, 2015 and 2014 were $6.73 and $8.37 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value of options granted. The assumptions used in the Black-Scholes pricing model for the periods ended March 31, 2015 and 2014 are set forth in the following table: | ||||||||||
March 31, | March 31, | |||||||||
2015 | 2014 | |||||||||
Weighted average expected stock-price volatility | 34 | % | 37 | % | ||||||
Weighted average expected option life | 5 years | 5 years | ||||||||
Weighted average risk-free interest rate | 1.28 | % | 1.55 | % | ||||||
Weighted average dividend yield | 1.8 | % | 2.8 | % | ||||||
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 increase as the earnings of the Company and its stock price continue to increase. |
Net_Income_Attributable_to_Int
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |||||||||
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 8 | 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 earnings attributable to Inter Parfums, Inc. by the weighted average number of shares outstanding. Net earnings 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 using the treasury stock method. | |||||||||
The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: | |||||||||
(In thousands, except per share data) | March 31, | ||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income attributable to Inter Parfums, Inc. | $ | 10,007 | $ | 8,894 | |||||
Denominator: | |||||||||
Weighted average shares | 30,979 | 30,900 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | 93 | 158 | |||||||
Denominator for diluted earnings per share | 31,072 | 31,058 | |||||||
Earnings per share: | |||||||||
Net income attributable to Inter Parfums, Inc. common shareholders: | |||||||||
Basic | $ | 0.32 | $ | 0.29 | |||||
Diluted | 0.32 | 0.29 | |||||||
Not included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.27 million and 0.13 million shares of common stock for the three months ended March 31, 2015 and 2014, respectively. |
Segments_and_Geographic_Areas
Segments and Geographic Areas | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segments and Geographic Areas [Abstract] | |||||||||
Segments and Geographic Areas | 9 | Segment 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 prestige brand name fragrances and United States operations primarily represent the sale of prestige brand name and specialty retail fragrance. Information on our operations by geographical areas is as follows: | |||||||||
(In thousands) | Three months ended | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales: | |||||||||
United States | $ | 22,479 | $ | 19,392 | |||||
Europe | 86,787 | 102,376 | |||||||
Eliminations | (17 | ) | (38 | ) | |||||
$ | 109,249 | $ | 121,730 | ||||||
Net income attributable to Inter Parfums, Inc.: | |||||||||
United States | $ | 1,109 | $ | (67 | ) | ||||
Europe | 8,898 | 8,961 | |||||||
Eliminations | — | — | |||||||
$ | 10,007 | $ | 8,894 | ||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Total Assets: | |||||||||
United States | $ | 75,648 | $ | 71,014 | |||||
Europe | 497,294 | 589,481 | |||||||
Eliminations of investment in subsidiary | (9,179 | ) | (9,217 | ) | |||||
$ | 563,763 | $ | 651,278 |
Accrued_Expenses
Accrued Expenses | 3 Months Ended | ||
Mar. 31, 2015 | |||
Accrued Expenses [Abstract] | |||
Accrued Expenses | 10 | Accrued Expenses: | |
Accrued expenses include approximately $8.4 million and $16.5 million in advertising liabilities as of March 31, 2015 and December 31, 2014, respectively. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Inventories [Abstract] | |||||||||||||
Schedule of Inventories | (In thousands) | March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||||
Raw materials and component parts | $ | 31,282 | $ | 36,383 | |||||||||
Finished goods | 73,272 | 65,943 | |||||||||||
$ | 104,554 | $ | 102,326 |
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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 March 31, 2015 | ||||||||||||||||||||
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 | $ | 155,938 | $ | — | $ | 155,938 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Foreign currency forward exchange contracts accounted for using hedge | $ | 981 | $ | — | $ | 981 | $ | — | |||||||||||||
accounting | |||||||||||||||||||||
Foreign currency forward exchange contracts not accounted for using hedge | 1,241 | — | 1,241 | — | |||||||||||||||||
accounting | |||||||||||||||||||||
$ | 2,222 | $ | — | $ | 2,222 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
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 | $ | 190,152 | $ | — | $ | 190,152 | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||||||
Foreign currency forward exchange contracts not accounted for using hedge | $ | 355 | $ | — | $ | 355 | $ | — | |||||||||||||
accounting |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Equity [Abstract] | ||||||||||
Schedule of Nonvested Option Activity | Weighted Average | |||||||||
Number of Shares | Grant Date Fair Value | |||||||||
Nonvested options – beginning of period | 385,505 | $ | 7.14 | |||||||
Nonvested options granted | 14,000 | $ | 6.73 | |||||||
Nonvested options vested or forfeited | (7,085 | ) | $ | 6.39 | ||||||
Nonvested options – end of period | 392,420 | $ | 7.14 | |||||||
Schedule of Stock Option Activity | Weighted Average | |||||||||
Shares | Exercise Price | |||||||||
Outstanding at January 1, 2015 | 639,495 | $ | 23.19 | |||||||
Options granted | 14,000 | 25.67 | ||||||||
Options cancelled | (2,170 | ) | 25.49 | |||||||
Options exercised | (4,808 | ) | 17.14 | |||||||
Outstanding at March 31, 2015 | 646,517 | $ | 23.28 | |||||||
Options exercisable | 254,097 | $ | 18.5 | |||||||
Options available for future grants | 316,705 | |||||||||
Summary of Options Exercised | March 31, | March 31, | ||||||||
(In thousands) | 2015 | 2014 | ||||||||
Cash proceeds from stock options exercised | $ | 82 | $ | 695 | ||||||
Tax benefits | 0 | 0 | ||||||||
Intrinsic value of stock options exercised | 66 | 1,455 | ||||||||
Schedule of Assumptions Used to Estimate Fair Value of Stock Options | March 31, | March 31, | ||||||||
2015 | 2014 | |||||||||
Weighted average expected stock-price volatility | 34 | % | 37 | % | ||||||
Weighted average expected option life | 5 years | 5 years | ||||||||
Weighted average risk-free interest rate | 1.28 | % | 1.55 | % | ||||||
Weighted average dividend yield | 1.8 | % | 2.8 | % |
Net_Income_Attributable_to_Int1
Net Income Attributable to Inter Parfums, Inc Common Shareholders (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |||||||||
Computation of Basic and Diluted Earnings Per Share | (In thousands, except per share data) | March 31, | |||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income attributable to Inter Parfums, Inc. | $ | 10,007 | $ | 8,894 | |||||
Denominator: | |||||||||
Weighted average shares | 30,979 | 30,900 | |||||||
Effect of dilutive securities: | |||||||||
Stock options | 93 | 158 | |||||||
Denominator for diluted earnings per share | 31,072 | 31,058 | |||||||
Earnings per share: | |||||||||
Net income attributable to Inter Parfums, Inc. common shareholders: | |||||||||
Basic | $ | 0.32 | $ | 0.29 | |||||
Diluted | 0.32 | 0.29 |
Segments_and_Geographic_Areas_
Segments and Geographic Areas (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segments and Geographic Areas [Abstract] | |||||||||
Summary of Operations by Geographical Area | (In thousands) | Three months ended | |||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net sales: | |||||||||
United States | $ | 22,479 | $ | 19,392 | |||||
Europe | 86,787 | 102,376 | |||||||
Eliminations | (17 | ) | (38 | ) | |||||
$ | 109,249 | $ | 121,730 | ||||||
Net income attributable to Inter Parfums, Inc.: | |||||||||
United States | $ | 1,109 | $ | (67 | ) | ||||
Europe | 8,898 | 8,961 | |||||||
Eliminations | — | — | |||||||
$ | 10,007 | $ | 8,894 | ||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
Total Assets: | |||||||||
United States | $ | 75,648 | $ | 71,014 | |||||
Europe | 497,294 | 589,481 | |||||||
Eliminations of investment in subsidiary | (9,179 | ) | (9,217 | ) | |||||
$ | 563,763 | $ | 651,278 |
New_Agreements_Details
New Agreements (Details) (USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Apr. 30, 2015 |
Rochas brand [Member] | ||
New Agreements [Line Items] | ||
Cost of the acquisition | $108 | |
Coach, Inc [Member] | Subsequent Event [Member] | ||
New Agreements [Line Items] | ||
License agreement term | 11 years |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials and component parts | $31,282 | $36,383 |
Finished goods | 73,272 | 65,943 |
Inventories | $104,554 | $102,326 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Short-term investments | $155,938 | $190,152 |
Liabilities: | ||
Foreign currency forward exchange contracts | 2,222 | |
Accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | 981 | |
Not accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | 1,241 | 355 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Short-term investments | ||
Liabilities: | ||
Foreign currency forward exchange contracts | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Not accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Short-term investments | 155,938 | 190,152 |
Liabilities: | ||
Foreign currency forward exchange contracts | 2,222 | |
Significant Other Observable Inputs (Level 2) [Member] | Accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | 981 | |
Significant Other Observable Inputs (Level 2) [Member] | Not accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | 1,241 | 355 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Short-term investments | ||
Liabilities: | ||
Foreign currency forward exchange contracts | ||
Significant Unobservable Inputs (Level 3) [Member] | Accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts | ||
Significant Unobservable Inputs (Level 3) [Member] | Not accounted for using hedge accounting | ||
Liabilities: | ||
Foreign currency forward exchange contracts |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (Foreign currency forward exchange contracts [Member]) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | GBP (£) | JPY (¥) | Rochas brand [Member] | |
USD ($) | ||||
Derivative Financial Instruments [Line Items] | ||||
Purchase price | $108 | |||
Notional amount | $126.70 | £ 2.2 | ¥ 220.7 | $108 |
Exchange rate (in dollars per share) | $1.07 | |||
Maximum maturity period | 1 year | 1 year | 1 year |
ShareBased_Payments_Narrative_
Share-Based Payments (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term of employee stock options | 6 years | |
Employee stock options, fair value of shares vested | $0.03 | $0.03 |
Decrease in income before income tax due to share-based payment expense | 0.19 | 0.23 |
Decrease in income attributable to Inter Parfums, Inc due to share-based payment expense | 0.12 | 0.11 |
Weighted average remaining contractual life of options outstanding | 3 years 8 months 8 days | |
Weighted average remaining contractual life of options exercisable | 2 years 4 months 20 days | |
Aggregate intrinsic value of options outstanding | 6.4 | |
Aggregate intrinsic value of options exercisable | 3.7 | |
Unrecognized compensation cost related to stock options | $2.50 | |
Weighted average grant date fair value | $6.73 | $8.37 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years |
ShareBased_Payments_Schedule_o
Share-Based Payments (Schedule of Nonvested Option Activity) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Nonvested Options, Number of Shares | ||
Beginning of period | 385,505 | |
Granted | 14,000 | |
Vested or forfeited | -7,085 | |
End of period | 392,420 | |
Weighted Average Grant Date Fair Value | ||
Beginning of period | $7.14 | |
Granted | $6.73 | $8.37 |
Vested or forfeited | $6.39 | |
End of period | $7.14 |
ShareBased_Payments_Schedule_o1
Share-Based Payments (Schedule of Stock Option Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Shares | |
Outstanding, beginning balance | 639,495 |
Options granted | 14,000 |
Options cancelled | -2,170 |
Options exercised | -4,808 |
Outstanding, ending balance | 646,517 |
Options exercisable | 254,097 |
Options available for future grants | 316,705 |
Weighted Average Exercise Price | |
Outstanding, beginning balance | $23.19 |
Options granted | $25.67 |
Options cancelled | $25.49 |
Options exercised | $17.14 |
Outstanding, ending balance | $23.28 |
Options exercisable | $18.50 |
ShareBased_Payments_Summary_of
Share-Based Payments (Summary of Stock Options Exercised) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Abstract] | ||
Cash proceeds from stock options exercised | $82 | $695 |
Tax benefits | 0 | 0 |
Intrinsic value of stock options exercised | $66 | $1,455 |
ShareBased_Payments_Schedule_o2
Share-Based Payments (Schedule of Assumptions Used to Estimate Fair Value of Stock Options) (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity [Abstract] | ||
Weighted-average expected stock-price volatility | 34.00% | 37.00% |
Weighted-average expected option life | 5 years | 5 years |
Weighted-average risk-free interest rate | 1.28% | 1.55% |
Weighted-average dividend yield | 1.80% | 2.80% |
Net_Income_Attributable_to_Int2
Net Income Attributable to Inter Parfums, Inc Common Shareholders (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income attributable to Inter Parfums, Inc. | $10,007 | $8,894 |
Denominator: | ||
Weighted average shares | 30,979,000 | 30,900,000 |
Effect of dilutive securities: Stock options | 93,000 | 158,000 |
Denominator for diluted earnings per share | 31,072,000 | 31,058,000 |
Earnings per share: | ||
Basic | $0.32 | $0.29 |
Diluted | $0.32 | $0.29 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially antidilutive common shares | 270,000 | 130,000 |
Segment_and_Geographic_Areas_O
Segment and Geographic Areas (Operations by Geographical Areas) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Net sales | $109,249 | $121,730 | |
Net income attributable to Inter Parfums, Inc. | 10,007 | 8,894 | |
Total assets | 563,763 | 651,278 | 604,506 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 22,479 | 19,392 | |
Net income attributable to Inter Parfums, Inc. | 1,109 | -67 | |
Total assets | 75,648 | 71,014 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 86,787 | 102,376 | |
Net income attributable to Inter Parfums, Inc. | 8,898 | 8,961 | |
Total assets | 497,294 | 589,481 | |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | -17 | -38 | |
Net income attributable to Inter Parfums, Inc. | |||
Total assets | ($9,179) | ($9,217) |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Accrued Expenses [Abstract] | ||
Accrued advertising liabilities | $8.40 | $16.50 |