2006 - Interparfums

5.
other information
5.1
Off balance sheet commitments
In € thousands 2005 2006
Guaranteed minima on trademark royalties 267,454 279,901
Guarantees given 331 303
Headquarter rental payments 7,338 6,384
Other guaranteed minima for warehousing and logistics 15,850 13,250
Firm component orders (inventories) 2,844 3,460
Total commitments given 293,817 303,298
5.2
Insurance
Inter Parfums is named as beneficiary under a €15 million life insurance policy for Philippe Benacin.
5.3
Foreign exchange risk
Inter Parfums applies a conservative approach in managing exchange rate risk, seeking only to hedge its exposure from
operations and maintain its gross margins.
Forward sales are carried out routinely for twelve moth periods, mainly on the U.S. dollar that in 2006 accounted
for 34.1% of total billings compared with 31% in 2005.
In addition, the impact of sharp U.S. dollar parity fluctuations on the gross margin can be partially offset through adjustments to
the products’ sales.
5.4
Employee-related data
5.4.1 Employees by department
Number of employees 12/31/05 12/31/06
Executive management 2 2
Production & Operations 17 18
Burberry Fragrances 23 26
Luxe & Fashion 18 19
France 32 42
Finance & Corporate Affairs 20 21
Total 112 128
5.4.2 Wages and benefits
In € thousands 2005 2006
Total wages and benefits 10,965 13,091
Of which Management Committee members - wages, bonuses & social charges 1,592 1,963
Of which Management Committee members - share based payment expenses 120 191
In addition supplemental retirement benefits for executive management of €69 million was paid in 2006.
5.5
Post-closing events
None.
2006 annual report inter parfums
notes to the consolidated financial statements