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Commitments and Contingencies:

6 Months Ended

Jun. 30, 2026

Leases Disclosure [Abstract]

Commitments and Contingencies:

7.	Commitments and Contingencies:

Leases

The Company leases its offices and warehouses, vehicles, and certain office equipment, substantially all of which are classified as operating leases. The Company currently has no material financing leases. The Company determines if an arrangement is a lease at inception. Operating lease assets and obligations are recognized at the lease commencement date based on the present value of lease payments over the lease term.

In determining lease asset value, the Company considers fixed or variable payment terms, prepayments, incentives, and options to extend or terminate, depending on the lease. Renewal, termination or purchase options affect the lease term used for determining lease asset value only if the option is reasonably certain to be exercised. The Company uses its incremental borrowing rate based on information available at the lease commencement date for the location in which the lease is held in determining the present value of lease payments.

As of June 30, 2026, the weighted average remaining lease term was 3.4 years and the weighted average discount rate used to determine the operating lease liability was 3.2%. Rental expense related to operating leases was $1.5 million and $3.2 million for the three and six months ended June 30, 2026, respectively, as compared to $1.7 million and $3.4 million for the corresponding periods of the prior year. Rental expense is included in selling, general and administrative expenses in the accompanying consolidated statements of income. Operating lease payments included in operating cash flows totaled $3.2 million and $4.2 million for the six months ended June 30, 2026 and 2025, respectively, and noncash additions to operating lease assets totaled $0.5 million and $0.9 million for the six months ended June 30, 2026 and 2025, respectively.

IEEPA Tariffs

On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) by the executive branch are not lawful. On March 4, 2026, the Court of International Trade orders U.S. Customs and Border Protection to begin the refund process for all importers who were subject to IEEPA tariffs.

The Company estimates it has paid approximately $17.6 million of IEEPA tariffs. As of June 30, 2026, the Company has received $8.7 million of these refunds, and has received an additional $8.0 million in July 2026. The Company has elected to apply a gain contingency model in accordance with ASC 450-30, Gain Contingencies, to account for these recoveries, whereby a gain is recognized when the gain is realized, which occurs when the cash is received. The accounting for the IEEPA tariff refund reflects the original treatment of the underlying tariff costs. For the three and six months ended June 30, 2026, the Company recognized $6.9 million for IEEPA tariffs associated with inventory that has been sold as a reduction in cost of sales in the Company’s Condensed Consolidated Statement of Income. For IEEPA tariffs associated with inventory on hand, the Company has reduced the carrying amount of inventory, which represented $1.8 million as of June 30, 2026.

Interest associated with IEEPA tariffs is recognized in interest and investment income in the Company’s Condensed Consolidated Statements of Income.

Share Repurchase and Line of Credit

In July 2026, the Board of Directors of our Company has authorized a share repurchase program to purchase outstanding shares in either our Company or its 72% owned subsidiary, Interparfums SA, which has its shares traded on the Euronext under the symbol “ITP,” or both, and has authorized our Company to enter into a line of credit of up to the amount of $250 million to be repaid over a maximum of 6 years to fund the share repurchase program. The terms of the line of credit are still to be finalized. We cannot assure you that the entire repurchase program will be completed or that any minimum number of shares in our Company or Interparfums SA will be repurchased.