Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 31,168,288 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 109,829 | $ 161,828 |
Short-term investments | 115,674 | 94,202 |
Accounts receivable, net | 139,877 | 104,819 |
Inventories | 111,319 | 96,977 |
Receivables, other | 8,233 | 7,433 |
Other current assets | 7,289 | 6,240 |
Income taxes receivable | 360 | 626 |
Total current assets | 492,581 | 472,125 |
Equipment and leasehold improvements, net | 9,771 | 10,076 |
Trademarks, licenses and other intangible assets, net | 184,991 | 183,868 |
Deferred tax assets | 8,768 | 8,090 |
Other assets | 7,994 | 8,250 |
Total assets | 704,105 | 682,409 |
Current liabilities: | ||
Current portion of long-term debt | 21,833 | 21,498 |
Accounts payable - trade | 60,182 | 49,507 |
Accrued expenses | 53,057 | 62,609 |
Income taxes payable | 8,015 | 3,331 |
Dividends payable | 5,299 | 5,293 |
Total current liabilities | 148,386 | 142,238 |
Long term debt, less current portion | 48,338 | 53,064 |
Deferred tax liability | 3,656 | 3,449 |
Equity: | ||
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 31,168,108 and 31,138,318 shares at March 31, 2017 and December 31, 2016, respectively | 31 | 31 |
Additional paid-in capital | 63,879 | 63,103 |
Retained earnings | 410,957 | 402,714 |
Accumulated other comprehensive loss | (53,413) | (57,982) |
Treasury stock, at cost, 9,864,805 shares at March 31, 2017 and December 31, 2016 | (37,475) | (37,475) |
Total Inter Parfums, Inc. shareholders’ equity | 383,979 | 370,391 |
Noncontrolling interest | 119,746 | 113,267 |
Total equity | 503,725 | 483,658 |
Total liabilities and equity | $ 704,105 | $ 682,409 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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 | 31,168,108 | 31,138,318 |
Treasury shares, shares | 9,864,805 | 9,864,805 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales | $ 143,058 | $ 111,522 |
Cost of sales | 52,988 | 40,205 |
Gross margin | 90,070 | 71,317 |
Selling, general and administrative expenses | 63,899 | 53,786 |
Income from operations | 26,171 | 17,531 |
Other expenses (income): | ||
Interest expense | 271 | 973 |
Loss on foreign currency | 156 | 714 |
Interest and dividend income | (1,272) | (1,354) |
Other expenses (income) | (845) | 333 |
Income before income taxes | 27,016 | 17,198 |
Income taxes | 8,849 | 7,750 |
Net income | 18,167 | 9,448 |
Less: Net income attributable to the noncontrolling interest | 4,794 | 2,114 |
Net income attributable to Inter Parfums, Inc. | $ 13,373 | $ 7,334 |
Net income attributable to Inter Parfums, Inc. common shareholders: | ||
Basic | $ 0.43 | $ 0.24 |
Diluted | $ 0.43 | $ 0.24 |
Weighted average number of shares outstanding: | ||
Basic | 31,145 | 31,039 |
Diluted | 31,254 | 31,115 |
Dividends declared per share | $ 0.17 | $ 0.15 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Comprehensive income: | ||
Net income | $ 18,167 | $ 9,448 |
Other comprehensive income: | ||
Net derivative instrument loss, net of tax | 342 | 0 |
Transfer from other comprehensive income into earnings | 22 | 0 |
Foreign currency translation adjustment, net of tax | 5,769 | 18,892 |
Comprehensive income | 24,300 | 28,340 |
Comprehensive income attributable to the noncontrolling interests: | ||
Net income | 4,794 | 2,114 |
Other comprehensive income: | ||
Net derivative instrument loss, net of tax | 96 | 0 |
Transfer from other comprehensive income into earnings | 5 | 0 |
Translation adjustments, net of tax | 1,463 | 5,249 |
Comprehensive income attributable to the noncontrolling interests | 6,358 | 7,363 |
Comprehensive income attributable to Inter Parfums, Inc. | $ 17,942 | $ 20,977 |
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 loss [Member] | Treasury stock [Member] | Noncontrolling interest [Member] |
Balance at Dec. 31, 2015 | $ 62,030 | $ 388,434 | $ (48,091) | $ (36,817) | $ 110,800 | ||
Shares issued upon exercise of stock options | 132 | ||||||
Sale of subsidiary shares to noncontrolling interest | (13) | 156 | |||||
Net income | $ 9,448 | 7,334 | 2,114 | ||||
Dividends | (4,656) | ||||||
Stock-based compensation | 212 | 0 | 0 | ||||
Foreign currency translation adjustment, net of tax | 18,892 | 13,643 | 5,249 | ||||
Transfer from other comprehensive income into earnings | 0 | 0 | |||||
Net derivative instrument gain, net of tax | 0 | 0 | |||||
Balance at Mar. 31, 2016 | 500,558 | $ 31 | 62,361 | 391,112 | (34,448) | 118,319 | |
Balance at Dec. 31, 2016 | 483,658 | 63,103 | 402,714 | (57,982) | $ (37,475) | 113,267 | |
Shares issued upon exercise of stock options | 542 | ||||||
Sale of subsidiary shares to noncontrolling interest | 0 | 0 | |||||
Net income | 18,167 | 13,373 | 4,794 | ||||
Dividends | (5,299) | ||||||
Stock-based compensation | 234 | 169 | 121 | ||||
Foreign currency translation adjustment, net of tax | 5,769 | 4,306 | 1,463 | ||||
Transfer from other comprehensive income into earnings | 17 | 5 | |||||
Net derivative instrument gain, net of tax | 246 | 96 | |||||
Balance at Mar. 31, 2017 | $ 503,725 | $ 31 | $ 63,879 | $ 410,957 | $ (53,413) | $ 119,746 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 18,167 | $ 9,448 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 2,619 | 2,338 |
Provision for doubtful accounts | 225 | 15 |
Noncash stock compensation | 507 | 212 |
Deferred tax benefit | (406) | (674) |
Change in fair value of derivatives | (285) | (87) |
Changes in: | ||
Accounts receivable | (33,983) | (8,694) |
Inventories | (13,274) | (10,763) |
Other assets | (743) | 340 |
Accounts payable and accrued expenses | (563) | (9,109) |
Income taxes, net | 4,733 | 4,581 |
Net cash used in operating activities | (23,003) | (12,393) |
Cash flows from investing activities: | ||
Purchases of short-term investments | (24,310) | (14,336) |
Proceeds from sale of short-term investments | 4,259 | 5,510 |
Purchases of equipment and leasehold improvements | (729) | (1,422) |
Payment for intangible assets acquired | (129) | (111) |
Net cash used in investing activities | (20,909) | (10,359) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (5,250) | (5,479) |
Proceeds from exercise of options | 542 | 132 |
Proceeds from sale of stock of subsidiary | 0 | 143 |
Dividends paid | (5,293) | (4,035) |
Net cash used in financing activities | (10,001) | (9,239) |
Effect of exchange rate changes on cash | 1,914 | 6,486 |
Net decrease in cash and cash equivalents | (51,999) | (25,505) |
Cash and cash equivalents - beginning of period | 161,828 | 176,967 |
Cash and cash equivalents - end of period | 109,829 | 151,462 |
Cash paid for: | ||
Interest | 492 | 560 |
Income taxes | $ 4,576 | $ 3,782 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Significant 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, 2016. 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 | 3 Months Ended |
Mar. 31, 2017 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. 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 FASB issued ASU 2016-09 which simplifies several aspects of the accounting for share-based payments, including the income tax consequences and classification 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 Company elected to early adopt ASU 2016-09 in the fourth quarter of 2016 which required us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. Prior periods were not adjusted. Under previous guidance, excess tax benefits and certain tax deficiencies from share-based compensation arrangements were recorded in additional paid-in capital when the awards vested or were settled. ASU 2016-09 requires that all excess tax benefits and all tax deficiencies be recognized as income tax expense or benefit in the income statement and adoption is on a prospective basis. Additionally, as permitted by ASU 2016-09, the Company has elected to continue to estimate the number of stock-based awards expected to vest, rather than electing to account for forfeitures as they occur. Excess tax benefits are required to be prospectively excluded from assumed future proceeds in the calculation of diluted shares under the adoption of ASU 2016-09. As a result of the adoption, the Company’s diluted weighted average number of common shares outstanding as of March 31, 2016 increased from 31,104,495 31,114,894 In addition, under ASU 2016-09, excess tax benefits from stock-based compensation arrangements are classified in cash flows from operations, rather than inflow within financing activities and outflow within operating activities. The Company has applied the cash flow classification guidance prospectively. 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. The Company has adopted the standard retrospectively, which resulted in reclassifications among accounts on the consolidated balance sheet, but had no other impacts on our results of operations, financial condition or cash flows. The effect of the adoption on prior periods was a reclassification from current assets to noncurrent assets of approximately $ 8 In July 2015, the FASB issued an ASU modifying the accounting for inventory. Under this ASU, the measurement principle for inventory changed 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 beginning after December 15, 2016. As of January 1, 2017, we adopted the provisions of this ASU and there was no material impact on our consolidated financial statements. In May 2014, the FASB issued an ASU which superseded the then most current revenue recognition requirements. This 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. The new standard also includes enhanced disclosure requirements. 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 | 3 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Inventory Disclosure [Text Block] | 3. Inventories: (In thousands) March 31, December 31, 2017 2016 Raw materials and component parts $ 38,630 $ 36,821 Finished goods 72,689 60,156 $ 111,319 $ 96,977 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Disclosures [Text Block] | 4. Fair Value Measurement: Fair Value Measurements at March 31, 2017 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 $ 115,674 $ $ 115,674 $ Foreign currency forward exchange contracts not accounted for using hedge accounting 6 6 Foreign currency forward exchange contracts accounted for using hedge accounting 493 493 $ 116,173 $ $ 116,173 $ Liabilities: Interest rate swap $ 743 $ $ 743 $ Fair Value Measurements at December 31, 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 $ 94,202 $ $ 94,202 $ Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting $ 181 $ $ 181 $ Foreign currency forward exchange contracts not accounted for using hedge accounting 418 418 Interest rate swap 908 908 $ 1,507 $ $ 1,507 $ 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 and the value of interest rate swaps are the discounted net present value of the swaps using third party quotes from financial institutions. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Financial Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. Derivative Financial Instruments: The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Before entering into a derivative transaction for hedging purposes, it is determined that a high degree of initial effectiveness exists between the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates. High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item. The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference which is reported in current period earnings. Any hedge ineffectiveness is also recognized as a gain or loss on foreign currency in the income statement. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued and gains and losses accumulated in other comprehensive income are reclassified to earnings. If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated in other comprehensive income are reclassified to current-period earnings. In connection with the Rochas brand acquisition, $ 108 5 108 1.067 Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income (loss) and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying income statements. Such gains and losses were immaterial for both three month periods ended March 31, 2017 and 2016. For the three months ended March 31, 2017 and 2016, interest expense includes a gain (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 at March 31, 2017, resulted in an asset and is included in other current assets on the accompanying balance sheet. At March 31, 2017, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $ 68.4 1.2 150.0 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Accrued Expenses [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 6. Accrued Expenses: Accrued expenses include approximately $ 14.8 27.2 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2017 | |
Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 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, 2017 and 2016 aggregated $ 0.05 Weighted Average Grant Number of Shares Date Fair Value Nonvested options beginning of period 401,440 $ 7.14 Nonvested options granted 5,000 $ 7.67 Nonvested options vested or forfeited (11,825) $ 6.90 Nonvested options end of period 394,615 $ 7.15 Share-based payment expense decreased income before income taxes by $ 0.51 0.21 0.32 0.13 Weighted Average Shares Exercise Price Outstanding at January 1, 2017 684,540 $ 26.94 Options granted 5,000 33.95 Options forfeited (5,500) 29.89 Options exercised (29,790) 18.18 Outstanding at March 31, 2017 654,250 $ 27.37 Options exercisable 259,635 $ 24.91 Options available for future grants 1,080,155 As of March 31, 2017, the weighted average remaining contractual life of options outstanding is 3.70 2.46 6.0 3.0 2.6 March 31, March 31, (In thousands) 2017 2016 Cash proceeds from stock options exercised $ 542 $ 132 Tax benefits 135 Intrinsic value of stock options exercised 549 80 The weighted average fair values of the options granted by Inter Parfums, Inc. during the three months ended March 31, 2017 and 2016 were $ 7.67 6.50 March 31, March 31, 2017 2016 Weighted average expected stock-price volatility 29 % 33 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 2.0 % 1.42 % Weighted average dividend yield 2.1 % 2.2 % 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. In September 2016, Interparfums SA, our 73 15,100 133,000 The fair value of the grant of € 22.46 25.00 137,381 3.1 3.4 0.3 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 December 31, 2016, 108,348 2.9 |
Net Income Attributable to Inte
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 3 Months Ended |
Mar. 31, 2017 | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |
Earnings Per Share [Text Block] | 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. Three months ended (In thousands, except per share data) March 31, 2017 2016 Numerator: Net income attributable to Inter Parfums, Inc. $ 13,373 $ 7,334 Denominator: Weighted average shares 31,145 31,039 Effect of dilutive securities: Stock options 109 76 Denominator for diluted earnings per share 31,254 31,115 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 0.43 $ 0.24 Diluted 0.43 0.24 Not included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.26 0.42 |
Segments and Geographic Areas
Segments and Geographic Areas | 3 Months Ended |
Mar. 31, 2017 | |
Segments and Geographic Areas [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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: Three months ended (In thousands) March 31, 2017 2016 Net sales: United States $ 23,689 $ 19,385 Europe 119,727 92,156 Eliminations (358) (19) $ 143,058 $ 111,522 Net income attributable to Inter Parfums, Inc.: United States $ 872 $ 397 Europe 12,501 6,937 $ 13,373 $ 7,334 March 31, March 31, 2017 2016 Total Assets: United States $ 86,007 $ 80,120 Europe 627,651 641,186 Eliminations of investment in subsidiary (9,553) (9,229) $ 704,105 $ 712,077 |
Other Matters
Other Matters | 3 Months Ended |
Mar. 31, 2017 | |
Other Matters Disclosure [Abstract] | |
Other Matters Disclosure [Text Block] | 10. Other Matters Buyout of License: In December 2016, the Company reached an agreement with the Balmain brand calling for Balmain to buyout the Balmain license agreement, effective December 31, 2016, in exchange for a payment aggregating $ 5.7 4.7 1.4 Settlement with French Tax Authorities: As previously reported, the French Tax Authorities examined the 2012 tax return of Interparfums SA, and in August 2015 issued a $ 6.9 1.9 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: (In thousands) March 31, December 31, 2017 2016 Raw materials and component parts $ 38,630 $ 36,821 Finished goods 72,689 60,156 $ 111,319 $ 96,977 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. Fair Value Measurements at March 31, 2017 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 $ 115,674 $ $ 115,674 $ Foreign currency forward exchange contracts not accounted for using hedge accounting 6 6 Foreign currency forward exchange contracts accounted for using hedge accounting 493 493 $ 116,173 $ $ 116,173 $ Liabilities: Interest rate swap $ 743 $ $ 743 $ Fair Value Measurements at December 31, 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 $ 94,202 $ $ 94,202 $ Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting $ 181 $ $ 181 $ Foreign currency forward exchange contracts not accounted for using hedge accounting 418 418 Interest rate swap 908 908 $ 1,507 $ $ 1,507 $ |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-Based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table sets forth information with respect to nonvested options for the three month period ended March 31, 2017: Weighted Average Grant Number of Shares Date Fair Value Nonvested options beginning of period 401,440 $ 7.14 Nonvested options granted 5,000 $ 7.67 Nonvested options vested or forfeited (11,825) $ 6.90 Nonvested options end of period 394,615 $ 7.15 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes stock option information as of March 31, 2017: Weighted Average Shares Exercise Price Outstanding at January 1, 2017 684,540 $ 26.94 Options granted 5,000 33.95 Options forfeited (5,500) 29.89 Options exercised (29,790) 18.18 Outstanding at March 31, 2017 654,250 $ 27.37 Options exercisable 259,635 $ 24.91 Options available for future grants 1,080,155 |
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 three months ended March 31, 2017 and March 31, 2016 were as follows: March 31, March 31, (In thousands) 2017 2016 Cash proceeds from stock options exercised $ 542 $ 132 Tax benefits 135 Intrinsic value of stock options exercised 549 80 |
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 March 31, 2017 and 2016 are set forth in the following table: March 31, March 31, 2017 2016 Weighted average expected stock-price volatility 29 % 33 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 2.0 % 1.42 % Weighted average dividend yield 2.1 % 2.2 % |
Net Income Attributable to In21
Net Income Attributable to Inter Parfums, Inc. Common Shareholders: (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Three months ended (In thousands, except per share data) March 31, 2017 2016 Numerator: Net income attributable to Inter Parfums, Inc. $ 13,373 $ 7,334 Denominator: Weighted average shares 31,145 31,039 Effect of dilutive securities: Stock options 109 76 Denominator for diluted earnings per share 31,254 31,115 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 0.43 $ 0.24 Diluted 0.43 0.24 |
Segments and Geographic Areas (
Segments and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 (In thousands) March 31, 2017 2016 Net sales: United States $ 23,689 $ 19,385 Europe 119,727 92,156 Eliminations (358) (19) $ 143,058 $ 111,522 Net income attributable to Inter Parfums, Inc.: United States $ 872 $ 397 Europe 12,501 6,937 $ 13,373 $ 7,334 March 31, March 31, 2017 2016 Total Assets: United States $ 86,007 $ 80,120 Europe 627,651 641,186 Eliminations of investment in subsidiary (9,553) (9,229) $ 704,105 $ 712,077 |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Weighted Average Number of Shares Outstanding, Diluted | 31,254 | 31,115 |
Accounting Standards Update 2015-17 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 8 | |
Minimum [Member] | Accounting Standards Update 2016-09 [Member] | ||
Weighted Average Number of Shares Outstanding, Diluted | 31,104,495 | |
Maximum [Member] | Accounting Standards Update 2016-09 [Member] | ||
Weighted Average Number of Shares Outstanding, Diluted | 31,114,894 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials and component parts | $ 38,630 | $ 36,821 |
Finished goods | 72,689 | 60,156 |
Inventories | $ 111,319 | $ 96,977 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Short-term investments | $ 115,674 | $ 94,202 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 6 | |
Foreign currency forward exchange contracts accounted for using hedge accounting | 493 | |
Total Assets | 116,173 | |
Liabilities: | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | 181 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 418 | |
Interest rate swap | 743 | 908 |
Total Liabilities | 1,507 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Foreign currency forward exchange contracts accounted for using hedge accounting | 0 | |
Total Assets | 0 | |
Liabilities: | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | 0 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 0 | |
Interest rate swap | 0 | 0 |
Total Liabilities | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Short-term investments | 115,674 | 94,202 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 6 | |
Foreign currency forward exchange contracts accounted for using hedge accounting | 493 | |
Total Assets | 116,173 | |
Liabilities: | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | 181 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 418 | |
Interest rate swap | 743 | 908 |
Total Liabilities | 1,507 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Short-term investments | 0 | 0 |
Foreign currency forward exchange contracts accounted for using hedge accounting | 0 | |
Total Assets | 0 | |
Liabilities: | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | 0 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 0 | |
Interest rate swap | $ 0 | 0 |
Total Liabilities | $ 0 |
Derivative Financial Instrume26
Derivative Financial Instruments (Details Textual) ¥ in Millions, £ in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017JPY (¥) | Mar. 31, 2017GBP (£) | Mar. 31, 2016USD ($) | |
Derivative Financial Instruments [Line Items] | ||||
Maximum maturity period | 1 year | 1 year | 1 year | |
Foreign Exchange Contract [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||
Maximum maturity period | 0 years | 0 years | 0 years | |
Derivative, Gain (Loss) on Derivative, Net, Total | $ 68.4 | ¥ 150 | £ 1.2 | |
Interest Rate Swap [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net, Total | 0.2 | $ (0.3) | ||
Rochas brand [Member] | Trademarks [Member] | Term Loan [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||
Cash paid for acquisition and financed by loan, amount | $ 108 | |||
Cash paid for acquisition and financed by loan, term | 5 years | 5 years | 5 years | |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Payable And Accrued Liabilities [Line Items] | ||
Accrued advertising liabilities | $ 14.8 | $ 27.2 |
Share-Based Payments (Details)
Share-Based Payments (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Number of Shares | ||
Nonvested options - beginning of period | 401,440 | |
Nonvested options granted | 5,000 | |
Nonvested options vested or forfeited | (11,825) | |
Nonvested options - end of period | 394,615 | |
Weighted Average Grant Date Fair Value | ||
Nonvested options - beginning of period | $ 7.14 | |
Nonvested options granted | 7.67 | $ 6.50 |
Nonvested options vested or forfeited | 6.9 | |
Nonvested options - end of period | $ 7.15 |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares | |
Outstanding at January 1, 2017 | 684,540 |
Options granted | 5,000 |
Options forfeited | (5,500) |
Options exercised | (29,790) |
Outstanding at March 31, 2017 | 654,250 |
Options exercisable | 259,635 |
Options available for future grants | 1,080,155 |
Weighted Average Exercise Price | |
Outstanding at January 1, 2017 | $ / shares | $ 26.94 |
Options granted | $ / shares | 33.95 |
Options forfeited | $ / shares | 29.89 |
Options exercised | $ / shares | 18.18 |
Outstanding at March 31, 2017 | $ / shares | 27.37 |
Options exercisable | $ / shares | $ 24.91 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash proceeds from stock options exercised | $ 542 | $ 132 |
Tax benefits | 135 | 0 |
Intrinsic value of stock options exercised | $ 549 | $ 80 |
Share-Based Payments (Details 3
Share-Based Payments (Details 3) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average expected stock-price volatility | 29.00% | 33.00% |
Weighted average expected option life | 5 years | 5 years |
Weighted average risk-free interest rate | 2.00% | 1.42% |
Weighted average dividend yield | 2.10% | 2.20% |
Share-Based Payments (Details T
Share-Based Payments (Details Textual) € / shares in Units, $ / shares in Units, $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2016USD ($)shares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2016EUR (€)€ / sharesshares | Mar. 31, 2017USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value of options outstanding | $ 6,000 | ||||
Unrecognized compensation cost related to stock options | $ 2,600 | ||||
Weighted average grant date fair value | $ / shares | $ 7.67 | $ 6.50 | |||
Weighted average remaining contractual life of options outstanding, options exercisable | 2 years 5 months 16 days | ||||
Aggregate intrinsic value of exercisable options | $ 3,000 | ||||
Allocated Share-based Compensation Expense | 510 | $ 210 | |||
Allocated Share-based Compensation Expense, Effect On Net Income Attributable To Parent | $ 320 | 130 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years 8 months 12 days | ||||
Interparfums SA [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value | (per share) | $ 25 | € 22.46 | |||
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 | |||
Allocated Share-based Compensation Expense | $ 300 | ||||
Share based Compensation Arrangement by Share based Payment Award Value Shares Purchased for Award | $ 2,900 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | shares | 108,348 | ||||
Equity Method Investment, Ownership Percentage | 73.00% | 73.00% | |||
Employees [Member] | Interparfums SA [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 | |||
Officers And Managers [Member] | Interparfums SA [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 | |||
Equity Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock options, fair value of shares vested | $ 50 | $ 50 | |||
Term | 6 years | ||||
Equity Option [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
Equity Option [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Net Income Attributable to In33
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net income attributable to Inter Parfums, Inc. | $ 13,373 | $ 7,334 |
Denominator: | ||
Weighted average shares | 31,145 | 31,039 |
Effect of dilutive securities: Stock options | 109 | 76 |
Denominator for diluted earnings per share | 31,254 | 31,115 |
Net income attributable to Inter Parfums, Inc. | ||
Basic | $ 0.43 | $ 0.24 |
Diluted | $ 0.43 | $ 0.24 |
Net Income Attributable to In34
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 260 | 420 |
Segments and Geographic Areas35
Segments and Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 143,058 | $ 111,522 | |
Net income attributable to Inter Parfums, Inc. | 13,373 | 7,334 | |
Total Assets | 704,105 | 712,077 | $ 682,409 |
Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net income attributable to Inter Parfums, Inc. | (358) | (19) | |
Total Assets | (9,553) | (9,229) | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 23,689 | 19,385 | |
Net income attributable to Inter Parfums, Inc. | 872 | 397 | |
Total Assets | 86,007 | 80,120 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 119,727 | 92,156 | |
Net income attributable to Inter Parfums, Inc. | 12,501 | 6,937 | |
Total Assets | $ 627,651 | $ 641,186 |
Other Matters (Details Textual)
Other Matters (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | |||
Dec. 31, 2016 | Aug. 31, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | |
Proceeds from Sale of Intangible Assets | $ 5,700 | |||
Gain (Loss) on Disposition of Intangible Assets | 4,700 | |||
Inventory, Net | 96,977 | $ 111,319 | ||
Accrued Income Taxes, Current | $ 3,331 | 8,015 | ||
Foreign Tax Authority [Member] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 6,900 | |||
Balmain [Member] | ||||
Inventory, Net | $ 1,400 | |||
Interparfum SA [Member] | ||||
Accrued Income Taxes, Current | $ 1,900 |