Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 56

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 7
Chunk 56
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 of our European based operations are denominated in U.S. dollars. Gains and losses in derivatives designated as hedges are accumulated in other comprehensive income and gains and losses in derivatives not designated as hedges are included in (gain) loss on foreign currency on the accompanying consolidated income statements. Such gains and losses were immaterial in the three and nine months ended September 30, 2025 and 2024.
 
Interest and investment income represents interest earned on cash and cash equivalents and short-term investments and realized and unrealized gains and losses on marketable equity securities. Interest income was $4.4 million in the nine months ended September 30, 2025 compared to $2.7 million in the prior year period. 

Income Taxes
 
Our consolidated effective tax rate was 23.5% and 23.7% for the nine months ended September 30, 2025 and 2024, respectively. The effective tax rate for European based operations was 24.4% and 25.0% for the nine months ended September 30, 2025 and 2024, respectively. The decrease in taxes resulted from a $3 million favorable outcome to our mutual agreement procedure between the French and United States tax authorities in which we were able to reclaim the tax assessment paid in France in 2023. The gain was offset by a $1 million one-time tax assessment included in the tax expense as a result of a tax audit conducted for the 2022 and 2023 tax years. The effective tax rate for United States based operations was 20.0% for the nine months ended September 30, 2025, as compared to 19.8% for the corresponding period of the prior year. Our effective tax rate for United States based operations differs from the 21% statutory rate in the United States as it is a blended rate across multiple jurisdictions, and takes into account benefits received from the exercise of stock options as well as deductions we are allowed for a portion of our foreign derived intangible income, slightly offset by state and local taxes. Other than as discussed above, we did not experience any significant changes in tax rates, and none were expected in jurisdictions where we operate.

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INTERPARFUMS, INC. AND SUBSIDIARIES
Net Income

Three Months Ended

Nine Months Ended

    (In thousands)

September 30,

September 30,

2025

2024

2025

2024

Net income attributable to European