Company: IPAR
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001753926-25-000424
Chunk: 209

Company: INTERPARFUMS INC
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 209
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 in the period of change. If the derivative is designated and qualifies as a cash flow hedge, then the changes in fair value of the derivative instrument will be recorded in other comprehensive income.

Before entering into a derivative transaction for hedging purposes, we determine that the change in the value of the derivative will effectively offset the change in the fair value of the hedged item from a movement in foreign currency rates. Then, we measure the effectiveness of each hedge throughout the hedged period. Any hedge ineffectiveness is recognized in the income statement.

As of December 31, 2024, we had foreign currency contracts in the form of forward exchange contracts of approximately U.S. $100 million with maturities of less than one year. We believe that our risk of loss as the result of nonperformance by any of such financial institutions is remote.

Interest Rate Risk Management

We mitigate interest rate risk by monitoring interest rates, and then determining whether fixed interest rates should be swapped for floating rate debt, or if floating rate debt should be swapped for fixed rate debt.

Item 8. Financial Statements and Supplementary Data

The required financial statements commence on page F-1.

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Item 9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures. 

Evaluation of Disclosure Controls and Procedures 

Our Chief Executive Officer and Chief
Financial Officer have reviewed and evaluated the effectiveness of our
disclosure controls and procedures (as defined in the Securities Exchange Act
of 1934 Rule 13a-15(e)) as of the end of the period covered by this annual
report on Form 10-K (the “Evaluation Date”). In designing and evaluating the disclosure
controls and procedures, management recognized that any controls and
procedures, no matter how well designed and operated, could provide only
reasonable assurance of achieving the desired control objectives, and
management necessarily was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures. Based
on this evaluation, the Company's Chief Executive Officer and Chief Financial
Officer concluded that, as a result of the material weaknesses in internal
control over financial reporting described below in “Management’s Annual Report
on Internal Control over Financial Reporting”, the Company’s disclosure
controls and procedures were not effective as of December 31, 2024. 

Management’s Annual Report on Internal Control over Financial Reporting

The management of Interparfums, Inc. is
responsible for establishing and