Net Income Attributable to Inter Parfums, Inc. Common Shareholders

9 Months Ended

Sep. 30, 2011

Net Income Attributable to Inter Parfums, Inc. Common Shareholders

9.	Net Income Attributable to Inter Parfums, Inc. Common Shareholders:

Net income attributable to Inter Parfums, Inc. per common share (“basic EPS”) is computed by dividing net income attributable to Inter Parfums, Inc. by the weighted average number of shares outstanding. Net income attributable to Inter Parfums, Inc. per share assuming dilution (“diluted EPS”), is computed using the weighted average number of shares outstanding, plus the incremental shares outstanding assuming the exercise of dilutive stock options and warrants using the treasury stock method. The reconciliation between the numerators and denominators of the basic and diluted EPS computations is as follows:

(In thousands)	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Numerator:
Net income attributable to Inter Parfums, Inc.	$	10,433		$	8,448		$	28,185		$	20,354
Effect of dilutive securities of
consolidated subsidiary		(22	)		(34	)		(81	)		(51	)
Numerator for diluted earnings per share	$	10,411		$	8,414		$	28,104		$	20,303
Denominator:
Weighted average shares		30,539			30,443			30,506			30,332
Effect of dilutive securities:
Stock options and warrants		159			121			170			109
Denominator for diluted earnings per share		30,698			30,564			30,676			30,441

Earnings per share:
Net income attributable to Inter Parfums, Inc.
common shareholders:
Basic	$	0.34		$	0.28		$	0.92		$	0.67
Diluted		0.34			0.28			0.92			0.67

Not included in the above computations is the effect of antidilutive potential common shares which consist of outstanding options to purchase 0.1 million shares of common stock for both the three and nine month periods ended September 30, 2011, and 0.2 million shares of common stock for the nine month period ended September 30, 2010.