Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INTER PARFUMS INC | |
Entity Central Index Key | 822,663 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 31,005,548 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 124,529 | $ 90,138 |
Short-term investments | 90,219 | 190,152 |
Accounts receivable, net | 130,244 | 90,124 |
Inventories | 106,991 | 102,326 |
Receivables, other | 3,445 | 1,542 |
Other current assets | 5,301 | 4,504 |
Income Taxes Receivable | 51 | 929 |
Deferred tax assets | 9,212 | 6,848 |
Total current assets | 469,992 | 486,563 |
Equipment and leasehold improvements, net | 8,712 | 9,187 |
Trademarks, licenses and other intangible assets, net | 207,656 | 98,531 |
Other assets | 8,543 | 10,225 |
Total assets | $ 694,903 | 604,506 |
Current liabilities: | ||
Loans payable - banks | $ 298 | |
Current portion of long-term debt | $ 21,975 | |
Accounts payable - trade | 39,322 | $ 46,646 |
Accrued expenses | 42,530 | 49,194 |
Income taxes payable | 9,186 | 3,773 |
Dividends payable | 4,031 | 3,717 |
Total current liabilities | 117,044 | $ 103,628 |
Long-term debt, less current portion | 84,562 | |
Deferred tax liability | $ 4,339 | $ 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 31,005,208 and 30,977,293 shares at September 30, 2015 and December 31, 2014, respectively | $ 31 | $ 31 |
Additional paid-in capital | 61,235 | 60,200 |
Retained earnings | 390,610 | 374,121 |
Accumulated other comprehensive (loss) | (39,915) | (15,823) |
Treasury stock, at cost, 9,897,995 common shares at September 30, 2015 and December 31, 2014, respectively | (36,464) | (36,464) |
Total Inter Parfums, Inc. shareholders' equity | 375,497 | 382,065 |
Noncontrolling interest | 113,461 | 116,659 |
Total equity | 488,958 | 498,724 |
Total liabilities and equity | $ 694,903 | $ 604,506 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred stock, par | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 31,005,208 | 30,977,293 |
Treasury shares, shares | 9,897,995 | 9,897,995 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | ||||
Net sales | $ 138,944 | $ 134,206 | $ 350,214 | $ 374,129 |
Cost of sales | 53,118 | 58,878 | 136,453 | 161,455 |
Gross margin | 85,826 | 75,328 | 213,761 | 212,674 |
Selling, general and administrative expenses | 58,188 | 56,647 | 156,815 | 163,720 |
Income from operations | 27,638 | 18,681 | 56,946 | 48,954 |
Other expenses (income): | ||||
Interest expense | 1,041 | 554 | 1,811 | 1,402 |
(Gain) loss on foreign currency | (336) | (1,129) | 1,751 | (1,057) |
Interest income | (857) | (915) | (2,829) | (2,974) |
Other expenses (income) | (152) | (1,490) | 733 | (2,629) |
Income before income taxes | 27,790 | 20,171 | 56,213 | 51,583 |
Income taxes | 9,156 | 6,407 | 18,754 | 18,003 |
Net income | 18,634 | 13,764 | 37,459 | 33,580 |
Less: Net income attributable to the noncontrolling interest | 4,414 | 2,651 | 8,881 | 7,465 |
Net income attributable to Inter Parfums, Inc. | $ 14,220 | $ 11,113 | $ 28,578 | $ 26,115 |
Net income attributable to Inter Parfums, Inc. common shareholders: | ||||
Basic | $ 0.46 | $ 0.36 | $ 0.92 | $ 0.84 |
Diluted | $ 0.46 | $ 0.36 | $ 0.92 | $ 0.84 |
Weighted average number of shares outstanding: | ||||
Basic | 31,005 | 30,941 | 30,991 | 30,927 |
Diluted | 31,098 | 31,054 | 31,092 | 31,060 |
Dividends declared per share | $ 0.13 | $ 0.12 | $ 0.39 | $ 0.36 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Comprehensive income: (loss) | ||||
Net income | $ 18,634 | $ 13,764 | $ 37,459 | $ 33,580 |
Other comprehensive income (loss): | ||||
Translation adjustments, net of tax | (442) | (37,990) | (33,031) | (42,620) |
Comprehensive income (loss) | 18,192 | (24,226) | 4,428 | (9,040) |
Comprehensive income (loss) attributable to the noncontrolling interests: | ||||
Net income | 4,414 | 2,651 | 8,881 | 7,465 |
Other comprehensive income (loss): | ||||
Translation adjustments, net of tax | 14 | (10,786) | (8,939) | (12,296) |
Comprehensive income (loss) attributable to the noncontrolling interests | 4,428 | (8,135) | (58) | (4,831) |
Comprehensive income (loss) attributable to Inter Parfums, Inc. | $ 13,764 | $ (16,091) | $ 4,486 | $ (4,209) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Treasury stock [Member] | Noncontrolling interest [Member] |
Balance at Dec. 31, 2013 | $ 31 | $ 57,877 | $ 359,459 | $ 25,860 | $ (36,016) | $ 128,145 | |
Net income | $ 33,580 | 26,115 | 7,465 | ||||
Foreign currency translation adjustment | (30,324) | (12,296) | |||||
Shares issued upon exercise of stock options | 1,074 | 101 | |||||
Shares received as proceeds of option exercises | (351) | ||||||
Sale of subsidiary shares to noncontrolling interest | (335) | 1,365 | |||||
Dividends | (11,137) | (4,667) | |||||
Stock-based compensation | 507 | 79 | 30 | ||||
Balance at Sep. 30, 2014 | 512,982 | 31 | 59,123 | 374,516 | (4,464) | (36,266) | 120,042 |
Balance at Dec. 31, 2014 | 498,724 | 31 | 60,200 | 374,121 | (15,823) | $ (36,464) | 116,659 |
Net income | 37,459 | 28,578 | 8,881 | ||||
Foreign currency translation adjustment | (24,092) | (8,939) | |||||
Shares issued upon exercise of stock options | 451 | ||||||
Shares received as proceeds of option exercises | |||||||
Sale of subsidiary shares to noncontrolling interest | (6) | 696 | |||||
Dividends | $ (12,089) | $ (3,836) | |||||
Stock-based compensation | 590 | ||||||
Balance at Sep. 30, 2015 | $ 488,958 | $ 31 | $ 61,235 | $ 390,610 | $ (39,915) | $ (36,464) | $ 113,461 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 37,459 | $ 33,580 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 6,718 | 7,723 |
Provision for doubtful accounts | 39 | 456 |
Noncash stock compensation | 590 | 689 |
Deferred tax benefit | (508) | $ (799) |
Change in fair value of derivatives | 670 | |
Changes in: | ||
Accounts receivable | (44,778) | $ (51,455) |
Inventories | (10,737) | (3,566) |
Other assets | (2,106) | (411) |
Accounts payable and accrued expenses | (6,189) | (12,347) |
Income taxes, net | 6,346 | 12,931 |
Net cash used in operating activities | (12,496) | (13,199) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (56,216) | (248,193) |
Proceeds from sale of short-term investments | 141,009 | 214,975 |
Purchases of equipment and leasehold improvements | (2,500) | (2,584) |
Payment for intangible assets acquired | (119,541) | (821) |
Net cash used in investing activities | $ (37,248) | (36,623) |
Cash flows from financing activities: | ||
Repayments of loans payable - banks, net | $ (5,841) | |
Proceeds from issuance of long-term debt | $ 111,440 | |
Repayments of long-term debt | (6,404) | |
Proceeds from exercise of options | 451 | $ 861 |
Proceeds from sale of stock of subsidiary | 690 | 1,030 |
Dividends paid | (11,775) | (11,128) |
Dividends paid to noncontrolling interest | $ (3,836) | (4,667) |
Purchase of treasury stock | (37) | |
Net cash provided by (used in) financing activities | $ 90,566 | (19,782) |
Effect of exchange rate changes on cash | (6,431) | (5,861) |
Net increase (decrease) in cash and cash equivalents | 34,391 | (75,465) |
Cash and cash equivalents - beginning of period | 90,138 | 125,650 |
Cash and cash equivalents - end of period | 124,529 | 50,185 |
Cash paid for: | ||
Interest | 1,688 | 1,028 |
Income taxes | $ 16,692 | $ 6,396 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 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 (ASU) 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, 2017, with early adoption permitted for annual periods after December 15, 2016. We are currently evaluating the standard to determine the impact of its adoption on our consolidated financial statements. In July 2015, the FASB issued an ASU modifying the accounting for inventory. Under this ASU, the measurement principle for inventory will change from lower of cost or market value to lower of cost and net realizable value. The ASU defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The ASU is applicable to inventory that is accounted for under the first-in, first-out method and is effective for reporting periods after December 15, 2016, with early adoption 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 | 9 Months Ended |
Sep. 30, 2015 | |
New Agreements [Abstract] | |
New Agreements | 3. New Agreements: In October 2015, the Company, through its majority owned Paris-based subsidiary, Interparfums SA, has extended its license agreement with Montblanc by five years. The original agreement, signed in 2010, provided Interparfums SA with the exclusive worldwide license rights to create, produce and distribute perfumes and ancillary products under the Montblanc brand through December 31, 2020. The new 10-year agreement, which goes into effect on January 1, 2016, extends the partnership through December 31, 2025 without any material changes in operating conditions from the prior license. The license agreement is subject to certain minimum sales, advertising expenditures and royalty payments as are customary in our industry. In May 2015, the Company, through its majority owned Paris-based subsidiary, Interparfums SA, acquired the Rochas brand from The Procter & Gamble Company. This transaction includes all brand names and registered trademarks for Rochas (Femme, Madame, Eau de Rochas 106 118 5.4 4.4 The cost of the acquisition was paid in cash on the closing date and was financed entirely through a 5 tested semi-annually, 1.2 In April 2015, the Company, through its majority owned Paris-based subsidiary, Interparfums SA, entered into an 11 In July 2015, Interparfums SA formed a new subsidiary in Spain, Parfums Rochas. The subsidiary is 51 49 (In thousands) September 30, December 31, Trademarks, licenses and other intangible assets beginning of period $ 98,531 $ 116,243 Trademarks, licenses and other intangible assets acquired 119,541 922 Amortization (4,291 ) (6,595 ) Foreign currency translation adjustment (6,125 ) (12,039 ) Trademarks, licenses and other intangible assets end of period $ 207,656 $ 98,531 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | 4. Inventories: Inventories consist of the following: (In thousands) September 30, 2015 December 31 , 2014 Raw materials and component parts $ 28,664 $ 36,383 Finished goods 78,327 65,943 $ 106,991 $ 102,326 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 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 September 30, 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 $ 90,219 $ $ 90,219 $ Foreign currency forward exchange contracts not 285 285 $ 90,504 $ $ 90,504 $ Liabilities; Interest rate swaps $ 670 $ $ 670 $ 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 $ 355 $ $ 355 $ The carrying amount of cash and cash equivalents including money market funds, 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. The fair value of the Company's long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value. Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps are the discounted net present value of the swaps using third party quotes obtained from financial institutions. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 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, $ 108 5 108 1.067 For the three and nine months ended September 30, 2015, the loss of $ 0.5 0.7 All derivative instruments are reported as either assets or liabilities on the balance sheet measured at fair value. The valuation of interest rate swaps resulted in a liability which is included in long-term debt on the accompanying balance sheet as of September 30, 2015. At September 30, 2015, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $ 14.6 4 115 one |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | 7. Accrued Expenses: Accrued expenses include approximately $ 11.8 16.5 |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2015 | |
Share-Based Payments [Abstract] | |
Share-Based Payments | 8. 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 four five 0.03 The following table sets forth information with respect to nonvested options for the nine month period ended September 30, 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 (9,935 ) $ 6.80 Nonvested options end of period 389,570 $ 7.14 Share-based payment expense decreased income before income taxes by $ 0.20 0.59 0.23 0.69 0.12 0.35 0.13 0.38 corresponding periods of the prior year The following table summarizes stock option information as of September 30, 2015: Weighted Average Shares Exercise Price Outstanding at January 1, 2015 639,495 $ 23.19 Options granted 14,000 25.67 Options cancelled (4,700 ) 27.51 Options exercised (27,915 ) 16.18 Outstanding at September 30, 2015 620,880 $ 23.53 Options exercisable 231,310 $ 18.76 Options available for future grants 319,235 As of September 30, 2015, the weighted average remaining contractual life of options outstanding is 3.25 1.94 2.6 1.7 2.1 Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2015 and September 30, 2014 were as follows: September 30, September 30, (In thousands) 2015 2014 Cash proceeds from stock options exercised $ 451 $ 861 Tax benefits Intrinsic value of stock options exercised 482 1,631 The weighted average fair values of the options granted by Inter Parfums, Inc. during the nine months ended September 30, 2015 and 2014 were $ 6.73 8.47 The assumptions used in the Black-Scholes pricing model for the periods ended September 30, 2015 and 2014 are set forth in the following table: September 30, September 30, 2015 2014 Weighted average expected stock-price volatility 34 % 37 % Weighted average expected option life 5 5 Weighted average risk-free interest rate 1.28 % 1.60 % Weighted average dividend yield 1.8 % 2.4 % 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 increases. |
Net Income Attributable to Inte
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 9 Months Ended |
Sep. 30, 2015 | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 9. 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) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator: Net income attributable to Inter Parfums, Inc. $ 14,220 $ 11,113 $ 28,578 $ 26,115 Effect of dilutive securities of consolidated subsidiary Numerator for diluted earnings per share $ 14,220 $ 11,113 $ 28,578 $ 26,115 Denominator: Weighted average shares 31,005 30,941 30,991 30,927 Effect of dilutive securities: Stock options 93 113 101 133 Denominator for diluted earnings per share 31,098 31,054 31,092 31,060 Earnings per share: Net income attributable to Inter Parfums, Inc. Basic $ 0.46 $ 0.36 $ 0.92 $ 0.84 Diluted 0.46 0.36 0.92 0.84 Not included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.27 0.13 0.27 0.13 5 and 2014 , respectively |
Net Income Attributable to In17
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2015 | |
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest [Abstract] | |
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | 10. Net Income Attributable to Inter Parfums, Inc. and Transfers From the Noncontrolling Interest (In thousands) Three months ended Nine months ended 2015 2014 2015 2014 Net income attributable to Inter Parfums, Inc. $ 14,220 $ 11,113 $ 28,578 $ 26,115 Decrease in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions 16 6 335 Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest $ 14,220 $ 11,097 $ 28,572 $ 25,780 |
Segments and Geographic Areas
Segments and Geographic Areas | 9 Months Ended |
Sep. 30, 2015 | |
Segments and Geographic Areas [Abstract] | |
Segments and Geographic Areas | 11. 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 and specialty retail fragrances. Information on our operations by geographical areas is as follows: (In thousands) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net sales: United States $ 28,770 $ 30,784 $ 76,123 $ 73,718 Europe 110,204 103,457 274,212 300,506 Eliminations (30 ) (35 ) (121 ) (95 ) $ 138,944 $ 134,206 $ 350,214 $ 374,129 Net income attributable to Inter Parfums, Inc.: United States $ 2,537 $ 2,705 $ 4,886 $ 4,042 Europe 11,683 8,408 23,692 22,073 $ 14,220 $ 11,113 $ 28,578 $ 26,115 September 30, December 31, 2015 2014 Total Assets: United States $ 81,599 $ 78,740 Europe 622,429 535,049 Eliminations of investment in subsidiary (9,125 ) (9,283 ) $ 694,903 $ 604,506 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 12 . Income Taxes: The Company is undergoing a tax audit by the French Tax Authorities; it is too early to assess whether or not this audit will have any impact on the Company's financial statements. |
New Agreement (Tables)
New Agreement (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
New Agreements [Abstract] | |
Schedule of Trademarks, Licenses and Other Intangible Assets | (In thousands) September 30, December 31, Trademarks, licenses and other intangible assets beginning of period $ 98,531 $ 116,243 Trademarks, licenses and other intangible assets acquired 119,541 922 Amortization (4,291 ) (6,595 ) Foreign currency translation adjustment (6,125 ) (12,039 ) Trademarks, licenses and other intangible assets end of period $ 207,656 $ 98,531 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Schedule of Inventories | (In thousands) September 30, 2015 December 31 , 2014 Raw materials and component parts $ 28,664 $ 36,383 Finished goods 78,327 65,943 $ 106,991 $ 102,326 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 $ 90,219 $ $ 90,219 $ Foreign currency forward exchange contracts not 285 285 $ 90,504 $ $ 90,504 $ Liabilities; Interest rate swaps $ 670 $ $ 670 $ 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 $ 355 $ $ 355 $ |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 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 (9,935 ) $ 6.80 Nonvested options end of period 389,570 $ 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 (4,700 ) 27.51 Options exercised (27,915 ) 16.18 Outstanding at September 30, 2015 620,880 $ 23.53 Options exercisable 231,310 $ 18.76 Options available for future grants 319,235 |
Summary of Options Exercised | September 30, September 30, (In thousands) 2015 2014 Cash proceeds from stock options exercised $ 451 $ 861 Tax benefits Intrinsic value of stock options exercised 482 1,631 |
Schedule of Assumptions Used to Estimate Fair Value of Stock Options | September 30, September 30, 2015 2014 Weighted average expected stock-price volatility 34 % 37 % Weighted average expected option life 5 5 Weighted average risk-free interest rate 1.28 % 1.60 % Weighted average dividend yield 1.8 % 2.4 % |
Net Income Attributable to In24
Net Income Attributable to Inter Parfums, Inc Common Shareholders (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | (In thousands) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Numerator: Net income attributable to Inter Parfums, Inc. $ 14,220 $ 11,113 $ 28,578 $ 26,115 Effect of dilutive securities of consolidated subsidiary Numerator for diluted earnings per share $ 14,220 $ 11,113 $ 28,578 $ 26,115 Denominator: Weighted average shares 31,005 30,941 30,991 30,927 Effect of dilutive securities: Stock options 93 113 101 133 Denominator for diluted earnings per share 31,098 31,054 31,092 31,060 Earnings per share: Net income attributable to Inter Parfums, Inc. Basic $ 0.46 $ 0.36 $ 0.92 $ 0.84 Diluted 0.46 0.36 0.92 0.84 |
Net Income Attributable to In25
Net Income Attributable to Inter Parfums, Inc and Transfers From the Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest [Abstract] | |
Schedule of Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | (In thousands) Three months ended Nine months ended 2015 2014 2015 2014 Net income attributable to Inter Parfums, Inc. $ 14,220 $ 11,113 $ 28,578 $ 26,115 Decrease in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions 16 6 335 Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest $ 14,220 $ 11,097 $ 28,572 $ 25,780 |
Segments and Geographic Areas (
Segments and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segments and Geographic Areas [Abstract] | |
Summary of Operations by Geographical Area | (In thousands) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Net sales: United States $ 28,770 $ 30,784 $ 76,123 $ 73,718 Europe 110,204 103,457 274,212 300,506 Eliminations (30 ) (35 ) (121 ) (95 ) $ 138,944 $ 134,206 $ 350,214 $ 374,129 Net income attributable to Inter Parfums, Inc.: United States $ 2,537 $ 2,705 $ 4,886 $ 4,042 Europe 11,683 8,408 23,692 22,073 $ 14,220 $ 11,113 $ 28,578 $ 26,115 September 30, December 31, 2015 2014 Total Assets: United States $ 81,599 $ 78,740 Europe 622,429 535,049 Eliminations of investment in subsidiary (9,125 ) (9,283 ) $ 694,903 $ 604,506 |
New Agreements (Details)
New Agreements (Details) € in Millions, $ in Millions | 1 Months Ended | |||
May. 31, 2015USD ($) | May. 31, 2015EUR (€) | Apr. 30, 2015 | Jul. 31, 2015 | |
New Agreements [Abstract] | ||||
License agreement term with Coach, Inc. to create, produce and distribute new perfumes and fragrance related products | 11 years | |||
Rochas Brand [Member] | ||||
Acquisition, Rochas Brand [Line Items] | ||||
Payment for related inventory | $ 4.4 | |||
Rochas Brand [Member] | Trademarks [Member] | ||||
Acquisition, Rochas Brand [Line Items] | ||||
Acquired intangible assets with indefinite lives | 118 | € 106 | ||
Acquisition related expenses | $ 5.4 | |||
Rochas Brand [Member] | Trademarks [Member] | Term Loan [Member] | ||||
Acquisition, Rochas Brand [Line Items] | ||||
Cash paid for acquisition and financed by loan, term | 5 years | 5 years | ||
Rochas Brand [Member] | Trademarks [Member] | Term Loan [Member] | Interest Rate Swap [Member] | ||||
Acquisition, Rochas Brand [Line Items] | ||||
Derivative, fixed interest rate | 1.20% | 1.20% | ||
Parfums Rochas [Member] | ||||
New subsidiary in Spain [Line items] | ||||
Ownership percentage by Interparfums SA | 51.00% | |||
Ownership percentage by its Rochas distributor for Spain | 49.00% |
New Agreement (Schedule of Acit
New Agreement (Schedule of Acitivity Relating To Trademarks, Licenses and Other Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
New Agreements [Abstract] | ||
Trademarks, licenses and other intangible assets - beginning of period | $ 98,531 | $ 116,243 |
Trademarks, licenses and other intangible assets acquired | 119,541 | 922 |
Amortization | (4,291) | (6,595) |
Foreign currency translation adjustment | (6,125) | (12,039) |
Trademarks, licenses and other intangible assets - end of period | $ 207,656 | $ 98,531 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials and component parts | $ 28,664 | $ 36,383 |
Finished goods | 78,327 | 65,943 |
Inventories | $ 106,991 | $ 102,326 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Short-term investments | $ 90,219 | $ 190,152 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 285 | |
Total assets | 90,504 | |
Liabilities: | ||
Interest rate swaps | $ 670 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | $ 355 | |
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 | ||
Liabilities: | ||
Interest rate swaps | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Short-term investments | $ 90,219 | $ 190,152 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 285 | |
Total assets | 90,504 | |
Liabilities: | ||
Interest rate swaps | $ 670 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | $ 355 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Short-term investments | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Total assets | ||
Liabilities: | ||
Interest rate swaps | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting |
Derivative Financial Instrume31
Derivative Financial Instruments (Details) ¥ in Millions, £ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015GBP (£) | Sep. 30, 2015JPY (¥) | |
Foreign currency forward exchange contracts [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Notional amount | $ 14.6 | $ 14.6 | £ 4 | ¥ 115 | |
Maximum maturity period | 1 year | ||||
Rochas brand [Member] | Trademarks [Member] | Term Loan [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Cash paid for acquisition and financed by loan, term | 5 years | ||||
Cash paid for acquisition and financed by loan, amount | $ 108 | ||||
Rochas brand [Member] | Trademarks [Member] | Term Loan [Member] | Foreign currency forward exchange contracts [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Exchange rate (dollar per euro) | 1.067 | 1.067 | 1.067 | 1.067 | |
Notional amount | $ 108 | $ 108 | |||
Rochas brand [Member] | Trademarks [Member] | Term Loan [Member] | Interest Rate Swap [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Loss on derivative instrument | $ 0.5 | $ 0.7 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Expenses [Abstract] | ||
Accrued advertising liabilities | $ 11.8 | $ 16.5 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | $ 30 | $ 30 | ||
Decrease in income before income tax due to share-based payment expense | $ 200 | $ 230 | 590 | 690 |
Decrease in income attributable to Inter Parfums, Inc due to share-based payment expense | 120 | $ 130 | $ 350 | $ 380 |
Weighted average remaining contractual life of options outstanding | 3 years 3 months | |||
Weighted average remaining contractual life of options exercisable | 1 year 11 months 8 days | |||
Aggregate intrinsic value of options outstanding | 2,600 | $ 2,600 | ||
Aggregate intrinsic value of options exercisable | 1,700 | 1,700 | ||
Unrecognized compensation cost related to stock options | $ 2,100 | $ 2,100 | ||
Weighted average grant date fair value | $ 6.73 | $ 8.47 | ||
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 |
Share-Based Payments (Schedule
Share-Based Payments (Schedule of Nonvested Option Activity) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Nonvested Options, Number of Shares | ||
Beginning of period | 385,505 | |
Options granted | 14,000 | |
Vested or forfeited | (9,935) | |
End of period | 389,570 | |
Weighted Average Grant Date Fair Value | ||
Beginning of period | $ 7.14 | |
Granted | 6.73 | $ 8.47 |
Vested or forfeited | 6.80 | |
End of period | $ 7.14 |
Share-Based Payments (Schedul35
Share-Based Payments (Schedule of Stock Option Activity) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Shares | |
Outstanding, beginning balance | 639,495 |
Options granted | 14,000 |
Options cancelled | (4,700) |
Options exercised | (27,915) |
Outstanding, ending balance | 620,880 |
Options exercisable | 231,310 |
Options available for future grants | 319,235 |
Weighted Average Exercise Price | |
Outstanding, beginning balance | $ / shares | $ 23.19 |
Options granted | $ / shares | 25.67 |
Options cancelled | $ / shares | 27.51 |
Options exercised | $ / shares | 16.18 |
Outstanding, ending balance | $ / shares | 23.53 |
Options exercisable | $ / shares | $ 18.76 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of Stock Options Exercised) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||
Cash proceeds from stock options exercised | $ 451 | $ 861 |
Tax benefits | ||
Intrinsic value of stock options exercised | $ 482 | $ 1,631 |
Share-Based Payments (Schedul37
Share-Based Payments (Schedule of Assumptions Used to Estimate Fair Value of Stock Options) (Details) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 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% | 1.60% |
Weighted-average dividend yield | 1.80% | 2.40% |
Net Income Attributable to In38
Net Income Attributable to Inter Parfums, Inc Common Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator: | ||||
Net income attributable to Inter Parfums, Inc. | $ 14,220 | $ 11,113 | $ 28,578 | $ 26,115 |
Effect of dilutive securities of consolidated subsidiary | ||||
Numerator for diluted earnings per share | $ 14,220 | $ 11,113 | $ 28,578 | $ 26,115 |
Denominator: | ||||
Weighted average shares | 31,005 | 30,941 | 30,991 | 30,927 |
Effect of dilutive securities: Stock options | 93 | 113 | 101 | 133 |
Denominator for diluted earnings per share | 31,098 | 31,054 | 31,092 | 31,060 |
Earnings per share: | ||||
Basic | $ 0.46 | $ 0.36 | $ 0.92 | $ 0.84 |
Diluted | $ 0.46 | $ 0.36 | $ 0.92 | $ 0.84 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially antidilutive common shares | 270 | 130 | 270 | 130 |
Net Income Attributable to In39
Net Income Attributable to Inter Parfums, Inc and Transfers From the Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest [Abstract] | ||||
Net income attributable to Inter Parfums, Inc. | $ 14,220 | $ 11,113 | $ 28,578 | $ 26,115 |
Decrease in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions | 16 | 6 | 335 | |
Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest | $ 14,220 | $ 11,097 | $ 28,572 | $ 25,780 |
Segment and Geographic Areas (O
Segment and Geographic Areas (Operations by Geographical Areas) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 138,944 | $ 134,206 | $ 350,214 | $ 374,129 | |
Net income attributable to Inter Parfums, Inc. | 14,220 | 11,113 | 28,578 | 26,115 | |
Total assets | 694,903 | 694,903 | $ 604,506 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (30) | (35) | (121) | (95) | |
Total assets | (9,125) | (9,125) | (9,283) | ||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 28,770 | 30,784 | 76,123 | 73,718 | |
Net income attributable to Inter Parfums, Inc. | 2,537 | 2,705 | 4,886 | 4,042 | |
Total assets | 81,599 | 81,599 | 78,740 | ||
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 110,204 | 103,457 | 274,212 | 300,506 | |
Net income attributable to Inter Parfums, Inc. | 11,683 | $ 8,408 | 23,692 | $ 22,073 | |
Total assets | $ 622,429 | $ 622,429 | $ 535,049 |