INTERPARFUMS INC Fair Value Disclosure
| (4) | Fair Value of Financial Instruments |
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
| Fair Value Measurements at December 31, 2025 | |||||||||||||
| Quoted Prices in |
Significant Other | Significant | |||||||||||
| Active Markets for |
Observable | Unobservable | |||||||||||
| Identical Assets |
Inputs | Inputs | |||||||||||
| Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||
| Assets: | |||||||||||||
| Short-term investments | $ | 137,093 | $ | 3,801 | $ | 133,292 | $ | — | |||||
| Interest rate swaps | 1,597 | — | 1,597 | — | |||||||||
| Foreign currency forward exchange contracts not accounted for using hedge accounting | 498 | — | 498 | — | |||||||||
| Foreign currency forward exchange contracts accounted for using hedge accounting | 169 | — | 169 | — | |||||||||
| Total Assets | $ | 139,357 | $ | 3,801 | $ | 135,556 | $ | — | |||||
| Fair Value Measurements at December 31, 2024 | |||||||||||||
| Quoted Prices in | Significant Other | Significant | |||||||||||
| Active Markets for |
Observable | Unobservable | |||||||||||
| Identical Assets |
Inputs | Inputs | |||||||||||
| Total | (Level 1) | (Level 2) | (Level 3) | ||||||||||
| Assets: | |||||||||||||
| Short-term investments | $ | 109,311 | $ | 7,703 | $ | 101,608 | $ | — | |||||
| Interest rate swaps | 1,967 | — | 1,967 | — | |||||||||
| Total Assets | $ | 111,278 | $ | 7,703 | $ | 103,575 | $ | — | |||||
| Liabilities: | |||||||||||||
| Foreign currency forward exchange contracts not accounted for using hedge accounting | 445 | — | 445 | — | |||||||||
| Foreign currency forward exchange contracts accounted for using hedge accounting | 1,435 | — | 1,435 | — | |||||||||
| Total Liabilities | $ | 1,880 | $ | — | $ | 1,880 | $ | — | |||||
The carrying amount of cash and cash equivalents including money market funds, short-term investments including marketable equity securities, accounts receivable, other receivables, accounts payable and accrued expenses approximates fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. The fair value of the Company’s long-term debt was estimated based on the current rates offered to companies for debt with the same remaining maturities and is approximately equal to its carrying value.
Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps is the discounted net present value of the swaps using third party quotes from financial institutions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 13, 2018 | |
| 2016 | Mar 13, 2017 | |
| 2015 | Mar 14, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.