The following tables set forth the computation of basic and diluted earnings per share attributable to IAC shareholders.



	Three Months Ended June 30,
	2013						2012
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	58,540		$	58,540		$	48,101		$	48,101
Net loss (earnings) attributable to noncontrolling interests	818			818			(128		)	(128		)
Earnings from continuing operations attributable to IAC shareholders	59,358			59,358			47,973			47,973
Loss from discontinued operations attributable to IAC shareholders	(1,068		)	(1,068		)	(4,641		)	(4,641		)
Net earnings attributable to IAC shareholders	$	58,290		$	58,290		$	43,332		$	43,332

Denominator:
Weighted average basic shares outstanding	83,609			83,609			86,174			86,174
Dilutive securities including stock options, warrants and RSUs^(a)(b)	—			2,954			—			5,766
Denominator for earnings per share—weighted average shares^(a)(b)	83,609			86,563			86,174			91,940

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.71		$	0.69		$	0.56		$	0.52
Discontinued operations	(0.01		)	(0.02		)	(0.06		)	(0.05		)
Earnings per share	$	0.70		$	0.67		$	0.50		$	0.47



	Six Months Ended June 30,
	2013						2012
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	111,249		$	111,249		$	79,254		$	79,254
Net loss (earnings) attributable to noncontrolling interests	2,690			2,690			(487		)	(487		)
Earnings from continuing operations attributable to IAC shareholders	113,939			113,939			78,767			78,767
Loss from discontinued operations attributable to IAC shareholders	(2,012		)	(2,012		)	(957		)	(957		)
Net earnings attributable to IAC shareholders	$	111,927		$	111,927		$	77,810		$	77,810

Denominator:
Weighted average basic shares outstanding	83,912			83,912			84,487			84,487
Dilutive securities including stock options, warrants and RSUs^(a)(b)	—			3,058			—			7,342
Denominator for earnings per share—weighted average shares^(a)(b)	83,912			86,970			84,487			91,829

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.36		$	1.31		$	0.93		$	0.86
Discontinued operations	(0.03		)	(0.02		)	(0.01		)	(0.01		)
Earnings per share	$	1.33		$	1.29		$	0.92		$	0.85

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(a)

If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and warrants and vesting of restricted stock units ("RSUs"). As of May 8, 2012, there are no warrants outstanding. For the three and six months ended June 30, 2013, approximately 0.7 million and 3.8 million shares, respectively, related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For both the three and six months ended June 30, 2012, approximately 0.6 million shares related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

(b)

Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (1) the applicable performance condition(s) has been met and (2) the inclusion of the PSUs is dilutive for the respective reporting periods. For the three and six months ended June 30, 2013, approximately 0.1 million PSUs that are probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met. For the three and six months ended June 30, 2012, approximately 3.0 million PSUs that were probable of vesting were excluded from the calculation of diluted earnings per share because the performance conditions had not been met.