What changed in this filing

/stocks — the workspaceLOADING

Item 3. Quantitative and Qualitative Disclosures About Market Risk

2021-05-10 compared with 2020-11-09 · 22 added, 23 removed, 11 unchanged (80% of the section changed)

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

address certain financial exposures through a controlled program of risk management that primarily consists of the use of derivative

2 unchanged sentences

foreign currency exchange rates.

We do not engage in the trading of foreign currency forward exchange contracts or interest rate

We do not engage in the trading of foreign currency forward exchange contracts or interest rate swaps.

Exchange Risk Management

periodically enter into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a

foreign currency and to manage risks related to future sales expected to be denominated in a currency other than our functional

We enter into these exchange contracts for periods consistent with our identified exposures.

The purpose of the hedging

activities is to minimize the effect of foreign exchange rate movements on the receivables and cash flows of Interparfums SA,

whose functional currency is the euro.

All foreign currency contracts are denominated in currencies of major industrial countries

and are with large financial institutions, which are rated as strong investment grade.

periodically enter into foreign currency forward exchange contracts to hedge exposure related to receivables denominated in a foreign

currency and to manage risks related to future sales expected to be denominated in a currency other than our functional currency.

enter into these exchange contracts for periods consistent with our identified exposures.

The purpose of the hedging activities is to

minimize the effect of foreign exchange rate movements on the receivables and cash flows of Interparfums SA, whose functional currency

All foreign currency contracts are denominated in currencies of major industrial countries and are with large financial

institutions, which are rated as strong investment grade.

derivative instruments are required to be reflected as either assets or liabilities in the balance sheet measured at fair value.

Generally, increases or decreases in fair value of derivative instruments will be recognized as gains or losses in earnings in

the period of change.

If the derivative is designated and qualifies as a cash flow hedge, then the changes in fair value of the

derivative instrument will be recorded in other comprehensive income.

PARFUMS, INC.

increases or decreases in fair value of derivative instruments will be recognized as gains or losses in earnings in the period of change.

If the derivative is designated and qualifies as a cash flow hedge, then the changes in fair value of the derivative instrument will

be recorded in other comprehensive income.

INTER PARFUMS, INC.

AND SUBSIDIARIES

entering into a derivative transaction for hedging purposes, we determine that the change in the value of the derivative will

effectively offset the change in the fair value of the hedged item from a movement in foreign currency rates.

Then, we measure

the effectiveness of each hedge throughout the hedged period.

entering into a derivative transaction for hedging purposes, we determine that the change in the value of the derivative will effectively

offset the change in the fair value of the hedged item from a movement in foreign currency rates.

Then, we measure the effectiveness

of each hedge throughout the hedged period.

Any hedge ineffectiveness is recognized in the income statement.

September 30, 2020, we had foreign currency contracts in the form of forward exchange contracts of approximately U.S.

and GB £4.0 million with maturities of less than one year.

March 31, 2021, we had foreign currency contracts in the form of forward exchange contracts in the amount of approximately U.S.

$78.5 million

and GB £2.7 million which all have maturities of less than one year.

We believe that our risk of loss as the result of nonperformance

1 unchanged sentence

Rate Risk Management

mitigate interest rate risk by monitoring interest rates, and then determining whether fixed interest rates should be swapped

for floating rate debt, or if floating rate debt should be swapped for fixed rate debt.

mitigate interest rate risk by monitoring interest rates, and then determining whether fixed interest rates should be swapped for floating

rate debt, or if floating rate debt should be swapped for fixed rate debt.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk