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Share-Based Payments | 3 Months Ended
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Mar. 31, 2015
Share-Based Payments [Abstract] |
Share-Based Payments |
| 7. | 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 during both the three months ended March 31, 2015 and 2014 aggregated $0.03 million. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. It is generally our policy to issue new shares upon exercise of stock options. The following table sets forth information with respect to nonvested options for the three month period ended March 31, 2015:
|  |  |  |  |  | Weighted Average |
|  | Number of Shares |  |  | Grant Date Fair Value |
Nonvested options – beginning of period |  |  | 385,505 |  |  | $ | 7.14 |
Nonvested options granted |  |  | 14,000 |  |  | $ | 6.73 |
Nonvested options vested or forfeited |  |  | (7,085 | ) |  | $ | 6.39 |
Nonvested options – end of period |  |  | 392,420 |  |  | $ | 7.14 |
Share-based payment expense decreased income before income taxes by $0.19 million and $0.23 million for the three months ended March 31, 2015 and 2014, respectively, and decreased net income attributable to Inter Parfums, Inc. by $0.12 million and $0.11 million for the three months ended March 31, 2015 and 2014, respectively. The following table summarizes stock option information as of March 31, 2015:
|  |  |  |  | Weighted Average |
|  | Shares |  |  | Exercise Price |
Outstanding at January 1, 2015 |  |  | 639,495 |  |  | $ | 23.19 |
Options granted |  |  | 14,000 |  |  |  | 25.67 |
Options cancelled |  |  | (2,170 | ) |  |  | 25.49 |
Options exercised |  |  | (4,808 | ) |  |  | 17.14 |
Outstanding at March 31, 2015 |  |  | 646,517 |  |  | $ | 23.28 |
Options exercisable |  |  | 254,097 |  |  | $ | 18.50 |
Options available for future grants |  |  | 316,705 |  |  |  |  |
As of March 31, 2015, the weighted average remaining contractual life of options outstanding is 3.69 years (2.39 years for options exercisable), the aggregate intrinsic value of options outstanding and options exercisable is $6.4 million and $3.7 million, respectively, and unrecognized compensation cost related to stock options outstanding of Inter Parfums, Inc. aggregated $2.5 million. Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the three months ended March 31, 2015 and March 31, 2014 were as follows:
|  | March 31, |  |  | March 31, |
(In thousands) |  | 2015 |  |  | 2014 |
Cash proceeds from stock options exercised |  | $ | 82 |  |  | $ | 695 |
Tax benefits |  |  | 0 |  |  |  | 0 |
Intrinsic value of stock options exercised |  |  | 66 |  |  |  | 1,455 |
The weighted average fair values of the options granted by Inter Parfums, Inc. during the three months ended March 31, 2015 and 2014 were $6.73 and $8.37 per share, respectively, on the date of grant using the Black-Scholes option pricing model to calculate the fair value of options granted. The assumptions used in the Black-Scholes pricing model for the periods ended March 31, 2015 and 2014 are set forth in the following table:
|  | March 31, |  |  | March 31, |
|  | 2015 |  |  | 2014 |
Weighted average expected stock-price volatility |  |  | 34 | % |  |  | 37 | %
Weighted average expected option life |  |  | 5 years |  |  |  | 5 years |
Weighted average risk-free interest rate |  |  | 1.28 | % |  |  | 1.55 | %
Weighted average dividend yield |  |  | 1.8 | % |  |  | 2.8 | %
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 increase as the earnings of the Company and its stock price continue to increase.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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