Company: IPAR
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001753926-25-001703
Chunk: 38

Company: INTERPARFUMS INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 7
Chunk 38
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 hedges are accumulated in other comprehensive income and gains and losses in derivatives
not designated as hedges are included in loss (gain) on foreign currency in the accompanying consolidated statements of income.
Such gains and losses were immaterial for the three and nine months ended September 30, 2025 and 2024, respectively.
 
All
derivative instruments are reported as either assets or liabilities on the consolidated balance sheet measured at fair value.
The fair value of interest rate swaps includes a liability position which is included in long-term debt on the accompanying consolidated balance sheet, and an asset position which is included in other assets on the accompanying balance sheet. The fair value of foreign currency forward exchange contracts at September 30, 2025, resulted in a net asset and is included in other current assets on the accompanying consolidated balance sheet.

At September 30, 2025, the Company had foreign currency contracts in the form of forward exchange contracts with notional amounts of approximately USD $60 million which all have maturities of less than one year. 

Page 10

INTERPARFUMS, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

7.

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.
 
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 September 30, 2025, the weighted average remaining lease term was 3.6 years and the weighted average discount rate used to determine
the operating lease liability was 3.1%. Rental expense related to operating leases was $1.8 million and $5.1 million for the three and nine months ended September 30, 2025, respectively, as compared to