Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | INTER PARFUMS INC | |
Entity Central Index Key | 822,663 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | IPAR | |
Entity Common Stock, Shares Outstanding | 31,105,605 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 95,952 | $ 176,967 |
Short-term investments | 117,951 | 82,847 |
Accounts receivable, net | 145,735 | 95,082 |
Inventories | 105,304 | 98,346 |
Receivables, other | 2,017 | 2,422 |
Other current assets | 5,925 | 5,811 |
Income tax receivable | 863 | 100 |
Deferred tax assets | 9,804 | 7,182 |
Total current assets | 483,551 | 468,757 |
Equipment and leasehold improvements, net | 11,119 | 9,333 |
Trademarks, licenses and other intangible assets, net | 202,308 | 201,335 |
Other assets | 8,621 | 8,234 |
Total assets | 705,599 | 687,659 |
Current liabilities: | ||
Current portion of long-term debt | 22,886 | 22,163 |
Accounts payable, trade | 45,536 | 50,636 |
Accrued expenses | 46,690 | 46,890 |
Income taxes payable | 12,683 | 7,359 |
Dividends payable | 4,665 | 4,035 |
Total current liabilities | 132,460 | 131,083 |
Long-term debt, less current portion | 61,858 | 76,443 |
Deferred tax liability | 3,733 | 3,746 |
Inter Parfums, Inc. shareholders’ equity: | ||
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,104,205 and 31,037,915 shares at September 30, 2016 and December 31, 2015, respectively | 31 | 31 |
Additional paid-in capital | 62,071 | 62,030 |
Retained earnings | 403,858 | 388,434 |
Accumulated other comprehensive (loss) | (40,728) | (48,091) |
Treasury stock, at cost, 9,880,058 common shares at September 30, 2016 and December 31, 2015, respectively | (36,817) | (36,817) |
Total Inter Parfums, Inc. shareholders’ equity | 388,415 | 365,587 |
Noncontrolling interest | 119,133 | 110,800 |
Total equity | 507,548 | 476,387 |
Total liabilities and equity | $ 705,599 | $ 687,659 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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 | 31,104,205 | 31,037,915 |
Treasury shares, shares | 9,880,058 | 9,880,058 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 157,622 | $ 138,944 | $ 386,301 | $ 350,214 |
Cost of sales | 62,790 | 53,118 | 145,723 | 136,453 |
Gross margin | 94,832 | 85,826 | 240,578 | 213,761 |
Selling, general and administrative expenses | 62,529 | 58,188 | 179,285 | 156,815 |
Income from operations | 32,303 | 27,638 | 61,293 | 56,946 |
Other expenses (income): | ||||
Interest expense | 515 | 1,041 | 2,181 | 1,811 |
(Gain) loss on foreign currency | 334 | (336) | 388 | 1,751 |
Interest income | (765) | (857) | (2,722) | (2,829) |
Other expenses (income) | 84 | (152) | (153) | 733 |
Income before income taxes | 32,219 | 27,790 | 61,446 | 56,213 |
Income taxes | 10,740 | 9,156 | 22,790 | 18,754 |
Net income | 21,479 | 18,634 | 38,656 | 37,459 |
Less: Net income attributable to the noncontrolling interest | 5,240 | 4,414 | 9,252 | 8,881 |
Net income attributable to Inter Parfums, Inc. | $ 16,239 | $ 14,220 | $ 29,404 | $ 28,578 |
Net income attributable to Inter Parfums, Inc. common shareholders: | ||||
Basic | $ 0.52 | $ 0.46 | $ 0.95 | $ 0.92 |
Diluted | $ 0.52 | $ 0.46 | $ 0.94 | $ 0.92 |
Weighted average number of shares outstanding: | ||||
Basic | 31,080 | 31,005 | 31,058 | 30,991 |
Diluted | 31,171 | 31,098 | 31,138 | 31,092 |
Dividends declared per share | $ 0.15 | $ 0.13 | $ 0.45 | $ 0.39 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive income: | ||||
Net income | $ 21,479 | $ 18,634 | $ 38,656 | $ 37,459 |
Other comprehensive income (loss): | ||||
Translation adjustments, net of tax | 2,391 | (442) | 10,504 | (33,031) |
Comprehensive income | 23,870 | 18,192 | 49,160 | 4,428 |
Comprehensive income (loss) attributable to the noncontrolling interests: | ||||
Net income | 5,240 | 4,414 | 9,252 | 8,881 |
Translation adjustments, net of tax | 698 | 14 | 3,141 | (8,939) |
Comprehensive income (loss) attributable to the noncontrolling interests | 5,938 | 4,428 | 12,393 | (58) |
Comprehensive income attributable to Inter Parfums, Inc. | $ 17,932 | $ 13,764 | $ 36,767 | $ 4,486 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN 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, 2014 | $ 60,200 | $ 374,121 | $ (15,823) | $ 116,659 | |||
Net income | $ 37,459 | 28,578 | 8,881 | ||||
Foreign currency translation adjustment | (33,031) | (24,092) | (8,939) | ||||
Shares issued upon exercise of stock options | 451 | ||||||
Purchase of subsidiary shares from noncontrolling interests | 0 | 0 | |||||
Sale of subsidiary shares to noncontrolling interest | (6) | 696 | |||||
Stock-based compensation | 590 | ||||||
Dividends | (12,089) | (3,836) | |||||
Balance at Sep. 30, 2015 | 488,958 | $ 31 | 61,235 | 390,610 | (39,915) | $ (36,464) | 113,461 |
Balance at Dec. 31, 2015 | 476,387 | 62,030 | 388,434 | (48,091) | 110,800 | ||
Net income | 38,656 | 29,404 | 9,252 | ||||
Foreign currency translation adjustment | 10,504 | 7,363 | 3,141 | ||||
Shares issued upon exercise of stock options | 1,235 | ||||||
Purchase of subsidiary shares from noncontrolling interests | (1,670) | (800) | |||||
Sale of subsidiary shares to noncontrolling interest | (154) | 1,603 | |||||
Stock-based compensation | 630 | ||||||
Dividends | (13,980) | (4,863) | |||||
Balance at Sep. 30, 2016 | $ 507,548 | $ 31 | $ 62,071 | $ 403,858 | $ (40,728) | $ (36,817) | $ 119,133 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 38,656 | $ 37,459 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 7,113 | 6,718 |
Provision for doubtful accounts | 231 | 39 |
Noncash stock compensation | 706 | 590 |
Deferred tax benefit | (2,556) | (508) |
Change in fair value of derivatives | 314 | 670 |
Changes in: | ||
Accounts receivable | (48,735) | (44,778) |
Inventories | (4,979) | (10,737) |
Other assets | 71 | (2,106) |
Accounts payable and accrued expenses | (7,784) | (6,189) |
Income taxes, net | 4,391 | 6,346 |
Net cash used in operating activities | (12,572) | (12,496) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (48,629) | (56,216) |
Proceeds from sale of short-term investments | 15,621 | 141,009 |
Purchases of equipment and leasehold improvements | (4,260) | (2,500) |
Payment for intangible assets acquired | (642) | (119,541) |
Net cash used in investing activities | (37,910) | (37,248) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 111,440 |
Repayments of long-term debt | (16,567) | (6,404) |
Proceeds from exercise of options | 1,235 | 451 |
Proceeds from sale of stock of subsidiary | 1,449 | 690 |
Dividends paid | (13,349) | (11,775) |
Dividends paid to noncontrolling interest | (4,863) | (3,836) |
Purchase of stock of subsidiary | (2,470) | 0 |
Net cash provided by (used in) financing activities | (34,565) | 90,566 |
Effect of exchange rate changes on cash | 4,032 | (6,431) |
Net increase (decrease) in cash and cash equivalents | (81,015) | 34,391 |
Cash and cash equivalents - beginning of period | 176,967 | 90,138 |
Cash and cash equivalents - end of period | 95,952 | 124,529 |
Cash paid for: | ||
Interest | 1,758 | 1,688 |
Income taxes | $ 18,881 | $ 16,692 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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, 2015. 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. |
Settlement with French Tax Auth
Settlement with French Tax Authorities | 9 Months Ended |
Sep. 30, 2016 | |
Settlement with Tax Authority [Abstract] | |
Settlement with Tax Authority [Text Block] | 2. Settlement with French Tax Authorities: As previously reported, the French Tax Authorities examined the 2012 tax return of Interparfums SA, the Company’s majority owned Paris based subsidiary, and in August 2015 issued a $ 6.9 1.9 |
License Renewal
License Renewal | 9 Months Ended |
Sep. 30, 2016 | |
License Renewal Agreement [Abstract] | |
License Renewal Agreement Disclosure [Text Block] | License Renewal: In September 2016, the Company, through its majority owned Paris based subsidiary, Interparfums SA, renewed its license agreement for an additional three 11 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recent Accounting Pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. This ASU is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. We have evaluated the standard and determined that there will be no material impact on our consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which simplifies several aspects of the accounting for share based payments, including the income tax consequences and classification on the statement of cash flows. Under the new standard, all excess tax benefits and deficiencies will be recognized as income tax expense or benefit in the income statement. Additionally, excess tax benefits will be classified as an operating activity on the statement of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2016 and early adoption is permitted. The amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement must be applied prospectively, and entities are allowed to elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective or retrospective transition method. We are currently evaluating the standard to determine the impact of its adoption on our consolidated financial statements. In February 2016, the FASB issued an ASU which requires lessees to recognize lease assets and lease liabilities arising from operating leases on the balance sheet. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective approach, with early adoption permitted. We are currently evaluating the standard to determine the impact of its adoption on our consolidated financial statements. In November 2015, the FASB issued an ASU that requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. In addition, this guidance can be applied either prospectively or retrospectively to all periods presented. 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 have evaluated the standard and determined that there is no material impact on our consolidated financial statements. In May 2014, the FASB issued an 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 31, 2016. We have evaluated the standard and determined that there will be no material impact 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. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Inventory Disclosure [Text Block] | 5. Inventories: (In thousands) September 30, December 31, 2015 Raw materials and component parts $ 28,498 $ 30,569 Finished goods 76,806 67,777 $ 105,304 $ 98,346 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurement: (In thousands) Fair Value Measurements at September 30, 2016 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 $ 117,951 $ $ 117,951 $ Foreign currency forward 86 86 $ 118,038 $ $ 118,038 $ Liabilities: Interest rate swaps $ 1,260 $ $ 1,260 $ Fair Value Measurements at December 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 $ 82,847 $ $ 82,847 $ Foreign currency forward 123 123 $ 82,970 $ $ 82,970 $ Liabilities: Interest rate swaps $ 1,026 $ $ 1,026 $ 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, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 7. Derivative Financial Instruments: The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables or payables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. In connection with the 2015 Rochas brand acquisition, $ 108 5 108 1.067 Gains and losses in derivatives not designated as hedges are included in loss on foreign currency on the accompanying income statement and were immaterial for the nine months ended September 30, 2016 and 2015. For the nine months ended September 30, 2016, interest expense includes a loss of $ 0.2 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 sheets. The valuation of foreign currency forward exchange contracts not accounted for using hedge accounting 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 change in fair value of the derivative instrument is recorded as a separate component of shareholders’ equity. At September 30, 2016, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $ 16.9 7.2 80 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Expenses [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. Accrued Expenses: Accrued expenses include approximately $ 14.1 15.2 |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2016 | |
Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. 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 for both the nine months ended September 30, 2016 and 2015 aggregated $ 0.05 0.03 The following table sets forth information with respect to nonvested options for the nine month period ended September 30, 2016: Weighted Average Grant Date Fair Number of Shares Value Nonvested options beginning of period 414,850 $ 6.86 Nonvested options granted 5,000 $ 6.50 Nonvested options vested or forfeited (26,770) $ 6.82 Nonvested options end of period 393,080 $ 6.85 Share-based payment expense decreased income before income taxes by $ 0.28 0.70 0.20 0.59 0.16 0.42 0.12 0.35 The following table summarizes stock option information as of September 30, 2016: Shares Weighted Average Exercise Price Outstanding at January 1, 2016 709,300 $ 24.34 Options granted 5,000 26.40 Options cancelled (22,250) 27.21 Options exercised (66,290) 18.62 Outstanding at September 30, 2016 625,760 $ 24.86 Options exercisable 232,680 $ 22.81 Options available for future grants 195,295 As of September 30, 2016, the weighted average remaining contractual life of options outstanding is 3.27 2.04 5.1 2.4 2.1 Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2016 and September 30, 2015 were as follows: September 30, September 30, (In thousands) 2016 2015 Cash proceeds from stock options exercised $ 1,235 $ 451 Tax benefits Intrinsic value of stock options exercised 947 482 The weighted average fair values of the options granted by Inter Parfums, Inc. during the nine months ended September 30, 2016 and 2015 were $ 6.50 6.73 The assumptions used in the Black-Scholes pricing model for the periods ended September 30, 2016 and 2015 are set forth in the following table: September 30, September 30, 2016 2015 Weighted average expected stock-price volatility 33 % 34 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 1.42 % 1.28 % Weighted average dividend yield 2.2 % 1.8 % 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 increases. In September 2016, Interparfums SA, approved a plan to grant an aggregate of 15,100 133,000 The fair value of the grant of € 22.46 25.00 137,381 3.1 3.4 0.1 To avoid dilution of the Company’s ownership of Interparfums SA,, all shares to be distributed pursuant to this plan will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA. As of September 30, 2016, a total of 90,524 2.47 |
Net Income Attributable to Inte
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 9 Months Ended |
Sep. 30, 2016 | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |
Earnings Per Share [Text Block] | 10. 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. Three months ended Nine months ended (In thousands) September 30, September 30, 2016 2015 2016 2015 Numerator: Net income attributable to Inter Parfums, Inc. $ 16,239 $ 14,220 $ 29,404 $ 28,578 Denominator: Weighted average shares 31,080 31,005 31,058 30,991 Effect of dilutive securities: Stock options 91 93 80 101 Denominator for diluted 31,171 31,098 31,138 31,092 Earnings per share: Net income attributable to Inter Parfums, Inc. Basic $ 0.52 $ 0.46 $ 0.95 $ 0.92 Diluted 0.52 0.46 0.94 0.92 N ot included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.31 0.27 0.25 0.27 |
Segment and Geographic Areas
Segment and Geographic Areas | 9 Months Ended |
Sep. 30, 2016 | |
Segments and Geographic Areas [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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. Both European operations and United States operations primarily represent the sale of prestige brand name fragrances. Three months ended Nine months ended (In thousands) September 30, September 30, 2016 2015 2016 2015 Net sales: United States $ 34,251 $ 28,770 $ 82,197 $ 76,123 Europe 123,405 110,204 304,217 274,212 Eliminations (34) (30) (113) (121) $ 157,622 $ 138,944 $ 386,301 $ 350,214 Net income attributable to Inter Parfums, Inc.: United States $ 2,850 $ 2,537 $ 4,804 $ 4,886 Europe 13,389 11,683 24,600 23,692 $ 16,239 $ 14,220 $ 29,404 $ 28,578 September 30, December 31, 2016 2015 Total Assets: United States $ 92,133 $ 80,761 Europe 622,606 616,199 Eliminations of investment in subsidiary (9,140) (9,301) $ 705,599 $ 687,659 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventories [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | (In thousands) September 30, December 31, 2015 Raw materials and component parts $ 28,498 $ 30,569 Finished goods 76,806 67,777 $ 105,304 $ 98,346 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | 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, 2016 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 $ 117,951 $ $ 117,951 $ Foreign currency forward 86 86 $ 118,038 $ $ 118,038 $ Liabilities: Interest rate swaps $ 1,260 $ $ 1,260 $ Fair Value Measurements at December 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 $ 82,847 $ $ 82,847 $ Foreign currency forward 123 123 $ 82,970 $ $ 82,970 $ Liabilities: Interest rate swaps $ 1,026 $ $ 1,026 $ |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table sets forth information with respect to nonvested options for the nine month period ended September 30, 2016: Weighted Average Grant Date Fair Number of Shares Value Nonvested options beginning of period 414,850 $ 6.86 Nonvested options granted 5,000 $ 6.50 Nonvested options vested or forfeited (26,770) $ 6.82 Nonvested options end of period 393,080 $ 6.85 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option information as of September 30, 2016: Shares Weighted Average Exercise Price Outstanding at January 1, 2016 709,300 $ 24.34 Options granted 5,000 26.40 Options cancelled (22,250) 27.21 Options exercised (66,290) 18.62 Outstanding at September 30, 2016 625,760 $ 24.86 Options exercisable 232,680 $ 22.81 Options available for future grants 195,295 |
Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block] | Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2016 and September 30, 2015 were as follows: September 30, September 30, (In thousands) 2016 2015 Cash proceeds from stock options exercised $ 1,235 $ 451 Tax benefits Intrinsic value of stock options exercised 947 482 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The assumptions used in the Black-Scholes pricing model for the periods ended September 30, 2016 and 2015 are set forth in the following table: September 30, September 30, 2016 2015 Weighted average expected stock-price volatility 33 % 34 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 1.42 % 1.28 % Weighted average dividend yield 2.2 % 1.8 % |
Net Income Attributable to In22
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended (In thousands) September 30, September 30, 2016 2015 2016 2015 Numerator: Net income attributable to Inter Parfums, Inc. $ 16,239 $ 14,220 $ 29,404 $ 28,578 Denominator: Weighted average shares 31,080 31,005 31,058 30,991 Effect of dilutive securities: Stock options 91 93 80 101 Denominator for diluted 31,171 31,098 31,138 31,092 Earnings per share: Net income attributable to Inter Parfums, Inc. Basic $ 0.52 $ 0.46 $ 0.95 $ 0.92 Diluted 0.52 0.46 0.94 0.92 |
Segment and Geographic Areas (T
Segment and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segments and Geographic Areas [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information on our operations by geographical areas is as follows: Three months ended Nine months ended (In thousands) September 30, September 30, 2016 2015 2016 2015 Net sales: United States $ 34,251 $ 28,770 $ 82,197 $ 76,123 Europe 123,405 110,204 304,217 274,212 Eliminations (34) (30) (113) (121) $ 157,622 $ 138,944 $ 386,301 $ 350,214 Net income attributable to Inter Parfums, Inc.: United States $ 2,850 $ 2,537 $ 4,804 $ 4,886 Europe 13,389 11,683 24,600 23,692 $ 16,239 $ 14,220 $ 29,404 $ 28,578 September 30, December 31, 2016 2015 Total Assets: United States $ 92,133 $ 80,761 Europe 622,606 616,199 Eliminations of investment in subsidiary (9,140) (9,301) $ 705,599 $ 687,659 |
Settlement with French Tax Au24
Settlement with French Tax Authorities (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2016 | Aug. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Tax Adjustments, Settlements, and Unusual Provisions | $ 6,900 | ||||||
Accrued Income Taxes, Current | $ 12,683 | $ 12,683 | $ 7,359 | ||||
Income Tax Expense (Benefit) | 10,740 | $ 9,156 | 22,790 | $ 18,754 | |||
Settlement with Taxing Authority [Member] | |||||||
Accrued Income Taxes, Current | $ 1,900 | $ 1,900 | |||||
French Tax Authorities [Member] | |||||||
Income Tax Expense (Benefit) | $ 1,100 |
License Renewal (Detail Textual
License Renewal (Detail Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Renewal of License Agreement Term, Years | 3 years |
Initial License Agreement Term | 11 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials and component parts | $ 28,498 | $ 30,569 |
Finished goods | 76,806 | 67,777 |
Inventories | $ 105,304 | $ 98,346 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Short-term investments | $ 117,951 | $ 82,847 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 86 | 123 |
Total assets | 118,038 | 82,970 |
Liabilities: | ||
Interest rate swaps | 1,260 | 1,026 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Short-term investments | 117,951 | 82,847 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 86 | 123 |
Total assets | 118,038 | 82,970 |
Liabilities: | ||
Interest rate swaps | 1,260 | 1,026 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Interest rate swaps | $ 0 | $ 0 |
Derivative Financial Instrume28
Derivative Financial Instruments (Details Textual) ¥ in Millions, £ in Millions, $ in Millions | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2016GBP (£) | Sep. 30, 2016JPY (¥) | |
Foreign Exchange Contract [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Maximum maturity period | 1 year | 1 year | 1 year |
Derivative, Gain (Loss) on Derivative, Net, Total | $ 16.9 | £ 7.2 | ¥ 80 |
Interest Rate Swap [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net, Total | $ 0.2 | ||
Rochas brand [Member] | Term Loan [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Cash paid for acquisition and financed by loan, term | 5 years | 5 years | 5 years |
Rochas brand [Member] | Trademarks [Member] | Term Loan [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Cash paid for acquisition and financed by loan, amount | $ 108 | ||
Rochas brand [Member] | Trademarks [Member] | Term Loan [Member] | Foreign Exchange Contract [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Notional amount | $ 108 | ||
Exchange rate (dollar per euro) | 1.067 |
Accrued Expenses (Details Textu
Accrued Expenses (Details Textual) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accrued Advertising, Current | $ 14.1 | $ 15.2 |
Share-Based Payments (Details)
Share-Based Payments (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Nonvested Options, Number of Shares | ||
Beginning of period | 414,850 | |
Granted | 5,000 | |
Vested or forfeited | (26,770) | |
End of period | 393,080 | |
Weighted Average Grant Date Fair Value | ||
Beginning of period | $ 6.86 | |
Granted | 6.5 | $ 6.73 |
Vested or forfeited | 6.82 | |
End of period | $ 6.85 |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Shares | |
Outstanding, beginning balance | 709,300 |
Options granted | 5,000 |
Options cancelled | (22,250) |
Options exercised | (66,290) |
Outstanding, ending balance | 625,760 |
Options exercisable | 232,680 |
Options available for future grants | 195,295 |
Weighted Average Exercise Price | |
Outstanding, beginning balance | $ / shares | $ 24.34 |
Options granted | $ / shares | 26.4 |
Options cancelled | $ / shares | 27.21 |
Options exercised | $ / shares | 18.62 |
Outstanding, ending balance | $ / shares | 24.86 |
Options exercisable | $ / shares | $ 22.81 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash proceeds from stock options exercised | $ 1,235 | $ 451 |
Tax benefits | 0 | 0 |
Intrinsic value of stock options exercised | $ 947 | $ 482 |
Share-Based Payments (Details 3
Share-Based Payments (Details 3) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average expected stock-price volatility | 33.00% | 34.00% |
Weighted average expected option life | 5 years | 5 years |
Weighted average risk-free interest rate | 1.42% | 1.28% |
Weighted average dividend yield | 2.20% | 1.80% |
Share-Based Payments (Details T
Share-Based Payments (Details Textual) € / shares in Units, $ / shares in Units, $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2016EUR (€)€ / sharesshares | Sep. 30, 2015USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock options, fair value of shares vested | $ 50 | $ 30 | |||
Decrease in income before income tax due to share-based payment expense | $ 280 | $ 200 | 700 | 590 | |
Decrease in income attributable to Inter Parfums, Inc due to share-based payment expense | 160 | $ 120 | $ 420 | $ 350 | |
Weighted average remaining contractual life of options outstanding | 3 years 3 months 7 days | 3 years 3 months 7 days | |||
Weighted average remaining contractual life of options exercisable | 2 years 14 days | 2 years 14 days | |||
Aggregate intrinsic value of options outstanding | 5,100 | $ 5,100 | |||
Aggregate intrinsic value of options exercisable | 2,400 | 2,400 | |||
Unrecognized compensation cost related to stock options | 2,100 | $ 2,100 | |||
Weighted average grant date fair value | $ / shares | $ 6.5 | $ 6.73 | |||
Interparfums SA [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Decrease in income before income tax due to share-based payment expense | $ 100 | ||||
Weighted average grant date fair value | (per share) | $ 25 | € 22.46 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | shares | 90,524 | 90,524 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Value, Shares Purchased for Award | $ 2,470 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 137,381 | 137,381 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 3,400 | € 3.1 | |||
Interparfums SA [Member] | Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 15,100 | 15,100 | |||
Interparfums SA [Member] | Officers And Managers [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 133,000 | 133,000 |
Net Income Attributable to In35
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income attributable to Inter Parfums, Inc. | $ 16,239 | $ 14,220 | $ 29,404 | $ 28,578 |
Denominator: | ||||
Weighted average shares | 31,080 | 31,005 | 31,058 | 30,991 |
Effect of dilutive securities: Stock options | 91 | 93 | 80 | 101 |
Denominator for diluted earnings per share | 31,171 | 31,098 | 31,138 | 31,092 |
Earnings per share: | ||||
Basic | $ 0.52 | $ 0.46 | $ 0.95 | $ 0.92 |
Diluted | $ 0.52 | $ 0.46 | $ 0.94 | $ 0.92 |
Net Income Attributable to In36
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details Textual) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 250 | 270 | 310 | 270 |
Segment and Geographic Areas (D
Segment and Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 157,622 | $ 138,944 | $ 386,301 | $ 350,214 | |
Net income attributable to Inter Parfums, Inc. | 16,239 | 14,220 | 29,404 | 28,578 | |
Total assets | 705,599 | 705,599 | $ 687,659 | ||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (34) | (30) | (113) | (121) | |
Total assets | (9,140) | (9,140) | (9,301) | ||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 34,251 | 28,770 | 82,197 | 76,123 | |
Net income attributable to Inter Parfums, Inc. | 2,850 | 2,537 | 4,804 | 4,886 | |
Total assets | 92,133 | 92,133 | 80,761 | ||
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 123,405 | 110,204 | 304,217 | 274,212 | |
Net income attributable to Inter Parfums, Inc. | 13,389 | $ 11,683 | 24,600 | $ 23,692 | |
Total assets | $ 622,606 | $ 622,606 | $ 616,199 |