Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 26, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 0-16469 | ||
Entity Registrant Name | Inter Parfums, Inc. | ||
Entity Central Index Key | 0000822663 | ||
Entity Tax Identification Number | 13-3275609 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 551 Fifth Avenue | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10176 | ||
City Area Code | 212 | ||
Local Phone Number | 983.2640 | ||
Title of 12(b) Security | Common Stock, $.001 par value per share | ||
Trading symbol | IPAR | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,437,984,859 | ||
Entity Common Stock, Shares Outstanding | 32,021,700 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 339 | ||
Auditor Name | Mazars USA LLP | ||
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 88,462 | $ 104,713 |
Short-term investments | 94,304 | 150,833 |
Accounts receivable, net | 247,240 | 197,584 |
Inventories | 371,859 | 289,984 |
Receivables, other | 7,012 | 28,803 |
Other current assets | 29,458 | 15,650 |
Income taxes receivable | 691 | 157 |
Total current assets | 839,026 | 787,724 |
Property, equipment and leasehold improvements, net | 169,222 | 166,722 |
Right-of-use assets, net | 28,613 | 27,964 |
Trademarks, licenses and other intangible assets, net | 296,356 | 290,853 |
Deferred tax assets | 14,545 | 11,159 |
Other assets | 21,567 | 24,120 |
Total assets | 1,369,329 | 1,308,542 |
Current liabilities: | ||
Loans payable - banks | 4,420 | |
Current portion of long-term debt | 29,587 | 28,547 |
Current portion of lease liabilities | 5,951 | 5,296 |
Accounts payable - trade | 97,409 | 88,388 |
Accrued expenses | 178,880 | 213,621 |
Income taxes payable | 8,498 | 8,715 |
Total current liabilities | 324,745 | 344,567 |
Long–term debt, less current portion | 127,897 | 151,494 |
Lease liabilities, less current portion | 24,517 | 24,335 |
Equity: | ||
Preferred stock, $0.001 par value. Authorized 1,000,000 shares: none issued | ||
Common stock, $0.001 par value. Authorized 100,000,000 shares: outstanding, 32,004,660 and 31,967,300 shares on December 31, 2023, and 2022, respectively | 32 | 32 |
Additional paid-in capital | 98,565 | 90,186 |
Retained earnings | 693,848 | 620,095 |
Accumulated other comprehensive loss | (40,188) | (56,056) |
Treasury stock, at cost, 9,981,665 and 9,864,805 common shares on December 31, 2023, and 2022, respectively | (52,864) | (37,475) |
Total Inter Parfums, Inc. shareholders’ equity | 699,393 | 616,782 |
Noncontrolling interest | 192,777 | 171,364 |
Total equity | 892,170 | 788,146 |
Total liabilities and equity | $ 1,369,329 | $ 1,308,542 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, outstanding | 32,004,660 | 31,967,300 |
Treasury stock, shares | 9,981,665 | 9,864,805 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 1,317,675 | $ 1,086,653 | $ 879,516 |
Cost of sales | 478,597 | 392,231 | 322,614 |
Gross margin | 839,078 | 694,422 | 556,902 |
Selling, general, and administrative expenses | 587,696 | 492,370 | 406,459 |
Impairment loss | 7,749 | 2,393 | |
Income from operations | 251,382 | 194,303 | 148,050 |
Other expenses (income): | |||
Interest expense | 11,253 | 3,599 | 2,825 |
Loss (gain) on foreign currency | 1,582 | 1,921 | (2,338) |
Interest and investment income | (10,729) | (5,486) | (3,403) |
Other (income) expense | (317) | 50 | (53) |
Nonoperating Income (Expense) | 1,789 | 84 | (2,969) |
Income before income taxes | 249,593 | 194,219 | 151,019 |
Income taxes | 61,817 | 43,182 | 40,992 |
Net income | 187,776 | 151,037 | 110,027 |
Less: Net income attributable to the noncontrolling interest | 35,122 | 30,099 | 22,616 |
Net income attributable to Inter Parfums, Inc. | $ 152,654 | $ 120,938 | $ 87,411 |
Net income attributable to Inter Parfums, Inc. common shareholders: | |||
Basic | $ 4.77 | $ 3.80 | $ 2.76 |
Diluted | $ 4.75 | $ 3.78 | $ 2.75 |
Weighted average number of shares outstanding: | |||
Basic | 31,994,328 | 31,859,417 | 31,676,796 |
Diluted | 32,139,702 | 31,988,753 | 31,835,408 |
Dividends declared per share | $ 2.50 | $ 2 | $ 1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net income | $ 187,776 | $ 151,037 | $ 110,027 |
Other comprehensive income: | |||
Net derivative instrument (loss) income, net of tax | (3,329) | 2,356 | (1,367) |
Transfer of OCI into earnings | 1,709 | 992 | |
Translation adjustments, net of tax | 24,042 | (29,683) | (42,967) |
Other comprehensive income (loss), before tax | 22,422 | (26,335) | (44,334) |
Comprehensive income | 210,198 | 124,702 | 65,693 |
Comprehensive income attributable to noncontrolling interests: | |||
Net income | 35,122 | 30,099 | 22,616 |
Net derivative instrument income (loss), net of tax | 25 | 647 | (375) |
Translation adjustments, net of tax | 6,529 | (9,358) | (11,524) |
Comprehensive income (loss), net of tax, attributable to noncontrolling interest | 41,676 | 21,388 | 10,717 |
Comprehensive income attributable to Inter Parfums Inc. | $ 168,522 | $ 103,314 | $ 54,976 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
Beginning Balance at Dec. 31, 2020 | $ 32 | $ 75,708 | $ 503,567 | $ (5,997) | $ (37,475) | $ 166,615 | $ 702,450 |
Shares issued upon exercise of stock options | 5,393 | ||||||
Share-based compensation | 1,566 | 1,375 | (293) | ||||
Shares issued for license acquisition | 5,000 | ||||||
Transfer of subsidiary shares purchased | (535) | (791) | |||||
Net income | 87,411 | 22,616 | 110,027 | ||||
Dividends | (31,690) | (9,836) | |||||
Foreign currency translation adjustment, net of tax | (31,443) | (11,524) | |||||
Transfer from other comprehensive income into earnings | |||||||
Net derivative instrument income (loss), net of tax | (992) | (375) | |||||
Shares repurchased | |||||||
Ending Balance at Dec. 31, 2021 | 32 | 87,132 | 560,663 | (38,432) | (37,475) | 166,412 | 738,332 |
Shares issued upon exercise of stock options | 0 | 6,004 | |||||
Share-based compensation | 1,355 | 2,237 | (282) | ||||
Shares issued for license acquisition | |||||||
Transfer of subsidiary shares purchased | (4,305) | (98) | |||||
Net income | 120,938 | 30,099 | 151,037 | ||||
Dividends | (63,743) | (16,056) | |||||
Foreign currency translation adjustment, net of tax | (20,325) | (9,358) | |||||
Transfer from other comprehensive income into earnings | 992 | ||||||
Net derivative instrument income (loss), net of tax | 1,709 | 647 | |||||
Shares repurchased | |||||||
Ending Balance at Dec. 31, 2022 | 32 | 90,186 | 620,095 | (56,056) | (37,475) | 171,364 | 788,146 |
Shares issued upon exercise of stock options | 8,025 | ||||||
Share-based compensation | 1,246 | 1,146 | 180 | ||||
Shares issued for license acquisition | |||||||
Transfer of subsidiary shares purchased | (892) | (142) | |||||
Net income | 152,654 | 35,122 | 187,776 | ||||
Dividends | (80,047) | (20,301) | |||||
Foreign currency translation adjustment, net of tax | 17,513 | 6,529 | |||||
Transfer from other comprehensive income into earnings | 1,709 | ||||||
Net derivative instrument income (loss), net of tax | (3,354) | 25 | |||||
Shares repurchased | (15,389) | ||||||
Ending Balance at Dec. 31, 2023 | $ 32 | $ 98,565 | $ 693,848 | $ (40,188) | $ (52,864) | $ 192,777 | $ 892,170 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 187,776,000 | $ 151,037,000 | $ 110,027,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization including impairment loss | 17,331,000 | 22,539,000 | 12,698,000 |
Provision for doubtful accounts | (1,734,000) | 2,353,000 | 853,000 |
Noncash stock compensation | 2,525,000 | 3,143,000 | 2,853,000 |
Share of (income) loss of equity investment | (317,000) | 49,000 | (53,000) |
Noncash lease expense | 5,448,000 | 4,980,000 | 7,302,000 |
Deferred tax benefit | (2,987,000) | (3,604,000) | (465,000) |
Change in fair value of derivatives | (301,000) | 227,000 | 65,000 |
Changes in: | |||
Accounts receivable | (36,843,000) | (59,640,000) | (45,395,000) |
Inventories | (73,700,000) | (98,297,000) | (49,815,000) |
Other assets | 11,868,000 | (13,651,000) | (16,725,000) |
Operating lease liabilities | (5,290,000) | (4,795,000) | (7,503,000) |
Accounts payable and accrued expenses | 3,064,000 | 64,738,000 | 103,046,000 |
Income taxes, net | (1,066,000) | 3,952,000 | 2,698,000 |
Net cash provided by operating activities | 105,774,000 | 73,031,000 | 119,586,000 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (221,111,000) | (1,038,000) | (55,691,000) |
Proceeds from sale of short-term investments | 281,741,000 | 896,000 | 10,644,000 |
Purchase of property, equipment and leasehold improvements | (6,465,000) | (33,756,000) | (141,274,000) |
Payment for intangible assets acquired | (46,903,000) | (56,746,000) | (1,545,000) |
Net cash provided by (used in) investing activities | 7,262,000 | (90,644,000) | (187,866,000) |
Cash flows from financing activities: | |||
Proceeds from loans payable, bank | 4,325,000 | ||
Proceeds from issuance of long-term debt | 52,492,000 | 157,382,000 | |
Repayment of long-term debt | (28,800,000) | (19,861,000) | (43,056,000) |
Proceeds from exercise of options | 8,025,000 | 6,003,000 | 5,393,000 |
Purchase of subsidiary shares from noncontrolling interests | (1,027,000) | (4,403,000) | |
Dividends paid | (80,047,000) | (63,743,000) | (31,690,000) |
Dividends paid to noncontrolling interests | (20,301,000) | (16,056,000) | (9,836,000) |
Purchase of treasury stock | (15,389,000) | ||
Net cash (used in) provided by financing activities | (133,214,000) | (45,568,000) | 78,193,000 |
Effect of exchange rate changes on cash | 3,927,000 | (493,000) | (11,207,000) |
Net decrease in cash and cash equivalents | (16,251,000) | (63,674,000) | (1,294,000) |
Cash and cash equivalents – beginning of year | 104,713,000 | 168,387,000 | 169,681,000 |
Cash and cash equivalents – end of year | 88,462,000 | 104,713,000 | 168,387,000 |
Cash paid for: | |||
Interest | 5,823,000 | 2,987,000 | 2,468,000 |
Income taxes | $ 60,990,000 | $ 38,492,000 | $ 40,497,000 |
The Company and its Significant
The Company and its Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
The Company and its Significant Accounting Policies | (1) The Company and its Significant Accounting Policies Business of the Company Inter Parfums, Inc. and its subsidiaries (the “Company”) are in the fragrance business and manufacture and distribute a wide array of prestige fragrances and fragrance related products. Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Montblanc, Coach and GUESS brand names. As a percentage of net sales, product sales for the Company’s largest brands were as follows: Year Ended December 31, 2023 2022 2021 Jimmy Choo 17 % 18 % 18 % Montblanc 17 % 18 % 19 % Coach 15 % 15 % 16 % GUESS 12 % 12 % 12 % Donna Karan/DKNY 7 % 3 % — Ferragamo 5 % 5 % 1 % Basis of Preparation The consolidated financial statements include the accounts of the Company and its subsidiaries, including 72 All material intercompany balances and transactions have been eliminated. Management Estimates Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported and disclosures included in the consolidated financial statements. Actual results could differ from those assumptions and estimates. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these notes to the consolidated financial statements. Foreign Currency Translation For foreign subsidiaries with operations denominated in a foreign currency, assets and liabilities are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Gains and losses from translation adjustments are accumulated in a separate component of shareholders’ equity. Cash and Cash Equivalents and Short-Term Investments All highly liquid investments purchased with a maturity of three months or less are considered to be cash equivalents. The Company also has short-term investments which consist of marketable equity securities, certificates of deposit and other contracts with maturities greater than three months. The Company monitors concentrations of credit risk associated with financial institutions with which the Company conducts significant business. The Company believes its credit risk is minimal, as the Company primarily conducts business with large, well-established financial institutions. Substantially all cash and cash equivalents are primarily held at financial institutions outside the United States and are readily convertible into U.S. dollars. Accounts Receivable Accounts receivable represent payments due to the Company for previously recognized net sales, reduced by allowances for doubtful accounts or balances which are estimated to be uncollectible, which aggregated $ 2.1 million 4.7 million Inventories Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and are stated at the lower of cost and net realizable value, with cost being determined on the first-in, first-out method. Cost components include raw materials, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company’s customers. Derivatives All derivative instruments are recorded as either assets or liabilities and measured at fair value. The Company uses derivative instruments to principally manage a variety of market risks. For derivatives designated as hedges of the exposure to changes in fair value of the recognized asset or liability or a firm commitment (referred to as fair value hedges), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect of that accounting is to include in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For cash flow hedges, the effective portion of the derivative’s gain or loss is initially reported in equity (as a component of accumulated other comprehensive income) and is subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge is reported in earnings immediately. The Company also holds certain instruments for economic purposes that are not designated for hedge accounting treatment. For these derivative instruments, changes in their fair value are recorded in earnings immediately. Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives for furniture and equipment, which range between three and fifteen years. Depreciation on buildings and leasehold improvements is calculated using the straight-line method over the shorter of the lease term or estimated useful asset lives, which range between seven and fifty years. Depreciation provided on equipment used to produce inventory, such as tools and molds, is included in cost of sales. Long-Lived Assets Indefinite-lived intangible assets principally consist of trademarks which are not amortized. The Company evaluates indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more-likely-than-not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 10.39 9.80 Intangible assets subject to amortization principally consist of licenses and are amortized on a straight-line basis over the shorter of the license term or estimated economic life, ranging from three to twenty years. Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. Revenue Recognition The Company sells its products to department stores, perfumeries, specialty stores and domestic and international wholesalers and distributors. Our revenue contracts represent single performance obligations to sell our products to customers. Sales of such products by our domestic subsidiaries are denominated in U.S. dollars, and sales of such products by our foreign subsidiaries are primarily denominated in either euro or U.S. dollars. The substantial majority of our revenue is recognized at a point in time when control of the promised goods is transferred to customers based on agreed upon shipping terms, which usually occurs upon delivery. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those goods. Net sales are comprised of gross revenues less incentives to customers such as returns, trade discounts and allowances, which give rise to variable consideration. The Company does not bill its customers’ freight and handling charges. All shipping and handling costs, which aggregated $ 14.2 million 15.8 million 10.0 million 12 10 Sales Returns Generally, the Company does not permit customers to return their unsold products. However, for U.S. based customers, we allow returns if properly requested, authorized and approved. The Company regularly reviews and revises, as deemed necessary, its estimate of reserves for future sales returns based primarily upon historic trends and relevant current data including information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that we consider include, but are not limited to, the financial condition of our customers, store closings by retailers, changes in the retail environment and our decision to continue to support new and existing products. The Company records its estimate of potential sales returns as a reduction of sales and cost of sales with corresponding entries to accrued expenses, to record the refund liability, and inventory, for the right to recover goods from the customer. The refund liability associated with estimated returns was $ 5.5 million 8.6 million 2.4 million 3.2 million Payments to Customers The Company records revenues generated from purchase with purchase and gift with purchase promotions as sales and the costs of its purchase with purchase and gift with purchase promotions as cost of sales. Certain other incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been recorded as a reduction of net sales. Advertising and Promotion Advertising and promotional costs are expensed as incurred and recorded as a component of cost of goods sold (in the case of free goods given to customers) or selling, general and administrative expenses. Advertising and promotional costs included in selling, general and administrative expenses were $ 259.9 million 212.4 million 171.1 million 52.3 million 43.1 million 36.9 million Package Development Costs Package development costs associated with new products and redesigns of existing product packaging are expensed as incurred. Operating Leases The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. License Agreements The Company’s license agreements generally provide the Company with worldwide rights to manufacture, market and sell prestige fragrances and fragrance related products using the licensors’ trademarks. The licenses typically have an initial term of approximately 5 15 1 12 6 10 In certain cases, the Company may pay an entry fee to acquire, or enter into, a license where the licensor or another licensee was operating a pre-existing fragrance business. In those cases, the entry fee is capitalized as an intangible asset and amortized over its useful life. Most license agreements require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. In addition, the Company is exposed to certain concentration risk. Most of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently enacted tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is more-likely-than-not that the deferred tax assets will not be realized in the relevant jurisdiction. If the Company determines that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of net earnings at that time. Accrued interest and penalties are included within the related tax asset or liability in the accompanying consolidated financial statements. Issuance of Common Stock by Consolidated Subsidiary The difference between the Company’s share of the proceeds received by the subsidiary and the carrying amount of the portion of the Company’s investment deemed sold, is reflected as an equity adjustment in the consolidated balance sheets. Treasury Stock The Board of Directors has authorized share repurchases of the Company’s common stock (Share Repurchase Authorizations). Share repurchases under Share Repurchase Authorizations are made through open market transactions, negotiated purchase or otherwise, at times and in such amounts within the parameters authorized by the Board. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee stock option plans. Treasury shares are accounted for under the cost method and reported as a reduction of equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance and allocate resources. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and shall be applied on a prospective basis with the option to apply retrospectively. We are currently evaluating the impact of adopting this ASU on our disclosures. There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements. Reclassifications Certain prior year amounts in the accompanying notes to consolidated financial statements have been reclassified to conform with current period presentation. Correction of Immaterial Misstatements in Prior Period Financial Statements During the year ended December 31, 2023, the Company identified an error that caused an overstatement of line items on the previously reported consolidated statement of cash flows. The error does not impact any other consolidated financial statement included herein. Specifically, the error related to the timing of payments to Lacoste in accordance with the acquisition agreement of the Lacoste trademark in 2022 . This error had no impact on net income or earnings per share for the year ended December 31, 2022. The impact of the error resulted in a movement of $ 42.1 between “Change in Accounts payable and accrued expenses” within operating cash flows and “Payment for intangible assets acquired” within investing cash flows. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the impact was not material to any of our previously issued financial statements. The following table presents a summary of the impact by financial statement line item of the corrections for the year ended December 31, 2022: For the Year Ended December 31, 2022 Consolidated Statement of Cash Flow As previously reported Adjustment As revised (in thousands) Change in Accounts payable and accrued expenses 106,857 (42,119 ) 64,738 Net cash provided by operating activities 115,150 (42,119 ) 73,031 Payments for intangible assets acquired (98,865 ) 42,119 (56,746 ) Net cash used in investing activities (132,763 ) 42,119 (90,644 ) |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Impact of COVID-19 Pandemic | (2) Impact of COVID-19 Pandemic Our business has continued to significantly improve throughout 2021, 2022, and 2023 after the disastrous effects of the COVID-19 Pandemic starting in early 2020, as retail stores reopened, and consumers increased online purchasing. While the COVID-19 Pandemic had significantly restricted international travel, the travel retail business has picked up. We experienced significant strains on our supply chain causing disruptions affecting the procurement of components, the ability to transport goods, and related cost increases. These disruptions came at a time when demand for our product lines has never been stronger or more sustained. We have addressed this issue since the beginning of 2021, by ordering well in advance of need and in larger quantities. Since 2021, we have strived to carry more inventory overall, source the same components from multiple suppliers and when possible, manufacture products closer to where they are sold. The supply chain bottlenecks are largely abated. |
Recent Agreements
Recent Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Recent Agreements | (3) Recent Agreements Abercrombie & Fitch In 2023, we announced our agreement to distribute Abercrombie & Fitch’s number one men’s fragrance, Fierce Fierce Roberto Cavalli In July 2023, we closed a transaction agreement with Roberto Cavalli, whereby an exclusive and worldwide license was granted for the production and distribution of Roberto Cavalli brand perfumes and fragrance related products. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The license became effective in July 2023 and will last for 6.5 years. Lacoste In December 2022, we closed a transaction agreement with Lacoste, whereby an exclusive and worldwide license was granted for the production and distribution of Lacoste brand perfumes and cosmetics. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. The license became effective in January 2024 and will last for 15 years. Dunhill The Dunhill fragrance license expired on September 30, 2023 and was not renewed. The Company has now entered the twelve-month sell-off period during which it will maintain the right to sell-off remaining Dunhill fragrance inventory, which is customary in the fragrance industry. All usable components have been converted to finished goods, and any remaining components will be destroyed. Donna Karan and DKNY In September 2021, we entered into a long-term global licensing agreement for the creation, development and distribution of fragrances and fragrance-related products under the Donna Karan and DKNY brands. Our rights under this license are subject to certain minimum advertising expenditures and royalty payments as are customary in our industry. With this agreement, we have gained several well-established and valuable fragrance franchises, most notably Donna Karan Cashmere Mist Be Delicious In connection with the grant of license, we issued 65,342 shares of Inter Parfums, Inc. common stock valued at $5.0 million to the licensor. The exclusive license became effective July 1, 2022, and we are planning to launch new fragrances under these brands in 2024. Rochas Fashion As a result of operational challenges faced by the Rochas Fashion business we took a $2.4 million impairment charge on our Rochas fashion trademark in the first quarter of 2021. In the fourth quarter of 2022, we again took a $6.8 million impairment charge on the Rochas fashion trademark after an independent expert concluded that the valuation of the trademark was $11.3 million. In 2023, the Rochas teams underwent a strategic shift to take over their own brand operations, exiting contracts with manufacturers and distributors to make this new structure operational beginning in 2024. An independent expert concluded that the valuation based on this new business model would not require additional impairments. Land and Building Acquisition - Headquarters in Paris In April 2021, Interparfums SA, our 72 The purchase price included the complete renovation of the site. As of December 31, 2023, $ 154 139 3.1 63.3 90.7 7 50 no The acquisition was financed by a 10 120 million 132.6 million one-month Euribor plus 0.75% 80 million 2 1.1 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consist of the following: (In thousands) December 31, December 31, Raw materials and component parts $ 158,733 $ 146,772 Finished goods 213,126 143,212 $ 371,859 $ 289,984 Overhead included in inventory aggregated $ 5.4 million 3.4 million 21.5 million 11.4 million |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (5) Fair Value of Financial Instruments The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at December 31, 2023 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 $ 94,304 $ 12,868 $ 80,614 $ 822 Interest rate swaps 3,909 — 3,909 — Foreign currency forward exchange contracts not accounted for using hedge accounting 359 — 359 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,533 — 1,533 — Total Assets $ 100,105 $ 12,868 $ 86,415 $ 822 Fair Value Measurements at December 31, 2022 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 $ 150,833 $ 19,861 $ 130,174 $ 798 Interest rate swaps 6,758 — 6,758 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,189 — 1,189 — Total Assets $ 158,780 $ 19,861 $ 138,121 $ 798 Liabilities: Foreign currency forward exchange contracts not accounted for using hedge accounting 68 — 68 — Total liabilities $ 68 $ — $ 68 $ — The carrying amount of cash and cash equivalents including money market funds, short-term investments including marketable equity securities, accounts receivable, other receivables, accounts payable and accrued expenses approximates fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. The fair value of the Company’s long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value. Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps is the discounted net present value of the swaps using third party quotes from financial institutions. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | (6) Derivative Financial Instruments The Company enters into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Before entering into a derivative transaction for hedging purposes, it is determined that a high degree of initial effectiveness exists between the change in value of the hedged item and the change in the value of the derivative instrument from movement in exchange rates. High effectiveness means that the change in the cash flows of the derivative instrument will effectively offset the change in the cash flows of the hedged item. The effectiveness of each hedged item is measured throughout the hedged period and is based on the dollar offset methodology and excludes the portion of the fair value of the foreign currency forward exchange contract attributable to the change in spot-forward difference which is reported in current period earnings. Any hedge ineffectiveness is also recognized as a gain or loss on foreign currency in the income statement. For hedge contracts that are no longer deemed highly effective, hedge accounting is discontinued, and gains and losses accumulated in other comprehensive income are reclassified to earnings. If it is probable that the forecasted transaction will no longer occur, then any gains or losses accumulated in other comprehensive income are reclassified to current-period earnings. In December 2022, to finance the acquisition of the Lacoste trademark, the Company entered into a € 50 55.3 million 4 2 In connection with the April 2021 acquisition of the office building complex in Paris, € 120 132.6 10 80 1.1 Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income (loss) and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying income statements. Such gains and losses were immaterial in each of the years in the three-year period ended December 31, 2023. Interest expense includes a loss of $ 2.8 6.3 0.2 All derivative instruments are reported as either assets or liabilities on the consolidated balance sheet measured at fair value. The valuation of interest rate swaps is included in long-term debt on the accompanying consolidated balance sheets. The valuation of foreign currency forward exchange contracts at December 31, 2023 and December 31, 2022, resulted in an asset and is included in other current assets on the accompanying consolidated balance sheets. At December 31, 2023, the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately U.S. $ 61.0 2.5 |
Property, Equipment and Leaseho
Property, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Leasehold Improvements | (7) Property, Equipment and Leasehold Improvements Schedule of equipment and leasehold improvements December 31, 2023 2022 Land and Building (construction in progress) $ 157,057 $ 148,137 Equipment 62,384 59,689 Leasehold improvements 2,364 2,293 221,805 210,119 Less accumulated depreciation 52,583 43,397 $ 169,222 $ 166,722 Depreciation expense was $ 9.8 million 7.5 million 4.4 million |
Trademarks, Licenses and Other
Trademarks, Licenses and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Trademarks, Licenses and Other Intangible Assets | (8) Trademarks, Licenses and Other Intangible Assets Schedule of trademarks, licenses and other intangible assets 2023 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 108,760 $ — $ 108,760 Trademarks (finite lives) 42,752 66 42,686 Licenses (finite lives) 215,307 73,264 142,043 Other intangible assets (finite lives) 19,524 16,657 2,867 Subtotal 277,583 89,987 187,596 Total $ 386,343 $ 89,987 $ 296,356 2022 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 105,022 $ — $ 105,022 Trademarks (finite lives) 41,267 64 41,203 Licenses (finite lives) 205,235 63,535 141,700 Other intangible assets (finite lives) 17,849 14,921 2,928 Subtotal 264,351 78,520 185,831 Total $ 369,373 $ 78,520 $ 290,853 Amortization expense was $ 7.5 million 6.8 million 5.9 million 14.3 million 13.6 million 12.0 million 11.4 million 18 14.3 2.5 14 The Company reviews intangible assets with indefinite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There was an impairment charge for trademarks with indefinite useful lives of $ 0 6.8 million 2.4 million 0.9 million 10.39 9.80 7.47 The cost of trademarks, licenses and other intangible assets with finite lives is being amortized by the straight-line method over the term of the respective license or the intangible assets estimated useful life which range from three twenty Trademarks (finite lives) primarily represent Lanvin brand names and trademarks and in connection with their purchase, Lanvin was granted the right to repurchase the brand names and trademarks on July 1, 2027 for € 70 77 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (9) Accrued Expenses Accrued expenses consist of the following: December 31, 2023 2022 Advertising liabilities $ 64,815 $ 42,338 Salary (including bonus and related taxes) 23,546 21,128 Royalties 27,477 26,532 Due vendors (not yet invoiced) 41,859 105,869 Retirement reserves 10,444 8,001 Refund (return) liability 5,507 8,604 Other 5,232 1,149 Total $ 178,880 $ 213,621 |
Loans Payable _ Banks
Loans Payable – Banks | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Loans Payable – Banks | (10) Loans Payable – Banks Loans payable – banks consist of the following: The Company and its domestic subsidiaries have available a $ 25 2 5.3 December 13, 2024 The Company’s foreign subsidiaries have available credit lines totaling approximately $ 8 0.6 0.9 3.96 4.4 million 0 The weighted average interest rate on short-term borrowings was 4.5 0 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | (11) Long-Term Debt Long-term debt consists of the following: December 31, 2023 2022 $ 55.3 48 1.1 0.825 $ 40,334 $ 52,061 $ 132.6 120 1.1 0.75 95,576 104,758 $ 15 14 1.1 4.1 9,172 9,890 $ 17 10 1.7 2.0 12,402 13,332 157,484 180,041 Less current maturities 29,587 28,547 Total $ 127,897 $ 151,494 In December 2022, to finance Interparfums SA’s acquisition of the Lacoste trademark, the Company entered into a $ 55.3 50 The loan agreement bears interest at EURIBOR-1-month rates plus a margin of 0.825%. This variable rate debt was swapped for variable interest rate debt with a maximum rate of 2% per annum. In April 2021, to finance the acquisition of Interparfums SA’s corporate headquarters, the Company entered into a $ 132.6 million 120 Approximately $88.4 million (€80.0 million) of the variable rate debt was swapped for variable interest rate debt with maximum rate of 2% per annum. Maturities of long-term debt subsequent to December 31, 2023 are approximately $ 29.6 million 29.8 million 28.6 million 15.9 million 15.9 million $ 37.7 million |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | (12) Commitments Leases The Company leases its offices, warehouses and vehicles, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company generally uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments. As of December 31, 2023, the weighted average remaining lease term was 5.1 3.0 5.8 million 5.6 million 8.2 million 5.3 million 4.8 million 7.5 million 4.8 million 0.3 million 12.2 million Maturities of lease liabilities subsequent to December 31, 2023 are as follows: (In thousands) 2024 $ 6,370 2025 6,031 2026 5,276 2027 5,389 2028 5,372 Thereafter 3,529 31,967 Less imputed interest (based on 3.0% weighted-average discount rate) (1,499 ) $ 30,468 License Agreements The Company is party to a number of licenses and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2039. the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows: (In thousands) 2024 $ 288,005 2025 280,721 2026 251,718 2027 233,945 2028 243,286 Thereafter 1,055,918 $ 2,353,593 Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2023, without consideration for potential renewal periods. The above figures do not reflect the fact that our distributors share our advertising obligations. Royalty expense included in selling, general, and administrative expenses, aggregated $ 103.8 million 87.0 million 68.9 million 7.9 8.0 7.8 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity: | |
Equity | (13) Equity Share-Based Payments The Company maintains a stock option program for key employees, executives and directors. The plans, all of which have been approved by shareholder vote, provide for the granting of both nonqualified and incentive options. Options granted under the plans typically have a six-year term and vest over a four five 1.2 million 1.3 million 1.4 million The following table sets forth information with respect to nonvested options for 2023: Number of Shares Weighted Average Grant Date Fair Value Nonvested options – beginning of year 168,730 $ 16.31 Nonvested options granted 47,500 $ 35.08 Nonvested options vested or forfeited (94,130 ) $ 15.19 Nonvested options – end of year 122,100 $ 24.47 The effect of share-based payment expenses decreased income statement line items as follows: Year Ended December 31, 2023 2022 2021 Income before income taxes $ 2,525 $ 3,143 $ 2,850 Net income attributable to Inter Parfums, Inc. 1,700 2,036 1,880 Diluted earnings per share attributable to Inter Parfums, Inc. 0.05 0.06 0.06 The following table summarizes stock option activity and related information for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Options Weighted Options Weighted Options Weighted Shares under option -beginning of year 441,580 $ 67.30 524,900 $ 57.58 713,210 $ 52.74 Options granted 47,500 147.71 62,000 97.84 9,000 62.18 Options exercised (154,220 ) 52.04 (136,880 ) 43.86 (156,490 ) 34.46 Options forfeited (25,890 ) 76.32 (8,440 ) 67.65 (40,820 ) 62.57 Shares under option - 308,970 86.52 441,580 67.30 524,900 57.58 At December 31, 2023, options for 537,365 17.9 million 2.9 million five The weighted average fair values of options granted by Inter Parfums, Inc. during 2023, 2022 and 2021 were $ 35.08 20.36 11.35 The assumptions used in the Black-Scholes pricing model are set forth in the following table: Year Ended December 31, 2023 2022 2021 Weighted-average expected stock-price volatility 29 % 26 % 25 % Weighted-average expected option life 4.0 years 4.0 years 5.0 years Weighted-average risk-free interest rate 3.8 % 4.0 % 0.4 % Weighted-average dividend yield 2.0 % 2.4 % 1.6 % Expected volatility is estimated based on historic volatility of the Company’s common stock. The expected term of the option is estimated based on historic data. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant of the option and the dividend yield reflects the assumption that the dividend payout as authorized by the Board of Directors would maintain its current payout ratio as a percentage of earnings. Proceeds, tax benefits and intrinsic value related to stock options exercised were as follows: Year Ended December 31, 2023 2022 2021 Proceeds from stock options exercised $ 8,025 $ 6,003 $ 5,393 Tax benefits $ 1,150 $ 800 $ 1,300 Intrinsic value of stock options exercised $ 11,578 $ 6,760 $ 7,800 Notes to Consolidated Financial Statements The following table summarizes additional stock option information as of December 31, 2023: Exercise prices Options outstanding Options outstanding weighted average remaining contractual life Options exercisable $ 62.18 69.11 100,680 1.05 96,180 $ 73.09 104,790 2.00 79,490 $ 97.84 56,000 5.00 11,200 $ 147.71 47,500 6.00 — Totals 308,970 2.85 186,870 As of December 31, 2023, the weighted average exercise price of options exercisable was $ 70.60 1.67 13.7 million In December 2018, Interparfums SA approved a plan to grant an aggregate of 26,600 133,000 211,955 4.8 million three In March 2022, Interparfums SA approved an additional plan to grant an aggregate of 88,400 The fair value of the grant had been determined based on the quoted stock price of Interparfums SA shares as reported by the Euronext on the date of grant. The estimated number of shares to be distributed of 93,405 4.2 million Similar to the December 2018 plan, in order to avoid dilution of the Company’s ownership of Interparfums SA, all shares distributed or to be distributed pursuant to these plans will be pre-existing shares of Interparfums SA, purchased in the open market by Interparfums SA. During the year ended December 31, 2023, the Company acquired 87,609 4.1 All share purchases and issuances have been classified as equity transactions on the accompanying consolidated balance sheet. Dividends In February 2021, the Board of Directors authorized an annual dividend of $ 1.00 100 2.00 2.50 3.00 0.75 |
Net Income Attributable to Inte
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Inter Parfums, Inc. Common Shareholders | (14) Net Income Attributable to Inter Parfums, Inc. Common Shareholders Net income attributable to Inter Parfums, Inc. per common share (“basic EPS”) is computed by dividing net income attributable to Inter Parfums, Inc. by the weighted average number of shares outstanding. Net income attributable to Inter Parfums, Inc. per share assuming dilution (“diluted EPS”), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options using the treasury stock method. The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Year ended December 31, (In thousands except share and per share data) 2023 2022 2021 Numerator: Net income attributable to Inter Parfums, Inc. $ 152,654 $ 120,938 $ 87,411 Denominator: Weighted average shares 31,994,328 31,859,417 31,676,796 Effect of dilutive securities: Stock options 145,374 129,336 158,612 Denominator for diluted earnings per share 32,139,702 31,988,753 31,835,408 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 4.77 $ 3.80 $ 2.76 Diluted 4.75 3.78 2.75 Not included in the above computations is the effect of anti-dilutive potential common shares, which consist of outstanding options to purchase 0 38,000 175,000 |
Segments and Geographic Areas
Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments and Geographic Areas | (15) Segments and Geographic Areas The Company manufactures and distributes one product line, fragrances and fragrance related products. The Company manages its business in two segments, European based operations and United States based operations. The European assets are located, and operations are primarily conducted, in France. Both European and United States based operations primarily represent the sale of prestige brand name fragrances. Information on the Company’s operations by segments is as follows: Year ended December 31, 2023 2022 2021 Net sales: United States $ 455,758 $ 342,644 $ 216,559 Europe 863,397 744,075 663,290 Eliminations of intercompany sales (1,480 ) (66 ) (333 ) $ 1,317,675 $ 1,086,653 $ 879,516 Net income attributable to Inter Parfums, Inc.: United States $ 63,781 $ 43,745 $ 29,359 Europe 89,250 77,193 57,869 Eliminations (377 ) — 183 $ 152,654 $ 120,938 $ 87,411 Depreciation and amortization expense including impairment loss: United States $ 6,517 $ 6,355 $ 3,835 Europe 10,814 16,184 8,863 $ 17,331 $ 22,539 $ 12,698 Interest and investment income: United States $ 346 $ 66 $ 3 Europe 10,810 5,769 3,526 Eliminations (427 ) (349 ) (126 ) $ 10,729 $ 5,486 $ 3,403 Interest expense: United States $ 1,351 $ 1,100 $ 636 Europe 10,329 2,848 2,315 Eliminations (427 ) (349 ) (126 ) $ 11,253 $ 3,599 $ 2,825 Income tax expense: United States $ 15,180 $ 6,920 $ 5,336 Europe 46,763 36,262 35,607 Eliminations (126 ) — 49 $ 61,817 $ 43,182 $ 40,992 December 31, 2023 2022 2021 Total assets: United States $ 344,341 $ 278,090 $ 247,703 Europe 1,066,684 1,052,004 931,735 Eliminations (41,696 ) (21,552 ) (34,074 ) $ 1,369,329 $ 1,308,542 $ 1,145,364 Additions to long-lived assets: United States $ 1,277 $ 2,318 $ 2,711 Europe 5,188 31,438 138,563 $ 6,465 $ 33,756 $ 141,274 Total long-lived assets: United States $ 57,372 $ 61,539 $ 63,094 Europe 436,819 423,999 334,033 $ 494,191 $ 485,538 $ 397,127 Deferred tax assets: United States $ 2,175 $ 2,906 $ 870 Europe 12,244 8,253 7,066 Eliminations 126 — — $ 14,545 $ 11,159 $ 7,936 United States export sales were approximately $ 230.5 million 180.0 million 133.4 million Consolidated net sales to customers by region are as follows: Year ended December 31, 2023 2022 2021 North America $ 511,700 $ 421,000 $ 346,900 Europe 404,400 333,400 271,600 Asia 191,800 163,600 135,200 Middle East 107,300 87,800 61,000 Central and South America 92,700 69,900 56,400 Other 9,800 11,000 8,400 $ 1,317,700 $ 1,086,700 $ 879,500 Consolidated net sales to customers in major countries are as follows: Year Ended December 31, 2023 2022 2021 United States $ 493,200 $ 410,000 $ 344,100 France $ 51,000 $ 44,800 $ 44,000 Russia $ 50,100 $ 33,964 $ 43,400 United Kingdom $ 47,500 $ 37,900 $ 38,500 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (16) Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal, and various states and foreign jurisdictions. The Company assessed its uncertain tax positions and determined that it has no material uncertain tax position at December 31, 2023. The components of income before income taxes consist of the following: Year ended December 31, 2023 2022 2021 U.S. operations $ 78,962 $ 50,250 $ 34,742 Foreign operations 170,631 143,969 116,277 $ 249,593 $ 194,219 $ 151,019 The provision for current and deferred income tax expense (benefit) consists of the following: Year ended December 31, 2023 2022 2021 Current: Federal $ 12,062 $ 6,829 $ 4,825 State and local 712 658 518 Foreign 52,186 39,458 36,164 64,960 46,945 41,507 Deferred: Federal 199 (802 ) 4 State and local 19 (49 ) 11 Foreign (3,361 ) (2,912 ) (530 ) (3,143 ) (3,763 ) (515 ) Total income tax expense $ 61,817 $ 43,182 $ 40,992 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: December 31, 2023 2022 Net deferred tax assets: Foreign net operating loss carry-forwards $ 218 $ 554 Inventory and accounts receivable 3,138 3,880 Profit sharing 3,505 2,871 Stock option compensation 613 716 Effect of inventory profit elimination 10,957 9,342 Other 1,674 266 Total gross deferred tax assets, net 20,105 17,629 Valuation allowance (296 ) (554 ) Net deferred tax assets 19,809 17,075 Deferred tax liabilities (long-term): Building expenses (1,327 ) (1,356 ) Trademarks and licenses (2,238 ) (2,160 ) Unrealized gain on marketable equity securities (1,044 ) (1,745 ) Other (655 ) (655 ) Total deferred tax liabilities (5,264 ) (5,916 ) Net deferred tax assets $ 14,545 $ 11,159 Valuation allowances have been provided for deferred tax assets relating to foreign net operating loss carry-forwards as future profitable operations from certain foreign subsidiaries might not be sufficient to realize the full amount of the deferred tax assets. No other valuation allowances have been provided as management believes that it is more likely than not that the asset will be realized in the reduction of future taxable income. The Company estimated the effect of global intangible low-taxed income (“GILTI”) and has determined that it has no tax liability related to GILTI as of December 31, 2023, 2022 and 2021. The Company also estimated the effect of foreign derived intangible income (“FDII”) and recorded a tax benefit of approximately $ 2.4 million 1.5 million 0.9 million A tax audit of our Company’s French subsidiary was finalized in 2023 for the tax years 2020 and 2021. As a result of the audit’s conclusions, a one-time assessment of € 2.8 million ($3.1 million) is included in tax expense in the consolidated statements of income. The Company’s French subsidiary is no longer subject to foreign tax examination for years before 2022. At this point in time, the Company does not believe they will face any further assessments for tax years still open to audit. The Company is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2020. Differences between the United States federal statutory income tax rate and the effective income tax rate were as follows: Year ended December 31, 2023 2022 2021 Statutory rates 21.0 % 21.0 % 21.0 % State and local taxes, net of Federal benefit 0.2 0.2 0.3 Windfall benefit from exercise of stock options (0.4 ) (0.4 ) (0.9 ) Benefit of Foreign Derived Intangible Income (0.9 ) (0.8 ) (0.6 ) Effect of foreign taxes greater than U.S. statutory rates 4.3 3.1 7.4 Other 0.6 (0.9 ) (0.1 ) Effective rates 24.8 % 22.2 % 27.1 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Equity: | |
Accumulated Other Comprehensive Loss | (17) Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss consist of the following: Year ended December 31, 2023 2022 2021 Net derivative instruments, beginning of year $ 1,709 $ (992 ) $ — Net derivative instrument (loss) gain, net of tax (1,645 ) 2,701 (992 ) Net derivative instruments, end of year 64 1,709 (992 ) Cumulative translation adjustments, beginning of year (57,765 ) (37,440 ) (5,997 ) Translation adjustments 17,513 (20,325 ) (31,443 ) Cumulative translation adjustments, end of year (40,252 ) (57,765 ) (37,440 ) Accumulated other comprehensive loss $ (40,188 ) $ (56,056 ) $ (38,432 ) |
Reconciliation of Cash and Cash
Reconciliation of Cash and Cash Equivalents to the Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2023 | |
Reconciliation Of Cash And Cash Equivalents To Statement Of Cash Flows | |
Reconciliation of Cash and Cash Equivalents to the Statement of Cash Flows | (18) Reconciliation of Cash and Cash Equivalents to the Statement of Cash Flows The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in millions) as of December 31, 2021: December 31, 2021 Cash and cash equivalents $ 159,613 Cash held in escrow included in other assets 8,774 Cash and cash equivalents per statement of cash flows $ 168,387 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (19) Related Party Transactions In 2023, a foreign subsidiary of Inter Parfums, Inc. began leasing office space and receiving consulting services from affiliates of the Company’s Chairman and principal stockholder. The Company incurred approximately $ 47,000 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts Schedule of Valuation and Qualifying Accounts Valuation and Qualifying Accounts (In thousands) Column A Column B Column C Column D Column E Additions (1) (2) Description Balance at beginning of period Charged to costs and expenses Charged to other accounts Deductions Balance at end of period Allowance for doubtful accounts: Year ended December 31, 2023 $ 4,690 (1,466 ) (670 ) (d) 450 (a) 2,104 Year ended December 31, 2022 $ 2,247 2,353 1,134 (d) 1,044 (a) 4,690 Year ended December 31, 2021 $ 5,550 877 (844 ) (d) 3,336 (a) 2,247 Allowance for sales returns, net of inventory: Year ended December 31, 2023 $ 5,410 3,071 — 4,783 (b) 3,698 Year ended December 31, 2022 $ 3,242 4,997 — 2,829 (b) 5,410 Year ended December 31, 2021 $ 2,242 3,042 — 2,042 (b) 3,242 Inventory reserve: Year ended December 31, 2023 $ 11,431 10,284 476 (d) 948 (c) 21,243 Year ended December 31, 2022 $ 15,777 8,742 (378 ) (d) 12,710 (c) 11,431 Year ended December 31, 2021 $ 9,371 8,217 7,041 (d)(e) 8,852 (c) 15,777 (a) Write-off of bad debts. (b) Write-off of sales returns. (c) Disposal of inventory (d) Foreign currency translation adjustment (e) Inventory reserves acquired of $7,639 |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Business of the Company | Business of the Company Inter Parfums, Inc. and its subsidiaries (the “Company”) are in the fragrance business and manufacture and distribute a wide array of prestige fragrances and fragrance related products. Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Montblanc, Coach and GUESS brand names. As a percentage of net sales, product sales for the Company’s largest brands were as follows: Year Ended December 31, 2023 2022 2021 Jimmy Choo 17 % 18 % 18 % Montblanc 17 % 18 % 19 % Coach 15 % 15 % 16 % GUESS 12 % 12 % 12 % Donna Karan/DKNY 7 % 3 % — Ferragamo 5 % 5 % 1 % |
Basis of Preparation | Basis of Preparation The consolidated financial statements include the accounts of the Company and its subsidiaries, including 72 All material intercompany balances and transactions have been eliminated. |
Management Estimates | Management Estimates Management makes assumptions and estimates to prepare financial statements in conformity with accounting principles generally accepted in the United States of America. Those assumptions and estimates directly affect the amounts reported and disclosures included in the consolidated financial statements. Actual results could differ from those assumptions and estimates. Significant estimates for which changes in the near term are considered reasonably possible and that may have a material impact on the financial statements are disclosed in these notes to the consolidated financial statements. |
Foreign Currency Translation | Foreign Currency Translation For foreign subsidiaries with operations denominated in a foreign currency, assets and liabilities are translated to U.S. dollars at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Gains and losses from translation adjustments are accumulated in a separate component of shareholders’ equity. |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Short-Term Investments All highly liquid investments purchased with a maturity of three months or less are considered to be cash equivalents. The Company also has short-term investments which consist of marketable equity securities, certificates of deposit and other contracts with maturities greater than three months. The Company monitors concentrations of credit risk associated with financial institutions with which the Company conducts significant business. The Company believes its credit risk is minimal, as the Company primarily conducts business with large, well-established financial institutions. Substantially all cash and cash equivalents are primarily held at financial institutions outside the United States and are readily convertible into U.S. dollars. |
Accounts Receivable | Accounts Receivable Accounts receivable represent payments due to the Company for previously recognized net sales, reduced by allowances for doubtful accounts or balances which are estimated to be uncollectible, which aggregated $ 2.1 million 4.7 million |
Inventories | Inventories Inventories, including promotional merchandise, only include inventory considered saleable or usable in future periods, and are stated at the lower of cost and net realizable value, with cost being determined on the first-in, first-out method. Cost components include raw materials, direct labor and overhead (e.g., indirect labor, utilities, depreciation, purchasing, receiving, inspection and warehousing) as well as inbound freight. Promotional merchandise is charged to cost of sales at the time the merchandise is shipped to the Company’s customers. |
Derivatives | Derivatives All derivative instruments are recorded as either assets or liabilities and measured at fair value. The Company uses derivative instruments to principally manage a variety of market risks. For derivatives designated as hedges of the exposure to changes in fair value of the recognized asset or liability or a firm commitment (referred to as fair value hedges), the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributable to the risk being hedged. The effect of that accounting is to include in earnings the extent to which the hedge is not effective in achieving offsetting changes in fair value. For cash flow hedges, the effective portion of the derivative’s gain or loss is initially reported in equity (as a component of accumulated other comprehensive income) and is subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge is reported in earnings immediately. The Company also holds certain instruments for economic purposes that are not designated for hedge accounting treatment. For these derivative instruments, changes in their fair value are recorded in earnings immediately. |
Property, Equipment and Leasehold Improvements | Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives for furniture and equipment, which range between three and fifteen years. Depreciation on buildings and leasehold improvements is calculated using the straight-line method over the shorter of the lease term or estimated useful asset lives, which range between seven and fifty years. Depreciation provided on equipment used to produce inventory, such as tools and molds, is included in cost of sales. |
Long-Lived Assets | Long-Lived Assets Indefinite-lived intangible assets principally consist of trademarks which are not amortized. The Company evaluates indefinite-lived intangible assets for impairment at least annually during the fourth quarter, or more frequently when events occur or circumstances change, such as an unexpected decline in sales, that would more-likely-than-not indicate that the carrying value of an indefinite-lived intangible asset may not be recoverable. When testing indefinite-lived intangible assets for impairment, the evaluation requires a comparison of the estimated fair value of the asset to the carrying value of the asset. The fair values used in our evaluations are estimated based upon discounted future cash flow projections using a weighted average cost of capital of 10.39 9.80 Intangible assets subject to amortization principally consist of licenses and are amortized on a straight-line basis over the shorter of the license term or estimated economic life, ranging from three to twenty years. Intangible assets subject to amortization are evaluated for impairment testing whenever events or changes in circumstances indicate that the carrying amount of an amortizable intangible asset may not be recoverable. If impairment indicators exist for an amortizable intangible asset, the undiscounted future cash flows associated with the expected service potential of the asset are compared to the carrying value of the asset. If our projection of undiscounted future cash flows is in excess of the carrying value of the intangible asset, no impairment charge is recorded. If our projection of undiscounted future cash flows is less than the carrying value of the intangible asset, an impairment charge would be recorded to reduce the intangible asset to its fair value. |
Revenue Recognition | Revenue Recognition The Company sells its products to department stores, perfumeries, specialty stores and domestic and international wholesalers and distributors. Our revenue contracts represent single performance obligations to sell our products to customers. Sales of such products by our domestic subsidiaries are denominated in U.S. dollars, and sales of such products by our foreign subsidiaries are primarily denominated in either euro or U.S. dollars. The substantial majority of our revenue is recognized at a point in time when control of the promised goods is transferred to customers based on agreed upon shipping terms, which usually occurs upon delivery. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those goods. Net sales are comprised of gross revenues less incentives to customers such as returns, trade discounts and allowances, which give rise to variable consideration. The Company does not bill its customers’ freight and handling charges. All shipping and handling costs, which aggregated $ 14.2 million 15.8 million 10.0 million 12 10 |
Sales Returns | Sales Returns Generally, the Company does not permit customers to return their unsold products. However, for U.S. based customers, we allow returns if properly requested, authorized and approved. The Company regularly reviews and revises, as deemed necessary, its estimate of reserves for future sales returns based primarily upon historic trends and relevant current data including information provided by retailers regarding their inventory levels. In addition, as necessary, specific accruals may be established for significant future known or anticipated events. The types of known or anticipated events that we consider include, but are not limited to, the financial condition of our customers, store closings by retailers, changes in the retail environment and our decision to continue to support new and existing products. The Company records its estimate of potential sales returns as a reduction of sales and cost of sales with corresponding entries to accrued expenses, to record the refund liability, and inventory, for the right to recover goods from the customer. The refund liability associated with estimated returns was $ 5.5 million 8.6 million 2.4 million 3.2 million |
Payments to Customers | Payments to Customers The Company records revenues generated from purchase with purchase and gift with purchase promotions as sales and the costs of its purchase with purchase and gift with purchase promotions as cost of sales. Certain other incentive arrangements require the payment of a fee to customers based on their attainment of pre-established sales levels. These fees have been recorded as a reduction of net sales. |
Advertising and Promotion | Advertising and Promotion Advertising and promotional costs are expensed as incurred and recorded as a component of cost of goods sold (in the case of free goods given to customers) or selling, general and administrative expenses. Advertising and promotional costs included in selling, general and administrative expenses were $ 259.9 million 212.4 million 171.1 million 52.3 million 43.1 million 36.9 million |
Package Development Costs | Package Development Costs Package development costs associated with new products and redesigns of existing product packaging are expensed as incurred. |
Operating Leases | Operating Leases The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term. |
License Agreements | License Agreements The Company’s license agreements generally provide the Company with worldwide rights to manufacture, market and sell prestige fragrances and fragrance related products using the licensors’ trademarks. The licenses typically have an initial term of approximately 5 15 1 12 6 10 In certain cases, the Company may pay an entry fee to acquire, or enter into, a license where the licensor or another licensee was operating a pre-existing fragrance business. In those cases, the entry fee is capitalized as an intangible asset and amortized over its useful life. Most license agreements require minimum royalty payments, incremental royalties based on net sales levels and minimum spending on advertising and promotional activities. Royalty expenses are accrued in the period in which net sales are recognized while advertising and promotional expenses are accrued at the time these costs are incurred. In addition, the Company is exposed to certain concentration risk. Most of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements or tax returns. The net deferred tax assets assume sufficient future earnings for their realization, as well as the continued application of currently enacted tax rates. Included in net deferred tax assets is a valuation allowance for deferred tax assets, where management believes it is more-likely-than-not that the deferred tax assets will not be realized in the relevant jurisdiction. If the Company determines that a deferred tax asset will not be realizable, an adjustment to the deferred tax asset will result in a reduction of net earnings at that time. Accrued interest and penalties are included within the related tax asset or liability in the accompanying consolidated financial statements. |
Issuance of Common Stock by Consolidated Subsidiary | Issuance of Common Stock by Consolidated Subsidiary The difference between the Company’s share of the proceeds received by the subsidiary and the carrying amount of the portion of the Company’s investment deemed sold, is reflected as an equity adjustment in the consolidated balance sheets. |
Treasury Stock | Treasury Stock The Board of Directors has authorized share repurchases of the Company’s common stock (Share Repurchase Authorizations). Share repurchases under Share Repurchase Authorizations are made through open market transactions, negotiated purchase or otherwise, at times and in such amounts within the parameters authorized by the Board. Shares repurchased under Share Repurchase Authorizations are held in treasury for general corporate purposes, including issuances under various employee stock option plans. Treasury shares are accounted for under the cost method and reported as a reduction of equity. Share Repurchase Authorizations may be suspended, limited or terminated at any time without notice. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance and allocate resources. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods for fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and shall be applied on a prospective basis with the option to apply retrospectively. We are currently evaluating the impact of adopting this ASU on our disclosures. There are no other recent accounting pronouncements issued but not yet adopted that would have a material effect on our consolidated financial statements. |
Reclassifications | Reclassifications Certain prior year amounts in the accompanying notes to consolidated financial statements have been reclassified to conform with current period presentation. Correction of Immaterial Misstatements in Prior Period Financial Statements During the year ended December 31, 2023, the Company identified an error that caused an overstatement of line items on the previously reported consolidated statement of cash flows. The error does not impact any other consolidated financial statement included herein. Specifically, the error related to the timing of payments to Lacoste in accordance with the acquisition agreement of the Lacoste trademark in 2022 . This error had no impact on net income or earnings per share for the year ended December 31, 2022. The impact of the error resulted in a movement of $ 42.1 between “Change in Accounts payable and accrued expenses” within operating cash flows and “Payment for intangible assets acquired” within investing cash flows. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the impact was not material to any of our previously issued financial statements. The following table presents a summary of the impact by financial statement line item of the corrections for the year ended December 31, 2022: For the Year Ended December 31, 2022 Consolidated Statement of Cash Flow As previously reported Adjustment As revised (in thousands) Change in Accounts payable and accrued expenses 106,857 (42,119 ) 64,738 Net cash provided by operating activities 115,150 (42,119 ) 73,031 Payments for intangible assets acquired (98,865 ) 42,119 (56,746 ) Net cash used in investing activities (132,763 ) 42,119 (90,644 ) |
The Company and its Significa_3
The Company and its Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Montblanc, Coach and GUESS brand names. As a percentage of net sales, product sales for the Company’s largest brands were as follows: | Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Montblanc, Coach and GUESS brand names. As a percentage of net sales, product sales for the Company’s largest brands were as follows: Year Ended December 31, 2023 2022 2021 Jimmy Choo 17 % 18 % 18 % Montblanc 17 % 18 % 19 % Coach 15 % 15 % 16 % GUESS 12 % 12 % 12 % Donna Karan/DKNY 7 % 3 % — Ferragamo 5 % 5 % 1 % |
The following table presents a summary of the impact by financial statement line item of the corrections for the year ended December 31, 2022: | The following table presents a summary of the impact by financial statement line item of the corrections for the year ended December 31, 2022: For the Year Ended December 31, 2022 Consolidated Statement of Cash Flow As previously reported Adjustment As revised (in thousands) Change in Accounts payable and accrued expenses 106,857 (42,119 ) 64,738 Net cash provided by operating activities 115,150 (42,119 ) 73,031 Payments for intangible assets acquired (98,865 ) 42,119 (56,746 ) Net cash used in investing activities (132,763 ) 42,119 (90,644 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories consist of the following: | Inventories consist of the following: (In thousands) December 31, December 31, Raw materials and component parts $ 158,733 $ 146,772 Finished goods 213,126 143,212 $ 371,859 $ 289,984 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. | The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Fair Value Measurements at December 31, 2023 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 $ 94,304 $ 12,868 $ 80,614 $ 822 Interest rate swaps 3,909 — 3,909 — Foreign currency forward exchange contracts not accounted for using hedge accounting 359 — 359 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,533 — 1,533 — Total Assets $ 100,105 $ 12,868 $ 86,415 $ 822 Fair Value Measurements at December 31, 2022 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 $ 150,833 $ 19,861 $ 130,174 $ 798 Interest rate swaps 6,758 — 6,758 — Foreign currency forward exchange contracts accounted for using hedge accounting 1,189 — 1,189 — Total Assets $ 158,780 $ 19,861 $ 138,121 $ 798 Liabilities: Foreign currency forward exchange contracts not accounted for using hedge accounting 68 — 68 — Total liabilities $ 68 $ — $ 68 $ — |
Property, Equipment and Lease_2
Property, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of equipment and leasehold improvements | Schedule of equipment and leasehold improvements December 31, 2023 2022 Land and Building (construction in progress) $ 157,057 $ 148,137 Equipment 62,384 59,689 Leasehold improvements 2,364 2,293 221,805 210,119 Less accumulated depreciation 52,583 43,397 $ 169,222 $ 166,722 |
Trademarks, Licenses and Othe_2
Trademarks, Licenses and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of trademarks, licenses and other intangible assets | Schedule of trademarks, licenses and other intangible assets 2023 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 108,760 $ — $ 108,760 Trademarks (finite lives) 42,752 66 42,686 Licenses (finite lives) 215,307 73,264 142,043 Other intangible assets (finite lives) 19,524 16,657 2,867 Subtotal 277,583 89,987 187,596 Total $ 386,343 $ 89,987 $ 296,356 2022 Gross Accumulated Net Book Amount Amortization Value Trademarks (indefinite lives) $ 105,022 $ — $ 105,022 Trademarks (finite lives) 41,267 64 41,203 Licenses (finite lives) 205,235 63,535 141,700 Other intangible assets (finite lives) 17,849 14,921 2,928 Subtotal 264,351 78,520 185,831 Total $ 369,373 $ 78,520 $ 290,853 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued expenses consist of the following: | Accrued expenses consist of the following: December 31, 2023 2022 Advertising liabilities $ 64,815 $ 42,338 Salary (including bonus and related taxes) 23,546 21,128 Royalties 27,477 26,532 Due vendors (not yet invoiced) 41,859 105,869 Retirement reserves 10,444 8,001 Refund (return) liability 5,507 8,604 Other 5,232 1,149 Total $ 178,880 $ 213,621 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt consists of the following: | Long-term debt consists of the following: December 31, 2023 2022 $ 55.3 48 1.1 0.825 $ 40,334 $ 52,061 $ 132.6 120 1.1 0.75 95,576 104,758 $ 15 14 1.1 4.1 9,172 9,890 $ 17 10 1.7 2.0 12,402 13,332 157,484 180,041 Less current maturities 29,587 28,547 Total $ 127,897 $ 151,494 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Maturities of lease liabilities subsequent to December 31, 2023 are as follows: | Maturities of lease liabilities subsequent to December 31, 2023 are as follows: (In thousands) 2024 $ 6,370 2025 6,031 2026 5,276 2027 5,389 2028 5,372 Thereafter 3,529 31,967 Less imputed interest (based on 3.0% weighted-average discount rate) (1,499 ) $ 30,468 |
the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows: | The Company is party to a number of licenses and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2039. the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows: (In thousands) 2024 $ 288,005 2025 280,721 2026 251,718 2027 233,945 2028 243,286 Thereafter 1,055,918 $ 2,353,593 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity: | |
The following table sets forth information with respect to nonvested options for 2023: | The following table sets forth information with respect to nonvested options for 2023: Number of Shares Weighted Average Grant Date Fair Value Nonvested options – beginning of year 168,730 $ 16.31 Nonvested options granted 47,500 $ 35.08 Nonvested options vested or forfeited (94,130 ) $ 15.19 Nonvested options – end of year 122,100 $ 24.47 |
The effect of share-based payment expenses decreased income statement line items as follows: | The effect of share-based payment expenses decreased income statement line items as follows: Year Ended December 31, 2023 2022 2021 Income before income taxes $ 2,525 $ 3,143 $ 2,850 Net income attributable to Inter Parfums, Inc. 1,700 2,036 1,880 Diluted earnings per share attributable to Inter Parfums, Inc. 0.05 0.06 0.06 |
The following table summarizes stock option activity and related information for the years ended December 31, 2023, 2022 and 2021: | The following table summarizes stock option activity and related information for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Options Weighted Options Weighted Options Weighted Shares under option -beginning of year 441,580 $ 67.30 524,900 $ 57.58 713,210 $ 52.74 Options granted 47,500 147.71 62,000 97.84 9,000 62.18 Options exercised (154,220 ) 52.04 (136,880 ) 43.86 (156,490 ) 34.46 Options forfeited (25,890 ) 76.32 (8,440 ) 67.65 (40,820 ) 62.57 Shares under option - 308,970 86.52 441,580 67.30 524,900 57.58 |
The assumptions used in the Black-Scholes pricing model are set forth in the following table: | The assumptions used in the Black-Scholes pricing model are set forth in the following table: Year Ended December 31, 2023 2022 2021 Weighted-average expected stock-price volatility 29 % 26 % 25 % Weighted-average expected option life 4.0 years 4.0 years 5.0 years Weighted-average risk-free interest rate 3.8 % 4.0 % 0.4 % Weighted-average dividend yield 2.0 % 2.4 % 1.6 % |
Proceeds, tax benefits and intrinsic value related to stock options exercised were as follows: | Proceeds, tax benefits and intrinsic value related to stock options exercised were as follows: Year Ended December 31, 2023 2022 2021 Proceeds from stock options exercised $ 8,025 $ 6,003 $ 5,393 Tax benefits $ 1,150 $ 800 $ 1,300 Intrinsic value of stock options exercised $ 11,578 $ 6,760 $ 7,800 |
The following table summarizes additional stock option information as of December 31, 2023: | The following table summarizes additional stock option information as of December 31, 2023: Exercise prices Options outstanding Options outstanding weighted average remaining contractual life Options exercisable $ 62.18 69.11 100,680 1.05 96,180 $ 73.09 104,790 2.00 79,490 $ 97.84 56,000 5.00 11,200 $ 147.71 47,500 6.00 — Totals 308,970 2.85 186,870 |
Net Income Attributable to In_2
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: | The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: Year ended December 31, (In thousands except share and per share data) 2023 2022 2021 Numerator: Net income attributable to Inter Parfums, Inc. $ 152,654 $ 120,938 $ 87,411 Denominator: Weighted average shares 31,994,328 31,859,417 31,676,796 Effect of dilutive securities: Stock options 145,374 129,336 158,612 Denominator for diluted earnings per share 32,139,702 31,988,753 31,835,408 Earnings per share: Net income attributable to Inter Parfums, Inc. common shareholders: Basic $ 4.77 $ 3.80 $ 2.76 Diluted 4.75 3.78 2.75 |
Segments and Geographic Areas (
Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Information on the Company’s operations by segments is as follows: | Information on the Company’s operations by segments is as follows: Year ended December 31, 2023 2022 2021 Net sales: United States $ 455,758 $ 342,644 $ 216,559 Europe 863,397 744,075 663,290 Eliminations of intercompany sales (1,480 ) (66 ) (333 ) $ 1,317,675 $ 1,086,653 $ 879,516 Net income attributable to Inter Parfums, Inc.: United States $ 63,781 $ 43,745 $ 29,359 Europe 89,250 77,193 57,869 Eliminations (377 ) — 183 $ 152,654 $ 120,938 $ 87,411 Depreciation and amortization expense including impairment loss: United States $ 6,517 $ 6,355 $ 3,835 Europe 10,814 16,184 8,863 $ 17,331 $ 22,539 $ 12,698 Interest and investment income: United States $ 346 $ 66 $ 3 Europe 10,810 5,769 3,526 Eliminations (427 ) (349 ) (126 ) $ 10,729 $ 5,486 $ 3,403 Interest expense: United States $ 1,351 $ 1,100 $ 636 Europe 10,329 2,848 2,315 Eliminations (427 ) (349 ) (126 ) $ 11,253 $ 3,599 $ 2,825 Income tax expense: United States $ 15,180 $ 6,920 $ 5,336 Europe 46,763 36,262 35,607 Eliminations (126 ) — 49 $ 61,817 $ 43,182 $ 40,992 December 31, 2023 2022 2021 Total assets: United States $ 344,341 $ 278,090 $ 247,703 Europe 1,066,684 1,052,004 931,735 Eliminations (41,696 ) (21,552 ) (34,074 ) $ 1,369,329 $ 1,308,542 $ 1,145,364 Additions to long-lived assets: United States $ 1,277 $ 2,318 $ 2,711 Europe 5,188 31,438 138,563 $ 6,465 $ 33,756 $ 141,274 Total long-lived assets: United States $ 57,372 $ 61,539 $ 63,094 Europe 436,819 423,999 334,033 $ 494,191 $ 485,538 $ 397,127 Deferred tax assets: United States $ 2,175 $ 2,906 $ 870 Europe 12,244 8,253 7,066 Eliminations 126 — — $ 14,545 $ 11,159 $ 7,936 |
Consolidated net sales to customers by region are as follows: | Consolidated net sales to customers by region are as follows: Year ended December 31, 2023 2022 2021 North America $ 511,700 $ 421,000 $ 346,900 Europe 404,400 333,400 271,600 Asia 191,800 163,600 135,200 Middle East 107,300 87,800 61,000 Central and South America 92,700 69,900 56,400 Other 9,800 11,000 8,400 $ 1,317,700 $ 1,086,700 $ 879,500 |
Consolidated net sales to customers in major countries are as follows: | Consolidated net sales to customers in major countries are as follows: Year Ended December 31, 2023 2022 2021 United States $ 493,200 $ 410,000 $ 344,100 France $ 51,000 $ 44,800 $ 44,000 Russia $ 50,100 $ 33,964 $ 43,400 United Kingdom $ 47,500 $ 37,900 $ 38,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
The components of income before income taxes consist of the following: | The components of income before income taxes consist of the following: Year ended December 31, 2023 2022 2021 U.S. operations $ 78,962 $ 50,250 $ 34,742 Foreign operations 170,631 143,969 116,277 $ 249,593 $ 194,219 $ 151,019 |
The provision for current and deferred income tax expense (benefit) consists of the following: | The provision for current and deferred income tax expense (benefit) consists of the following: Year ended December 31, 2023 2022 2021 Current: Federal $ 12,062 $ 6,829 $ 4,825 State and local 712 658 518 Foreign 52,186 39,458 36,164 64,960 46,945 41,507 Deferred: Federal 199 (802 ) 4 State and local 19 (49 ) 11 Foreign (3,361 ) (2,912 ) (530 ) (3,143 ) (3,763 ) (515 ) Total income tax expense $ 61,817 $ 43,182 $ 40,992 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: December 31, 2023 2022 Net deferred tax assets: Foreign net operating loss carry-forwards $ 218 $ 554 Inventory and accounts receivable 3,138 3,880 Profit sharing 3,505 2,871 Stock option compensation 613 716 Effect of inventory profit elimination 10,957 9,342 Other 1,674 266 Total gross deferred tax assets, net 20,105 17,629 Valuation allowance (296 ) (554 ) Net deferred tax assets 19,809 17,075 Deferred tax liabilities (long-term): Building expenses (1,327 ) (1,356 ) Trademarks and licenses (2,238 ) (2,160 ) Unrealized gain on marketable equity securities (1,044 ) (1,745 ) Other (655 ) (655 ) Total deferred tax liabilities (5,264 ) (5,916 ) Net deferred tax assets $ 14,545 $ 11,159 |
Differences between the United States federal statutory income tax rate and the effective income tax rate were as follows: | Differences between the United States federal statutory income tax rate and the effective income tax rate were as follows: Year ended December 31, 2023 2022 2021 Statutory rates 21.0 % 21.0 % 21.0 % State and local taxes, net of Federal benefit 0.2 0.2 0.3 Windfall benefit from exercise of stock options (0.4 ) (0.4 ) (0.9 ) Benefit of Foreign Derived Intangible Income (0.9 ) (0.8 ) (0.6 ) Effect of foreign taxes greater than U.S. statutory rates 4.3 3.1 7.4 Other 0.6 (0.9 ) (0.1 ) Effective rates 24.8 % 22.2 % 27.1 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity: | |
The components of accumulated other comprehensive loss consist of the following: | The components of accumulated other comprehensive loss consist of the following: Year ended December 31, 2023 2022 2021 Net derivative instruments, beginning of year $ 1,709 $ (992 ) $ — Net derivative instrument (loss) gain, net of tax (1,645 ) 2,701 (992 ) Net derivative instruments, end of year 64 1,709 (992 ) Cumulative translation adjustments, beginning of year (57,765 ) (37,440 ) (5,997 ) Translation adjustments 17,513 (20,325 ) (31,443 ) Cumulative translation adjustments, end of year (40,252 ) (57,765 ) (37,440 ) Accumulated other comprehensive loss $ (40,188 ) $ (56,056 ) $ (38,432 ) |
Reconciliation of Cash and Ca_2
Reconciliation of Cash and Cash Equivalents to the Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Reconciliation Of Cash And Cash Equivalents To Statement Of Cash Flows | |
The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in millions) as of December 31, 2021: | The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in millions) as of December 31, 2021: December 31, 2021 Cash and cash equivalents $ 159,613 Cash held in escrow included in other assets 8,774 Cash and cash equivalents per statement of cash flows $ 168,387 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | Schedule of Valuation and Qualifying Accounts Valuation and Qualifying Accounts (In thousands) Column A Column B Column C Column D Column E Additions (1) (2) Description Balance at beginning of period Charged to costs and expenses Charged to other accounts Deductions Balance at end of period Allowance for doubtful accounts: Year ended December 31, 2023 $ 4,690 (1,466 ) (670 ) (d) 450 (a) 2,104 Year ended December 31, 2022 $ 2,247 2,353 1,134 (d) 1,044 (a) 4,690 Year ended December 31, 2021 $ 5,550 877 (844 ) (d) 3,336 (a) 2,247 Allowance for sales returns, net of inventory: Year ended December 31, 2023 $ 5,410 3,071 — 4,783 (b) 3,698 Year ended December 31, 2022 $ 3,242 4,997 — 2,829 (b) 5,410 Year ended December 31, 2021 $ 2,242 3,042 — 2,042 (b) 3,242 Inventory reserve: Year ended December 31, 2023 $ 11,431 10,284 476 (d) 948 (c) 21,243 Year ended December 31, 2022 $ 15,777 8,742 (378 ) (d) 12,710 (c) 11,431 Year ended December 31, 2021 $ 9,371 8,217 7,041 (d)(e) 8,852 (c) 15,777 (a) Write-off of bad debts. (b) Write-off of sales returns. (c) Disposal of inventory (d) Foreign currency translation adjustment (e) Inventory reserves acquired of $7,639 |
Substantially all of our presti
Substantially all of our prestige fragrance brands are licensed from unaffiliated third parties, and our business is dependent upon the continuation and renewal of such licenses. With respect to the Company’s largest brands, we license the Jimmy Choo, Mon (Details) - Product Sales Concentration Risk [Member] - Janvin [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Jimmy Choo [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 17% | 18% | 18% |
Montblanc [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 17% | 18% | 19% |
Coach [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 15% | 15% | 16% |
GUESS [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 12% | 12% | 12% |
Donna Karan and DKNY [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 7% | 3% | |
Ferragamo [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 5% | 5% | 1% |
The following table presents a
The following table presents a summary of the impact by financial statement line item of the corrections for the year ended December 31, 2022: (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in accounts payable and accrued expenses | $ 3,064,000 | $ 64,738,000 | $ 103,046,000 |
Net cash provided by operating activities | 105,774,000 | 73,031,000 | 119,586,000 |
Payments for intangible assets acquired | (46,903,000) | (56,746,000) | (1,545,000) |
Payments for intangible assets acquired | 46,903,000 | 56,746,000 | 1,545,000 |
Net cash used in investing activities | $ 7,262,000 | (90,644,000) | $ (187,866,000) |
Previously Reported [Member] | |||
Change in accounts payable and accrued expenses | 106,857,000 | ||
Net cash provided by operating activities | 115,150,000 | ||
Payments for intangible assets acquired | (98,865,000) | ||
Payments for intangible assets acquired | 98,865,000 | ||
Net cash used in investing activities | (132,763,000) | ||
Revision of Prior Period, Adjustment [Member] | |||
Change in accounts payable and accrued expenses | (42,119,000) | ||
Net cash provided by operating activities | (42,119,000) | ||
Payments for intangible assets acquired | (42,119,000) | ||
Payments for intangible assets acquired | 42,119,000 | ||
Net cash used in investing activities | 42,119,000 | ||
Restatement As Revised [Member] | |||
Change in accounts payable and accrued expenses | 64,738,000 | ||
Net cash provided by operating activities | 73,031,000 | ||
Payments for intangible assets acquired | (56,746,000) | ||
Payments for intangible assets acquired | 56,746,000 | ||
Net cash used in investing activities | $ (90,644,000) |
The Company and its Significa_4
The Company and its Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Product Information [Line Items] | |||
Allowances for sales returns and doubtful accounts | $ 2,100,000 | $ 4,700,000 | |
Shipping and handling costs | 478,597,000 | 392,231,000 | $ 322,614,000 |
Contract with customer, refund liability | 5,500,000 | 8,600,000 | |
Contract with customer, right to recover products | 2,400,000 | 3,200,000 | |
Advertising costs | 259,900,000 | 212,400,000 | 171,100,000 |
Customer incentives cost | $ 52,300,000 | $ 43,100,000 | $ 36,900,000 |
Royalty expense, percentage of net sales | 7.90% | 8% | 7.80% |
Change in Accounts payable and accrued expenses | $ 3,064,000 | $ 64,738,000 | $ 103,046,000 |
Minimum [Member] | Licensing Agreements [Member] | |||
Product Information [Line Items] | |||
License agreement term | 5 years | ||
License agreement renewal term | 1 year | ||
Royalty expense, percentage of net sales | 6% | ||
Maximum [Member] | Licensing Agreements [Member] | |||
Product Information [Line Items] | |||
License agreement term | 15 years | ||
License agreement renewal term | 12 years | ||
Royalty expense, percentage of net sales | 10% | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Credit Risk [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 12% | 10% | 10% |
Shipping and Handling [Member] | |||
Product Information [Line Items] | |||
Shipping and handling costs | $ 14,200,000 | $ 15,800,000 | $ 10,000,000 |
Measurement Input, Discount Rate [Member] | |||
Product Information [Line Items] | |||
Weighted average cost of capital | 10.39% | 9.80% | 7.47% |
Interparfums SA Subsidiary [Member] | |||
Product Information [Line Items] | |||
Ownership percentage in Interparfums SA | 72% |
Recent Agreements (Details Narr
Recent Agreements (Details Narrative) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 | Apr. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Purchase price, period cost | $ 154,000,000 | € 139,000,000 | |||
Acquisition costs, period cost | 3,100,000 | ||||
Cash held in escrow is included in other assets | $ 0 | ||||
Long-term debt, term | 10 years | 10 years | 4 years | 10 years | |
Long-term line of credit | $ 132,600,000 | € 120,000,000 | |||
Description of debt instrument interest rate terms | one-month Euribor plus 0.75% | one-month Euribor plus 0.75% | |||
Debt instrument, face amount | € | € 80,000,000 | ||||
Variable interest rate | 2% | 2% | |||
Fixed interest rate | 1.10% | 1.10% | |||
Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Depreciated over a range | 7 years | 7 years | |||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Depreciated over a range | 50 years | 50 years | |||
Land [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price, period cost | $ 63,300,000 | ||||
Building [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price, period cost | $ 90,700,000 | ||||
Interparfums SA [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 72% | ||||
Roberto Cavalli [Member] | |||||
Business Acquisition [Line Items] | |||||
Description of recent agreement | The license became effective in July 2023 and will last for 6.5 years. | The license became effective in July 2023 and will last for 6.5 years. | |||
Lacoste [Member] | |||||
Business Acquisition [Line Items] | |||||
Description of recent agreement | The license became effective in January 2024 and will last for 15 years. | The license became effective in January 2024 and will last for 15 years. | |||
Donna Karan and DKNY [Member] | |||||
Business Acquisition [Line Items] | |||||
Description of recent agreement | In connection with the grant of license, we issued 65,342 shares of Inter Parfums, Inc. common stock valued at $5.0 million to the licensor. The exclusive license became effective July 1, 2022, and we are planning to launch new fragrances under these brands in 2024. | In connection with the grant of license, we issued 65,342 shares of Inter Parfums, Inc. common stock valued at $5.0 million to the licensor. The exclusive license became effective July 1, 2022, and we are planning to launch new fragrances under these brands in 2024. | |||
Rochas Fashion [Member] | |||||
Business Acquisition [Line Items] | |||||
Description of recent agreement | As a result of operational challenges faced by the Rochas Fashion business we took a $2.4 million impairment charge on our Rochas fashion trademark in the first quarter of 2021. In the fourth quarter of 2022, we again took a $6.8 million impairment charge on the Rochas fashion trademark after an independent expert concluded that the valuation of the trademark was $11.3 million. In 2023, the Rochas teams underwent a strategic shift to take over their own brand operations, exiting contracts with manufacturers and distributors to make this new structure operational beginning in 2024. An independent expert concluded that the valuation based on this new business model would not require additional impairments. | As a result of operational challenges faced by the Rochas Fashion business we took a $2.4 million impairment charge on our Rochas fashion trademark in the first quarter of 2021. In the fourth quarter of 2022, we again took a $6.8 million impairment charge on the Rochas fashion trademark after an independent expert concluded that the valuation of the trademark was $11.3 million. In 2023, the Rochas teams underwent a strategic shift to take over their own brand operations, exiting contracts with manufacturers and distributors to make this new structure operational beginning in 2024. An independent expert concluded that the valuation based on this new business model would not require additional impairments. |
Inventories consist of the foll
Inventories consist of the following: (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials and component parts | $ 158,733 | $ 146,772 |
Finished goods | 213,126 | 143,212 |
Inventories | $ 371,859 | $ 289,984 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventory valuation reserves | $ 21,500,000 | $ 11,400,000 |
Product [Member] | ||
Cost of goods sold, overhead | $ 5,400,000 | $ 3,400,000 |
The fair value hierarchy has th
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Short-term investments | $ 94,304 | $ 150,833 |
Interest rate swaps | 3,909 | 6,758 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 359 | |
Foreign currency forward exchange contracts accounted for using hedge accounting | 1,533 | 1,189 |
Total Assets | 100,105 | 158,780 |
Liabilities: | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | 68 | |
Total liabilities | 68 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Short-term investments | 12,868 | 19,861 |
Interest rate swaps | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | ||
Total Assets | 12,868 | 19,861 |
Liabilities: | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Total liabilities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Short-term investments | 80,614 | 130,174 |
Interest rate swaps | 3,909 | 6,758 |
Foreign currency forward exchange contracts not accounted for using hedge accounting | 359 | |
Foreign currency forward exchange contracts accounted for using hedge accounting | 1,533 | 1,189 |
Total Assets | 86,415 | 138,121 |
Liabilities: | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | 68 | |
Total liabilities | 68 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Short-term investments | 822 | 798 |
Interest rate swaps | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Foreign currency forward exchange contracts accounted for using hedge accounting | ||
Total Assets | $ 822 | 798 |
Liabilities: | ||
Foreign currency forward exchange contracts not accounted for using hedge accounting | ||
Total liabilities |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details Narrative) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Apr. 30, 2021 EUR (€) |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loan amount | $ 55,300,000 | $ 132,600,000 | |||||
Long-term debt, term | 10 years | 10 years | 4 years | 4 years | 10 years | 10 years | |
Derivative swap interest rate | 2% | 2% | 1.10% | 1.10% | |||
Foreign Exchange Contract [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loan amount | $ 2,800,000 | $ 6,300,000 | $ 200,000 | ||||
Forward exchange contracts | $ 61,000,000 | ||||||
Euro Member Countries, Euro | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loan amount | € | € 50,000,000 | € 120,000,000 | |||||
Euro Member Countries, Euro | Interest Rate Swap [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loan amount | € | € 80,000,000 | ||||||
United Kingdom, Pounds | Foreign Exchange Contract [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loan amount | £ | £ 2,500,000 |
Schedule of equipment and lease
Schedule of equipment and leasehold improvements (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | $ 221,805 | $ 210,119 |
Less accumulated depreciation and amortization | 52,583 | 43,397 |
Property, plant and equipment, net, total | 169,222 | 166,722 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | 157,057 | 148,137 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | 62,384 | 59,689 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and leasehold improvements | $ 2,364 | $ 2,293 |
Property, Equipment and Lease_3
Property, Equipment and Leasehold Improvements (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 9,800,000 | $ 7,500,000 | $ 4,400,000 |
Schedule of trademarks, license
Schedule of trademarks, licenses and other intangible assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 386,343 | $ 369,373 |
Accumulated Amortization | 89,987 | 78,520 |
Net Book Value | 296,356 | 290,853 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 215,307 | 205,235 |
Accumulated Amortization | 73,264 | 63,535 |
Net Book Value | 142,043 | 141,700 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 19,524 | 17,849 |
Accumulated Amortization | 16,657 | 14,921 |
Net Book Value | 2,867 | 2,928 |
Indefinite-Lived Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 108,760 | 105,022 |
Accumulated Amortization | ||
Net Book Value | 108,760 | 105,022 |
Finite-Lived Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 42,752 | 41,267 |
Accumulated Amortization | 66 | 64 |
Net Book Value | 42,686 | 41,203 |
Subtotal [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 277,583 | 264,351 |
Accumulated Amortization | 89,987 | 78,520 |
Net Book Value | $ 187,596 | $ 185,831 |
Trademarks, Licenses and Othe_3
Trademarks, Licenses and Other Intangible Assets (Details Narrative) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 EUR (€) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 7,500,000 | $ 6,800,000 | $ 5,900,000 | |
2024 | 14,300,000 | |||
2025 | 13,600,000 | |||
2026 | 12,000,000 | |||
2027 | 11,400,000 | |||
2028 | $ 11,400,000 | |||
Amortization period | 14 years | 14 years | ||
Indefinite-Lived License Agreements | $ 77,000,000 | |||
Euro Member Countries, Euro | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-Lived License Agreements | € | € 70,000,000 | |||
Minimum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 3 years | 3 years | ||
Maximum [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 20 years | 20 years | ||
Measurement Input, Discount Rate [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average cost of capital | 10.39% | 9.80% | 7.47% | 10.39% |
Indefinite-Lived Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charge | $ 0 | $ 6,800,000 | $ 2,400,000 | |
Indefinite-Lived Intangible Assets [Member] | Rochas Fashion Business [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charge | $ 900,000 | |||
Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 18 years | 18 years | ||
Licensing Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 14 years 3 months 19 days | 14 years 3 months 19 days | ||
Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period | 2 years 6 months | 2 years 6 months |
Accrued expenses consist of the
Accrued expenses consist of the following: (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Advertising liabilities | $ 64,815 | $ 42,338 |
Salary (including bonus and related taxes) | 23,546 | 21,128 |
Royalties | 27,477 | 26,532 |
Due vendors (not yet invoiced) | 41,859 | 105,869 |
Retirement reserves | 10,444 | 8,001 |
Refund (return) liability | 5,507 | 8,604 |
Other | 5,232 | 1,149 |
Total | $ 178,880 | $ 213,621 |
Loans Payable _ Banks (Details
Loans Payable – Banks (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Borrowings outstanding lines of credit | $ 4,400,000 | $ 0 |
Weighted average interest rate on short-term borrowings | 4.50% | 0% |
Domestic Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing amount | $ 25,000,000 | |
Domestic Subsidiaries [Member] | London Interbank Offered Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread over variable interest rate | 2% | |
Variable rate | 5.30% | |
Line of credit facility, maturity date | Dec. 13, 2024 | |
Foreign Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing amount | $ 8,000,000 | |
Foreign Subsidiaries [Member] | Euro Interbank Offered Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 3.96% | |
Foreign Subsidiaries [Member] | Euro Interbank Offered Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread over variable interest rate | 0.60% | |
Foreign Subsidiaries [Member] | Euro Interbank Offered Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread over variable interest rate | 0.90% |
Long-term debt consists of the
Long-term debt consists of the following: (Details) Number in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) Number | Dec. 31, 2023 EUR (€) Number | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Apr. 30, 2021 USD ($) | Apr. 30, 2021 EUR (€) | |
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | € | € 80,000,000 | |||||
Loan payable | $ 157,484,000 | $ 180,041,000 | ||||
Less current maturities | 29,587,000 | 28,547,000 | ||||
Total | 127,897,000 | 151,494,000 | ||||
Loans Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 55,300,000 | 55,300,000 | € 50,000,000 | |||
Number of installments | Number | 48 | 48 | ||||
Installment amount (in Dollars) | $ 1,100,000 | |||||
Interest per annum | 0.825% | 0.825% | ||||
Loan payable | $ 40,334,000 | 52,061,000 | ||||
Loans Payable One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 132,600,000 | $ 132,600,000 | € 120,000,000 | |||
Number of installments | Number | 120 | 120 | ||||
Installment amount (in Dollars) | $ 1,100,000 | |||||
Interest per annum | 0.75% | 0.75% | ||||
Loan payable | $ 95,576,000 | 104,758,000 | ||||
Loans Payable Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 15,000,000 | |||||
Number of installments | Number | 14 | 14 | ||||
Installment amount (in Dollars) | $ 1,100,000 | |||||
Interest per annum | 4.10% | 4.10% | ||||
Loan payable | $ 9,172,000 | 9,890,000 | ||||
Loans Payable Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 17,000,000 | |||||
Number of installments | Number | 10 | 10 | ||||
Installment amount (in Dollars) | $ 1,700,000 | |||||
Interest per annum | 2% | 2% | ||||
Loan payable | $ 12,402,000 | $ 13,332,000 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Apr. 30, 2021 EUR (€) | |
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | € | € 80,000,000 | |||||
Long term debt maturity, description | $37.7 million thereafter through 2033. | |||||
2024 | $ 29,600,000 | |||||
2025 | 29,800,000 | |||||
2026 | 28,600,000 | |||||
2027 | 15,900,000 | |||||
2028 | 15,900,000 | |||||
Thereafter through 2033 | 37,700,000 | |||||
Loans Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 55,300,000 | $ 55,300,000 | € 50,000,000 | |||
Long term debt maturity, description | Approximately $88.4 million (€80.0 million) of the variable rate debt was swapped for variable interest rate debt with maximum rate of 2% per annum. | The loan agreement bears interest at EURIBOR-1-month rates plus a margin of 0.825%. This variable rate debt was swapped for variable interest rate debt with a maximum rate of 2% per annum. | ||||
Loans Payable One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 132,600,000 | $ 132,600,000 | € 120,000,000 |
Maturities of lease liabilities
Maturities of lease liabilities subsequent to December 31, 2023 are as follows: (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 6,370 |
2025 | 6,031 |
2026 | 5,276 |
2027 | 5,389 |
2028 | 5,372 |
Thereafter | 3,529 |
Gross total | 31,967 |
Less imputed interest (based on 3.0% weighted-average discount rate) | (1,499) |
Net total | $ 30,468 |
the Company is subject to minim
the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows: (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
License agreement, expiration description | The Company is party to a number of licenses and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2039. |
2024 | $ 288,005 |
2025 | 280,721 |
2026 | 251,718 |
2027 | 233,945 |
2028 | 243,286 |
Thereafter | 1,055,918 |
Total | $ 2,353,593 |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining lease term | 5 years 1 month 6 days | ||
Operating lease of related to rental expenses | $ 5,800,000 | $ 5,600,000 | $ 8,200,000 |
Operating lease payments | 5,300,000 | 4,800,000 | 7,500,000 |
Noncash additions to operating lease assets | 4,800,000 | 300,000 | 12,200,000 |
Royalty expense | $ 103,800,000 | $ 87,000,000 | $ 68,900,000 |
Royalty expense, percentage of net sales | 7.90% | 8% | 7.80% |
Operating Lease [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Operating lease, weighted average discount rate | 3% |
The following table sets forth
The following table sets forth information with respect to nonvested options for 2023: (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity: | |||
Nonvested options - beginning of year | 168,730 | ||
Weighted average grant date fair value, beginning of year | $ 16.31 | ||
Nonvested options granted | 47,500 | 62,000 | 9,000 |
Weighted average grant date fair value, granted | $ 35.08 | ||
Nonvested options vested or forfeited | (94,130) | ||
Weighted average grant date fair value, vested or forfeited | $ 15.19 | ||
Nonvested options - end of year | 122,100 | 168,730 | |
Weighted average grant date fair value, end of year | $ 24.47 | $ 16.31 |
The effect of share-based payme
The effect of share-based payment expenses decreased income statement line items as follows: (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income before income taxes | $ 249,593 | $ 194,219 | $ 151,019 |
Net income attributable to Inter Parfums, Inc. | $ 152,654 | $ 120,938 | $ 87,411 |
Diluted earnings per share attributable to Inter Parfums, Inc | $ 4.75 | $ 3.78 | $ 2.75 |
Operating Income (Loss) [Member] | |||
Income before income taxes | $ 2,525 | $ 3,143 | $ 2,850 |
Net income attributable to Inter Parfums, Inc. | $ 1,700 | $ 2,036 | $ 1,880 |
Diluted earnings per share attributable to Inter Parfums, Inc | $ 0.05 | $ 0.06 | $ 0.06 |
The following table summarizes
The following table summarizes stock option activity and related information for the years ended December 31, 2023, 2022 and 2021: (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity: | |||
Options shares under option - beginning of year | 441,580 | 524,900 | 713,210 |
Weighted average exercise price shares under option - beginning of year | $ 67.30 | $ 57.58 | $ 52.74 |
Options granted | 47,500 | 62,000 | 9,000 |
Weighted average exercise price options granted | $ 147.71 | $ 97.84 | $ 62.18 |
Options exercised | (154,220) | (136,880) | (156,490) |
Weighted average exercise price options exercised | $ 52.04 | $ 43.86 | $ 34.46 |
Options forfeited | (25,890) | (8,440) | (40,820) |
Weighted average exercise price options forfeited | $ 76.32 | $ 67.65 | $ 62.57 |
Options shares under option - end of year | 308,970 | 441,580 | 524,900 |
Weighted average exercise price shares under option - end of year | $ 86.52 | $ 67.30 | $ 57.58 |
The assumptions used in the Bla
The assumptions used in the Black-Scholes pricing model are set forth in the following table: (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity: | |||
Weighted-average expected stock-price volatility | 29% | 26% | 25% |
Weighted-average expected option life | 4 years | 4 years | 5 years |
Weighted-average risk-free interest rate | 3.80% | 4% | 0.40% |
Weighted-average dividend yield | 2% | 2.40% | 1.60% |
Proceeds, tax benefits and intr
Proceeds, tax benefits and intrinsic value related to stock options exercised were as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity: | |||
Proceeds from stock options exercised | $ 8,025 | $ 6,003 | $ 5,393 |
Tax benefits | 1,150 | 800 | 1,300 |
Intrinsic value of stock options exercised | $ 11,578 | $ 6,760 | $ 7,800 |
The following table summarize_2
The following table summarizes additional stock option information as of December 31, 2023: (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Options outstanding | 308,970 |
Options outstanding weighted average remaining contractual life | 2 years 10 months 6 days |
Options exercisable | 186,870 |
Exercise Price Range One [Member] | |
Options outstanding | 100,680 |
Options outstanding weighted average remaining contractual life | 1 year 18 days |
Options exercisable | 96,180 |
Exercise Price Range Two [Member] | |
Exercise price range (in dollars per share) | $ / shares | $ 73.09 |
Options outstanding | 104,790 |
Options outstanding weighted average remaining contractual life | 2 years |
Options exercisable | 79,490 |
Exercise Price Range Three [Member] | |
Exercise price range (in dollars per share) | $ / shares | $ 97.84 |
Options outstanding | 56,000 |
Options outstanding weighted average remaining contractual life | 5 years |
Options exercisable | 11,200 |
Exercise Price Range Four [Member] | |
Exercise price range (in dollars per share) | $ / shares | $ 147.71 |
Options outstanding | 47,500 |
Options outstanding weighted average remaining contractual life | 6 years |
Options exercisable | |
Minimum [Member] | Exercise Price Range One [Member] | |
Exercise price range (in dollars per share) | $ / shares | $ 62.18 |
Maximum [Member] | Exercise Price Range One [Member] | |
Exercise price range (in dollars per share) | $ / shares | $ 69.11 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 15, 2024 | Feb. 28, 2024 | Feb. 28, 2023 | Mar. 31, 2022 | Feb. 28, 2021 | |
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Weighted average exercise price of options exercisable | $ 70.60 | ||||||||||
Weighted average remaining contractual life of options exercisable | 1 year 8 months 2 days | ||||||||||
Aggregate intrinsic value of options exercisable | $ 13,700,000 | ||||||||||
Straight line basis over the requisite | 3 years | ||||||||||
Dividends payable, amount per share (in dollars per share) | $ 2 | $ 2.50 | $ 1 | ||||||||
Percentage of increase in annual dividend | 100% | ||||||||||
Interparfums SA [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Aggregate cost | $ 4,200,000 | ||||||||||
Interparfums SA [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Aggregate cost | 4,100,000 | ||||||||||
Board of Directors Chairman [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Dividends payable, amount per share (in dollars per share) | $ 0.75 | $ 3 | |||||||||
Interparfums SA Subsidiary [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Shares adjusted for stock splits | 211,955 | ||||||||||
Recognized as compensation cost | $ 4,800,000 | ||||||||||
Interparfums SA Subsidiary [Member] | Employees [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Adjusted for stock splits (in shares) | 26,600 | 87,609 | 88,400 | ||||||||
Aggregate intrinsic value of options outstanding | 133,000 | ||||||||||
Number of share distributed | 93,405 | ||||||||||
Equity Option [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Number of shares available for grant (in shares) | 537,365 | ||||||||||
Aggregate intrinsic value of options outstanding | $ 17,900,000 | ||||||||||
Term | 5 years | ||||||||||
Stock Option One [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Aggregate intrinsic value of options outstanding | $ 2,900,000 | ||||||||||
Equity Option [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Fair value of shares vested | $ 1,200,000 | $ 1,300,000 | $ 1,400,000 | ||||||||
Weighted average grant date fair value (in dollars per share) | $ 35.08 | $ 20.36 | $ 11.35 | ||||||||
Minimum [Member] | Equity Option [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||||||||||
Maximum [Member] | Equity Option [Member] | |||||||||||
Subsidiary or Equity Method Investee [Line Items] | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 5 years |
The reconciliation between the
The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows: (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributable to Inter Parfums, Inc (in dollars) | $ 152,654 | $ 120,938 | $ 87,411 |
Weighted average shares | 31,994,328 | 31,859,417 | 31,676,796 |
Stock options | 145,374 | 129,336 | 158,612 |
Denominator for diluted earnings per share | 32,139,702 | 31,988,753 | 31,835,408 |
Basic (in dollars per share) | $ 4.77 | $ 3.80 | $ 2.76 |
Diluted (in dollars per share) | $ 4.75 | $ 3.78 | $ 2.75 |
Net Income Attributable to In_3
Net Income Attributable to Inter Parfums, Inc. Common Shareholders (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 38,000 | 175,000 |
Information on the Company_s op
Information on the Company’s operations by segments is as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,317,675 | $ 1,086,653 | $ 879,516 |
Net income attributable to Inter Parfums, Inc | 152,654 | 120,938 | 87,411 |
Depreciation and amortization expense including impairment loss | 17,331 | 22,539 | 12,698 |
Interest and investment income | 10,729 | 5,486 | 3,403 |
Interest expense | 11,253 | 3,599 | 2,825 |
Income tax expense | 61,817 | 43,182 | 40,992 |
Total assets | 1,369,329 | 1,308,542 | 1,145,364 |
Additions to long-lived assets | 6,465 | 33,756 | 141,274 |
Total long-lived assets | 494,191 | 485,538 | 397,127 |
Deferred tax assets | 14,545 | 11,159 | 7,936 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 455,758 | 342,644 | 216,559 |
Net income attributable to Inter Parfums, Inc | 63,781 | 43,745 | 29,359 |
Depreciation and amortization expense including impairment loss | 6,517 | 6,355 | 3,835 |
Interest and investment income | 346 | 66 | 3 |
Interest expense | 1,351 | 1,100 | 636 |
Income tax expense | 15,180 | 6,920 | 5,336 |
Total assets | 344,341 | 278,090 | 247,703 |
Additions to long-lived assets | 1,277 | 2,318 | 2,711 |
Total long-lived assets | 57,372 | 61,539 | 63,094 |
Deferred tax assets | 2,175 | 2,906 | 870 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 863,397 | 744,075 | 663,290 |
Net income attributable to Inter Parfums, Inc | 89,250 | 77,193 | 57,869 |
Depreciation and amortization expense including impairment loss | 10,814 | 16,184 | 8,863 |
Interest and investment income | 10,810 | 5,769 | 3,526 |
Interest expense | 10,329 | 2,848 | 2,315 |
Income tax expense | 46,763 | 36,262 | 35,607 |
Total assets | 1,066,684 | 1,052,004 | 931,735 |
Additions to long-lived assets | 5,188 | 31,438 | 138,563 |
Total long-lived assets | 436,819 | 423,999 | 334,033 |
Deferred tax assets | 12,244 | 8,253 | 7,066 |
Eliminations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | (1,480) | (66) | (333) |
Net income attributable to Inter Parfums, Inc | (377) | 183 | |
Interest and investment income | (427) | (349) | (126) |
Interest expense | (427) | (349) | (126) |
Income tax expense | (126) | 49 | |
Total assets | (41,696) | (21,552) | (34,074) |
Deferred tax assets | $ 126 |
Consolidated net sales to custo
Consolidated net sales to customers by region are as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 1,317,700 | $ 1,086,700 | $ 879,500 |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 511,700 | 421,000 | 346,900 |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 404,400 | 333,400 | 271,600 |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 191,800 | 163,600 | 135,200 |
Middle East [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 107,300 | 87,800 | 61,000 |
Central and South America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 92,700 | 69,900 | 56,400 |
Other Segment Country [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 9,800 | $ 11,000 | $ 8,400 |
Consolidated net sales to cus_2
Consolidated net sales to customers in major countries are as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,317,675 | $ 1,086,653 | $ 879,516 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 493,200 | 410,000 | 344,100 |
France [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 51,000 | 44,800 | 44,000 |
Russia [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 50,100 | 33,964 | 43,400 |
United Kingdom [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 47,500 | $ 37,900 | $ 38,500 |
Segments and Geographic Areas_2
Segments and Geographic Areas (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from export sales | $ 1,317,700,000 | $ 1,086,700,000 | $ 879,500,000 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from export sales | $ 230,500,000 | $ 180,000,000 | $ 133,400,000 |
The components of income before
The components of income before income taxes consist of the following: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 78,962 | $ 50,250 | $ 34,742 |
Foreign operations | 170,631 | 143,969 | 116,277 |
Income before income taxes | $ 249,593 | $ 194,219 | $ 151,019 |
The provision for current and d
The provision for current and deferred income tax expense (benefit) consists of the following: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 12,062 | $ 6,829 | $ 4,825 |
State and local | 712 | 658 | 518 |
Foreign | 52,186 | 39,458 | 36,164 |
Current income tax expense | 64,960 | 46,945 | 41,507 |
Federal | 199 | (802) | 4 |
State and local | 19 | (49) | 11 |
Foreign | (3,361) | (2,912) | (530) |
Deferred income tax expense | (3,143) | (3,763) | (515) |
Total income tax expense | $ 61,817 | $ 43,182 | $ 40,992 |
The tax effects of temporary di
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows: (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Net deferred tax assets: | ||
Foreign net operating loss carry-forwards | $ 218 | $ 554 |
Inventory and accounts receivable | 3,138 | 3,880 |
Profit sharing | 3,505 | 2,871 |
Stock option compensation | 613 | 716 |
Effect of inventory profit elimination | 10,957 | 9,342 |
Other | 1,674 | 266 |
Total gross deferred tax assets, net | 20,105 | 17,629 |
Valuation allowance | (296) | (554) |
Net deferred tax assets | 19,809 | 17,075 |
Deferred tax liabilities (long-term): | ||
Building expenses | (1,327) | (1,356) |
Trademarks and licenses | (2,238) | (2,160) |
Unrealized gain on marketable equity securities | (1,044) | (1,745) |
Other | (655) | (655) |
Total deferred tax liabilities | (5,264) | (5,916) |
Net deferred tax assets | $ 14,545 | $ 11,159 |
Differences between the United
Differences between the United States federal statutory income tax rate and the effective income tax rate were as follows: (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory rates | 21% | 21% | 21% |
State and local taxes, net of Federal benefit | 0.20% | 0.20% | 0.30% |
Windfall benefit from exercise of stock options | (0.40%) | (0.40%) | (0.90%) |
Benefit of Foreign Derived Intangible Income | (0.90%) | (0.80%) | (0.60%) |
Effect of foreign taxes greater than U.S. statutory rates | 4.30% | 3.10% | 7.40% |
Other | 0.60% | (0.90%) | (0.10%) |
Effective rates | 24.80% | 22.20% | 27.10% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred foreign income tax expense (benefit) | $ (3,361,000) | $ (2,912,000) | $ (530,000) |
Foreign Derived Intangible Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred foreign income tax expense (benefit) | $ 2,400,000 | $ 1,500,000 | $ 900,000 |
The components of accumulated o
The components of accumulated other comprehensive loss consist of the following: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | $ (40,188) | $ (56,056) | $ (38,432) |
Accumulated Defined Benefit Plans Net Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net derivative instruments, beginning of year | 1,709 | (992) | |
Net derivative instrument gain (loss), net of tax | (1,645) | 2,701 | (992) |
Net derivative instruments, end of year | 64 | 1,709 | (992) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Cumulative translation adjustments, beginning of year | (57,765) | (37,440) | (5,997) |
Translation adjustments | 17,513 | (20,325) | (31,443) |
Cumulative translation adjustments, end of year | $ (40,252) | $ (57,765) | $ (37,440) |
The following table provides a
The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in millions) as of December 31, 2 (Details) $ in Millions | Dec. 31, 2021 USD ($) |
Reconciliation Of Cash And Cash Equivalents To Statement Of Cash Flows | |
Cash and cash equivalents | $ 159,613 |
Cash held in escrow included in other assets | 8,774 |
Cash and cash equivalents per statement of cash flows | $ 168,387 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Related Party Transactions [Abstract] | |
Expenses for sevices | $ 47,000 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | $ 4,690 | $ 2,247 | $ 5,550 | ||
Charged to costs and expenses | (1,466) | 2,353 | 877 | ||
Charged to other accounts | [1] | (670) | 1,134 | (844) | |
Deductions | [2] | 450 | 1,044 | 3,336 | |
Balance at end of period | 2,104 | 4,690 | 2,247 | ||
Sales Returns and Allowances [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 5,410 | 3,242 | 2,242 | ||
Charged to costs and expenses | 3,071 | 4,997 | 3,042 | ||
Charged to other accounts | |||||
Deductions | [3] | 4,783 | 2,829 | 2,042 | |
Balance at end of period | 3,698 | 5,410 | 3,242 | ||
SEC Schedule, 12-09, Reserve, Inventory [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of period | 11,431 | 15,777 | 9,371 | ||
Charged to costs and expenses | 10,284 | 8,742 | 8,217 | ||
Charged to other accounts | [1] | 476 | (378) | 7,041 | [4] |
Deductions | [5] | 948 | 12,710 | 8,852 | |
Balance at end of period | $ 21,243 | $ 11,431 | $ 15,777 | ||
[1]Foreign currency translation adjustment[2]Write-off of bad debts.[3]Write-off of sales returns.[4]Inventory reserves acquired of $7,639 [5]Disposal of inventory |