Inter Parfums (IPAR) 10-Q 6 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	INTER PARFUMS INC
Entity Central Index Key	0000822663
Document Type	10-Q
Trading Symbol	IPAR
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		31,449,065
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 156,382	$ 193,136
Short-term investments	71,867	67,870
Accounts receivable, net	167,281	136,420
Inventories	165,389	160,978
Receivables, other	1,461	2,112
Other current assets	7,963	8,076
Income taxes receivable	111	810
Total current assets	570,454	569,402
Equipment and leasehold improvements, net	9,443	9,839
Right-of-use assets, net	30,230
Trademarks, licenses and other intangible assets, net	199,775	204,325
Deferred tax assets	9,462	9,299
Other assets	5,118	6,302
Total assets	824,482	799,167
Current liabilities:
Current portion of long-term debt	23,626	23,155
Current portion of lease liabilities	5,216
Accounts payable - trade	62,934	58,328
Accrued expenses	75,328	92,468
Income taxes payable	8,028	4,396
Dividends payable	8,649	8,630
Total current liabilities	183,781	186,977
Long-term debt, less current portion	15,971	22,906
Lease liabilities, less current portion	25,728
Deferred tax liability	3,236	3,538
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 31,449,065 and 31,382,127 shares at March 31, 2019 and December 31, 2018, respectively	31	31
Additional paid-in capital	72,103	69,970
Retained earnings	459,329	448,731
Accumulated other comprehensive loss	(40,097)	(33,650)
Treasury stock, at cost, 9,864,805 shares at March 31, 2019 and December 31, 2018	(37,475)	(37,475)
Total Inter Parfums, Inc. shareholders' equity	453,891	447,607
Noncontrolling interest	141,875	138,139
Total equity	595,766	585,746
Total liabilities and equity	$ 824,482	$ 799,167

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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	31,449,065	31,382,127
Treasury stock	9,864,805	9,864,805

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 178,242	$ 171,767
Cost of sales	68,401	66,138
Gross margin	109,841	105,629
Selling, general and administrative expenses	76,552	75,231
Income from operations	33,289	30,398
Other expenses (income):
Interest expense	626	462
Loss on foreign currency	151	206
Interest income	(1,906)	(1,745)
Other expenses (income)	(1,129)	(1,077)
Income before income taxes	34,418	31,475
Income taxes	9,440	9,613
Net income	24,978	21,862
Less: Net income attributable to the noncontrolling interest	6,084	5,953
Net income attributable to Inter Parfums, Inc.	$ 18,894	$ 15,909
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic (in dollars per share)	$ 0.6	$ 0.51
Diluted (in dollars per share)	$ 0.6	$ 0.51
Weighted average number of shares outstanding:
Basic (in shares)	31,431	31,267
Diluted (in shares)	31,679	31,429
Dividends declared per share (in dollars per share)	$ 0.28	$ 0.21

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Comprehensive income:
Net income	$ 24,978	$ 21,862
Other comprehensive income:
Net derivative instrument loss, net of tax	(59)	(63)
Transfer from other comprehensive income into earnings	(136)	(38)
Translation adjustments, net of tax	(8,545)	13,243
Comprehensive income	16,238	35,004
Comprehensive income attributable to the noncontrolling interests:
Net income	6,084	5,953
Other comprehensive income:
Net derivative instrument loss, net of tax	(52)	(26)
Transfer from other comprehensive income into earnings		(8)
Translation adjustments, net of tax	(2,241)	3,770
Comprehensive income attributable to the noncontrolling interests	3,791	9,689
Comprehensive income attributable to Inter Parfums, Inc.	$ 12,447	$ 25,315

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 [Member]	Noncontrolling interest [Member]	Total
Balance, beginning at Dec. 31, 2017	$ 31	$ 66,004	$ 422,570	$ (17,832)	$ (37,475)	$ 137,339
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercise of stock options		1,003
Share-based compensation		281	155			127
Purchase of subsidiary shares from noncontrolling interest
Net income			15,909			5,953	$ 21,862
Dividends			(6,569)			(362)
Foreign currency translation adjustment, net of tax				9,473		3,770	13,243
Transfer from other comprehensive income into earnings				(30)		(8)
Net derivative instrument loss, net of tax				(37)		(26)
Balance, ending at Mar. 31, 2018	31	67,288	432,065	(8,426)	(37,475)	146,793	600,276
Balance, beginning at Dec. 31, 2018	31	69,970	448,731	(33,650)	(37,475)	138,139	585,746
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued upon exercise of stock options		2,251
Share-based compensation		350	353			321
Purchase of subsidiary shares from noncontrolling interest		(468)				(376)
Net income			18,894			6,084	24,978
Dividends			(8,649)
Foreign currency translation adjustment, net of tax				(6,304)		(2,241)	(8,545)
Transfer from other comprehensive income into earnings				(136)
Net derivative instrument loss, net of tax				(7)		(52)
Balance, ending at Mar. 31, 2019	$ 31	$ 72,103	$ 459,329	$ (40,097)	$ (37,475)	$ 141,875	$ 595,766

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 24,978	$ 21,862
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	2,150	2,616
Provision for doubtful accounts	38	165
Lease expense	196
Noncash share-based compensation	955	513
Deferred tax benefit	(565)	(258)
Change in fair value of derivatives	(294)	215
Changes in:
Accounts receivable	(32,745)	(42,959)
Inventories	(6,698)	(1,178)
Other assets	1,098	(1,200)
Accounts payable and accrued expenses	(8,875)	(6,984)
Income taxes, net	5,156	6,552
Net cash used in operating activities	(14,606)	(20,656)
Cash flows from investing activities:
Purchases of short-term investments	(22,366)	(9,979)
Proceeds from sale of short-term investments	17,037
Purchases of equipment and leasehold improvements	(964)	(580)
Payment for intangible assets acquired	(53)	(1,352)
Net cash used in investing activities	(6,346)	(11,911)
Cash flows from financing activities:
Repayment of long-term debt	(5,655)	(6,140)
Proceeds from exercise of options	2,251	1,003
Dividends paid	(8,630)	(6,561)
Purchase of subsidiary shares from noncontrolling interest	(844)
Dividends paid to minority interest		(362)
Net cash used in financing activities	(12,878)	(12,060)
Effect of exchange rate changes on cash	(2,924)	5,213
Net decrease in cash and cash equivalents	(36,754)	(39,414)
Cash and cash equivalents - beginning of period	193,136	208,343
Cash and cash equivalents - end of period	156,382	168,929
Cash paid for:
Interest	301	420
Income taxes	$ 5,185	$ 5,306

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
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, 2018.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
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 have evaluated the standard and determined that there has been 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. The standard requires entities to recognize a lease liability to cover lease payments and a lease asset representing its right to use the underlying asset for the lease term. The Company has adopted the standard on January 1, 2019 using the modified retrospective method in the year of adoption with certain transition practical expedients with no restatement of prior period amounts. Upon adoption, the Company recognized right-of-use assets of $31.8 million and lease liabilities of $32.4 million and made no adjustments to retained earnings. Adoption of the new standard did not materially impact our consolidated net income and cash flows. There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	3. Inventories: Inventories consist of the following: (In thousands) March 31, December 31, Raw materials and component parts $ 66,725 $ 67,508 Finished goods 98,664 93,470 $ 165,389 $ 160,978

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Total Quoted Prices in Significant Other Significant Assets: Short-term investments $ 71,867 $ — $ 71,867 $ — Liabilities: Interest rate swap $ 149 $ — $ 149 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 349 349 Foreign currency forward exchange contracts not accounted for using hedge accounting 19 — 19 — $ 517 $ — $ 517 $ — Fair Value Measurements at December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Short-term investments $ 67,870 $ — $ 67,870 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 179 179 $ 68,049 $ — $ 68,049 $ — Liabilities: Foreign currency forward exchange contracts not accounted for using hedge accounting $ 45 $ — $ 45 $ — Interest rate swap 207 — 207 — $ 252 $ — $ 252 $ — The carrying amount of cash and cash equivalents including money market funds, short-term investments, accounts receivable, other receivables, accounts payable and accrued expenses approximates fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps are the discounted net present value of the swaps using third party quotes from financial institutions.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2019
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 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 for both three month periods ended March 31, 2019 and 2018. For the three months ended March 31, 2019 and 2018, interest expense was reduced by a gain of $0.1 million 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 resulted in a liability which is included in long-term debt on the accompanying balance sheets. The valuation of foreign currency forward exchange contracts at March 31, 2019, resulted in a liability and is included in accrued expenses on the accompanying balance sheet. At March 31, 2019, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S. $26.5 million, GB £2.1 million and JPY ¥90.0 million which all have maturities of less than one year.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	6. Leases: The Company leases its offices and warehouses, vehicles, and certain office equipment, all of which are classified as operating leases. The Company currently has no financing leases and historically has not entered into such 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. Lease expense is recognized by amortizing the amount recorded as an asset on a straight-line basis over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, maintenance, 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 March 31, 2019, the weighted average remaining lease term was 7.7 years and the weighted average discount rate used to determine the operating lease liability was 2.9%. For the three months ended March 31, 2019, expense related to operating leases was $1.8 million, operating lease payments included in operating cash flows totaled $1.6 million and noncash additions to operating lease assets totaled $31.8 million. Maturities of lease liabilities subsequent to March 31, 2019 are as follows: 2019 $ 4,789 2020 5,250 2021 4,507 2022 3,978 2023 3,640 Thereafter 13,060 35,224 Less imputed interest (based on 2.9% weighted-average discount rate) (4,280 ) $ 30,944 The Company has additional lease liabilities of $4.2 million which have not yet commenced as of March 31, 2019, and as such, have not been recognized on the Company’s consolidated balance sheet. These leases are expected to commence during the second quarter of 2019 with a terms of five years.

Share-Based Payments

Share-Based Payments	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Share-Based Payments	7. Share-Based Payments: The Company maintains a stock option program for key employees, executives and directors. The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options. Options granted under the plans typically have a six-year term and vest over a four to five-year period. The fair value of shares vested during the three months ended March 31, 2019 and 2018 aggregated $0.06 million and $0.04 million, respectively. Compensation cost, net of forfeitures, is recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures are estimated based on historic trends. 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 three month period ended March 31, 2019: Number of Shares Weighted Average Grant Date Fair Value Nonvested options – beginning of period 485,360 $ 10.72 Nonvested options granted 6,000 $ 14.83 Nonvested options vested or forfeited (20,790 ) $ 9.31 Nonvested options – end of period 470,570 $ 10.84 Share-based payment expense decreased income before income taxes by $0.96 million and $0.51 million for the three months ended March 31, 2019 and 2018, respectively, and decreased net income attributable to Inter Parfums, Inc. by $0.58 million and $0.32 million for the three months ended March 31, 2019 and 2018. The following table summarizes stock option information as of March 31, 2019: Shares Weighted Average Exercise Price Outstanding at January 1, 2019 776,171 $ 41.33 Options granted 6,000 66.46 Options forfeited (13,440 ) 43.67 Options exercised (66,938 ) 33.57 Outstanding at March 31, 2019 701,793 $ 42.24 Options exercisable 231,223 $ 31.18 Options available for future grants 751,655 As of March 31, 2019, the weighted average remaining contractual life of options outstanding is 3.85 years (2.33 years for options exercisable); the aggregate intrinsic value of options outstanding and options exercisable is $23.6 million and $10.3 million, respectively; and unrecognized compensation cost related to stock options outstanding aggregated $4.6 million. Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the three months ended March 31, 2019 and March 31, 2018 were as follows: (In thousands) March 31, March 31, Cash proceeds from stock options exercised $ 2,251 $ 1,003 Tax benefits 300 157 Intrinsic value of stock options exercised 2,226 897 The weighted average fair values of the options granted by Inter Parfums, Inc. during the three months ended March 31, 2019 and 2018 were $14.83 and $10.72 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 March 31, 2019 and 2018 are set forth in the following table: March 31, March 31, Weighted average expected stock-price volatility 27 % 28 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 2.5 % 2.5 % Weighted average dividend yield 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 increase as the earnings of the Company and its stock price continue to increase. 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 shares, subject to adjustment for stock splits, 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 €18.56 per share (approximately $22.00 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 157,324 has been determined taking into account employee turnover and has been adjusted for stock splits. The aggregate cost of the grant of approximately $3.4 million is being recognized as compensation cost by Interparfums SA on a straight-line basis over the requisite three year service period 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. In 2016 and 2018, a total of 150,000 shares had been acquired at an aggregate cost of $3.7 million. During the three months ended March 31, 2019, an additional 7,324 shares were acquired at an aggregate cost of $0.3 million. All share purchases have been classified as equity transactions on the accompanying balance sheet. 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. The fair value of the grant of €30.20 per share (approximately $34.00 per share) has been determined based on the quoted stock 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 135,331 has been determined taking into account employee turnover. The aggregate cost of the grant of approximately $4.9 million will be recognized as compensation cost by Interparfums SA on a straight-line basis over the requisite three and a half year service period. Similar to the September 2016 plan, in order 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. During the three months ended March 31, 2019, the Company acquired 14,276 shares at an aggregate cost of $0.6 million. All share purchases have been classified as equity transactions on the accompanying balance sheet. For the three months ended March 31, 2019, $0.5 million of compensation cost has been recognized in connection with these plans.

Net Income Attributable to Inte

Net Income Attributable to Inter Parfums, Inc. Common Shareholders	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
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 earnings attributable to Inter Parfums, Inc. by the weighted average number of shares outstanding. Net earnings attributable to Inter Parfums, Inc. per share assuming dilution (“diluted EPS”), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options using the treasury stock method. The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Three months ended (In thousands, except per share data) March 31, 2019 2018 Numerator: Net income attributable to Inter Parfums, Inc. $ 18,894 $ 15,909 Denominator: Weighted average shares 31,431 31,267 Effect of dilutive securities: Stock options 248 162 Denominator for diluted earnings per share 31,679 31,429 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 0.60 $ 0.51 Diluted 0.60 0.51 Not included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.18 million shares of common stock for both the three months ended March 31, 2019 and 2018.

Segment and Geographic Areas

Segment and Geographic Areas	3 Months Ended
	Mar. 31, 2019
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. European operations primarily represent the sale of prestige brand name fragrances and United States operations primarily represent the sale of prestige brand name and specialty retail fragrance. Information on our operations by geographical areas is as follows: (In thousands) Three months ended 2019 2018 Net sales: United States $ 35,616 $ 22,859 Europe 143,767 149,514 Eliminations (1,141 ) (606 ) $ 178,242 $ 171,767 Net income attributable to Inter Parfums, Inc.: United States $ 2,887 $ 270 Europe 16,007 15,639 $ 18,894 $ 15,909 March 31, December 31, Total Assets: United States $ 152,714 $ 133,406 Europe 692,120 686,123 Eliminations of investment in subsidiary (20,352 ) (20,362 ) $ 824,482 $ 799,167

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consist of the following: (In thousands) March 31, December 31, Raw materials and component parts $ 66,725 $ 67,508 Finished goods 98,664 93,470 $ 165,389 $ 160,978

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 Total Quoted Prices in Significant Other Significant Assets: Short-term investments $ 71,867 $ — $ 71,867 $ — Liabilities: Interest rate swap $ 149 $ — $ 149 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 349 349 Foreign currency forward exchange contracts not accounted for using hedge accounting 19 — 19 — $ 517 $ — $ 517 $ — Fair Value Measurements at December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Short-term investments $ 67,870 $ — $ 67,870 $ — Foreign currency forward exchange contracts accounted for using hedge accounting 179 179 $ 68,049 $ — $ 68,049 $ — Liabilities: Foreign currency forward exchange contracts not accounted for using hedge accounting $ 45 $ — $ 45 $ — Interest rate swap 207 — 207 — $ 252 $ — $ 252 $ —

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of maturities of lease liabilities	Maturities of lease liabilities subsequent to March 31, 2019 are as follows: 2019 $ 4,789 2020 5,250 2021 4,507 2022 3,978 2023 3,640 Thereafter 13,060 35,224 Less imputed interest (based on 2.9% weighted-average discount rate) (4,280 ) $ 30,944

Share-Based Payments (Tables)

Share-Based Payments (Tables)	3 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of nonvested share activity	The following table sets forth information with respect to nonvested options for the three month period ended March 31, 2019: Number of Shares Weighted Average Grant Date Fair Value Nonvested options – beginning of period 485,360 $ 10.72 Nonvested options granted 6,000 $ 14.83 Nonvested options vested or forfeited (20,790 ) $ 9.31 Nonvested options – end of period 470,570 $ 10.84
Schedule of stock options, activity	The following table summarizes stock option information as of March 31, 2019: Shares Weighted Average Exercise Price Outstanding at January 1, 2019 776,171 $ 41.33 Options granted 6,000 66.46 Options forfeited (13,440 ) 43.67 Options exercised (66,938 ) 33.57 Outstanding at March 31, 2019 701,793 $ 42.24 Options exercisable 231,223 $ 31.18 Options available for future grants 751,655
Schedule of cash proceeds received from share-based payment awards	Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the three months ended March 31, 2019 and March 31, 2018 were as follows: (In thousands) March 31, March 31, Cash proceeds from stock options exercised $ 2,251 $ 1,003 Tax benefits 300 157 Intrinsic value of stock options exercised 2,226 897
Schedule of valuation assumptions in Black-Scholes pricing	The assumptions used in the Black-Scholes pricing model for the periods ended March 31, 2019 and 2018 are set forth in the following table: March 31, March 31, Weighted average expected stock-price volatility 27 % 28 % Weighted average expected option life 5 years 5 years Weighted average risk-free interest rate 2.5 % 2.5 % Weighted average dividend yield 2.0 % 2.0 %

Net Income Attributable to In_2

Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
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 (In thousands, except per share data) March 31, 2019 2018 Numerator: Net income attributable to Inter Parfums, Inc. $ 18,894 $ 15,909 Denominator: Weighted average shares 31,431 31,267 Effect of dilutive securities: Stock options 248 162 Denominator for diluted earnings per share 31,679 31,429 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 0.60 $ 0.51 Diluted 0.60 0.51

Segment and Geographic Areas (T

Segment and Geographic Areas (Tables)	3 Months Ended
	Mar. 31, 2019
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 2019 2018 Net sales: United States $ 35,616 $ 22,859 Europe 143,767 149,514 Eliminations (1,141 ) (606 ) $ 178,242 $ 171,767 Net income attributable to Inter Parfums, Inc.: United States $ 2,887 $ 270 Europe 16,007 15,639 $ 18,894 $ 15,909 March 31, December 31, Total Assets: United States $ 152,714 $ 133,406 Europe 692,120 686,123 Eliminations of investment in subsidiary (20,352 ) (20,362 ) $ 824,482 $ 799,167

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details Narrative) $ in Thousands	Mar. 31, 2019USD ($)
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Right-of-use assets	$ 31,800
Lease liabilities	$ 32,400

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials and component parts	$ 66,725	$ 67,508
Finished goods	98,664	93,470
Inventories	$ 165,389	$ 160,978

Fair Value Measurement (Details

Fair Value Measurement (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets:
Short-term investments	$ 71,867	$ 67,870
Foreign currency forward exchange contracts accounted for using hedge accounting		179
Total Assets		68,049
Liabilities:
Interest rate swap	149	207
Foreign currency forward exchange contracts accounted for using hedge accounting	349
Foreign currency forward exchange contracts not accounted for using hedge accounting	19	45
Total Liabilities	517	252
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:
Interest rate swap
Foreign currency forward exchange contracts accounted for using hedge accounting
Foreign currency forward exchange contracts not accounted for using hedge accounting
Total Liabilities
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Short-term investments	71,867	67,870
Foreign currency forward exchange contracts accounted for using hedge accounting		179
Total Assets		68,049
Liabilities:
Interest rate swap	149	207
Foreign currency forward exchange contracts accounted for using hedge accounting	349
Foreign currency forward exchange contracts not accounted for using hedge accounting	19	45
Total Liabilities	517	252
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Short-term investments
Foreign currency forward exchange contracts accounted for using hedge accounting
Total Assets
Liabilities:
Interest rate swap
Foreign currency forward exchange contracts accounted for using hedge accounting
Foreign currency forward exchange contracts not accounted for using hedge accounting
Total Liabilities

Derivative Financial Instrume_2

Derivative Financial Instruments (Details Narrative) ¥ in Thousands, £ in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2019GBP (£)	Mar. 31, 2019JPY (¥)
Foreign exchange contracts [Member]
Derivative [Line Items]
Foreign currency contracts	$ 26,500
Foreign exchange contracts [Member] | GBP [Member]
Derivative [Line Items]
Foreign currency contracts | £		£ 2,100
Foreign exchange contracts [Member] | JPY [Member]
Derivative [Line Items]
Foreign currency contracts | ¥			¥ 90,000
Foreign exchange contracts [Member] | Maximum [Member]
Derivative [Line Items]
Maturity period	1 year
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, gain (loss) on derivative, net, total	$ 100
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	1.067

Leases (Details)

Leases (Details) - Subsequent Event [Member] $ in Thousands	Apr. 01, 2019USD ($)
2019	$ 4,789
2020	5,250
2021	4,507
2022	3,978
2023	3,640
Thereafter	13,060
Gross total	35,224
Less imputed interest (based on 2.9% weighted-average discount rate)	(4,280)
Net Total	$ 30,944

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jun. 30, 2019
Weighted average remaining lease term	7 years 8 months 12 days
Operating lease, weighted average discount rate	2.90%
Operating lease of related expenses	$ 1,800
Operating lease payments	1,600
Operating lease assets	31,800
Operating lease liability	$ 4,200
Subsequent Event [Member]
Lease term		5 years

Share Based Payments (Details)

Share Based Payments (Details) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Nonvested options - beginning of period	485,360
Nonvested options granted	6,000
Nonvested options vested or forfeited	(20,790)
Nonvested options - end of period	470,570
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested options - beginning of period	$ 10.72
Nonvested options granted	14.83	$ 10.72
Nonvested options vested or forfeited	9.31
Nonvested options - end of period	$ 10.84

Share Based Payments (Details 1

Share Based Payments (Details 1)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning	776,171
Options granted	6,000
Options forfeited	(13,440)
Options exercised	(66,938)
Outstanding at ending	701,793
Options exercisable	231,223
Options available for future grants	751,655
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 41.33
Options granted | $ / shares	66.46
Options forfeited | $ / shares	43.67
Options exercised | $ / shares	33.57
Outstanding at ending | $ / shares	42.24
Options exercisable | $ / shares	$ 31.18

Share Based Payments (Details 2

Share Based Payments (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Payment Arrangement [Abstract]
Cash proceeds from stock options exercised	$ 2,251	$ 1,003
Tax benefits	300	157
Intrinsic value of stock options exercised	$ 2,226	$ 897

Share Based Payments (Details 3

Share Based Payments (Details 3)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Payment Arrangement [Abstract]
Weighted average expected stock-price volatility	27.00%	28.00%
Weighted average expected option life	5 years	5 years
Weighted average risk-free interest rate	2.50%	2.50%
Weighted average dividend yield	2.00%	2.00%

Share Based Payments (Details N

Share Based Payments (Details Narrative) $ / shares in Units, $ in Thousands	1 Months Ended				3 Months Ended		12 Months Ended
	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2018€ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2016€ / sharesshares	Mar. 31, 2019USD ($)$ / sharesshares	Mar. 31, 2018USD ($)$ / shares	Dec. 31, 2018USD ($)shares	Dec. 31, 2016USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense					$ 960	$ 510
Allocated share-based compensation expense, effect on net income attributable to parent					$ 580	$ 320
Weighted average remaining contractual period of options outstanding					3 years 10 months 6 days
Weighted average remaining contractual life of options exercisable					2 years 3 months 29 days
Aggregate intrinsic value of options outstanding					$ 23,600
Aggregate intrinsic value of options exercisable					10,300
Unrecognized compensation cost related to stock options					$ 4,600
Weighted average grant date fair value | $ / shares					$ 14.83	$ 10.72
Compensation cost					$ 500
Aggregate cost of shares acquired					$ 600
Shares acquired | shares					14,276
Interparfums SA Subsidiary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ownership percentage			73.00%	73.00%
Number of shares authorized | shares	135,331	135,331	157,324	157,324			135,331
Weighted average grant date fair value | $ / shares	$ 34		$ 22
Compensation cost	$ 4,900		$ 3,400
Value of shares purchased for award					$ 300		$ 3,700	$ 3,700
Number of shares purchased for award | shares					7,324		150,000	150,000
Interparfums SA Subsidiary [Member] | Euro [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value | € / shares		€ 30.20		€ 18.56
Interparfums SA Subsidiary [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares plan for grant | shares	26,600		15,100
Interparfums SA Subsidiary [Member] | Officers And Managers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares plan for grant to officers and managers | shares	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					$ 60	$ 40
Equity Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Equity Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					5 years

Net Income Attributable to In_3

Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income attributable to Inter Parfums, Inc.	$ 18,894	$ 15,909
Denominator:
Weighted average shares	31,431	31,267
Effect of dilutive securities: Stock options	248	162
Denominator for diluted earnings per share	31,679	31,429
Earnings per share:
Basic (in dollars per share)	$ 0.6	$ 0.51
Diluted (in dollars per share)	$ 0.6	$ 0.51

Net Income Attributable to In_4

Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount	180,000	180,000

Segments and Geographic Areas (

Segments and Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net sales	$ 178,242	$ 171,767
Net income attributable to Inter Parfums, Inc.	18,894	15,909
Total assets	824,482		$ 799,167
United States [Member]
Segment Reporting Information [Line Items]
Net sales	35,616	22,859
Net income attributable to Inter Parfums, Inc.	2,887	270
Total assets	152,714		133,406
Europe [Member]
Segment Reporting Information [Line Items]
Net sales	143,767	149,514
Net income attributable to Inter Parfums, Inc.	16,007	15,639
Total assets	692,120		686,123
Eliminations [Member]
Segment Reporting Information [Line Items]
Net sales	(1,141)	$ (606)
Total assets	$ (20,352)		$ (20,362)

Segments and Geographic Areas_2

Segments and Geographic Areas (Details Narrative)	3 Months Ended
	Mar. 31, 2019Segments
Segments, Geographical Areas [Abstract]
Number of operating segments	2