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Share-Based Payments
 6 Months Ended
Jun. 30, 2016
Share-Based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
8.
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 for the six months ended June 30, 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 six month period ended June 30, 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
 
 
(20,350)
 
$
6.82
 
Nonvested options – end of period
 
 
399,500
 
$
6.85
 
 
Share-based payment expense decreased income before income taxes by $0.21 million and $0.42 million for the three and six months ended June 30, 2016, respectively, as compared to $0.20 million and $0.39 million for the corresponding periods of the prior year. Share-based payment expense decreased income attributable to Inter Parfums, Inc. by $0.13 million and $0.25 million for the three and six months ended June 30, 2016, respectively, as compared to $0.12 million and $0.24 million for the corresponding periods of the prior year.
 
The following table summarizes stock option information as of June 30, 2016:
 
 
 
Shares
 
Weighted Average
Exercise Price
 
 
 
 
 
 
 
 
 
Outstanding at January 1, 2016
 
 
709,300
 
$
24.34
 
Options granted
 
 
5,000
 
 
26.40
 
Options cancelled
 
 
(15,020)
 
 
27.30
 
Options exercised
 
 
(21,050)
 
 
19.08
 
 
 
 
 
 
 
 
 
Outstanding at June 30, 2016
 
 
678,230
 
$
24.45
 
 
 
 
 
 
 
 
 
Options exercisable
 
 
278,730
 
$
22.13
 
Options available for future grants
 
 
188,065
 
 
 
 
 
As of June 30, 2016, the weighted average remaining contractual life of options outstanding is 3.37 years (2.35 years for options exercisable), the aggregate intrinsic value of options outstanding and options exercisable is $3.7 million and $2.1 million, respectively, and unrecognized compensation cost related to stock options outstanding of Inter Parfums, Inc. aggregated $2.3 million.
 
Cash proceeds, tax benefits and intrinsic value related to stock options exercised during the six months ended June 30, 2016 and June 30, 2015 were as follows:
 
(In thousands)
 
June 30,
2016
 
June 30,
2015
 
 
 
 
 
 
 
 
 
Cash proceeds from stock options exercised
 
$
402
 
$
428
 
Tax benefits
 
 
--
 
 
--
 
Intrinsic value of stock options exercised
 
 
233
 
 
462
 
 
The weighted average fair values of the options granted by Inter Parfums, Inc. during the six months ended June 30, 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 June 30, 2016 and 2015 are set forth in the following table:
 
 
 
June 30,
2016
 
 
June 30, 
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 increases.