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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2015
Income Taxes [Abstract] |
Income Tax Disclosure [Text Block] |
(15) | Income Taxes
The Company or its subsidiaries file income tax returns in the U.S. federal, and various states and foreign jurisdictions. The Company assessed its uncertain tax positions and determined that it has no uncertain tax position at December 31, 2015. The components of income before income taxes consist of the following:
|  | Year ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
U.S. operations |  | $ | 11,564 |  | $ | 12,712 |  | $ | 11,340 |
Foreign operations |  |  | 48,932 |  |  | 44,003 |  |  | 69,306 |
|  | $ | 60,496 |  | $ | 56,715 |  | $ | 80,646 |
The provision for current and deferred income tax expense (benefit) consists of the following:
|  | Year ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 3,660 |  | $ | 4,374 |  | $ | 3,638 |
State and local |  |  | 220 |  |  | 323 |  |  | 454 |
Foreign |  |  | 16,806 |  |  | 15,229 |  |  | 20,744 |
|  |  | 20,686 |  |  | 19,926 |  |  | 24,836 |
Deferred: |  |  |  |  |  |  |  |  |  |
Federal |  |  | 30 |  |  | (84) |  |  | 370 |
State and local |  |  | 1 |  |  | 30 |  |  | 59 |
Foreign |  |  | 810 |  |  | (502) |  |  | 4,415 |
|  |  | 841 |  |  | (556) |  |  | 4,844 |
Total income tax expense |  | $ | 21,527 |  | $ | 19,370 |  | $ | 29,680 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:
|  | December 31, |
|  | 2015 |  | 2014 |
Net deferred tax assets: |  |  |  |  |  |  |
Foreign net operating loss carry-forwards |  | $ | 296 |  | $ | 419 |
Inventory and accounts receivable |  |  | 2,321 |  |  | 2,655 |
Profit sharing |  |  | 2,442 |  |  | 2,570 |
Stock option compensation |  |  | 717 |  |  | 545 |
Effect of inventory profit elimination |  |  | 2,170 |  |  | 1,757 |
Other |  |  | (468) |  |  | (679) |
Total gross deferred tax assets, net |  |  | 7,478 |  |  | 7,267 |
Valuation allowance |  |  | (296) |  |  | (419) |
Net deferred tax assets |  |  | 7,182 |  |  | 6,848 |
Deferred tax liabilities (long-term): |  |  |  |  |  |  |
Trademarks and licenses |  |  | (3,746) |  |  | (2,154) |
Other |  |  | — |  |  | — |
Total deferred tax liabilities |  |  | (3,746) |  |  | (2,154) |
Net deferred tax assets |  | $ | 3,436 |  | $ | 4,694 |
Valuation allowances are provided for foreign net operating loss carry-forwards, as future profitable operations from certain foreign subsidiaries might not be sufficient to realize the full amount of net operating loss carry-forwards. No other valuation allowances have been provided as management believes that it is more likely than not that the asset will be realized in the reduction of future taxable income. The French Tax Authorities have examined the 2012 tax return of Interparfums, SA and issued a $6.9 million tax adjustment. It is the Company’s position that the French Tax Authorities are incorrect in their assessments. The Company believes that it has strong arguments to support its tax positions and that more likely than not, its tax positions will be sustained. The Company will vigorously contest the assessments. The Company is no longer subject to U.S. federal, state, and local or non-U.S. income tax examinations by tax authorities for years before 2012. The Company has not provided for U.S. deferred income taxes on $352 million of undistributed earnings of its non-U.S. subsidiaries as of December 31, 2015 since the Company intends to reinvest most of these earnings in its foreign operations indefinitely and the Company believes it has sufficient foreign tax credits available to offset any potential tax on amounts that have been and are planned to be repatriated. Differences between the United States Federal statutory income tax rate and the effective income tax rate were as follows:
|  | Year ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Statutory rates |  |  | 34.0 | % |  | 34.0 | % |  | 34.0 | %
State and local taxes, net of Federal benefit |  |  | 0.2 |  |  | 0.1 |  |  | 0.4 |
Effect of foreign taxes greater than |  |  |  |  |  |  |  |  |  |
U.S. statutory rates |  |  | 1.6 |  |  | 0.4 |  |  | 2.0 |
Other |  |  | (0.2) |  |  | (0.3) |  |  | 0.4 |
Effective rates |  |  | 35.6 | % |  | 34.2 | % |  | 36.8 | %

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: 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.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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