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Equity | 12 Months Ended
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Dec. 31, 2013
Equity [Abstract] |
Equity |
| (11) | 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 to five-year period. The fair value of shares vested in 2013 and 2012 aggregated $0.5 million and $0.9 million, respectively. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. It is generally the Company's policy to issue new shares upon exercise of stock options. The following table sets forth information with respect to nonvested options for 2013:
|  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |
Nonvested options - beginning of year |  |  | 346,075 |  |  | $ | 5.02 |
Nonvested options granted |  |  | 136,350 |  |  | $ | 9.20 |
Nonvested options vested or forfeited |  |  | (114,955 | ) |  | $ | 4.67 |
Nonvested options - end of year |  |  | 367,470 |  |  | $ | 6.68 |
Share-based payment expenses decreased income before income taxes by $0.8 million in 2013 and 2012 and $1.1 million in 2011, decreased net income attributable to Inter Parfums, Inc. by $0.50 million in 2013 and 2012 and $0.60 million in 2011, respectively, and reduced diluted earnings per share by $0.01 in 2013 and 2012, and $0.02 in 2011. The following table summarizes stock option activity and related information for the years ended December 31, 2013, 2012 and 2011 and does not include information relating to options of IPSA granted by IPSA, our majority-owned subsidiary:
|  | Year ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
|  | Options |  |  | Weighted Average Exercise Price |  |  | Options |  |  | Weighted Average Exercise Price |  |  | Options |  |  | Weighted Average Exercise Price |
Shares under option - beginning of year |  |  | 716,235 |  |  | $ | 14.41 |  |  |  | 823,275 |  |  | $ | 13.20 |  |  |  | 807,620 |  |  | $ | 12.78 |
Options granted |  |  | 136,350 |  |  |  | 34.84 |  |  |  | 128,850 |  |  |  | 19.25 |  |  |  | 118,900 |  |  |  | 15.66 |
Options exercised |  |  | (204,240 | ) |  |  | 11.68 |  |  |  | (226,160 | ) |  |  | 12.72 |  |  |  | (95,625 | ) |  |  | 12.66 |
Options cancelled |  |  | (4,750 | ) |  |  | 17.47 |  |  |  | (9,730 | ) |  |  | 15.37 |  |  |  | (7,620 | ) |  |  | 14.37 |
Shares under option - end of year |  |  | 643,595 |  |  |  | 19.58 |  |  |  | 716,235 |  |  |  | 14.41 |  |  |  | 823,275 |  |  |  | 13.20 |
At December 31, 2013, options for 461,075 shares were available for future grant under the plans. The aggregate intrinsic value of options outstanding is $10.4 million as of December 31, 2013 and unrecognized compensation cost related to stock options outstanding on Inter Parfums, Inc. common stock aggregated $2.3 million, which will be recognized over the next five years. The amount of unrecognized compensation cost related to stock options outstanding of our majority-owned subsidiary, IPSA, was €0.1 million (approximately $0.15 million). Options under IPSA plans vest four years after grant. The weighted average fair values of options granted by Inter Parfums, Inc. during 2013, 2012 and 2011 were $9.20, $5.54 and $4.59 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value. The assumptions used in the Black-Scholes pricing model for the years ended December 31, 2013, 2012 and 2011 are set forth in the following table:
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Weighted-average expected stock-price volatility |  |  | 37 | % |  |  | 38 | % |  |  | 40 | %
Weighted-average expected option life |  |  | 5.0 years |  |  |  | 5.0 years |  |  |  | 4.5 years |
Weighted-average risk-free interest rate |  |  | 1.7 | % |  |  | 0.7 | % |  |  | 0.9 | %
Weighted-average dividend yield |  |  | 2.7 | % |  |  | 1.7 | % |  |  | 1.7 | %
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. Cash proceeds, tax benefits and intrinsic value related to stock options exercised were as follows:
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Cash proceeds from stock options exercised |  | $ | 1,668 |  |  | $ | 1,305 |  |  | $ | 1,210 |
Tax benefits |  | $ | 700 |  |  | $ | 100 |  |  | $ | - |
Intrinsic value of stock options exercised |  | $ | 4,088 |  |  | $ | 1,359 |  |  | $ | 720 |
The following table summarizes additional stock option information as of December 31, 2013:
|  |  |  |  | Options outstanding |  |  |
|  | Number |  |  | weighted average remaining |  | Options |
Exercise prices |  | outstanding |  |  | contractual life |  | exercisable |
$6.15 - $6.93 |  |  | 47,930 |  |  | 0.99 years |  |  | 47,930 |
$11.30 - $11.41 |  |  | 39,225 |  |  | 0.12 years |  |  | 39,225 |
$12.14 |  |  | 78,120 |  |  | 2.00 years |  |  | 60,010 |
$13.45 |  |  | 3,000 |  |  | 1.08 years |  |  | 1,875 |
$15.59 - $15.62 |  |  | 113,010 |  |  | 3.90 years |  |  | 44,550 |
$17.07 - $17.94 |  |  | 6,750 |  |  | 2.68 years |  |  | 1,625 |
$19.03 - $19.33 |  |  | 219,210 |  |  | 4.11 years |  |  | 80,910 |
$21.76 |  |  | 5,000 |  |  | 4.09 years |  |  | - |
$22.20 |  |  | 4,000 |  |  | 5.09 years |  |  | - |
$35.75 |  |  | 127,350 |  |  | 6.00 years |  |  | - |
Totals |  |  | 643,595 |  |  | 3.69 Years |  |  | 276,125 |
As of December 31, 2013, the weighted average exercise price of options exercisable was $13.76 and the weighted average remaining contractual life of options exercisable is 2.32 years. The aggregate intrinsic value of options exercisable at December 31, 2013 is $6.1 million. The Chief Executive Officer and the President each exercised 13,875, 28,500 and 60,000 outstanding stock options of the Company's common stock in 2014, 2013 and 2012, respectively. The aggregate exercise prices of $0.3 million in 2014, $0.7 million in 2013 and $1.6 million in 2012 were paid by them tendering to the Company in 2014, 2013 and 2012, an aggregate of 10,080, 18,880 and 82,322 shares, respectively, of the Company's common stock, previously owned by them, valued at fair market value on the dates of exercise. All shares issued pursuant to these option exercises were issued from treasury stock of the Company. In addition, the Chief Executive Officer tendered in 2014, 2013 and 2012 an additional 1,193, 2,573 and 4,710 shares, respectively, for payment of certain withholding taxes resulting from his option exercises. Dividends The quarterly dividend of $3.7 million ($0.12 per share) declared in December 2013 was paid in January 2014. The next quarterly dividend of $0.12 per share will be paid on April 15, 2014 to shareholders of record on March 31, 2014.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 + Details
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