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Property, Equipment and Leasehold Improvements
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property, Equipment and Leasehold Improvements
(6) Property, Equipment and Leasehold Improvements


    December 31,  
    2024     2023  
Land and Building (construction in progress)   $ 147,786     $ 157,057  
Equipment     59,800       55,385  
Leasehold improvements     8,456       9,363  
      216,042       221,805  
Less accumulated depreciation     62,269       52,583  
    $ 153,773     $ 169,222  


Depreciation expense was $10.4 million, $9.8 million and $7.5 million in 2024, 2023, and 2022, respectively.


In April 2021, Interparfums SA, our 72% owned French Subsidiary, completed the acquisition of its headquarters at 10 rue de Solférino in the 7th arrondissement of Paris from the property developer. This is an office complex combining three buildings connected by two inner courtyards, and consists of approximately 40,000 total sq. ft.

 

The purchase price included the complete renovation of the site. As of December 31, 2024, $145 million (€139 million) of the purchase price, including approximately $3 million of acquisition costs, is included in property, equipment and leasehold improvements on the accompanying consolidated balance sheet. The purchase price has been allocated approximately $59.5 million (€57 million) to land and $85.5 million (€82 million) to the building. The building, which was delivered on February 28, 2022, includes the building structure, development of the property, façade waterproofing, general and technical installations and interior fittings that will be depreciated over a range of 7 to 50 years. The Company has elected to depreciate the building cost based on the useful lives of its components. 

 

The acquisition was financed by a 10-year €120 million (approximately $124.7 million) bank loan which bears interest at one-month Euribor plus 0.75%. Approximately €80 million of the variable rate debt was swapped for variable interest rate debt with a maximum rate of 2% per annum. The swap effectively exchanges the variable interest rate to a fixed rate of approximately 1.1%.