Inter Parfums (IPAR) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	INTER PARFUMS INC
Entity Central Index Key	822,663
Document Type	10-Q
Trading Symbol	IPAR
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,186,748
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 108,367	$ 161,828
Short-term investments	122,402	94,202
Accounts receivable, net	159,434	104,819
Inventories	134,280	96,977
Receivables, other	1,341	7,433
Other current assets	8,885	6,240
Income tax receivable	548	626
Total current assets	535,257	472,125
Equipment and leasehold improvements, net	10,321	10,076
Trademarks, licenses and other intangible assets, net	200,841	183,868
Deferred tax assets	11,071	8,090
Other assets	8,183	8,250
Total assets	765,673	682,409
Current liabilities:
Current portion of long-term debt	24,016	21,498
Accounts payable - trade	54,449	49,507
Accrued expenses	63,113	62,609
Income taxes payable	10,970	3,331
Dividends payable	5,301	5,293
Total current liabilities	157,849	142,238
Long-term debt, less current portion	41,554	53,064
Deferred tax liability	3,741	3,449
Inter Parfums, Inc. shareholders' equity:
Preferred stock, $.001 par; authorized 1,000,000 shares; none issued
Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,182,458 and 31,138,318 shares at September 30, 2017 and December 31, 2016, respectively	31	31
Additional paid-in capital	64,645	63,103
Retained earnings	424,545	402,714
Accumulated other comprehensive loss	(23,061)	(57,982)
Treasury stock, at cost, 9,864,805 common shares at September 30, 2017 and December 31, 2016, respectively	(37,475)	(37,475)
Total Inter Parfums, Inc. shareholders' equity	428,685	370,391
Noncontrolling interest	133,844	113,267
Total equity	562,529	483,658
Total liabilities and equity	$ 765,673	$ 682,409

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	31,182,458	31,138,318
Treasury stock	9,864,805	9,864,805

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 169,531	$ 157,622	$ 441,725	$ 386,301
Cost of sales	66,059	62,790	164,240	145,723
Gross margin	103,472	94,832	277,485	240,578
Selling, general and administrative expenses	70,309	62,529	203,676	179,285
Income from operations	33,163	32,303	73,809	61,293
Other expenses (income):
Interest expense	495	515	1,494	2,181
Loss on foreign currency	335	334	1,308	388
Interest income	(615)	(765)	(2,788)	(2,722)
Other expenses (income)	215	84	14	(153)
Income before income taxes	32,948	32,219	73,795	61,446
Income taxes	10,845	10,740	24,314	22,790
Net income	22,103	21,479	49,481	38,656
Less: Net income attributable to the noncontrolling interest	5,026	5,240	12,287	9,252
Net income attributable to Inter Parfums, Inc.	$ 17,077	$ 16,239	$ 37,194	$ 29,404
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic (in dollars per share)	$ 0.55	$ 0.52	$ 1.19	$ 0.95
Diluted (in dollars per share)	$ 0.55	$ 0.52	$ 1.19	$ 0.94
Weighted average number of shares outstanding:
Basic (in shares)	31,175	31,080	31,163	31,058
Diluted (in shares)	31,307	31,171	31,281	31,138
Dividends declared per share (in dollars per share)	$ 0.17	$ 0.15	$ 0.51	$ 0.45

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Comprehensive income:
Net income	$ 22,103	$ 21,479	$ 49,481	$ 38,656
Other comprehensive income:
Net derivative instrument gain (loss), net of tax	(591)		30
Transfer from OCI into earnings			22
Translation adjustments, net of tax	15,143	2,391	48,715	10,504
Comprehensive income	36,655	23,870	98,248	49,160
Comprehensive income attributable to the noncontrolling interests:
Net income	5,026	5,240	12,287	9,252
Other comprehensive income:
Net derivative instrument gain (loss), net of tax	(160)		8
Transfer from OCI into earnings			5
Translation adjustments, net of tax	4,367	698	13,833	3,141
Comprehensive income attributable to the noncontrolling interests	9,233	5,938	26,133	12,393
Comprehensive income attributable to Inter Parfums, Inc.	$ 27,422	$ 17,932	$ 72,115	$ 36,767

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated other comprehensive loss [Member]	Treasury Stock [Meber]	Noncontrolling Interest [Mmember]	Total
Balance, beginning at Dec. 31, 2015	$ 31	$ 62,030	$ 388,434	$ (48,091)	$ (36,817)	$ 110,800
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercise of stock options		1,235
Sale of subsidiary shares to noncontrolling interest		(154)				1,603
Net income			29,404			9,252	$ 38,656
Dividends			(13,980)			(4,863)
Share based compensation		630
Purchase of subsidiary shares from noncontrolling interest		(1,670)				(800)
Foreign currency translation adjustment, net of tax				7,363		3,141	10,504
Balance, ending at Sep. 30, 2016	31	62,071	403,858	(40,728)	(36,817)	119,133	507,548
Balance, beginning at Dec. 31, 2016	31	63,103	402,714	(57,982)	(37,475)	113,267	483,658
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercise of stock options		839
Net income			37,194			12,287	49,481
Dividends			(15,899)			(5,947)
Share based compensation		703	536			391
Foreign currency translation adjustment, net of tax				34,882		13,833	48,715
Transfer from other comprehensive income into earnings				17		5
Net derivative instrument gain, net of tax				22		8
Balance, ending at Sep. 30, 2017	$ 31	$ 64,645	$ 424,545	$ (23,061)	$ (37,475)	$ 133,844	$ 562,529

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 49,481	$ 38,656
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	7,377	7,113
Provision for doubtful accounts	283	231
Share based compensation	1,558	706
Deferred tax benefit	(2,051)	(2,556)
Change in fair value of derivatives	(1,869)	314
Changes in:
Accounts receivable	(43,163)	(48,735)
Inventories	(27,345)	(4,979)
Other assets	542	71
Accounts payable and accrued expenses	(8,145)	(7,784)
Income taxes, net	7,203	4,391
Net cash used in operating activities	(16,129)	(12,572)
Cash flows from investing activities:
Purchases of short-term investments	(25,988)	(48,629)
Proceeds from sale of short-term investments	10,033	15,621
Purchases of equipment and leasehold improvements	(2,253)	(4,260)
Payment for intangible assets acquired	(764)	(642)
Proceeds from sale of trademark	5,886
Net cash used in investing activities	(13,086)	(37,910)
Cash flows from financing activities:
Repayments of long-term debt	(16,567)	(16,567)
Proceeds from exercise of stock options	839	1,235
Proceeds from sale of shares of subsidiary		1,449
Dividends paid	(15,891)	(13,349)
Dividends paid to noncontrolling interest	(5,947)	(4,863)
Purchase of stock of subsidiary		(2,470)
Net cash (used in) financing activities	(37,566)	(34,565)
Effect of exchange rate changes on cash	13,320	4,032
Net decrease in cash and cash equivalents	(53,461)	(81,015)
Cash and cash equivalents - beginning of period	161,828	176,967
Cash and cash equivalents - end of period	108,367	95,952
Cash paid for:
Interest	1,351	1,758
Income taxes	$ 16,823	$ 18,881

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	1. Significant Accounting Policies: The accounting policies we follow are set forth in the notes to our financial statements included in our Form 10-K, which was filed with the Securities and Exchange Commission for the year ended December 31, 2016. We also discuss such policies in Part I, Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in this Form 10-Q.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements: In August 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to improve accounting for hedging activities. The objective of the ASU is to improve the financial reporting of hedging relationships in order to better portray the economic results of an entity’s risk management activities in its financial statements and to make certain targeted improvements to simplify the application of hedge accounting guidance. This ASU is effective for annual and interim periods beginning after December 15, 2018 and early adoption is permitted. We are currently evaluating the standard to determine the impact of its adoption on our consolidated financial statements. In August 2016, the FASB issued an ASU to eliminate the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. This ASU is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. We have evaluated the standard and determined that there will be no material impact on our consolidated financial statements. In February 2016, the FASB issued an ASU which requires lessees to recognize lease assets and lease liabilities arising from operating leases on the balance sheet. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018 using a modified retrospective approach, with early adoption permitted. We are currently evaluating the standard to determine the impact of its adoption on our consolidated financial statements. In November 2015, the FASB issued an ASU that requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016. In January 2017, the Company adopted the standard retrospectively, which resulted in reclassifications among accounts on the consolidated balance sheet, but had no other impact on our results of operations, financial condition or cash flows. The effect of the adoption on prior periods was a reclassification from current assets to noncurrent assets of approximately $8 million. In May 2014, the FASB issued an ASU which superseded the most current revenue recognition requirements. This new revenue recognition standard requires entities to recognize revenue in a way that depicts the transfer of goods or services to customers in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. The new standard also includes enhanced disclosure requirements. This guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for annual periods after December 31, 2016. We have evaluated the standard and determined that there will be no material impact on our consolidated financial statements. There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	3. Inventories: Inventories consist of the following: (In thousands) September 30, 2017 December 31, 2016 Raw materials and component parts $ 43,261 $ 36,821 Finished goods 91,019 60,156 $ 134,280 $ 96,977

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurement	4. Fair Value Measurement: The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at September 30, 2017 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Short-term investments $ 122,402 $ — $ 122,402 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 1,230 1,230 $ 123,632 $ — $ 123,632 $ — Liabilities: Interest rate swap $ 628 $ — $ 628 $ — Foreign currency forward exchange contracts not accounted for using hedge accounting 310 — 310 — Interest rate swap $ 938 $ — $ 938 $ — Fair Value Measurements at December 31, 2016 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Short-term investments $ 94,202 $ — $ 94,202 $ — Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting $ 181 $ — $ 181 $ — Foreign currency forward exchange contracts not accounted for using hedge accounting 418 — 418 — Interest rate swap 908 — 908 — $ 1,507 $ — $ 1,507 $ — The carrying amount of cash and cash equivalents including money market funds, accounts receivable, other receivables, and accounts payable and accrued expenses approximates fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. The fair value of the Company’s long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value. Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps are the discounted net present value of the swaps using third party quotes obtained from financial institutions.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	5. Derivative Financial Instruments: The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Before entering into a derivative transaction for hedging purposes, it is determined that a high degree of initial effectiveness exists between the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates. High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item. The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference which is reported in current period earnings. Any hedge ineffectiveness is also recognized as a gain or loss on foreign currency in the income statement. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued and gains and losses accumulated in other comprehensive income are reclassified to earnings. If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated in other comprehensive income are reclassified to current-period earnings. In connection with the May 2015 Rochas 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 for the nine months ended September 30, 2017 and 2016. Interest expense includes a gain (loss) of $0.4 million and ($0.2) million for the nine months ended September 30, 2017 and 2016 respectively, relating to the 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 as of September 30, 2017, resulted in a liability which is included in long-term debt on the accompanying balance sheets. The valuation of foreign currency forward exchange contracts not accounted for using hedge accounting at September 30, 2017, resulted in a liability and is included in accrued expenses on the accompanying balance sheet. At September 30, 2017, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $22.6 million and GB £11.5 million which both have maturities of less than one year.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2017
Accounts Payable and Accrued Liabilities [Abstract]
Accrued Expenses	6. Accrued Expenses: Accrued expenses include approximately $20.6 million and $14.1 million in advertising liabilities as of September 30, 2017 and December 31, 2016, respectively.

Share Based Payments

Share Based Payments	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share Based Payments	7. Share Based Payments: The Company maintains stock option programs for key employees, executives and directors. The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options. Options granted under the plans typically have a six-year term and vest over a four to five-year period. The fair value of shares vested for both the nine months ended September 30, 2017 and 2016 aggregated $0.05 million. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. It is generally our policy to issue new shares upon exercise of stock options. The following table sets forth information with respect to nonvested options for the nine month period ended September 30, 2017: Number of Shares Weighted Average Grant Date Fair Value Nonvested options – beginning of period 401,440 $ 7.14 Nonvested options granted 7,000 $ 8.04 Nonvested options vested or forfeited (18,145 ) $ 7.01 Nonvested options – end of period 390,295 $ 7.16 Share based payment expense decreased income before income taxes by $0.54 million and $1.56 million for the three and nine months ended September 30, 2017, respectively, as compared to $0.28 million and $0.70 million for the corresponding periods of the prior year. Share based payment expense decreased income attributable to Inter Parfums, Inc. by $0.29 million and $0.86 million for the three and nine months ended September 30, 2017, respectively, as compared to $0.16 million and $0.42 million for the corresponding periods of the prior year. The following table summarizes stock option information as of September 30, 2017: Shares Weighted Average Exercise Price Outstanding at January 1, 2017 684,540 $ 26.94 Options granted 7,000 35.72 Options forfeited (12,080 ) 29.70 Options exercised (44,140 ) 19.02 Outstanding at September 30, 2017 635,320 $ 27.54 Options exercisable 245,025 $ 25.13 Options available for future grants 1,086,735 As of September 30, 2017, the weighted average remaining contractual life of options outstanding is 3.23 years (1.99 years for options exercisable), the aggregate intrinsic value of options outstanding and options exercisable is $8.7 million and $4.0 million, respectively, and unrecognized compensation cost related to stock options outstanding aggregated $2.2 million. Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2017 and September 30, 2016 were as follows: (In thousands) September 30, September 30, Cash proceeds from stock options exercised $ 839 $ 1,235 Tax benefits 135 — Intrinsic value of stock options exercised 804 947 The weighted average fair values of the options granted by Inter Parfums, Inc. during the nine months ended September 30, 2017 and 2016 were $8.04 and $6.50 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value of options granted. The assumptions used in the Black-Scholes pricing model for the periods ended September 30, 2017 and 2016 are set forth in the following table: September 30, September 30, Weighted average expected stock-price volatility 29 % 33 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 1.9 % 1.4 % Weighted average dividend yield 2.1 % 2.2 % Expected volatility is estimated based on historic volatility of the Company’s common stock. The expected term of the option is estimated based on historic data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors would increase as the earnings of the Company and its stock price increases. In September 2016, Interparfums SA, our 73% owned subsidiary in Paris, 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 shares will be distributed in September 2019 so long as the individual is employed by Interparfums SA at the time, and in the case of officers and managers, only to the extent that the performance conditions have been met. Once distributed, the shares will be unrestricted and the employees will be permitted to trade their shares. The fair value of the grant of €22.46 per share (approximately $26.50 per share) has been determined based on the quoted share price of Interparfums SA shares as reported by the NYSE Euronext on the date of grant. The estimated number of shares to be distributed of 137,381 has been determined taking into account employee turnover. The aggregate cost of the grant of €3.1 million (approximately $3.7 million) will be recognized as compensation cost by Interparfums SA on a straight-line basis over the requisite three year service period. For the nine months ended September 30, 2017, $0.9 million of compensation cost has been recognized in connection with this plan. To avoid dilution of the Company’s ownership of Interparfums SA, all shares to be distributed pursuant to this plan will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA. As of December 31, 2016, 108,348 shares have been acquired in the open market at an aggregate cost of $2.9 million, and such amount has been classified as an equity transaction on the accompanying balance sheet. No additional shares were purchased during the nine months ended September 30, 2017.

Net Income Attributable to Inte

Net Income Attributable to Inter Parfums, Inc. Common Shareholders	9 Months Ended
	Sep. 30, 2017
Earnings per share:
Net Income Attributable to Inter Parfums, Inc. Common Shareholders	8. Net Income Attributable to Inter Parfums, Inc. Common Shareholders: Net income attributable to Inter Parfums, Inc. per common share (“basic EPS”) is computed by dividing net 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: Three months ended Nine months ended (In thousands) September 30, September 30, 2017 2016 2017 2016 Numerator: Net income attributable to Inter Parfums, Inc. $ 17,077 $ 16,239 $ 37,194 $ 29,404 Denominator: Weighted average shares 31,175 31,080 31,163 31,058 Effect of dilutive securities: Stock options 132 91 118 80 Denominator for diluted earnings per share 31,307 31,171 31,281 31,138 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 0.55 $ 0.52 $ 1.19 $ 0.95 Diluted 0.55 0.52 1.19 0.94 Not included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.22 million shares and 0.31 million shares of common stock for the nine months ended September 30, 2017 and 2016, respectively, and 0.15 million and 0.25 million shares of common stock for the three months ended September 30, 2017 and 2016, respectively.

Segments and Geographic Areas

Segments and Geographic Areas	9 Months Ended
	Sep. 30, 2017
Segments, Geographical Areas [Abstract]
Segment and Geographic Areas	9. Segment and Geographic Areas: The Company manufactures and distributes one product line, fragrances and fragrance related products. The Company manages its business in two segments, European based operations and United States based operations. The European assets are located, and operations are primarily conducted, in France. Both European operations and United States operations primarily represent the sale of prestige brand name fragrances. Information on our operations by geographical areas is as follows: (In thousands) Three months ended Nine months ended 2017 2016 2017 2016 Net sales: United States $ 35,690 $ 34,251 $ 81,977 $ 82,197 Europe 134,639 123,405 361,172 304,217 Eliminations (798 ) (34 ) (1,424 ) (113 ) $ 169,531 $ 157,622 $ 441,725 $ 386,301 Net income attributable to Inter Parfums, Inc.: United States $ 3,668 $ 2,850 $ 5,134 $ 4,804 Europe 13,409 13,389 32,060 24,600 $ 17,077 $ 16,239 $ 37,194 $ 29,404 (In thousands) September 30, December 31, 2017 2016 Total Assets: United States $ 98,747 $ 89,930 Europe 676,519 602,077 Eliminations of investment in subsidiary (9,593 ) (9,598 ) $ 765,673 $ 682,409

Other Matters

Other Matters	9 Months Ended
	Sep. 30, 2017
Other Matters Disclosure [Abstract]
Other Matters	10. Other Matters License Renewal: In May 2017, the Company, through its majority owned Paris based subsidiary, Interparfums SA, renewed its license agreement for an additional four years with Paul Smith for the creation, development, and distribution of fragrance products through December 2021, without any material changes in terms and conditions. Our initial 12-year license agreement with Paul Smith was signed in 1998, and had previously been extended through December 31, 2017. Buyout of License: In December 2016, the Company reached an agreement with the Balmain brand calling for Balmain to buyout the Balmain license agreement, effective December 31, 2016, in exchange for a payment aggregating $5.9 million. As a result of the buyout, the Company recognized a gain of $4.7 million as of December 31, 2016, and received the buyout payment in May 2017. As of March 31, 2017, the three month inventory sell-off period concluded and Balmain purchased all remaining inventory aggregating $1.4 million. Settlement with French Tax Authorities: As previously reported, the French Tax Authorities examined the 2012 tax return of Interparfums SA, and in August 2015 issued a $6.9 million tax adjustment. The main issues challenged by the French Tax Authorities related to the commission rate and royalty rate paid to Interparfums Singapore Pte. and Interparfums (Suisse) SARL, respectively. Due to the subjective nature of the issues involved, in April 2016, Interparfums SA reached an agreement in principle to settle the entire matter with the French Tax Authorities. The settlement required Interparfums SA to pay a tax assessment of $1.9 million covering the issues for not only the 2012 tax year, but also covering the issues for the tax years ended 2013 through 2015. The settlement, which was finalized by the French Tax Authorities in the first quarter of 2017, was accrued in March 2016.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Event	11. Subsequent Event In 2012, the French government introduced a 3% tax on dividends or deemed dividends for entities subject to French corporate income tax. On October 6, 2017 the French Constitutional Court released a decision declaring that the 3% tax on dividends or deemed dividends is unconstitutional. As a result of that decision, the Company has filed a claim for refund of approximately $3.3 million (€2.8 million) for these taxes paid since 2015. The French government has not yet determined if, how, or when they will reimburse companies who have filed claims. There is even discussion of additional tax measures to offset this cost. Therefore, due to the unknown factors involved in the potential reimbursement of the claim, the Company did not recognize the refund claim in the accompanying financial statements as of September 30, 2017. The Company will continue to monitor future events as they relate to this matter.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consist of the following: (In thousands) September 30, 2017 December 31, 2016 Raw materials and component parts $ 43,261 $ 36,821 Finished goods 91,019 60,156 $ 134,280 $ 96,977

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of fair value, assets measured on recurring basis	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 September 30, 2017 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Short-term investments $ 122,402 $ — $ 122,402 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 1,230 1,230 $ 123,632 $ — $ 123,632 $ — Liabilities: Interest rate swap $ 628 $ — $ 628 $ — Foreign currency forward exchange contracts not accounted for using hedge accounting 310 — 310 — Interest rate swap $ 938 $ — $ 938 $ — Fair Value Measurements at December 31, 2016 Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Short-term investments $ 94,202 $ — $ 94,202 $ — Liabilities: Foreign currency forward exchange contracts accounted for using hedge accounting $ 181 $ — $ 181 $ — Foreign currency forward exchange contracts not accounted for using hedge accounting 418 — 418 — Interest rate swap 908 — 908 — $ 1,507 $ — $ 1,507 $ —

Share Based Payments (Tables)

Share Based Payments (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of nonvested share activity	The following table sets forth information with respect to nonvested options for the nine month period ended September 30, 2017: Number of Shares Weighted Average Grant Date Fair Value Nonvested options – beginning of period 401,440 $ 7.14 Nonvested options granted 7,000 $ 8.04 Nonvested options vested or forfeited (18,145 ) $ 7.01 Nonvested options – end of period 390,295 $ 7.16
Schedule of stock options, activity	The following table summarizes stock option information as of September 30, 2017: Shares Weighted Average Exercise Price Outstanding at January 1, 2017 684,540 $ 26.94 Options granted 7,000 35.72 Options forfeited (12,080 ) 29.70 Options exercised (44,140 ) 19.02 Outstanding at September 30, 2017 635,320 $ 27.54 Options exercisable 245,025 $ 25.13 Options available for future grants 1,086,735
Schedule of cash proceeds received from share-based payment awards	Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the nine months ended September 30, 2017 and September 30, 2016 were as follows: (In thousands) September 30, September 30, Cash proceeds from stock options exercised $ 839 $ 1,235 Tax benefits 135 — Intrinsic value of stock options exercised 804 947
Schedule of valuation assumptions in Black-Scholes pricing	The assumptions used in the Black-Scholes pricing model for the periods ended September 30, 2017 and 2016 are set forth in the following table: September 30, September 30, Weighted average expected stock-price volatility 29 % 33 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 1.9 % 1.4 % Weighted average dividend yield 2.1 % 2.2 %

Net Income Attributable to In22

Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings per share:
Schedule of earnings per share, basic and diluted	The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Three months ended Nine months ended (In thousands) September 30, September 30, 2017 2016 2017 2016 Numerator: Net income attributable to Inter Parfums, Inc. $ 17,077 $ 16,239 $ 37,194 $ 29,404 Denominator: Weighted average shares 31,175 31,080 31,163 31,058 Effect of dilutive securities: Stock options 132 91 118 80 Denominator for diluted earnings per share 31,307 31,171 31,281 31,138 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 0.55 $ 0.52 $ 1.19 $ 0.95 Diluted 0.55 0.52 1.19 0.94

Segments and Geographic Areas (

Segments and Geographic Areas (Tables)	9 Months Ended
	Sep. 30, 2017
Segments, Geographical Areas [Abstract]
Schedule of information on operations by geographical areas	Information on our operations by geographical areas is as follows: (In thousands) Three months ended Nine months ended 2017 2016 2017 2016 Net sales: United States $ 35,690 $ 34,251 $ 81,977 $ 82,197 Europe 134,639 123,405 361,172 304,217 Eliminations (798 ) (34 ) (1,424 ) (113 ) $ 169,531 $ 157,622 $ 441,725 $ 386,301 Net income attributable to Inter Parfums, Inc.: United States $ 3,668 $ 2,850 $ 5,134 $ 4,804 Europe 13,409 13,389 32,060 24,600 $ 17,077 $ 16,239 $ 37,194 $ 29,404 (In thousands) September 30, December 31, 2017 2016 Total Assets: United States $ 98,747 $ 89,930 Europe 676,519 602,077 Eliminations of investment in subsidiary (9,593 ) (9,598 ) $ 765,673 $ 682,409

Recent Accounting Pronounceme24

Recent Accounting Pronouncements (Details Narrative) $ in Thousands	Jan. 31, 2017USD ($)
Accounting Standards Update 2015-17 [Member]
New accounting pronouncement or change in accounting principle, cumulative effect of change on equity or net assets	$ 8,000

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials and component parts	$ 43,261	$ 36,821
Finished goods	91,019	60,156
Inventories	$ 134,280	$ 96,977

Fair Value Measurement (Details

Fair Value Measurement (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Short-term investments	$ 122,402	$ 94,202
Foreign currency forward exchange contracts accounted for using hedge accounting	1,230
Total Assets	123,632
Liabilities:
Foreign currency forward exchange contracts accounted for using hedge accounting		181
Foreign currency forward exchange contracts not accounted for using hedge accounting	310	418
Interest rate swap	628	908
Total Liabilities	938	1,507
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Short-term investments
Foreign currency forward exchange contracts accounted for using hedge accounting
Total Assets
Liabilities:
Foreign currency forward exchange contracts accounted for using hedge accounting
Foreign currency forward exchange contracts not accounted for using hedge accounting
Interest rate swap
Total Liabilities
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Short-term investments	122,402	94,202
Foreign currency forward exchange contracts accounted for using hedge accounting	1,230
Total Assets	123,632
Liabilities:
Foreign currency forward exchange contracts accounted for using hedge accounting		181
Foreign currency forward exchange contracts not accounted for using hedge accounting	310	418
Interest rate swap	628	908
Total Liabilities	938	1,507
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Short-term investments
Foreign currency forward exchange contracts accounted for using hedge accounting
Total Assets
Liabilities:
Foreign currency forward exchange contracts accounted for using hedge accounting
Foreign currency forward exchange contracts not accounted for using hedge accounting
Interest rate swap
Total Liabilities

Derivative Financial Instrume27

Derivative Financial Instruments (Details Narrative) £ in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017GBP (£)
Foreign exchange contracts [Member]
Derivative [Line Items]
Foreign currency contracts	$ 22,600
Foreign exchange contracts [Member] | Maximum [Member]
Derivative [Line Items]
Maturity period	1 year
Foreign exchange contracts [Member] | GBP [Member]
Derivative [Line Items]
Foreign currency contracts | £			£ 11,500
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, gain (loss) on derivative, net, total	$ 400	$ (200)
Rochas Brand [Member] | Trademarks [Member] | Medium-term Notes [Member]
Derivative [Line Items]
Cash paid for acquisition and financed by loan, amount	$ 108,000
Cash paid for acquisition and financed by loan, term	5 years
Rochas Brand [Member] | Trademarks [Member] | Medium-term Notes [Member] | Foreign exchange contracts [Member]
Derivative [Line Items]
Notional amount	$ 108,000
Exchange rate (in dollars per euro)	1.067		1.067

Accrued Expenses (Details Narra

Accrued Expenses (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Accrued advertising liabilities	$ 20,600	$ 14,100

Share Based Payments (Details)

Share Based Payments (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Nonvested options - beginning of period	401,440
Nonvested options granted	7,000
Nonvested options vested or forfeited	(18,145)
Nonvested options - end of period	390,295
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested options - beginning of period	$ 7.14
Nonvested options granted	8.04	$ 6.50
Nonvested options vested or forfeited	7.01
Nonvested options - end of period	$ 7.16

Share Based Payments (Details 1

Share Based Payments (Details 1)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning	684,540
Options granted	7,000
Options forfeited	(12,080)
Options exercised	(44,140)
Outstanding at ending	635,320
Options exercisable	245,025
Options available for future grants	1,086,735
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 26.94
Options granted | $ / shares	35.72
Options forfeited | $ / shares	29.70
Options exercised | $ / shares	19.02
Outstanding at ending | $ / shares	27.54
Options exercisable | $ / shares	$ 25.13

Share Based Payments (Details 2

Share Based Payments (Details 2) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Cash proceeds from stock options exercised	$ 839	$ 1,235
Tax benefits	135
Intrinsic value of stock options exercised	$ 804	$ 947

Share Based Payments (Details 3

Share Based Payments (Details 3)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Weighted average expected stock-price volatility	29.00%	33.00%
Weighted average expected option life	5 years	5 years
Weighted average risk-free interest rate	1.90%	1.40%
Weighted average dividend yield	2.10%	2.20%

Share Based Payments (Details N

Share Based Payments (Details Narrative) € / shares in Units, $ / shares in Units, € in Thousands, $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended
	Dec. 31, 2016USD ($)shares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2016EUR (€)€ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)shares	Sep. 30, 2017USD ($)$ / shares	Sep. 30, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense				$ 540	$ 280	$ 1,560	$ 700
Allocated share-based compensation expense, effect on net income attributable to parent				290	$ 160	$ 860	$ 420
Weighted average remaining contractual period of options outstanding						3 years 2 months 22 days
Weighted average remaining contractual life of options exercisable						1 year 11 months 26 days
Aggregate intrinsic value of options outstanding				8,700		$ 8,700
Aggregate intrinsic value of options exercisable				4,000		4,000
Unrecognized compensation cost related to stock options				$ 2,200		$ 2,200
Weighted average grant date fair value | $ / shares						$ 8.04	$ 6.50
Interparfums SA Subsidiary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense						$ 900
Ownership percentage		73.00%	73.00%		73.00%		73.00%
Number of shares authorized | shares		137,381	137,381		137,381		137,381
Weighted average grant date fair value | $ / shares		$ 26.50
Compensation cost		$ 3,700
Value of shares purchased for award	$ 2,900
Number of shares purchased for award | shares	108,348
Interparfums SA Subsidiary [Member] | Euro [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value | € / shares			€ 22.46
Compensation cost | €			€ 3,100
Interparfums SA Subsidiary [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized | shares		15,100	15,100		15,100		15,100
Interparfums SA Subsidiary [Member] | Officers And Managers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized | shares		133,000	133,000		133,000		133,000
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period						6 years
Fair value of shares vested						$ 50	$ 50
Equity Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						5 years
Equity Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years

Net Income Attributable to In34

Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income attributable to Inter Parfums, Inc.	$ 17,077	$ 16,239	$ 37,194	$ 29,404
Denominator:
Weighted average shares	31,175	31,080	31,163	31,058
Effect of dilutive securities: Stock options	132	91	118	80
Denominator for diluted earnings per share	31,307	31,171	31,281	31,138
Net income attributable to Inter Parfums, Inc.
Basic (in dollars per share)	$ 0.55	$ 0.52	$ 1.19	$ 0.95
Diluted (in dollars per share)	$ 0.55	$ 0.52	$ 1.19	$ 0.94

Net Income Attributable to In35

Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	150,000	250,000	220,000	310,000

Segments and Geographic Areas36

Segments and Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 169,531	$ 157,622	$ 441,725	$ 386,301
Net income attributable to Inter Parfums, Inc.	17,077	16,239	37,194	29,404
Total assets	765,673		765,673		$ 682,409
United States [Member]
Segment Reporting Information [Line Items]
Net sales	35,690	34,251	81,977	82,197
Net income attributable to Inter Parfums, Inc.	3,668	2,850	5,134	4,804
Total assets	98,747		98,747		89,930
Europe [Member]
Segment Reporting Information [Line Items]
Net sales	134,639	123,405	361,172	304,217
Net income attributable to Inter Parfums, Inc.	13,409	13,389	32,060	24,600
Total assets	676,519		676,519		602,077
Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	(798)	$ (34)	(1,424)	$ (113)
Total assets	$ (9,593)		$ (9,593)		$ (9,598)

Segments and Geographic Areas37

Segments and Geographic Areas (Details Narrative)	9 Months Ended
	Sep. 30, 2017Segment
Segments, Geographical Areas [Abstract]
Number of operating segments	2

Other Matters (Details Narrativ

Other Matters (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Dec. 31, 2016	Aug. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Proceeds from sale of intangible assets	$ 5,900		$ 5,886
Gain (loss) on disposition of intangible assets	4,700
Inventory, net	96,977		134,280
Accrued income taxes, current	$ 3,331		$ 10,970
Foreign Tax Authority [Member]
Tax adjustments, settlements, and unusual provisions		$ 6,900
Balmain [Member]
Inventory, net					$ 1,400
Interparfum SA [Member]
Accrued income taxes, current						$ 1,900

Subsequent Event (Details Narra

Subsequent Event (Details Narrative) - Subsequent Event [Member] - Ministry of the Economy, Finance and Industry, France [Member] € in Thousands, $ in Thousands	Oct. 06, 2017USD ($)	Oct. 06, 2017EUR (€)
Subsequent Event [Line Items]
Dividend tax rate	3.00%	3.00%
Dividend claim refund amount | $	$ 3,300
Euro [Member]
Subsequent Event [Line Items]
Dividend claim refund amount | €		€ 2,800