Share-Based Payments

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

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, 2016 and 2015 aggregated $0.05 million and $0.03 million, respectively. 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, 2016:

	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested options – beginning of period		414,850	$	6.86
Nonvested options granted		5,000	$	6.50
Nonvested options vested or forfeited		(13,370)	$	6.76
Nonvested options – end of period		406,480	$	6.86

Share-based payment expense decreased income before income taxes by $0.21 million and $0.19 million for the three months ended March 31, 2016 and 2015, respectively, and decreased net income attributable to Inter Parfums, Inc. by $0.13 million and $0.12 million for the three months ended March 31, 2016 and 2015, respectively.

The following table summarizes stock option information as of March 31, 2016:

	Shares		Weighted Average Exercise Price

Outstanding at January 1, 2016		709,300	$	24.34
Options granted		5,000		26.40
Options cancelled		(7,120)		26.97
Options exercised		(7,150)		18.41

Outstanding at March 31, 2016		700,030	$	24.39

Options exercisable		293,550	$	22.04
Options available for future grants		180,165

As of March 31, 2016, the weighted average remaining contractual life of options outstanding is 3.59 years (2.32 years for options exercisable), the aggregate intrinsic value of options outstanding and options exercisable is $5.2 million and $2.8 million, respectively, and unrecognized compensation cost related to stock options outstanding aggregated $2.5 million.

Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the three months ended March 31, 2016 and March 31, 2015 were as follows:

(In thousands)	March 31, 2016		March 31, 2015

Cash proceeds from stock options exercised	$	132	$	82
Tax benefits		—		—
Intrinsic value of stock options exercised		80		66

The weighted average fair values of the options granted by Inter Parfums, Inc. during the three months ended March 31, 2016 and 2015 were $6.50 and $6.73 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, 2016 and 2015 are set forth in the following table:

	March 31, 2016			March 31, 2015

Weighted average expected stock-price volatility		33	%		34	%
Weighted average expected option life		5 years			5 years
Weighted average risk-free interest rate		1.42	%		1.28	%
Weighted average dividend yield		2.2	%		1.8	%

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.