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Item 3. Quantitative and Qualitative Disclosures About Market Risk

2023-11-07 compared with 2023-08-08 · 32 added, 37 removed, 3 unchanged (96% of the section changed)

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We address certain financial exposures through

a controlled program of risk management that primarily consists of the use of derivative financial instruments.

We primarily enter

into foreign currency forward exchange contracts in order to reduce the effects of fluctuating foreign currency exchange rates.

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

Foreign Exchange Risk Management

We 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.

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.

currency contracts are denominated in currencies of major industrial countries and are with large financial institutions, which

are rated as strong investment grade.

All 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.

Before 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.

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

financial instruments.

We primarily enter into foreign currency forward exchange contracts in order to reduce the effects of fluctuating

foreign currency exchange rates.

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

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.

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.

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.

At June 30, 2023, we had foreign currency

contracts in the form of forward exchange contracts of approximately U.S.

$38.0 million and GB £2.0 million with maturities

of less than one year.

We believe that our risk of loss as the result of nonperformance by any of such financial institutions is

Interest Rate Risk Management

We 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.

September 30, 2023, we had foreign currency contracts in the form of forward exchange contracts of approximately U.S.

$58.0 million

and GB £2.0 million with maturities of less than one year.

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

by any of such financial institutions is remote.

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.

INTER PARFUMS, INC.

1 unchanged sentence

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