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Segments and Geographic Areas
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments and Geographic Areas
(14) Segments and Geographic Areas


Operating and reportable segments ("segments") reflect the way the Company is managed and for which separate financial information is available and evaluated regularly by the Company's chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance. The Company's CODM is the founders of Interparfums, Inc. which includes the Chief Executive Officer and Chairman of the Board of Directors of Interparfums, Inc. and the President of Interparfums, Inc. and Chief Executive Officer of Interparfums SA. The Company manufactures and distributes one product line, fragrances and fragrance related products. The Company manages its business in two segments, European based operations and United States based operations. The European based operations, assets and business operations are primarily conducted in France, and include the results and assets of Interparfums Luxury Brands, Inc., located in the United States. For United States based operations, assets and business operations are primarily conducted in the United States, and include the results and assets of Interparfums Italia Srl, located in Italy. Both European based operations and United States based operations primarily represent the sale of prestige brand name fragrances.


The accounting policies for the Company's reportable segments are the same as those described in the summary of significant accounting policies. The Company evaluates the performance of its segments and allocates resources based on gross margin and income from operations. Segment gross margin and segment income from operations include intersegment revenues and expenses. For both segments, the CODM used these measures in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for both profit measures when making decisions about allocating capital and personnel to the segments and in determining the compensation of employees. The CODM also uses segment gross margin for evaluating product pricing, customer and product mix, cost optimization, and marketing strategies and used segment income from operations to assess the performance and relative profitability of each segment by comparing the results of each segment with one another.


Information on the Company’s operations by segments is as follows:


Year ended December 31, 2024

United States

based operations

European

based operations

 Total
Net sales $ 511,307 $ 953,046 $ 1,464,353
Eliminations (a) — (12,028 ) (12,028 )


511,307
941,018
1,452,325
Less: (b)


Cost of sales 215,207 314,465
Eliminations (a)

—


(4,688 )



Segment gross margin 296,100 631,241 927,341
Less: (b)
Advertising and Promotion
79,479
201,065

Employee related costs

51,318


74,071




Royalties

37,081


80,711




Other segment items (c)

39,048


89,772




Segment income from operations
$ 89,174

$ 185,622

$ 274,796













Reconciliation:











Interest expense









7,825
Loss on foreign currency









1,085
Interest and investment income









(2,218 )
Other (income) expense









(287 )
Income before income taxes








$ 268,391



Year ended December 31, 2023

United States

based operations

European

based operations

 Total
Net sales $ 455,758 $ 863,397 $ 1,319,155
Eliminations (a) — (1,480 ) (1,480 )


455,758
861,917
1,317,675
Less: (b)


Cost of sales 195,973 282,624
Segment gross margin 259,785 579,293 839,078
Less: (b)
Advertising and Promotion
70,033 $ 191,253

Employee related costs

45,880


70,473




Royalties

32,573


71,214




Other segment items (c)

32,622


73,648




Segment income from operations
$ 78,677

$ 172,705

$ 251,382













Reconciliation:











Interest expense









11,253
Loss on foreign currency









1,582
Interest and investment income









(10,729 )
Other (income) expense









(317 )
Income before income taxes








$ 249,593


Year ended December 31, 2022

United States

based operations

European

based operations

 Total
Net sales $ 342,644 $ 744,075 $ 1,086,719
Eliminations (a) — (66 ) (66 )


342,644
744,009
1,086,653
Less: (b)


Cost of sales 155,333 236,898
Segment gross margin 187,311 507,111 694,422
Less: (b)
Advertising and Promotion
45,860
166,510

Employee related costs

38,457


60,984




Royalties

24,012


62,986




Other segment items (c)

26,541


74,769




Segment income from operations
$ 52,441

$ 141,862

$ 194,303













Reconciliation:











Interest expense









3,599
Loss on foreign currency









1,921
Interest and investment income









(5,486 )
Other (income) expense









50
Income before income taxes








$ 194,219


(a) Eliminations of intercompany sales relate to European based operations products sold to United States based operations.
(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(c) Other segment items for each reportable segment include expenses for professional services, travel & entertainment, rent, warehousing, shipping, depreciation & amortization, and other selling, general and administrative costs.


Other segment disclosures:


Year ended December 31,
2024 2023 2022
Net income attributable to Interparfums, Inc.:
United States $ 68,164 $ 63,354 $ 43,330
Europe 101,698 89,677 77,608
Eliminations (5,504 ) (377 ) —
$ 164,358 $ 152,654 $ 120,938
Depreciation and amortization expense including impairment loss:
United States $ 6,838 $ 6,517 $ 6,355
Europe 21,520 10,814 16,184
$ 28,358 $ 17,331 $ 22,539
Interest and investment income:
United States $ 514 $ 346 $ 66
Europe 2,392 10,810 5,769
Eliminations (688 ) (427 ) (349 )
$ 2,218 $ 10,729 $ 5,486
Interest expense:
United States $ 1,838 $ 1,351 $ 1,100
Europe 6,675 10,329 2,848
Eliminations (688 ) (427 ) (349 )
$ 7,825 $ 11,253 $ 3,599
Income tax expense:
United States $ 17,805 $ 15,180 $ 6,920
Europe 48,988 46,763 36,262
Eliminations (1,835 ) (126 ) —
$ 64,958 $ 61,817 $ 43,182


December 31,
2024 2023 2022
Total assets:
United States $ 352,139 $ 344,341 $ 278,090
Europe 1,073,326 1,066,684 1,052,004
Eliminations (14,204 ) (41,696 ) (21,552 )
$ 1,411,261 $ 1,369,329 $ 1,308,542
Additions to long-lived assets(a):
United States $ 1,882 $ 3,918 $ 5,318
Europe 20,470 49,450 85,184
$ 22,352 $ 53,368 $ 90,502
Total long-lived assets(a):
United States $ 50,401 $ 57,372 $ 61,539
Europe 410,459 436,819 423,999
$ 460,860 $ 494,191 $ 485,538


(a) Total long-lived assets include property, equipment and leasehold improvements, trademarks, licenses, and other intangible assets, and right-of-use assets.


United States export sales were approximately $218.5 million, $230.5 million and $180.0 million in 2024, 2023 and 2022, respectively. Consolidated net sales to customers by region are as follows:


Consolidated net sales to customers by region are as follows:

Year ended December 31,
2024 2023 2022
North America $ 541,850 $ 511,655 $ 420,968
Western Europe 364,308 301,228 259,216
Asia/Pacific 196,978 191,772 163,621
Middle East and Africa 122,844 117,115 98,776
Eastern Europe

118,130


103,227


74,161
Central and South America 108,215 92,678 69,911
$ 1,452,325 $ 1,317,675 $ 1,086,653


For net sales, a major country is defined as a group of customers in a country with combined net sales of greater than 10% of consolidated net sales or as otherwise deemed significant. Net sales in the United States were approximately $522.1 million, $493.2 million, and $410.0 million in 2024, 2023 and 2022, respectively. Net sales in France were approximately $65.4 million, $51.0 million, and $44.8 million in 2024, 2023 and 2022, respectively. No other country represented greater than 10% of the Company's consolidated net sales or was otherwise deemed significant.