Company: IPAR
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001753926-25-001236
Chunk: 55

Company: INTERPARFUMS INC
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 7
Chunk 55
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 this change is the impact of our gains and losses on marketable securities where we had recorded a loss of $3.4 million in the first half of 2025 and a loss of $0.6 million in the first half of 2024. Changes in interest expense and interest income were favorable year-over-year with net interest expense of $1.1 million during the six months ended June 30, 2025 as compared to a net interest expense of $0.8 million in the prior year period. 
 
Interest expense is primarily related to the financing of brand and licensing acquisitions as well as our headquarters in Paris. Long-term debt including current maturities aggregated $210.0 million and $157.3 million as of June 30, 2025 and December 31, 2024, respectively. Interest expense was $3.1 million in the six months ended June 30, 2025 compared to $3.5 million in the prior year period. 
 
We enter into foreign currency forward exchange contracts to manage exposure related to receivables from unaffiliated third parties denominated in a foreign currency and occasionally to manage risks related to future sales expected to be denominated in a foreign currency. Approximately 50% of net sales 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 six months ended June 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 $2.6 million in the six months ended June 30, 2025 compared to $1.7 million in the prior year period. As of June 30, 2025, short-term investments also include approximately $3.5 million of marketable equity securities of other companies in the luxury goods sector. In the second quarter of 2025, the Company had unrealized losses on these securities $1.1 million compared to unrealized gains of $1.5 million for the corresponding period of the prior year.

Income Taxes
 
Our consolidated effective tax rate was 24.3% and 23.