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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2024-02-27 compared with 2023-02-28 · 35 added, 23 removed, 1 unchanged (98% of the section changed)

Quantitative and Qualitative Disclosures About Market

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

A general discussion relating to our policies

on foreign exchange risk management can be found in “Management’s Discussion and Analysis of Financial Condition and

Results of Operations” in Part II, Item 7 of our annual report on Form 10-K for the year ended December 2020.

As of December 31, 2022, we had foreign

currency contracts in the form of forward exchange contracts with notional amounts of approximately U.S.

$36.5 million which all

have 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.

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.

Quantitative 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.

of December 31, 2023, we had foreign currency contracts in the form of forward exchange contracts of approximately U.S.

$61.0 million

and GB £2.5 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.

Financial Statements and Supplementary Data

The required financial statements commence

Changes in and Disagreements

with Accountants on Accounting and Financial Disclosure

required financial statements commence on page F-1.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

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-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk