Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 30, 2020 | |
Document Information Line Items | |||
Entity Registrant Name | INTER PARFUMS INC | ||
Trading Symbol | IPAR | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 31,635,098 | ||
Entity Public Float | $ 847,418,717.70 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000822663 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-16469 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3275609 | ||
Entity Address, Address Line One | 551 Fifth Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10176 | ||
City Area Code | 212 | ||
Local Phone Number | 983.2640 | ||
Title of 12(b) Security | Common Stock, $.001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 169,681 | $ 133,417 |
Short-term investments | 126,627 | 119,714 |
Accounts receivable, net | 124,057 | 133,010 |
Inventories | 158,822 | 167,809 |
Receivables, other | 1,815 | 2,054 |
Other current assets | 16,912 | 17,123 |
Income taxes receivable | 2,806 | 169 |
Total current assets | 600,720 | 573,296 |
Equipment and leasehold improvements, net | 19,580 | 11,107 |
Right-of-use assets, net | 24,734 | 28,359 |
Trademarks, licenses and other intangible assets, net | 214,108 | 201,983 |
Deferred tax assets | 8,041 | 8,004 |
Other assets | 22,962 | 6,083 |
Total assets | 890,145 | 828,832 |
Current liabilities: | ||
Current portion of long-term debt | 14,570 | 12,326 |
Current portion of lease liabilities | 5,133 | 5,356 |
Accounts payable - trade | 35,576 | 54,098 |
Accrued expenses | 95,629 | 96,421 |
Income taxes payable | 5,297 | 5,865 |
Dividends payable | 10,399 | |
Total current liabilities | 156,205 | 184,465 |
Long–term debt, less current portion | 10,136 | 10,734 |
Lease liabilities, less current portion | 21,354 | 24,635 |
Inter Parfums, Inc. shareholders’ equity: | ||
Preferred stock, $0.001 par value. Authorized 1,000,000 shares; none issued | ||
Common stock, $0.001 par value. Authorized 100,000,000 shares; outstanding, 31,608,588 and 31,513,018 shares at December 31, 2020 and 2019, respectively | 32 | 31 |
Additional paid-in capital | 75,708 | 70,664 |
Retained earnings | 503,567 | 474,637 |
Accumulated other comprehensive loss | (5,997) | (39,853) |
Treasury stock, at cost, 9,864,805 common shares at December 31, 2020 and 2019 | (37,475) | (37,475) |
Total Inter Parfums, Inc. shareholders’ equity | 535,835 | 468,004 |
Noncontrolling interest | 166,615 | 140,994 |
Total equity | 702,450 | 608,998 |
Total liabilities and equity | $ 890,145 | $ 828,832 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, outstanding | 31,608,588 | 31,513,018 |
Treasury stock | 9,864,805 | 9,864,805 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 539,009 | $ 713,514 | $ 675,574 |
Cost of sales | 208,278 | 267,578 | 248,012 |
Gross margin | 330,731 | 445,936 | 427,562 |
Selling, general, and administrative expenses | 260,648 | 341,209 | 332,831 |
Income from operations | 70,083 | 104,727 | 94,731 |
Other expenses (income): | |||
Interest expense | 1,970 | 2,146 | 2,578 |
Loss on foreign currency | 2,178 | 1,128 | 251 |
Interest income | (2,865) | (3,693) | (3,957) |
Other income | (549) | ||
Other expenses (income) | 734 | (419) | (1,128) |
Income before income taxes | 69,349 | 105,146 | 95,859 |
Income taxes | 19,381 | 29,076 | 26,144 |
Net income | 49,968 | 76,070 | 69,715 |
Less: Net income attributable to the noncontrolling interest | 11,749 | 15,821 | 15,922 |
Net income attributable to Inter Parfums, Inc. | $ 38,219 | $ 60,249 | $ 53,793 |
Net income attributable to Inter Parfums, Inc. common shareholders: | |||
Basic (in Dollars per share) | $ 1.21 | $ 1.92 | $ 1.72 |
Diluted (in Dollars per share) | $ 1.21 | $ 1.90 | $ 1.71 |
Weighted average number of shares outstanding: | |||
Basic (in Shares) | 31,536,659 | 31,451,093 | 31,307,991 |
Diluted (in Shares) | 31,654,544 | 31,688,700 | 31,522,371 |
Dividends declared per share (in Dollars per share) | $ 0.33 | $ 1.16 | $ 0.91 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 49,968 | $ 76,070 | $ 69,715 |
Other comprehensive income: | |||
Net derivative instrument income (loss), net of tax | (19) | 22 | 175 |
Transfer of OCI into earnings | (52) | (136) | (37) |
Translation adjustments, net of tax | 47,912 | (8,712) | (22,555) |
Total other comprehensive income (loss) | 47,841 | (8,826) | (22,417) |
Comprehensive income | 97,809 | 67,244 | 47,298 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | 11,749 | 15,821 | 15,922 |
Net derivative instrument income (loss), net of tax | (19) | (30) | 39 |
Translation adjustments, net of tax | 14,004 | (2,593) | (6,638) |
Comprehensive income attributable to the noncontrolling interests | 25,734 | 13,198 | 9,323 |
Comprehensive income attributable to Inter Parfums Inc. | $ 72,075 | $ 54,046 | $ 37,975 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury stock | Noncontrolling interest | Total |
Beginning Balance at Dec. 31, 2017 | $ 31 | $ 66,004 | $ 422,570 | $ (17,832) | $ 137,339 | ||
Foreign currency translation adjustment, net of tax | (15,917) | (6,638) | |||||
Transfer from other comprehensive income into earnings | (37) | ||||||
Net derivative instrument gain (loss), net of tax | 136 | 39 | $ 39 | ||||
Net income | 53,793 | 15,922 | 69,715 | ||||
Dividends | (28,356) | (8,706) | |||||
Shares issued upon exercise of stock options | 3,406 | ||||||
Share-based compensation | 1,132 | 724 | 419 | ||||
Purchase of subsidiary shares from noncontrolling interests | (572) | (236) | |||||
Transfer of subsidiary shares purchased | |||||||
Ending Balance at Dec. 31, 2018 | 31 | 69,970 | 448,731 | (33,650) | $ (37,475) | 138,139 | 585,746 |
Foreign currency translation adjustment, net of tax | (6,119) | (2,593) | |||||
Transfer from other comprehensive income into earnings | (136) | ||||||
Net derivative instrument gain (loss), net of tax | 52 | (30) | (30) | ||||
Net income | 60,249 | 15,821 | 76,070 | ||||
Dividends | (36,349) | (9,654) | |||||
Shares issued upon exercise of stock options | 4,458 | ||||||
Share-based compensation | 1,403 | 2,006 | 231 | ||||
Purchase of subsidiary shares from noncontrolling interests | (5,167) | (920) | |||||
Transfer of subsidiary shares purchased | |||||||
Ending Balance at Dec. 31, 2019 | 31 | 70,664 | 474,637 | (39,853) | (37,475) | 140,994 | 608,998 |
Foreign currency translation adjustment, net of tax | 33,908 | 14,004 | |||||
Transfer from other comprehensive income into earnings | (52) | ||||||
Net derivative instrument gain (loss), net of tax | (19) | (19) | |||||
Net income | 38,219 | 11,749 | 49,968 | ||||
Dividends | (10,406) | (324) | |||||
Shares issued upon exercise of stock options | 1 | 2,771 | |||||
Share-based compensation | 1,711 | 1,117 | 350 | ||||
Purchase of subsidiary shares from noncontrolling interests | |||||||
Transfer of subsidiary shares purchased | 562 | (139) | |||||
Ending Balance at Dec. 31, 2020 | $ 32 | $ 75,708 | $ 503,567 | $ (5,997) | $ (37,475) | $ 166,615 | $ 702,450 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 49,968 | $ 76,070 | $ 69,715 |
cash provided by operating activities: | |||
Depreciation and amortization including impairment loss | 9,067 | 8,729 | 11,031 |
Provision for doubtful accounts | 4,824 | 1,380 | 1,442 |
Noncash stock compensation | 3,029 | 3,394 | 2,205 |
Share of income of equity investment | (549) | ||
Lease expense | 62 | 1,068 | |
Deferred tax expense (benefit) | 581 | (2,330) | (158) |
Change in fair value of derivatives | (137) | (169) | (302) |
Changes in: | |||
Accounts receivable | 13,157 | 1,124 | (21,532) |
Inventories | 19,333 | (5,925) | (29,341) |
Other assets | 1,176 | (4,945) | (1,016) |
Accounts payable and accrued expenses | (32,239) | (4,960) | 25,592 |
Income taxes, net | (3,279) | 3,016 | 5,405 |
Net cash provided by operating activities | 64,993 | 76,452 | 63,041 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (7,582) | (97,958) | (10,030) |
Proceeds from sale of short-term investments | 11,513 | 44,814 | 8,859 |
Purchase of equipment and leasehold improvements | (11,011) | (5,427) | (3,956) |
Payment for intangible assets acquired | (1,251) | (6,067) | (8,509) |
Purchase of equity investment | (13,998) | ||
Net cash used in investing activities | (22,329) | (64,638) | (13,636) |
Cash flows from financing activities: | |||
Repayment of long-term debt | (13,725) | (22,321) | (23,487) |
Proceeds issuance of long-term debt | 13,438 | ||
Proceeds from exercise of options | 2,771 | 4,458 | 3,406 |
Dividends paid | (20,805) | (34,579) | (26,287) |
Dividends paid to noncontrolling interests | (324) | (9,654) | (8,706) |
Purchase of subsidiary shares from noncontrolling interests | (6,087) | (808) | |
Net cash used in financing activities | (18,645) | (68,183) | (55,882) |
Effect of exchange rate changes on cash | 12,245 | (3,350) | (8,730) |
Net increase (decrease) in cash and cash equivalents | 36,264 | (59,719) | (15,207) |
Cash and cash equivalents – beginning of year | 133,417 | 193,136 | 208,343 |
Cash and cash equivalents – end of year | 169,681 | 133,417 | 193,136 |
Cash paid for: | |||
Interest | 1,105 | 1,764 | 1,754 |
Income taxes | $ 21,772 | $ 26,332 | $ 24,995 |
The Company and its Significant
The Company and its Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
The Company and its Significant Accounting Policies | (1) The Company and its Significant Accounting Policies Business of the Company Inter Parfums, Inc. and its subsidiaries (the “Company”) are in the fragrance business and manufacture and distribute a wide array of fragrances and fragrance related products. Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we own the Lanvin brand name for our class of trade, and license the Montblanc, Coach, Jimmy Choo and GUESS brand names. As a percentage of net sales, product sales for the Company’s largest brands were as follows: Year Ended December 31, 2020 2019 2018 Montblanc 21 % 22 % 19 % Coach 17 % 14 % 15 % Jimmy Choo 16 % 16 % 17 % GUESS (license commenced April 1, 2018) 11 % 10 % n/a Lanvin 7 % 8 % 10 % No other brand represented 10% or more of consolidated net sales. Basis of Preparation The consolidated financial statements include the accounts of the Company, including 73% owned Interparfums SA, a subsidiary whose stock is publicly traded in France. All material intercompany balances and transactions have been eliminated . Management Estimates Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported and disclosures included in the consolidated financial statements. Actual results could differ from those assumptions and estimates. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these notes to the consolidated financial statements. Foreign Currency Translation For foreign subsidiaries with operations denominated in a foreign currency, assets and liabilities are translated to U.S. dollars at year end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Gains and losses from translation adjustments are accumulated in a separate component of shareholders equity. Cash and Cash Equivalents and Short-Term Investments All highly liquid investments purchased with a maturity of three months or less are considered to be cash equivalents. From time to time, the Company has short-term investments which consist of certificates of deposit and other contracts with maturities greater than three months. The Company monitors concentrations of credit risk associated with financial institutions with which the Company conducts significant business. The Company believes its credit risk is minimal, as the Company primarily conducts business with large, well-established financial institutions. Substantially all cash and cash equivalents are primarily held at financial institutions outside the United States and are readily convertible into U.S. dollars. Accounts Receivable Accounts receivable represent payments due to the Company for previously recognized net sales, reduced by allowances for doubtful accounts or balances which are estimated to be uncollectible, which aggregated $5.5 million and $2.5 million as of December 31, 2020 and 2019, respectively. Accounts receivable balances are written-off against the allowance for doubtful accounts when they become uncollectible. Recoveries of accounts receivable previously recorded against the allowance are recorded in the consolidated statement of income when received. We generally grant credit based upon our analysis of the customer s financial position, as well as previously established buying patterns. Inventories Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and are stated at the lower of cost and net realizable value, with cost being determined on the first-in, first-out method. Cost components include raw materials, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company s customers. Derivatives All derivative instruments are recorded as either assets or liabilities and measured at fair value. The Company uses derivative instruments to principally manage a variety of market risks. For derivatives designated as hedges of the exposure to changes in fair value of the recognized asset or liability or a firm commitment (referred to as fair value hedges), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect of that accounting is to include in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For cash flow hedges, the effective portion of the derivative s gain or loss is initially reported in equity (as a component of accumulated other comprehensive income) and is subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge is reported in earnings immediately. The Company also holds certain instruments for economic purposes that are not designated for hedge accounting treatment. For these derivative instruments, changes in their fair value are recorded in earnings immediately. Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight line method over the estimated useful lives for equipment, which range between three and ten years and the shorter of the lease term or estimated useful asset lives for leasehold improvements. Depreciation provided on equipment used to produce inventory, such as tools and molds, is included in cost of sales. Long-Lived Assets Indefinite-lived intangible assets principally consist of trademarks which are not amortized. The Company evaluates indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more-likely-than-not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.99% and 7.94% in 2020 and 2019, respectively. The cash flow projections are based upon a number of assumptions, including future sales levels, future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded. Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. Revenue Recognition The Company sells its products to department stores, perfumeries, specialty stores and domestic and international wholesalers and distributors. Our revenue contracts represent single performance obligations to sell our products to customers. Sales of such products by our domestic subsidiaries are denominated in U.S. dollars, and sales of such products by our foreign subsidiaries are primarily denominated in either euro or U.S. dollars. The Company recognizes revenues when contract terms are met, the price is fixed and determinable, collectability is reasonably assured and control of the assets has passed to the customer based on the agreed upon shipping terms. Net sales are comprised of gross revenues less returns, trade discounts and allowances. The Company does not bill its customers freight and handling charges. All shipping and handling costs, which aggregated $5.0 million, $7.7 million and $7.1 million in 2020, 2019 and 2018, respectively, are included in selling, general and administrative expenses in the consolidated statements of income. The Company grants credit to all qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. No one customer represented 10% or more of net sales in 2020, 2019 or 2018. Sales Returns Generally, the Company does not permit customers to return their unsold products. However, for U.S. based customers, we allow returns if properly requested, authorized and approved. The Company regularly reviews and revises, as deemed necessary, its estimate of reserves for future sales returns based primarily upon historic trends and relevant current data including information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that we consider include, but are not limited to, the financial condition of our customers, store closings by retailers, changes in the retail environment and our decision to continue to support new and existing products. The Company records its estimate of potential sales returns as a reduction of sales and cost of sales with corresponding entries to accrued expenses, to record the refund liability, and inventory, for the right to recover goods from the customer. The refund liability associated with estimated returns was $3.6 million and $4.1 million at December 31, 2020 and 2019, respectively, and the amounts recognized for the rights to recover products was $1.4 million and $1.6 million at December 31, 2020 and 2019, respectively. The physical condition and marketability of returned products are the major factors we consider in estimating realizable value. Actual returns, as well as estimated realizable values of returned products, may differ significantly, either favorably or unfavorably, from our estimates, if factors such as economic conditions, inventory levels or competitive conditions differ from our expectations. Payments to Customers The Company records revenues generated from purchase with purchase and gift with purchase promotions as sales and the costs of its purchase with purchase and gift with purchase promotions as cost of sales. Certain other incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been recorded as a reduction of net sales. Advertising and Promotion Advertising and promotional costs are expensed as incurred and recorded as a component of cost of goods sold (in the case of free goods given to customers) or selling, general and administrative expenses. Advertising and promotional costs included in selling, general and administrative expenses were $91.7 million, $144.6 million and $139.7 million for 2020, 2019 and 2018, respectively. Costs relating to purchase with purchase and gift with purchase promotions that are reflected in cost of sales aggregated $26.4 million, $38.9 million and $36.4 million in 2020, 2019 and 2018, respectively. Package Development Costs Package development costs associated with new products and redesigns of existing product packaging are expensed as incurred. Operating Leases The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. License Agreements The Company s license agreements generally provide the Company with worldwide rights to manufacture, market and sell fragrance and fragrance related products using the licensors trademarks. The licenses typically have an initial term of approximately 5 to 15 years, and are potentially renewable subject to the Company s compliance with the license agreement provisions. The remaining terms, excluding potential renewal periods, range from approximately 1 to 13 years. Under each license, the Company is required to pay royalties in the range of 6% to 10% to the licensor, at least annually, based on net sales to third parties. In certain cases, the Company may pay an entry fee to acquire, or enter into, a license where the licensor or another licensee was operating a pre-existing fragrance business. In those cases, the entry fee is capitalized as an intangible asset and amortized over its useful life. Most license agreements require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. In addition, the Company is exposed to certain concentration risk. Most of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently enacted tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is more-likely-than-not that the deferred tax assets will not be realized in the relevant jurisdiction. If the Company determines that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of net earnings at that time. Accrued interest and penalties are included within the related tax asset or liability in the accompanying financial statements. Issuance of Common Stock by Consolidated Subsidiary The difference between the Company s share of the proceeds received by the subsidiary and the carrying amount of the portion of the Company s investment deemed sold, is reflected as an equity adjustment in the consolidated balance sheets. Treasury Stock The Board of Directors may authorize share repurchases of the Company s common stock (Share Repurchase Authorizations). Share repurchases under Share Repurchase Authorizations may be made through open market transactions, negotiated purchase or otherwise, at times and in such amounts within the parameters authorized by the Board. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee stock option plans. Treasury shares are accounted for under the cost method and reported as a reduction of equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ( FASB ) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as updated in 2019 and 2020, which require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The new rules eliminate the probable initial recognition threshold and, instead, reflect an entity s current estimate of all expected credit losses. The new rules took effect for the Company in the first quarter of 2020 and there was 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. Reclassifications Certain prior year s amounts in the accompanying consolidated balance sheet and statements of cash flows have been reclassified to conform to current period presentation. |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2020 | |
Impact Of COVI D19 Pandemic [Abstract] | |
Impact of COVID-19 Pandemic | (2) Impact of COVID-19 Pandemic A novel strain of coronavirus ( COVID-19 ) surfaced in late 2019 and has spread around the world, including to the United States and France. In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has disrupted our business operations and caused a significant unfavorable impact on our results of operations. In response to the COVID-19 pandemic various national, state, and local governments where we, our suppliers, and our customers operate initially issued decrees prohibiting certain businesses from continuing to operate and certain classes of workers from reporting to work. More recently, those governments have set guidelines in allowing businesses to reopen and employees to return to offices. Beginning in March 2020, we implemented travel restrictions and we have been following social distancing practices. Our teams were set up to work from home and carry on business as efficiently as possible. In all jurisdictions in which we operate we have been following guidance from authorities and health officials in allowing our teams to gradually return to our offices, including, requiring personnel to wear masks and other protective clothing as appropriate, and implementing additional cleaning and sanitization routines at our offices and distribution centers as the health and safety of our employees are paramount. The effects of the COVID-19 pandemic on the beauty industry began in early March 2020. Retail store closings, event cancellations and a shutdown of international air travel brought our sales to a virtual standstill. The duration and intensity of this global health emergency and its related disruptions are uncertain. Beginning in June 2020, retail stores in many jurisdictions around the world began reopening and business has improved considerably. However, international travel has remained largely curtailed globally due to both government restrictions and consumer health concerns that continue to adversely impact consumer traffic in most travel retail locations. We anticipate that limited traffic in reopened stores and the virtual shutdown of international air traffic will continue to have an unfavorable impact our business. We faced significant challenges in 2020 and we anticipate that these challenges will continue in 2021 due to uncertain market conditions. Business significantly improved during the second half of 2020, as retail stores began reopening and consumers have increased their on-line purchasing. We expect this trend to continue, however, we do not see a resurgence anytime soon in travel retail as air traffic continues to suffer due in part to governmental restrictions on international air travel. In addition, the recent resurgence and introduction of variants of COVID-19 cases in various parts of the world, including the United States, the United Kingdom and other countries in Europe, South America and Africa, has caused temporary re-implementation of government restrictions to prevent further spread of the virus. These include the temporary closure of businesses deemed non-essential, travel bans and restrictions, social distancing and quarantines. Lastly, the COVID-19 pandemic has led to high levels of unemployment and deteriorating economic conditions in many countries where our products are sold, forcing many consumers to limit discretionary purchases. We believe that the impact of the COVID-19 pandemic will continue to have a material adverse effect on our results of our operations, financial position and cash flows through at least the end of 2021. |
Recent Agreements
Recent Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Recent Agreements | (3) Recent Agreements Anna Sui Corp. In January 2021, we renewed our license agreement with Anna Sui Corp. for the creation, development and distribution of fragrance products through December 31, 2026, without any material changes in terms and conditions. Our initial 10-year license agreement with Anna Sui Corp. was signed in 2011. The renewal agreement also allows for an additional 5-year term through 2031 at the option of the Company. Building Acquisition – Future Headquarters in Paris In December 2020, the Company signed a purchase contract, subject to certain conditions, to acquire an office building complex for its exclusive use as its future headquarters, located in the heart of Paris. In order to maintain the Company s current cash position, approximately 90% of the €125 million ($153 million) purchase price, excluding taxes and related expenses, will be financed by a bank loan. The transaction is expected to be completed in the spring of 2021 with the move planned for the end of 2021 or the beginning of 2022. In December 2020, the Company paid a €6.25 million ($7.7 million) deposit upon signing the purchase contract. Such amount is included in equipment and leasehold improvements on the accompanying balance sheet as of December 31, 2020. Origines-parfums In June 2020, the Company, through its 73% owned French subsidiary, Interparfums SA, and Divabox SAS ( Divabox ), owner of the Origines-parfums e-commerce platform for beauty products, signed a strategic agreement and equity investment pursuant to which we acquired 25% of Divabox capital for $14.0 million, through a capital increase. The difference between the purchase price and the fair value of net assets acquired of approximately $8.7 million has been allocated to goodwill. The investment is being accounted for under the equity method and is included in other assets on the accompanying balance sheet as of December 31, 2020. In connection with the acquisition, the Company entered into a $13.4 million term loan, which has been amended such that the loan was repaid in full in February 2021. Our share of the income of Divabox was $0.5 million for the year-ended December 31, 2020. Such amount is included in other income on the accompanying consolidated statement of income. Moncler In June 2020, the Company entered into an exclusive, 5-year worldwide license agreement with a potential 5-year extension with Moncler for the creation, development and distribution of fragrances under the Moncler brand. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. S.T. Dupont In January 2021, we renewed our license agreement with S.T. Dupont for the creation, development and distribution of fragrance products through December 31, 2022, without any material changes in terms and conditions. Our initial 11-year license agreement with S.T. Dupont was signed in June 1997, and had previously been extended through December 31, 2020. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories December 31, 2020 2019 Raw materials and component parts $ 66,492 $ 71,895 Finished goods 92,330 95,914 $ 158,822 $ 167,809 Overhead included in inventory aggregated $5.4 million and $4.3 million as of December 31, 2020 and 2019, respectively. Included in inventories is an inventory reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based upon sales forecasts and the physical condition of the inventories. In addition, and as necessary, specific reserves for future known or anticipated events may be established. Inventory reserves aggregated $9.4 million and $4.9 million as of December 31, 2020 and 2019, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (5) Fair Value of Financial Instruments The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at December 31, 2020 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 $ 126,627 $ — $ 126,627 $ — Foreign currency forward exchange contracts not accounted for using hedge accounting 253 — 253 — $ 126,880 $ — $ 126,880 $ — Fair Value Measurements at December 31, 2019 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 $ 119,714 $ — $ 119,714 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 16 16 Foreign currency forward exchange contracts not accounted for using hedge accounting 112 112 $ 119,842 $ — $ 119,842 $ — Liabilities: Interest rate swap $ 30 $ — $ 30 $ — 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 variable 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 | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | (6) Derivative Financial Instruments The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. 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 a 2015 brand acquisition, $108 million of the purchase price was paid in cash on the closing date and was financed entirely through a 5-year term loan. As the payment at closing was due in dollars and we had planned to finance it with debt in euro, the Company entered into foreign currency forward contracts to secure the exchange rate for the $108 million purchase price at $1.067 per 1 euro. This derivative was designated and qualified as a cash flow hedge. 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 in each of the years in the three-year period ended December 31, 2020. For the years ended December 31, 2020 and 2019, interest expense includes an immaterial gain and $0.2 million, respectively, relating to an interest rate swap. 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 December 31, 2020 and December 31, 2019, resulted in an asset and is included in other current assets on the accompanying balance sheets. At December 31, 2020, the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately U.S. $22.4 million and GB £1.9 million, which all have maturities of less than one year. |
Equipment and Leasehold Improve
Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Equipment and Leasehold Improvements | (7) Equipment and Leasehold Improvements December 31, 2020 2019 Equipment $ 51,060 $ 37,743 Leasehold improvements 1,989 1,760 53,049 39,503 Less accumulated depreciation and amortization 33,469 28,396 $ 19,580 $ 11,107 Depreciation and amortization expense was $3.8 million, $3.7 million and $4.1 million in 2020, 2019, and 2018, respectively. |
Trademarks, Licenses and Other
Trademarks, Licenses and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Trademarks, Licenses and Other Intangible Assets | (8) Trademarks, Licenses and Other Intangible Assets 2020 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 131,962 $ — $ 131,962 Trademarks (finite lives) 47,477 74 47,403 Licenses (finite lives) 93,248 62,262 30,986 Other intangible assets (finite lives) 18,194 14,437 3,757 Subtotal 158,919 76,773 82,146 Total $ 290,881 $ 76,773 $ 214,108 2019 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 121,001 $ — $ 121,001 Trademarks (finite lives) 43,464 67 43,397 Licenses (finite lives) 88,008 53,714 34,294 Other intangible assets (finite lives) 15,436 12,145 3,291 Subtotal 146,908 65,926 80,982 Total $ 267,909 $ 65,926 $ 201,983 Amortization expense was $5.3 million, $5.0 million and $7.0 million in 2020, 2019 and 2018, respectively. Amortization expense is expected to approximate $5.4 million in 2021, $3.8 million in 2022 and 2023, and $3.7 million in 2024 and 2025. The weighted average amortization period for trademarks, licenses and other intangible assets with finite lives are 18 years, 15 years and 2 years, respectively, and 14 years on average. The Company reviews intangible assets with indefinite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no impairment charges for trademarks with indefinite useful lives in 2020, 2019 and 2018. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.99%, 7.94%, and 6.21% as of December 31, 2020, 2019 and 2018, respectively. The cash flow projections are based upon a number of assumptions, including, future sales levels and future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. The Company believes that the assumptions it has made in projecting future cash flows for the evaluations described above are reasonable and currently no other impairment indicators exist for our indefinite-lived assets. However, if future actual results do not meet our expectations, the Company may be required to record an impairment charge, the amount of which could be material to our results of operations. The cost of trademarks, licenses and other intangible assets with finite lives is being amortized by the straight - line method over the term of the respective license or the intangible assets estimated useful life which range from three to twenty years. If the residual value of a finite life intangible asset exceeds its carrying value, then the asset is not amortized. The Company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Trademarks (finite lives) primarily represent Lanvin brand names and trademarks and in connection with their purchase, Lanvin was granted the right to repurchase the brand names and trademarks in 2025 for the greater of €70 million (approximately $86 million) or one times the average of the annual sales for the years ending December 31, 2023 and 2024 (residual value). Because the residual value of the intangible asset exceeds its carrying value, the asset is not being amortized. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (9) Accrued Expenses Accrued expenses consist of the following: December 31, 2020 2019 Advertising liabilities $ 12,164 $ 25,713 Salary (including bonus and related taxes) 14,605 16,173 Royalties 16,966 16,646 Due vendors (not yet invoiced) 31,698 19,196 Retirement reserves 11,889 9,907 Refund (return) liability 3,616 4,131 Other 4,691 4,655 $ 95,629 $ 96,421 |
Loans Payable - Banks
Loans Payable - Banks | 12 Months Ended |
Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |
Loans Payable - Banks | (10) Loans Payable – Banks Loans payable – banks consist of the following: The Company and its domestic subsidiaries have available a $20 million unsecured revolving line of credit due on demand, which bears interest at the daily one-month LIBOR plus 2% (the one-month LIBOR was 0.14% as of December 31, 2020). The line of credit which has a maturity date of December 18, 2021 is expected to be renewed on an annual basis. Borrowings outstanding pursuant to lines of credit were zero as of December 31, 2020 and 2019. The Company ’ s foreign subsidiaries have available credit lines, including several bank overdraft facilities totaling approximately $31 million. These credit lines bear interest at EURIBOR plus between 0.5% and 0.8% (EURIBOR was minus 0.546% at December 31, 2020). Borrowings outstanding pursuant to these bank overdraft facilities were zero as of December 31, 2020 and 2019. As there were no borrowings outstanding as of December 31, 2020 and 2019, there is no weighted average interest rate on short-term borrowings as of December 31, 2020 and 2019. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | (11) Long-term Debt Long-term debt consists of the following: December 31, 2020 2019 $15.0 million payable in 14 equal annual installments of $1.1 million beginning in January 2020 including interest imputed at 4.1% per annum $ 11,208 $ 11,806 $13.4 million term loan amended such that the loan was repaid in February 2021 plus interest at 0.85% per annum 13,498 — $111.0 million 5-year term loan payable in 20 equal quarterly installments plus interest at 1.2% per annum — 11,254 24,706 23,060 Less current maturities 14,570 12,326 Total $ 10,136 $ 10,734 In June 2020, in connection with the acquisition of 25% of Divabox ’ s capital, the Company entered into a $13.4 million term loan, which has been amended such that the loan was repaid in full in February 2021, bearing interest at 0.85%. This loan requires the maintenance of certain financial covenants, tested annually, including a maximum coverage ratio. The Company is in compliance with all the covenants of the loan agreement. Maturities of long-term debt subsequent to December 31, 2020 are approximately $14.6 million in 2020 and $1.1 million per year thereafter through 2033. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | (12) Commitments Leases The Company leases its offices, warehouses and vehicles, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments. As of December 31, 2020, the weighted average remaining lease term was 5.3 years and the weighted average discount rate used to determine the operating lease liability was 3.0%. Rental expense related to operating leases was $6.2 million, $7.5 million, and $7.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Operating lease payments included in operating cash flows totaled $5.6 million and noncash additions to operating lease assets totaled $1.1 million. Maturities of lease liabilities subsequent to December 31, 2020 are as follows: (In thousands) 2021 $ 5,568 2022 4,958 2023 4,228 2024 3,999 2025 2,857 Thereafter 7,324 28,934 Less imputed interest (based on 3.0% weighted-average discount rate) (2,447 ) $ 26,487 License Agreements The Company is party to a number of license and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2033. In connection with certain of these license agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows: (In thousands) 2021 $ 165,506 2022 164,341 2023 166,508 2024 159,974 2025 156,293 Thereafter 586,342 $ 1,398,964 Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2020, without consideration for potential renewal periods. The above figures do not reflect the fact that our distributors share our advertising obligations. Royalty expense included in selling, general, and administrative expenses, aggregated $41.1 million, $53.0 million and $48.9 million, in 2020, 2019 and 2018, respectively, and represented 7.6%, 7.4% and 7.2% of net sales for the years ended December 31, 2020, 2019 and 2018, respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity | (13) Equity Share-Based Payments The Company maintains a stock option program for key employees, executives and directors. The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options. Options granted under the plans typically have a six-year term and vest over a four five-year ’ s policy to issue new shares upon exercise of stock options. The following table sets forth information with respect to nonvested options for 2020: Number of Shares Weighted Average Grant Nonvested options – beginning of year 514,210 $ 12.36 Nonvested options granted 9,000 $ 12.16 Nonvested options vested or forfeited (169,420 ) $ 11.09 Nonvested options – end of year 353,790 $ 12.96 The effect of share-based payment expenses decreased income statement line items as follows: Year Ended December 31, 2020 2019 2018 Income before income taxes $ 3,030 $ 3,390 $ 2,200 Net income attributable to Inter Parfums, Inc. 2,040 2,060 1,390 Diluted earnings per share attributable to Inter Parfums, Inc. 0.06 0.07 0.04 The following table summarizes stock option activity and related information for the years ended December 31, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Shares under option - beginning of year 815,800 $ 49.89 776,171 $ 41.33 730,980 $ 31.92 Options granted 9,000 69.11 194,050 72.89 196,350 63.91 Options exercised (95,570 ) 28.99 (130,891 ) 34.06 (140,579 ) 24.21 Options forfeited (16,020 ) 58.38 (23,530 ) 45.48 (10,580 ) 37.64 Shares under option - end of year 713,210 52.74 815,800 49.89 776,171 41.33 At December 31, 2020, options for 580,715 shares were available for future grant under the plans. The aggregate intrinsic value of options outstanding is $8.7 million as of December 31, 2020 and unrecognized compensation cost related to stock options outstanding aggregated $4.4 million, which will be recognized over the next five years. The weighted average fair values of options granted by Inter Parfums, Inc. during 2020, 2019 and 2018 were $12.16, $14.14 and $14.31 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value. The assumptions used in the Black-Scholes pricing model are set forth in the following table: Year Ended December 31, 2020 2019 2018 Weighted-average expected stock-price volatility 25 % 25 % 27 % Weighted-average expected option life 5.0 years 5.0 years 5.0 years Weighted-average risk-free interest rate 1.4 % 1.7 % 2.5 % Weighted-average dividend yield 2.5 % 2.0 % 2.0 % Expected volatility is estimated based on historic volatility of the Company ’ s common stock. The expected term of the option is estimated based on historic data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors would maintain its current payout ratio as a percentage of earnings. Proceeds, tax benefits and intrinsic value related to stock options exercised were as follows: Year Ended December 31, 2020 2019 2018 Proceeds from stock options exercised $ 2,771 $ 4,458 $ 3,406 Tax benefits $ 400 $ 690 $ 807 Intrinsic value of stock options exercised $ 2,873 $ 4,520 $ 4,310 The following table summarizes additional stock option information as of December 31, 2020: Options outstanding Options weighted average remaining Options Exercise prices outstanding contractual life exercisable $ 23.61 - $26.40 93,220 0.95 years 93,220 $32.83 - $33.95 102,250 1.97 years 77,340 $40.15 - $46.90 151,040 2.95 years 83,540 $65.25 - $69.11 184,800 3.97 years 68,940 $73.09 181,900 5.00 years 36,380 Totals 713,210 3.34 years 359,420 As of December 31, 2020, the weighted average exercise price of options exercisable was $43.35 and the weighted average remaining contractual life of options exercisable is 2.63 years. The aggregate intrinsic value of options exercisable at December 31, 2020 is $6.9 million. In September 2016, Interparfums SA, our 73% owned French subsidiary, approved a plan to grant an aggregate of 15,100 shares of its stock to employees with no performance condition requirement, and an aggregate of 133,000 shares to officers and managers, subject to certain corporate performance conditions. The corporate performance conditions were met and therefore in September 2019, 172,851 shares, adjusted for stock splits, were distributed. The aggregate cost of the grant of approximately $3.9 million was recognized as compensation cost on a straight-line basis over the requisite three-year service period. In December 2018, Interparfums SA approved an additional plan to grant an aggregate of 26,600 shares of its stock to employees with no performance condition requirement, and an aggregate of 133,000 shares to officers and managers, subject to certain corporate performance conditions. The shares, subject to adjustment for stock splits, will be distributed in June 2022 and will follow the same guidelines as the September 2016 plan. In March 2020, due to the potential impact on future net sales and operating results resulting from the COVID-19 pandemic, the estimated number of shares to be distributed, after forfeited shares, was reduced from 142,571 to 82,162. As the Company had already purchased shares in contemplation of the higher anticipated distribution, shares purchased in excess of the reduced anticipated distribution were transferred to treasury shares at the Interparfums SA level. The fair value of the grant had been determined based on the quoted stock price of Interparfums SA shares as reported by the NYSE Euronext on the date of grant. The original cost of the grant was approximately $4.4 million, and the March 2020 revaluation resulted in a reduction of the cost, to approximately $2.5 million. As a result, a $0.3 million reduction of cost, net, was recorded for the three months ended March 31, 2020. In June 2020, the performance conditions were modified affecting 96 employees. As of December 31, 2020, the number of shares to be distributed, after forfeited shares, increased to 132,032. The increase in shares anticipated to be distributed were transferred from treasury shares at the Interparfums SA level. The modification resulted in a revised cost of the grant to approximately $3.8 million. In order to avoid dilution of the Company ’ s ownership of Interparfums SA, all shares distributed or to be distributed pursuant to these plans are pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA. All share purchases and issuances have been classified as equity transactions on the accompanying balance sheet. Dividends In October 2019, our Board of Directors authorized a 20% increase in the annual dividend to $1.32 per share on an annual basis. In April 2020, as a result of the uncertainties raised by the COVID-19 pandemic, the Board of Directors authorized a temporary suspension of the annual cash dividend. In February 2021, the Board of Directors authorized a reinstatement of an annual dividend of $1.00 payable quarterly. The next quarterly cash dividend of $0.25 per share is payable on March 31, 2021 to shareholders of record on March 15, 2021. |
Net Income Attributable to Inte
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | (14) Net Income Attributable to Inter Parfums, Inc. Common Shareholders Net income attributable to Inter Parfums, Inc. per common share ( “ basic EPS ) is computed by dividing net income attributable to Inter Parfums, Inc. by the weighted average number of shares outstanding. Net income attributable to Inter Parfums, Inc. per share assuming dilution ( diluted EPS ), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options using the treasury stock method. The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Year ended December 31, 2020 2019 2018 Numerator for diluted earnings per share $ 38,219 $ 60,249 $ 53,793 Denominator: Weighted average shares 31,536,659 31,451,093 31,307,991 Effect of dilutive securities: Stock options 117,885 237,607 214,380 Denominator for diluted earnings per share 31,654,544 31,688,700 31,522,371 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 1.21 $ 1.92 $ 1.72 Diluted 1.21 1.90 1.71 Not included in the above computations is the effect of anti - dilutive potential common shares, which consist of outstanding options to purchase 450,000, 183,000, and 89,000 shares of common stock for 2020, 2019, and 2018, respectively. |
Segments and Geographic Areas
Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments and Geographic Areas | (15) Segments and Geographic Areas The Company manufactures and distributes one product line, fragrances and fragrance related products. The Company manages its business in two segments, European based operations and United States based operations. The European assets are located, and operations are primarily conducted, in France. Both European and United States operations primarily represent the sale of prestige brand name fragrances. Information on the Company ’ s operations by segments is as follows: Year ended December 31, 2020 2019 2018 Net sales: United States $ 117,489 $ 173,522 $ 140,768 Europe 422,947 542,226 537,805 Eliminations of intercompany sales (1,427 ) (2,234 ) (2,999 ) $ 539,009 $ 713,514 $ 675,574 Net income attributable to Inter Parfums, Inc.: United States $ 7,942 $ 19,365 $ 13,071 Europe 30,241 40,840 40,877 Eliminations 36 44 (155 ) $ 38,219 $ 60,249 $ 53,793 Depreciation and amortization expense including impairment loss: United States $ 3,354 $ 3,088 $ 2,711 Europe 5,713 5,641 8,320 $ 9,067 $ 8,729 $ 11,031 Interest income: United States $ 24 $ 345 $ 137 Europe 2,971 3,501 3,820 Eliminations (130 ) (153 ) -- $ 2,865 $ 3,693 $ 3,957 Interest expense: United States $ 604 $ 673 $ 419 Europe 1,496 1,626 2,159 Eliminations (130 ) (153 ) -- $ 1,970 $ 2,146 $ 2,578 Income tax expense: United States $ 1,590 $ 3,945 $ 2,264 Europe 17,782 25,101 23,898 Eliminations 9 30 (18 ) $ 19,381 $ 29,076 $ 26,144 December 31, 2020 2019 2018 Total assets: United States $ 141,316 $ 166,180 $ 133,706 Europe 758,812 670,657 684,485 Eliminations (9,983 ) (8,005 ) (20,362 ) $ 890,145 $ 828,832 $ 797,829 Additions to long-lived assets: United States $ 1,004 $ 5,851 $ 19,181 Europe 11,259 5,643 4,188 $ 12,263 $ 11,494 $ 23,369 Total long-lived assets: United States $ 40,656 $ 44,473 $ 25,753 Europe 217,766 196,976 188,411 $ 258,422 $ 241,449 $ 214,164 Deferred tax assets: United States $ 886 $ 705 $ 650 Europe 7,106 7,241 5,023 Eliminations 49 58 88 $ 8,041 $ 8,004 $ 5,761 United States export sales were approximately $71.5 million, $112.0 million and $95.1 million in 2020, 2019 and 2018, respectively. Consolidated net sales to customers by region are as follows: Year ended December 31, 2020 2019 2018 North America $ 193,500 $ 235,500 $ 210,600 Europe 180,200 240,800 233,600 Asia 79,700 110,900 113,400 Middle East 46,800 72,600 59,300 Central and South America 32,500 46,200 51,700 Other 6,300 7,500 7,000 $ 539,000 $ 713,500 $ 675,600 Consolidated net sales to customers in major countries are as follows: Year Ended December 31, 2020 2019 2018 United States $ 187,300 $ 225,300 $ 205,000 France $ 37,600 $ 43,500 $ 44,000 Russia $ 14,100 $ 36,800 $ 35,000 United Kingdom $ 24,600 $ 35,800 $ 36,000 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (16) Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal, and various states and foreign jurisdictions. The Company assessed its uncertain tax positions and determined that it has no material uncertain tax position at December 31, 2020. The components of income before income taxes consist of the following: Year ended December 31, 2020 2019 2018 U.S. operations $ 9,577 $ 23,384 $ 15,162 Foreign operations 59,772 81,762 80,697 $ 69,349 $ 105,146 $ 95,859 The provision for current and deferred income tax expense (benefit) consists of the following: Year ended December 31, 2020 2019 2018 Current: Federal $ 1,685 $ 3,280 $ 1,629 State and local 90 713 497 Foreign 17,024 27,412 24,175 18,799 31,405 26,301 Deferred: Federal (215 ) (3 ) 113 State and local 44 (22 ) — Foreign 753 (2,304 ) (270 ) 582 (2,329 ) (157 ) Total income tax expense $ 19,381 $ 29,076 $ 26,144 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: December 31, 2020 2019 Net deferred tax assets: Foreign net operating loss carry-forwards $ 360 $ 362 Inventory and accounts receivable 1,928 1,231 Profit sharing 2,936 4,812 Stock option compensation 718 588 Effect of inventory profit elimination 4,443 4,630 Other 910 214 Total gross deferred tax assets, net 11,295 11,837 Valuation allowance (360 ) (361 ) Net deferred tax assets 10,935 11,476 Deferred tax liabilities (long-term): Trademarks and licenses (2,894 ) (3,472 ) Net deferred tax assets $ 8,041 $ 8,004 Valuation allowances are provided for foreign net operating loss carry-forwards, as future profitable operations from certain foreign subsidiaries might not be sufficient to realize the full amount of net operating loss carry-forwards. No other valuation allowances have been provided as management believes that it is more likely than not that the asset will be realized in the reduction of future taxable income. Tax Cuts and Jobs Act In December 2017, the U.S. government passed the Tax Cuts and Jobs Act (“the Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35% to 21% beginning in 2018, and requiring companies to pay a one-time transition tax on certain unremitted earnings of foreign subsidiaries. The Tax Act also established new tax laws that took effect in 2018, including, but not limited to: (i) the reduction of the U.S. federal corporate tax rate discussed above; (ii) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (iii) a provision designed to tax global intangible low-taxed income (“GILTI”); and (iv) a provision that allows a domestic corporation an immediate deduction for a portion of its foreign derived intangible income (“FDII”). The Company estimated of the effect of GILTI and has determined that it has no tax liability related to GILTI as of December 31, 2020, 2019 and 2018. The Company also estimated the effect of FDII and recorded a tax benefit of approximately $0.3 million, $0.9 million and $0.6 million as of December 31, 2020, 2019 and 2018, respectively. Other Tax Matters The French authorities are considering that the existence of IP Suisse, a wholly-owned subsidiary of Interparfums SA, does not, in and of itself, constitute a permanent establishment and therefore Interparfums, SA should pay French taxes on all or part of the profits of that entity. The French Tax Authority notified the Company that IP Suisse will be the subject of a tax audit covering the period January 1, 2010 through December 31, 2018. No claim or assessment for any taxes or penalties has been made at this time. The Company disagrees and is prepared to vigorously defend its position. Consequently, no provision has been made in the accompanying financial statements as we believe it is more-likely-than-not that our position will be sustained based on its technical merits. Although we believe that we have sufficient arguments to support our position, there exists a risk that the French authorities may prevail. The Company ’ s exposure in connection with this matter is approximately $5.8 million, net of recovery taxes already paid to the Swiss authorities, and excluding interest. The Company is no longer subject to U.S. federal, state, and local or non-U.S. income tax examinations by tax authorities for years before 2017. Differences between the United States federal statutory income tax rate and the effective income tax rate were as follows: Year ended December 31, 2020 2019 2018 Statutory rates 21.0 % 21.0 % 21.0 % State and local taxes, net of Federal benefit 0.2 0.6 0.4 Benefit of Foreign Derived Intangible Income (0.4 ) (0.9 ) (0.6 ) Effect of foreign taxes greater than U.S. statutory rates 7.5 7.5 7.3 Other (0.4 ) (0.6 ) (0.8 ) Effective rates 27.9 % 27.6 % 27.3 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | (17) Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss consist of the following: Year ended December 31, 2020 2019 2018 Net derivative instruments, beginning of year $ 52 $ 136 $ 37 Net derivative instrument gain (loss), net of tax (52 ) (84 ) 99 Net derivative instruments, end of year — 52 136 Cumulative translation adjustments, beginning of year (39,905 ) (33,786 ) (17,869 ) Translation adjustments 33,908 (6,119 ) (15,917 ) Cumulative translation adjustments, end of year (5,997 ) (39,905 ) (33,786 ) Accumulated other comprehensive loss $ (5,997 ) $ (39,853 ) $ (33,650 ) |
Net Income Attributable to In_2
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest | (18) Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest Year ended December 31, 2020 2019 2018 Net income attributable to Inter Parfums, Inc. $ 38,219 $ 60,249 $ 53,793 Decrease in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions — (5,167 ) (572 ) Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest $ 38,219 $ 55,082 $ 53,221 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II INTER PARFUMS, INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (In thousands) Column A Column B Column C Column D Column E Additions (1) (2) Charged to Balance at Charged to other beginning of costs and accounts – Deductions – Balance at Description period expenses describe describe end of period Allowance for doubtful accounts: Year ended December 31, 2020 $ 2,452 4,824 381 (d) 1,968 (a) 5,550 Year ended December 31, 2019 $ 2,602 1,380 (41 )(d) 1,489 (a) 2,452 Year ended December 31, 2018 $ 1,821 1,441 (91 )(d) 569 (a) 2,602 Allowance for sales returns, net of inventory: Year ended December 31, 2020 $ 2,587 1,978 - 2,323 (b) 2,242 Year ended December 31, 2019 $ 1,379 2,387 - 1,179 (b) 2,587 Year ended December 31, 2018 $ 3,310 1,329 - 3,260 (b) 1,379 Inventory reserve: Year ended December 31, 2020 $ 4,909 7,212 616 (d) 3,366 (c) 9,371 Year ended December 31, 2019 $ 4,854 5,321 (70 )(d) 5,196 (c) 4,909 Year ended December 31, 2018 $ 5,349 4,694 (183 )(d) 5,006 (c) 4,854 (a) Write-off of bad debts. (b) Write-off of sales returns. (c) Disposal of inventory (d) Foreign currency translation adjustment See accompanying reports of independent registered public accounting firm. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Business of the Company | Business of the Company Inter Parfums, Inc. and its subsidiaries (the “Company”) are in the fragrance business and manufacture and distribute a wide array of fragrances and fragrance related products. Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we own the Lanvin brand name for our class of trade, and license the Montblanc, Coach, Jimmy Choo and GUESS brand names. As a percentage of net sales, product sales for the Company’s largest brands were as follows: Year Ended December 31, 2020 2019 2018 Montblanc 21 % 22 % 19 % Coach 17 % 14 % 15 % Jimmy Choo 16 % 16 % 17 % GUESS (license commenced April 1, 2018) 11 % 10 % n/a Lanvin 7 % 8 % 10 % No other brand represented 10% or more of consolidated net sales. |
Basis of Preparation | Basis of Preparation The consolidated financial statements include the accounts of the Company, including 73% owned Interparfums SA, a subsidiary whose stock is publicly traded in France. All material intercompany balances and transactions have been eliminated . |
Management Estimates | Management Estimates Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported and disclosures included in the consolidated financial statements. Actual results could differ from those assumptions and estimates. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these notes to the consolidated financial statements. |
Foreign Currency Translation | Foreign Currency Translation For foreign subsidiaries with operations denominated in a foreign currency, assets and liabilities are translated to U.S. dollars at year end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Gains and losses from translation adjustments are accumulated in a separate component of shareholders equity. |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Short-Term Investments All highly liquid investments purchased with a maturity of three months or less are considered to be cash equivalents. From time to time, the Company has short-term investments which consist of certificates of deposit and other contracts with maturities greater than three months. The Company monitors concentrations of credit risk associated with financial institutions with which the Company conducts significant business. The Company believes its credit risk is minimal, as the Company primarily conducts business with large, well-established financial institutions. Substantially all cash and cash equivalents are primarily held at financial institutions outside the United States and are readily convertible into U.S. dollars. |
Accounts Receivable | Accounts Receivable Accounts receivable represent payments due to the Company for previously recognized net sales, reduced by allowances for doubtful accounts or balances which are estimated to be uncollectible, which aggregated $5.5 million and $2.5 million as of December 31, 2020 and 2019, respectively. Accounts receivable balances are written-off against the allowance for doubtful accounts when they become uncollectible. Recoveries of accounts receivable previously recorded against the allowance are recorded in the consolidated statement of income when received. We generally grant credit based upon our analysis of the customer s financial position, as well as previously established buying patterns. |
Inventories | Inventories Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and are stated at the lower of cost and net realizable value, with cost being determined on the first-in, first-out method. Cost components include raw materials, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company s customers. |
Derivatives | Derivatives All derivative instruments are recorded as either assets or liabilities and measured at fair value. The Company uses derivative instruments to principally manage a variety of market risks. For derivatives designated as hedges of the exposure to changes in fair value of the recognized asset or liability or a firm commitment (referred to as fair value hedges), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect of that accounting is to include in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For cash flow hedges, the effective portion of the derivative s gain or loss is initially reported in equity (as a component of accumulated other comprehensive income) and is subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge is reported in earnings immediately. The Company also holds certain instruments for economic purposes that are not designated for hedge accounting treatment. For these derivative instruments, changes in their fair value are recorded in earnings immediately. |
Equipment and Leasehold Improvements | Equipment and Leasehold Improvements Equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight line method over the estimated useful lives for equipment, which range between three and ten years and the shorter of the lease term or estimated useful asset lives for leasehold improvements. Depreciation provided on equipment used to produce inventory, such as tools and molds, is included in cost of sales. |
Long-Lived Assets | Long-Lived Assets Indefinite-lived intangible assets principally consist of trademarks which are not amortized. The Company evaluates indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more-likely-than-not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 6.99% and 7.94% in 2020 and 2019, respectively. The cash flow projections are based upon a number of assumptions, including future sales levels, future cost of goods and operating expense levels, as well as economic conditions, changes to our business model or changes in consumer acceptance of our products which are more subjective in nature. If the carrying value of an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded. Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. |
Revenue Recognition | Revenue Recognition The Company sells its products to department stores, perfumeries, specialty stores and domestic and international wholesalers and distributors. Our revenue contracts represent single performance obligations to sell our products to customers. Sales of such products by our domestic subsidiaries are denominated in U.S. dollars, and sales of such products by our foreign subsidiaries are primarily denominated in either euro or U.S. dollars. The Company recognizes revenues when contract terms are met, the price is fixed and determinable, collectability is reasonably assured and control of the assets has passed to the customer based on the agreed upon shipping terms. Net sales are comprised of gross revenues less returns, trade discounts and allowances. The Company does not bill its customers freight and handling charges. All shipping and handling costs, which aggregated $5.0 million, $7.7 million and $7.1 million in 2020, 2019 and 2018, respectively, are included in selling, general and administrative expenses in the consolidated statements of income. The Company grants credit to all qualified customers and does not believe it is exposed significantly to any undue concentration of credit risk. No one customer represented 10% or more of net sales in 2020, 2019 or 2018. |
Sales Returns | Sales Returns Generally, the Company does not permit customers to return their unsold products. However, for U.S. based customers, we allow returns if properly requested, authorized and approved. The Company regularly reviews and revises, as deemed necessary, its estimate of reserves for future sales returns based primarily upon historic trends and relevant current data including information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that we consider include, but are not limited to, the financial condition of our customers, store closings by retailers, changes in the retail environment and our decision to continue to support new and existing products. The Company records its estimate of potential sales returns as a reduction of sales and cost of sales with corresponding entries to accrued expenses, to record the refund liability, and inventory, for the right to recover goods from the customer. The refund liability associated with estimated returns was $3.6 million and $4.1 million at December 31, 2020 and 2019, respectively, and the amounts recognized for the rights to recover products was $1.4 million and $1.6 million at December 31, 2020 and 2019, respectively. The physical condition and marketability of returned products are the major factors we consider in estimating realizable value. Actual returns, as well as estimated realizable values of returned products, may differ significantly, either favorably or unfavorably, from our estimates, if factors such as economic conditions, inventory levels or competitive conditions differ from our expectations. |
Payments to Customers | Payments to Customers The Company records revenues generated from purchase with purchase and gift with purchase promotions as sales and the costs of its purchase with purchase and gift with purchase promotions as cost of sales. Certain other incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been recorded as a reduction of net sales. |
Advertising and Promotion | Advertising and Promotion Advertising and promotional costs are expensed as incurred and recorded as a component of cost of goods sold (in the case of free goods given to customers) or selling, general and administrative expenses. Advertising and promotional costs included in selling, general and administrative expenses were $91.7 million, $144.6 million and $139.7 million for 2020, 2019 and 2018, respectively. Costs relating to purchase with purchase and gift with purchase promotions that are reflected in cost of sales aggregated $26.4 million, $38.9 million and $36.4 million in 2020, 2019 and 2018, respectively. |
Package Development Costs | Package Development Costs Package development costs associated with new products and redesigns of existing product packaging are expensed as incurred. |
Operating Leases | Operating Leases The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. |
License Agreements | License Agreements The Company s license agreements generally provide the Company with worldwide rights to manufacture, market and sell fragrance and fragrance related products using the licensors trademarks. The licenses typically have an initial term of approximately 5 to 15 years, and are potentially renewable subject to the Company s compliance with the license agreement provisions. The remaining terms, excluding potential renewal periods, range from approximately 1 to 13 years. Under each license, the Company is required to pay royalties in the range of 6% to 10% to the licensor, at least annually, based on net sales to third parties. In certain cases, the Company may pay an entry fee to acquire, or enter into, a license where the licensor or another licensee was operating a pre-existing fragrance business. In those cases, the entry fee is capitalized as an intangible asset and amortized over its useful life. Most license agreements require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. In addition, the Company is exposed to certain concentration risk. Most of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently enacted tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is more-likely-than-not that the deferred tax assets will not be realized in the relevant jurisdiction. If the Company determines that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of net earnings at that time. Accrued interest and penalties are included within the related tax asset or liability in the accompanying financial statements. |
Issuance of Common Stock by Consolidated Subsidiary | Issuance of Common Stock by Consolidated Subsidiary The difference between the Company s share of the proceeds received by the subsidiary and the carrying amount of the portion of the Company s investment deemed sold, is reflected as an equity adjustment in the consolidated balance sheets. |
Treasury Stock | Treasury Stock The Board of Directors may authorize share repurchases of the Company s common stock (Share Repurchase Authorizations). Share repurchases under Share Repurchase Authorizations may be made through open market transactions, negotiated purchase or otherwise, at times and in such amounts within the parameters authorized by the Board. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee stock option plans. Treasury shares are accounted for under the cost method and reported as a reduction of equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ( FASB ) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as updated in 2019 and 2020, which require a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. The new rules eliminate the probable initial recognition threshold and, instead, reflect an entity s current estimate of all expected credit losses. The new rules took effect for the Company in the first quarter of 2020 and there was 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. |
Reclassifications | Reclassifications Certain prior year s amounts in the accompanying consolidated balance sheet and statements of cash flows have been reclassified to conform to current period presentation. |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of lanvin brand name for our class | Year Ended December 31, 2020 2019 2018 Montblanc 21 % 22 % 19 % Coach 17 % 14 % 15 % Jimmy Choo 16 % 16 % 17 % GUESS (license commenced April 1, 2018) 11 % 10 % n/a Lanvin 7 % 8 % 10 % |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | December 31, 2020 2019 Raw materials and component parts $ 66,492 $ 71,895 Finished goods 92,330 95,914 $ 158,822 $ 167,809 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets measured on recurring basis | Fair Value Measurements at December 31, 2020 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 $ 126,627 $ — $ 126,627 $ — Foreign currency forward exchange contracts not accounted for using hedge accounting 253 — 253 — $ 126,880 $ — $ 126,880 $ — Fair Value Measurements at December 31, 2019 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 $ 119,714 $ — $ 119,714 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 16 16 Foreign currency forward exchange contracts not accounted for using hedge accounting 112 112 $ 119,842 $ — $ 119,842 $ — Liabilities: Interest rate swap $ 30 $ — $ 30 $ — |
Equipment and Leasehold Impro_2
Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of equipment and leasehold improvements | December 31, 2020 2019 Equipment $ 51,060 $ 37,743 Leasehold improvements 1,989 1,760 53,049 39,503 Less accumulated depreciation and amortization 33,469 28,396 $ 19,580 $ 11,107 |
Trademarks, Licenses and Othe_2
Trademarks, Licenses and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of trademarks, licenses and other intangible assets | 2020 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 131,962 $ — $ 131,962 Trademarks (finite lives) 47,477 74 47,403 Licenses (finite lives) 93,248 62,262 30,986 Other intangible assets (finite lives) 18,194 14,437 3,757 Subtotal 158,919 76,773 82,146 Total $ 290,881 $ 76,773 $ 214,108 2019 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 121,001 $ — $ 121,001 Trademarks (finite lives) 43,464 67 43,397 Licenses (finite lives) 88,008 53,714 34,294 Other intangible assets (finite lives) 15,436 12,145 3,291 Subtotal 146,908 65,926 80,982 Total $ 267,909 $ 65,926 $ 201,983 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | December 31, 2020 2019 Advertising liabilities $ 12,164 $ 25,713 Salary (including bonus and related taxes) 14,605 16,173 Royalties 16,966 16,646 Due vendors (not yet invoiced) 31,698 19,196 Retirement reserves 11,889 9,907 Refund (return) liability 3,616 4,131 Other 4,691 4,655 $ 95,629 $ 96,421 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Schedule of long-term debt | December 31, 2020 2019 $15.0 million payable in 14 equal annual installments of $1.1 million beginning in January 2020 including interest imputed at 4.1% per annum $ 11,208 $ 11,806 $13.4 million term loan amended such that the loan was repaid in February 2021 plus interest at 0.85% per annum 13,498 — $111.0 million 5-year term loan payable in 20 equal quarterly installments plus interest at 1.2% per annum — 11,254 24,706 23,060 Less current maturities 14,570 12,326 Total $ 10,136 $ 10,734 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of lease liabilities | 2021 $ 5,568 2022 4,958 2023 4,228 2024 3,999 2025 2,857 Thereafter 7,324 28,934 Less imputed interest (based on 3.0% weighted-average discount rate) (2,447 ) $ 26,487 |
Schedule of minimum annual advertising commitments annual royalties and other commitments | 2021 $ 165,506 2022 164,341 2023 166,508 2024 159,974 2025 156,293 Thereafter 586,342 $ 1,398,964 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of nonvested share activity | Number of Shares Weighted Average Grant Nonvested options – beginning of year 514,210 $ 12.36 Nonvested options granted 9,000 $ 12.16 Nonvested options vested or forfeited (169,420 ) $ 11.09 Nonvested options – end of year 353,790 $ 12.96 |
Schedule of effect of share-based payment expenses | Year Ended December 31, 2020 2019 2018 Income before income taxes $ 3,030 $ 3,390 $ 2,200 Net income attributable to Inter Parfums, Inc. 2,040 2,060 1,390 Diluted earnings per share attributable to Inter Parfums, Inc. 0.06 0.07 0.04 |
Schedule of stock options, activity | Year ended December 31, 2020 2019 2018 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Shares under option - beginning of year 815,800 $ 49.89 776,171 $ 41.33 730,980 $ 31.92 Options granted 9,000 69.11 194,050 72.89 196,350 63.91 Options exercised (95,570 ) 28.99 (130,891 ) 34.06 (140,579 ) 24.21 Options forfeited (16,020 ) 58.38 (23,530 ) 45.48 (10,580 ) 37.64 Shares under option - end of year 713,210 52.74 815,800 49.89 776,171 41.33 |
Schedule of valuation assumptions in black-scholes pricing | Year Ended December 31, 2020 2019 2018 Weighted-average expected stock-price volatility 25 % 25 % 27 % Weighted-average expected option life 5.0 years 5.0 years 5.0 years Weighted-average risk-free interest rate 1.4 % 1.7 % 2.5 % Weighted-average dividend yield 2.5 % 2.0 % 2.0 % |
Schedule of cash proceeds received from share-based payment awards | Year Ended December 31, 2020 2019 2018 Proceeds from stock options exercised $ 2,771 $ 4,458 $ 3,406 Tax benefits $ 400 $ 690 $ 807 Intrinsic value of stock options exercised $ 2,873 $ 4,520 $ 4,310 |
Schedule of additional stock option information | Options outstanding Options weighted average remaining Options Exercise prices outstanding contractual life exercisable $ 23.61 - $26.40 93,220 0.95 years 93,220 $32.83 - $33.95 102,250 1.97 years 77,340 $40.15 - $46.90 151,040 2.95 years 83,540 $65.25 - $69.11 184,800 3.97 years 68,940 $73.09 181,900 5.00 years 36,380 Totals 713,210 3.34 years 359,420 |
Net Income Attributable to In_3
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | Year ended December 31, 2020 2019 2018 Numerator for diluted earnings per share $ 38,219 $ 60,249 $ 53,793 Denominator: Weighted average shares 31,536,659 31,451,093 31,307,991 Effect of dilutive securities: Stock options 117,885 237,607 214,380 Denominator for diluted earnings per share 31,654,544 31,688,700 31,522,371 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 1.21 $ 1.92 $ 1.72 Diluted 1.21 1.90 1.71 |
Segments and Geographic Areas (
Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of company's operations by segments | Year ended December 31, 2020 2019 2018 Net sales: United States $ 117,489 $ 173,522 $ 140,768 Europe 422,947 542,226 537,805 Eliminations of intercompany sales (1,427 ) (2,234 ) (2,999 ) $ 539,009 $ 713,514 $ 675,574 Net income attributable to Inter Parfums, Inc.: United States $ 7,942 $ 19,365 $ 13,071 Europe 30,241 40,840 40,877 Eliminations 36 44 (155 ) $ 38,219 $ 60,249 $ 53,793 Depreciation and amortization expense including impairment loss: United States $ 3,354 $ 3,088 $ 2,711 Europe 5,713 5,641 8,320 $ 9,067 $ 8,729 $ 11,031 Interest income: United States $ 24 $ 345 $ 137 Europe 2,971 3,501 3,820 Eliminations (130 ) (153 ) -- $ 2,865 $ 3,693 $ 3,957 Interest expense: United States $ 604 $ 673 $ 419 Europe 1,496 1,626 2,159 Eliminations (130 ) (153 ) -- $ 1,970 $ 2,146 $ 2,578 Income tax expense: United States $ 1,590 $ 3,945 $ 2,264 Europe 17,782 25,101 23,898 Eliminations 9 30 (18 ) $ 19,381 $ 29,076 $ 26,144 December 31, 2020 2019 2018 Total assets: United States $ 141,316 $ 166,180 $ 133,706 Europe 758,812 670,657 684,485 Eliminations (9,983 ) (8,005 ) (20,362 ) $ 890,145 $ 828,832 $ 797,829 Additions to long-lived assets: United States $ 1,004 $ 5,851 $ 19,181 Europe 11,259 5,643 4,188 $ 12,263 $ 11,494 $ 23,369 Total long-lived assets: United States $ 40,656 $ 44,473 $ 25,753 Europe 217,766 196,976 188,411 $ 258,422 $ 241,449 $ 214,164 Deferred tax assets: United States $ 886 $ 705 $ 650 Europe 7,106 7,241 5,023 Eliminations 49 58 88 $ 8,041 $ 8,004 $ 5,761 |
Schedule of consolidated net sales to customers by region | Year ended December 31, 2020 2019 2018 North America $ 193,500 $ 235,500 $ 210,600 Europe 180,200 240,800 233,600 Asia 79,700 110,900 113,400 Middle East 46,800 72,600 59,300 Central and South America 32,500 46,200 51,700 Other 6,300 7,500 7,000 $ 539,000 $ 713,500 $ 675,600 |
Schedule of consolidated net sales to customers in major countries | Year Ended December 31, 2020 2019 2018 United States $ 187,300 $ 225,300 $ 205,000 France $ 37,600 $ 43,500 $ 44,000 Russia $ 14,100 $ 36,800 $ 35,000 United Kingdom $ 24,600 $ 35,800 $ 36,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of income before income taxes | Year ended December 31, 2020 2019 2018 U.S. operations $ 9,577 $ 23,384 $ 15,162 Foreign operations 59,772 81,762 80,697 $ 69,349 $ 105,146 $ 95,859 |
Schedule of provision for current and deferred income tax expense (benefit) | Year ended December 31, 2020 2019 2018 Current: Federal $ 1,685 $ 3,280 $ 1,629 State and local 90 713 497 Foreign 17,024 27,412 24,175 18,799 31,405 26,301 Deferred: Federal (215 ) (3 ) 113 State and local 44 (22 ) — Foreign 753 (2,304 ) (270 ) 582 (2,329 ) (157 ) Total income tax expense $ 19,381 $ 29,076 $ 26,144 |
Schedule of significant portions of the deferred tax assets and deferred tax liabilities | December 31, 2020 2019 Net deferred tax assets: Foreign net operating loss carry-forwards $ 360 $ 362 Inventory and accounts receivable 1,928 1,231 Profit sharing 2,936 4,812 Stock option compensation 718 588 Effect of inventory profit elimination 4,443 4,630 Other 910 214 Total gross deferred tax assets, net 11,295 11,837 Valuation allowance (360 ) (361 ) Net deferred tax assets 10,935 11,476 Deferred tax liabilities (long-term): Trademarks and licenses (2,894 ) (3,472 ) Net deferred tax assets $ 8,041 $ 8,004 |
Schedule of differences between the united states federal statutory income tax rate and the effective income tax rate | Year ended December 31, 2020 2019 2018 Statutory rates 21.0 % 21.0 % 21.0 % State and local taxes, net of Federal benefit 0.2 0.6 0.4 Benefit of Foreign Derived Intangible Income (0.4 ) (0.9 ) (0.6 ) Effect of foreign taxes greater than U.S. statutory rates 7.5 7.5 7.3 Other (0.4 ) (0.6 ) (0.8 ) Effective rates 27.9 % 27.6 % 27.3 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive loss | Year ended December 31, 2020 2019 2018 Net derivative instruments, beginning of year $ 52 $ 136 $ 37 Net derivative instrument gain (loss), net of tax (52 ) (84 ) 99 Net derivative instruments, end of year — 52 136 Cumulative translation adjustments, beginning of year (39,905 ) (33,786 ) (17,869 ) Translation adjustments 33,908 (6,119 ) (15,917 ) Cumulative translation adjustments, end of year (5,997 ) (39,905 ) (33,786 ) Accumulated other comprehensive loss $ (5,997 ) $ (39,853 ) $ (33,650 ) |
Net Income Attributable to In_4
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of net income attributable to transfers from the noncontrolling interest | Year ended December 31, 2020 2019 2018 Net income attributable to Inter Parfums, Inc. $ 38,219 $ 60,249 $ 53,793 Decrease in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions — (5,167 ) (572 ) Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest $ 38,219 $ 55,082 $ 53,221 |
The Company and its Significa_3
The Company and its Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowances for sales returns and doubtful accounts | $ 5,500 | $ 2,500 | |
Weighted average cost of capital | 3.00% | ||
Shipping and handling costs | $ 208,278 | 267,578 | $ 248,012 |
Contract with customer, refund liability | 3,600 | 4,100 | |
Contract with customer, right to recover products | 1,400 | 1,600 | |
Advertising costs | 91,700 | 144,600 | 139,700 |
Customer incentives cost | $ 26,400 | $ 38,900 | $ 36,400 |
Royalty expense, percentage of net sales | 7.60% | 7.40% | 7.20% |
Revenue Benchmark [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Interparfum SA [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ownership percentage in Interparfums SA | 73.00% | ||
License Agreement [Member] | Minimum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
License agreement term | 5 years | ||
License agreement renewal term | 1 year | ||
Royalty expense, percentage of net sales | 6.00% | ||
License Agreement [Member] | Maximum [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
License agreement term | 15 years | ||
License agreement renewal term | 13 years | ||
Royalty expense, percentage of net sales | 10.00% | ||
Measurement Input, Discount Rate [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Weighted average cost of capital | 6.99% | 7.94% | 6.21% |
Shipping and Handling [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Shipping and handling costs | $ 5,000 | $ 7,700 | $ 7,100 |
The Company and its Significa_4
The Company and its Significant Accounting Policies (Details) - Schedule of lanvin brand name for our class | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Montblanc [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.00% | 22.00% | 19.00% |
Coach [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.00% | 14.00% | 15.00% |
Jimmy Choo [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | 16.00% | 17.00% |
GUESS [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% | 10.00% | |
Lanvin [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 7.00% | 8.00% | 10.00% |
Recent Agreements (Details)
Recent Agreements (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
License agreements, description | the Company, through its 73% owned French subsidiary, Interparfums SA, and Divabox SAS (“Divabox”), owner of the Origines-parfums e-commerce platform for beauty products, signed a strategic agreement and equity investment pursuant to which we acquired 25% of Divabox capital for $14.0 million, through a capital increase. The difference between the purchase price and the fair value of net assets acquired of approximately $8.7 million has been allocated to goodwill. The investment is being accounted for under the equity method and is included in other assets on the accompanying balance sheet as of December 31, 2020. In connection with the acquisition, the Company entered into a $13.4 million term loan, which has been amended such that the loan was repaid in full in February 2021. Our share of the income of Divabox was $0.5 million for the year-ended December 31, 2020. Such amount is included in other income on the accompanying consolidated statement of income. |
Anna Sui Corp. [Member] | |
Business Acquisition [Line Items] | |
License agreements, description | Our initial 10-year license agreement with Anna Sui Corp. was signed in 2011. The renewal agreement also allows for an additional 5-year term through 2031 at the option of the Company. |
Future Headquarters in Paris [Member] | |
Business Acquisition [Line Items] | |
License agreements, description | the Company signed a purchase contract, subject to certain conditions, to acquire an office building complex for its exclusive use as its future headquarters, located in the heart of Paris. In order to maintain the Company’s current cash position, approximately 90% of the €125 million ($153 million) purchase price, excluding taxes and related expenses, will be financed by a bank loan. The transaction is expected to be completed in the spring of 2021 with the move planned for the end of 2021 or the beginning of 2022. In December 2020, the Company paid a €6.25 million ($7.7 million) deposit upon signing the purchase contract. Such amount is included in equipment and leasehold improvements on the accompanying balance sheet as of December 31, 2020. |
Moncler [Member] | |
Business Acquisition [Line Items] | |
License agreements, description | In June 2020, the Company entered into an exclusive, 5-year worldwide license agreement with a potential 5-year extension with Moncler for the creation, development and distribution of fragrances under the Moncler brand. |
S.T. Dupont [Member] | |
Business Acquisition [Line Items] | |
License agreements, description | we renewed our license agreement with S.T. Dupont for the creation, development and distribution of fragrance products through December 31, 2022, without any material changes in terms and conditions. Our initial 11-year license agreement with S.T. Dupont was signed in June 1997, and had previously been extended through December 31, 2020. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory [Line Items] | ||
Inventory Valuation Reserves | $ 9.4 | $ 4.9 |
Product [Member] | ||
Inventory [Line Items] | ||
Cost of Goods Sold, Overhead | $ 5.4 | $ 4.3 |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 66,492 | $ 71,895 |
Finished goods | 92,330 | 95,914 |
Inventories | $ 158,822 | $ 167,809 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Schedule of fair value, assets measured on recurring basis - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Short-term investments | $ 126,627 | $ 119,714 |
Foreign currency forward exchange contracts accounted for using hedge accounting | 16 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 253 | 112 |
Total Assets | 126,880 | 119,842 |
Liabilities: | ||
Interest rate swap | 30 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Short-term investments | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Total Assets | ||
Liabilities: | ||
Interest rate swap | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Short-term investments | 126,627 | 119,714 |
Foreign currency forward exchange contracts accounted for using hedge accounting | 16 | |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 253 | 112 |
Total Assets | 126,880 | 119,842 |
Liabilities: | ||
Interest rate swap | 30 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Short-term investments | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Total Assets | ||
Liabilities: | ||
Interest rate swap |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) £ in Millions, $ in Millions | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020GBP (£) | |
Derivative [Line Items] | ||||
Derivative, gain on derivative, net | $ 0.2 | $ 0.2 | ||
Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 22.4 | £ 1.9 | ||
Trademarks [Member] | Medium-term Notes [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Exchange rate (in dollars per euro) | 1 | 1 | ||
Trademarks [Member] | Medium-term Notes [Member] | ||||
Derivative [Line Items] | ||||
Cash paid for acquisition and financed by loan, term | 5 years | |||
Trademarks [Member] | Medium-term Notes [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Exchange rate (in dollars per euro) | 1.067 | |||
Trademarks [Member] | Rochas Brand [Member] | Medium-term Notes [Member] | ||||
Derivative [Line Items] | ||||
Cash paid for acquisition and financed by loan, amount | $ 108 | |||
Trademarks [Member] | Rochas Brand [Member] | Medium-term Notes [Member] | Foreign Exchange Contract [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 108 |
Equipment and Leasehold Impro_3
Equipment and Leasehold Improvements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 3.8 | $ 3.7 | $ 4.1 |
Equipment and Leasehold Impro_4
Equipment and Leasehold Improvements (Details) - Schedule of equipment and leasehold improvements - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | $ 53,049 | $ 39,503 |
Less accumulated depreciation and amortization | 33,469 | 28,396 |
Property, Plant and Equipment, Net, Total | 19,580 | 11,107 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | 51,060 | 37,743 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | $ 1,989 | $ 1,760 |
Trademarks, Licenses and Othe_3
Trademarks, Licenses and Other Intangible Assets (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | |
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Amortization expense | $ 5.3 | $ 5 | $ 7 | |
Amortization expense in 2021 | 5.4 | |||
Amortization expense in 2022 | 3.8 | |||
Amortization expense in 2023 | 3.8 | |||
Amortization expense in 2024 | 3.7 | |||
Amortization expense in 2025 | $ 3.7 | |||
Amortization period | 14 years | |||
Weighted average cost of capital | 3.00% | 3.00% | ||
Repurchase price | $ 86 | € 70 | ||
Minimum [Member] | ||||
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Amortization period | 3 years | |||
Maximum [Member] | ||||
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Amortization period | 20 years | |||
Trademarks [Member] | ||||
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Amortization period | 18 years | |||
Licenses [Member] | ||||
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Amortization period | 15 years | |||
Other Intangible Assets [Member] | ||||
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Amortization period | 2 years | |||
Measurement Input, Discount Rate [Member] | ||||
Trademarks, Licenses and Other Intangible Assets (Details) [Line Items] | ||||
Weighted average cost of capital | 6.99% | 7.94% | 6.21% | 6.99% |
Trademarks, Licenses and Othe_4
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets [Line Items] | ||
Gross Amount | $ 290,881 | $ 267,909 |
Accumulated Amortization | 76,773 | 65,926 |
Net Book Value | 214,108 | 201,983 |
Trademarks (indefinite lives) [Member] | ||
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets [Line Items] | ||
Gross Amount | 131,962 | 121,001 |
Accumulated Amortization | ||
Net Book Value | 131,962 | 121,001 |
Trademarks (finite lives) [Member] | ||
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets [Line Items] | ||
Gross Amount | 47,477 | 43,464 |
Accumulated Amortization | 74 | 67 |
Net Book Value | 47,403 | 43,397 |
Subtotal [Member] | ||
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets [Line Items] | ||
Gross Amount | 158,919 | 146,908 |
Accumulated Amortization | 76,773 | 65,926 |
Net Book Value | 82,146 | 80,982 |
Licenses (finite lives) [Member] | ||
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets [Line Items] | ||
Gross Amount | 93,248 | 88,008 |
Accumulated Amortization | 62,262 | 53,714 |
Net Book Value | 30,986 | 34,294 |
Other intangible assets (finite lives) [Member] | ||
Trademarks, Licenses and Other Intangible Assets (Details) - Schedule of trademarks, licenses and other intangible assets [Line Items] | ||
Gross Amount | 18,194 | 15,436 |
Accumulated Amortization | 14,437 | 12,145 |
Net Book Value | $ 3,757 | $ 3,291 |
Accrued Expenses (Details) - Sc
Accrued Expenses (Details) - Schedule of accrued expenses - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Advertising liabilities | $ 12,164 | $ 25,713 |
Salary (including bonus and related taxes) | 14,605 | 16,173 |
Royalties | 16,966 | 16,646 |
Due vendors (not yet invoiced) | 31,698 | 19,196 |
Retirement reserves | 11,889 | 9,907 |
Refund (return) liability | 3,616 | 4,131 |
Other | 4,691 | 4,655 |
Accrued expenses | $ 95,629 | $ 96,421 |
Loans Payable - Banks (Details)
Loans Payable - Banks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Domestic Subsidiaries [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing amount | $ 20 | |
Domestic Subsidiaries [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread over variable interest rate | 2.00% | |
Variable rate | 0.14% | |
Line of credit, maturity date | Dec. 18, 2021 | |
Borrowing amount outstanding | $ 0 | $ 0 |
Foreign Subsidiaries [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing amount | $ 31 | |
Foreign Subsidiaries [Member] | Euro Interbank Offered Rate (EURIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Variable rate | 0.546% | |
Borrowing amount outstanding | $ 0 | $ 0 |
Foreign Subsidiaries [Member] | Euro Interbank Offered Rate (EURIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread over variable interest rate | 0.50% | |
Foreign Subsidiaries [Member] | Euro Interbank Offered Rate (EURIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread over variable interest rate | 0.80% |
Long-term Debt (Details)
Long-term Debt (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Long-term Debt, Maturities, 2020 | $ 14.6 |
Long term debt maturity, description | $1.1 million per year thereafter through 2033. |
Loans Payable 1 [Member] | |
Line of Credit Facility [Line Items] | |
Term loan | $ 13.4 |
Bearing interest rate | 0.85% |
Divabox [Member] | |
Line of Credit Facility [Line Items] | |
Acquisition percentage | 25.00% |
Long-term Debt (Details) - Sche
Long-term Debt (Details) - Schedule of long-term debt - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Loan payable | $ 24,706 | $ 23,060 |
Less current maturities | 14,570 | 12,326 |
Total | 10,136 | 10,734 |
Loans Payable [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan payable | 11,208 | 11,806 |
Loans Payable 1 [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan payable | 13,498 | |
Loans Payable 2 [Member] | ||
Line of Credit Facility [Line Items] | ||
Loan payable | $ 11,254 |
Long-term Debt (Details) - Sc_2
Long-term Debt (Details) - Schedule of long-term debt (Parentheticals) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Loans Payable [Member] | |
Line of Credit Facility [Line Items] | |
Loan payable (in Dollars) | $ 15 |
Installment amount (in Dollars) | $ 1.1 |
Number of installments | 14 |
Quarterly Installments | Annual |
Interest per annum | 4.10% |
Loans Payable 1 [Member] | |
Line of Credit Facility [Line Items] | |
Loan payable (in Dollars) | $ 13.4 |
Interest per annum | 0.85% |
Loans Payable 2 [Member] | |
Line of Credit Facility [Line Items] | |
Loan payable (in Dollars) | $ 111 |
Number of installments | 20 |
Quarterly Installments | Quarterly |
Interest per annum | 1.20% |
Term | 5 years |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining lease term | 5 years 3 months 18 days | ||
Operating lease, weighted average discount rate | 3.00% | ||
Operating lease of related to rental expenses | $ 6.2 | $ 7.5 | $ 7 |
Operating lease payments | 5.6 | ||
Noncash additions to operating lease assets | $ 1.1 | ||
License agreement, expiration description | The Company is party to a number of license and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2033. | ||
Royalty expense | $ 41.1 | $ 53 | $ 48.9 |
Royalty expense, percentage of net sales | 7.60% | 7.40% | 7.20% |
Commitments (Details) - Schedul
Commitments (Details) - Schedule of lease liabilities $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 5,568 |
2022 | 4,958 |
2023 | 4,228 |
2024 | 3,999 |
2025 | 2,857 |
Thereafter | 7,324 |
Gross total | 28,934 |
Less imputed interest (based on 3.0% weighted-average discount rate) | (2,447) |
Net Total | $ 26,487 |
Commitments (Details) - Sched_2
Commitments (Details) - Schedule of minimum annual advertising commitments annual royalties and other commitments $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 165,506 |
2022 | 164,341 |
2023 | 166,508 |
2024 | 159,974 |
2025 | 156,293 |
Thereafter | 586,342 |
Total | $ 1,398,964 |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2020 | Oct. 31, 2019 | Sep. 30, 2016 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2021 | Feb. 28, 2021 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average grant date fair value (in Dollars per share) | $ 12.16 | |||||||||
Covid 19, description | due to the potential impact on future net sales and operating results resulting from the COVID-19 pandemic, the estimated number of shares to be distributed, after forfeited shares, was reduced from 142,571 to 82,162. As the Company had already purchased shares in contemplation of the higher anticipated distribution, shares purchased in excess of the reduced anticipated distribution were transferred to treasury shares at the Interparfums SA level. | |||||||||
Percentage of increase in annual dividend | 20.00% | |||||||||
Dividends payable, amount per share (in Dollars per share) | $ 1.32 | |||||||||
Interparfums SA Subsidiary [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Original cost of grant | $ 3,900,000 | |||||||||
Revaluation resulted in reduction of cost, description | The original cost of the grant was approximately $4.4 million, and the March 2020 revaluation resulted in a reduction of the cost, to approximately $2.5 million. | |||||||||
Reduction of cost, net | $ 300,000 | |||||||||
Modification resulted revised cost | $ 3,800,000 | |||||||||
Equity Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value of shares vested | 1,700,000 | $ 1,400,000 | ||||||||
Aggregate intrinsic value of options outstanding | $ 8.7 | |||||||||
Term | 5 years | |||||||||
Weighted average grant date fair value (in Dollars per share) | $ 12.16 | $ 14.14 | $ 14.31 | |||||||
Options exercisable, weighted average exercise price (in Dollars per share) | $ 43.35 | |||||||||
Weighted average remaining contractual life of options outstanding, options exercisable | 2 years 7 months 17 days | |||||||||
Aggregate intrinsic value of exercisable options | $ 6,900,000 | |||||||||
Equity Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant (in Shares) | 580,715 | |||||||||
Aggregate intrinsic value of options outstanding | $ 4.4 | |||||||||
Maximum [Member] | Equity Option [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 | |||||||||
Minimum [Member] | Equity Option [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 | |||||||||
Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends payable, amount per share (in Dollars per share) | $ 0.25 | |||||||||
Interparfums SA Subsidiary [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based payment percentage | 73.00% | |||||||||
Adjusted for stock splits (in Shares) | 132,032 | |||||||||
Interparfums SA Subsidiary [Member] | Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Adjusted for stock splits (in Shares) | 26,600 | |||||||||
Employees [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Adjusted Stock share splits (in Shares) | 172,851 | |||||||||
Employees [Member] | Interparfums SA Subsidiary [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Adjusted for stock splits (in Shares) | 15,100 | |||||||||
Officers And Managers [Member] | Interparfums SA Subsidiary [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Aggregate intrinsic value of options outstanding | $ 133,000 | |||||||||
Adjusted for stock splits (in Shares) | 133,000 | |||||||||
Board of Directos [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends payable, amount per share (in Dollars per share) | $ 1 |
Equity (Details) - Schedule of
Equity (Details) - Schedule of nonvested share activity - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares, beginning of year | 514,210 | ||
Weighted Average Grant Date Fair Value, beginning of year | $ 12.36 | ||
Number of Shares, granted | 9,000 | 194,050 | 196,350 |
Weighted Average Grant Date Fair Value, granted | $ 12.16 | ||
Number of Shares, vested or forfeited | (169,420) | ||
Weighted Average Grant Date Fair Value, vested or forfeited | $ 11.09 | ||
Number of Shares, end of year | 353,790 | 514,210 | |
Weighted Average Grant Date Fair Value, end of year | $ 12.96 | $ 12.36 |
Equity (Details) - Schedule o_2
Equity (Details) - Schedule of effect of share-based payment expenses - Operating Income (Loss) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income before income taxes | $ 3,030 | $ 3,390 | $ 2,200 |
Net income attributable to Inter Parfums, Inc. | $ 2,040 | $ 2,060 | $ 1,390 |
Diluted earnings per share attributable to Inter Parfums, Inc. (in Dollars per share) | $ 0.06 | $ 0.07 | $ 0.04 |
Equity (Details) - Schedule o_3
Equity (Details) - Schedule of stock options, activity - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options shares under option - beginning of year | 815,800 | 776,171 | 730,980 |
Weighted average exercise price shares under option - beginning of year | $ 49.89 | $ 41.33 | $ 31.92 |
Options granted | 9,000 | 194,050 | 196,350 |
Weighted average exercise price options granted | $ 69.11 | $ 72.89 | $ 63.91 |
Options exercised | (95,570) | (130,891) | (140,579) |
Weighted average exercise price options exercised | $ 28.99 | $ 34.06 | $ 24.21 |
Options forfeited | (16,020) | (23,530) | (10,580) |
Weighted average exercise price options forfeited | $ 58.38 | $ 45.48 | $ 37.64 |
Options shares under option - end of year | 713,210 | 815,800 | 776,171 |
Weighted average exercise price shares under option - end of year | $ 52.74 | $ 49.89 | $ 41.33 |
Equity (Details) - Schedule o_4
Equity (Details) - Schedule of valuation assumptions in black-scholes pricing | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected stock-price volatility | 25.00% | 25.00% | 27.00% |
Weighted-average expected option life | 5 years | 5 years | 5 years |
Weighted-average risk-free interest rate | 1.40% | 1.70% | 2.50% |
Weighted-average dividend yield | 2.50% | 2.00% | 2.00% |
Equity (Details) - Schedule o_5
Equity (Details) - Schedule of cash proceeds received from share-based payment awards - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from stock options exercised | $ 2,771 | $ 4,458 | $ 3,406 |
Tax benefits | 400 | 690 | 807 |
Intrinsic value of stock options exercised | $ 2,873 | $ 4,520 | $ 4,310 |
Equity (Details) - Schedule o_6
Equity (Details) - Schedule of additional stock option information | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 713,210 |
Options outstanding weighted average remaining contractual life | 3 years 4 months 2 days |
Options exercisable | 359,420 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 93,220 |
Options outstanding weighted average remaining contractual life | 11 months 12 days |
Options exercisable | 93,220 |
Exercise Price Range One [Member] | Minimum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 23.61 |
Exercise Price Range One [Member] | Maximum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 26.40 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 102,250 |
Options outstanding weighted average remaining contractual life | 1 year 11 months 19 days |
Options exercisable | 77,340 |
Exercise Price Range Two [Member] | Minimum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 32.83 |
Exercise Price Range Two [Member] | Maximum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 33.95 |
Exercise Price Range Three Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 151,040 |
Options outstanding weighted average remaining contractual life | 2 years 11 months 12 days |
Options exercisable | 83,540 |
Exercise Price Range Three Member] | Minimum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 40.15 |
Exercise Price Range Three Member] | Maximum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 46.90 |
Exercise Price Range Four Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding | 184,800 |
Options outstanding weighted average remaining contractual life | 3 years 11 months 19 days |
Options exercisable | 68,940 |
Exercise Price Range Four Member] | Minimum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 65.25 |
Exercise Price Range Four Member] | Maximum [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | 69.11 |
Exercise Price Range Five Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range (in Dollars per share) | $ / shares | $ 73.09 |
Number outstanding | 181,900 |
Options outstanding weighted average remaining contractual life | 5 years |
Options exercisable | 36,380 |
Net Income Attributable to In_5
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 450,000 | 183,000 | 89,000 |
Net Income Attributable to In_6
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details) - Schedule of earnings per share, basic and diluted - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Numerator for diluted earnings per share (in Dollars) | $ 38,219 | $ 60,249 | $ 53,793 |
Denominator: | |||
Weighted average shares | 31,536,659 | 31,451,093 | 31,307,991 |
Effect of dilutive securities: | |||
Stock options | 117,885 | 237,607 | 214,380 |
Denominator for diluted earnings per share | 31,654,544 | 31,688,700 | 31,522,371 |
Net income attributable to Inter Parfums, Inc. common shareholders: | |||
Basic (in Dollars per share) | $ 1.21 | $ 1.92 | $ 1.72 |
Diluted (in Dollars per share) | $ 1.21 | $ 1.90 | $ 1.71 |
Segments and Geographic Areas_2
Segments and Geographic Areas (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||
Number of segments | 2 | ||
Export sales of united states | $ 71.5 | $ 112 | $ 95.1 |
Segments and Geographic Areas_3
Segments and Geographic Areas (Details) - Schedule of company's operations by segments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net sales: | |||
Net sales | $ 539,009 | $ 713,514 | $ 675,574 |
Net income attributable to Inter Parfums, Inc.: | |||
Net income attributable to Inter Parfums, Inc | 38,219 | 60,249 | 53,793 |
Depreciation and amortization expense including impairment loss: | |||
Depreciation and amortization expense including impairment loss | 9,067 | 8,729 | 11,031 |
Interest income: | |||
Interest income | 2,865 | 3,693 | 3,957 |
Interest expense: | |||
Interest expense | 1,970 | 2,146 | 2,578 |
Income tax expense: | |||
Income tax expense | 19,381 | 29,076 | 26,144 |
Total assets: | |||
Total assets | 890,145 | 828,832 | 797,829 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 12,263 | 11,494 | 23,369 |
Total long-lived assets: | |||
Total long-lived assets | 258,422 | 241,449 | 214,164 |
Deferred tax assets: | |||
Deferred tax assets | 8,041 | 8,004 | 5,761 |
United States [Member] | |||
Net sales: | |||
Net sales | 117,489 | 173,522 | 140,768 |
Net income attributable to Inter Parfums, Inc.: | |||
Net income attributable to Inter Parfums, Inc | 7,942 | 19,365 | 13,071 |
Depreciation and amortization expense including impairment loss: | |||
Depreciation and amortization expense including impairment loss | 3,354 | 3,088 | 2,711 |
Interest income: | |||
Interest income | 24 | 345 | 137 |
Interest expense: | |||
Interest expense | 604 | 673 | 419 |
Income tax expense: | |||
Income tax expense | 1,590 | 3,945 | 2,264 |
Total assets: | |||
Total assets | 141,316 | 166,180 | 133,706 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 1,004 | 5,851 | 19,181 |
Total long-lived assets: | |||
Total long-lived assets | 40,656 | 44,473 | 25,753 |
Deferred tax assets: | |||
Deferred tax assets | 886 | 705 | 650 |
Europe [Member] | |||
Net sales: | |||
Net sales | 422,947 | 542,226 | 537,805 |
Net income attributable to Inter Parfums, Inc.: | |||
Net income attributable to Inter Parfums, Inc | 30,241 | 40,840 | 40,877 |
Depreciation and amortization expense including impairment loss: | |||
Depreciation and amortization expense including impairment loss | 5,713 | 5,641 | 8,320 |
Interest income: | |||
Interest income | 2,971 | 3,501 | 3,820 |
Interest expense: | |||
Interest expense | 1,496 | 1,626 | 2,159 |
Income tax expense: | |||
Income tax expense | 17,782 | 25,101 | 23,898 |
Total assets: | |||
Total assets | 758,812 | 670,657 | 684,485 |
Additions to long-lived assets: | |||
Additions to long-lived assets | 11,259 | 5,643 | 4,188 |
Total long-lived assets: | |||
Total long-lived assets | 217,766 | 196,976 | 188,411 |
Deferred tax assets: | |||
Deferred tax assets | 7,106 | 7,241 | 5,023 |
Eliminations [Member] | |||
Net sales: | |||
Net sales | (1,427) | (2,234) | (2,999) |
Net income attributable to Inter Parfums, Inc.: | |||
Net income attributable to Inter Parfums, Inc | 36 | 44 | (155) |
Interest income: | |||
Interest income | (130) | (153) | |
Interest expense: | |||
Interest expense | (130) | (153) | |
Income tax expense: | |||
Income tax expense | 9 | 30 | (18) |
Total assets: | |||
Total assets | (9,983) | (8,005) | (20,362) |
Deferred tax assets: | |||
Deferred tax assets | $ 49 | $ 58 | $ 88 |
Segments and Geographic Areas_4
Segments and Geographic Areas (Details) - Schedule of consolidated net sales to customers by region - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 539,000 | $ 713,500 | $ 675,600 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 193,500 | 235,500 | 210,600 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 180,200 | 240,800 | 233,600 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 79,700 | 110,900 | 113,400 |
Middle East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 46,800 | 72,600 | 59,300 |
Central and South America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 32,500 | 46,200 | 51,700 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 6,300 | $ 7,500 | $ 7,000 |
Segments and Geographic Areas_5
Segments and Geographic Areas (Details) - Schedule of consolidated net sales to customers in major countries - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
United States [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales | $ 187,300 | $ 225,300 | $ 205,000 |
France [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 37,600 | 43,500 | 44,000 |
Russia [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales | 14,100 | 36,800 | 35,000 |
United Kingdom [Member] | |||
Revenue, Major Customer [Line Items] | |||
Net sales | $ 24,600 | $ 35,800 | $ 36,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Federal income tax rate | 21.00% | 21.00% | 21.00% |
Income tax benefit | $ 753 | $ (2,304) | $ (270) |
Net of recovery taxes and excluding interest and penalties | 5,800 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal income tax rate | 35.00% | ||
Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal income tax rate | 21.00% | ||
Foreign derived intangible income [Member] | |||
Income Tax Contingency [Line Items] | |||
Income tax benefit | $ 300 | $ 900 | $ 600 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
U.S. operations | $ 9,577 | $ 23,384 | $ 15,162 |
Foreign operations | 59,772 | 81,762 | 80,697 |
Income before income taxes | $ 69,349 | $ 105,146 | $ 95,859 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of provision for current and deferred income tax expense (benefit) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 1,685 | $ 3,280 | $ 1,629 |
State and local | 90 | 713 | 497 |
Foreign | 17,024 | 27,412 | 24,175 |
Current income tax expense | 18,799 | 31,405 | 26,301 |
Deferred: | |||
Federal | (215) | (3) | 113 |
State and local | 44 | (22) | |
Foreign | 753 | (2,304) | (270) |
Deferred income tax expense | 582 | (2,329) | (157) |
Total income tax expense | $ 19,381 | $ 29,076 | $ 26,144 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of significant portions of the deferred tax assets and deferred tax liabilities - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Net deferred tax assets: | ||
Foreign net operating loss carry-forwards | $ 360 | $ 362 |
Inventory and accounts receivable | 1,928 | 1,231 |
Profit sharing | 2,936 | 4,812 |
Stock option compensation | 718 | 588 |
Effect of inventory profit elimination | 4,443 | 4,630 |
Other | 910 | 214 |
Total gross deferred tax assets, net | 11,295 | 11,837 |
Valuation allowance | (360) | (361) |
Net deferred tax assets | 10,935 | 11,476 |
Deferred tax liabilities (long-term): | ||
Trademarks and licenses | (2,894) | (3,472) |
Net deferred tax assets | $ 8,041 | $ 8,004 |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of differences between the united states federal statutory income tax rate and the effective income tax rate | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Statutory rates | 21.00% | 21.00% | 21.00% |
State and local taxes, net of Federal benefit | 0.20% | 0.60% | 0.40% |
Benefit of Foreign Derived Intangible Income | (0.40%) | (0.90%) | (0.60%) |
Effect of foreign taxes greater than U.S. statutory rates | 7.50% | 7.50% | 7.30% |
Other | (0.40%) | (0.60%) | (0.80%) |
Effective rates | 27.90% | 27.60% | 27.30% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - Schedule of accumulated other comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning of year | $ (39,853) | $ (33,650) | |
End of year | (5,997) | (39,853) | $ (33,650) |
Net derivative instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning of year | 52 | 136 | 37 |
Net derivative instrument gain (loss), net of tax | (52) | (84) | 99 |
End of year | 52 | 136 | |
Cumulative translation adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning of year | (39,905) | (33,786) | (17,869) |
Translation adjustments | 33,908 | (6,119) | (15,917) |
End of year | $ (5,997) | $ (39,905) | $ (33,786) |
Net Income Attributable to In_7
Net Income Attributable to Inter Parfums, Inc. and Transfers from the Noncontrolling Interest (Details) - Schedule of net income attributable to transfers from the noncontrolling interest - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net income attributable to Inter Parfums, Inc. | $ 38,219 | $ 60,249 | $ 53,793 |
Decrease in Inter Parfums, Inc.'s additional paid-in capital for subsidiary share transactions | (5,167) | (572) | |
Change from net income attributable to Inter Parfums, Inc. and transfers from noncontrolling interest | $ 38,219 | $ 55,082 | $ 53,221 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Schedule of valuation and qualifying accounts - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Allowance for doubtful accounts [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | $ 2,452 | $ 2,602 | $ 1,821 | ||
Charged to costs and expenses | 4,824 | 1,380 | 1,441 | ||
Charged to other accounts describe | 381 | [1] | (41) | (91) | |
Deductions describe | [2] | 1,968 | 1,489 | 569 | |
Balance at end of period | 5,550 | 2,452 | 2,602 | ||
Allowance for sales returns, net of inventory [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 2,587 | 1,379 | 3,310 | ||
Charged to costs and expenses | 1,978 | 2,387 | 1,329 | ||
Charged to other accounts describe | |||||
Deductions describe | [3] | 2,323 | 1,179 | 3,260 | |
Balance at end of period | 2,242 | 2,587 | 1,379 | ||
Inventory reserve [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 4,909 | 4,854 | 5,349 | ||
Charged to costs and expenses | 7,212 | 5,321 | 4,694 | ||
Charged to other accounts describe | 616 | [1] | (70) | (183) | |
Deductions describe | [4] | 3,366 | 5,196 | 5,006 | |
Balance at end of period | $ 9,371 | $ 4,909 | $ 4,854 | ||
[1] | Foreign currency translation adjustment | ||||
[2] | Write-off of bad debts. | ||||
[3] | Write-off of sales returns. | ||||
[4] | Disposal of inventory |