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



	Three Months Ended September 30,
	2013				2012
	Basic		Diluted		Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	91,721	$	91,721	$	46,185		$	46,185
Net loss attributable to noncontrolling interests	1,305		1,305		156			156
Earnings from continuing operations attributable to IAC shareholders	93,026		93,026		46,341			46,341
Earnings (loss) from discontinued operations attributable to IAC shareholders	3,914		3,914		(5,624		)	(5,624		)
Net earnings attributable to IAC shareholders	$	96,940	$	96,940	$	40,717		$	40,717

Denominator:
Weighted average basic shares outstanding	83,094		83,094		88,296			88,296
Dilutive securities including stock options and RSUs^(a)(b)	—		2,978		—			6,394
Denominator for earnings per share—weighted average shares^(a)(b)	83,094		86,072		88,296			94,690

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.12	$	1.08	$	0.52		$	0.49
Discontinued operations	0.05		0.05		(0.06		)	(0.06		)
Earnings per share	$	1.17	$	1.13	$	0.46		$	0.43



	Nine Months Ended September 30,
	2013				2012
	Basic		Diluted		Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	202,970	$	202,970	$	125,439		$	125,439
Net loss (earnings) attributable to noncontrolling interests	3,995		3,995		(331		)	(331		)
Earnings from continuing operations attributable to IAC shareholders	206,965		206,965		125,108			125,108
Earnings (loss) from discontinued operations attributable to IAC shareholders	1,902		1,902		(6,581		)	(6,581		)
Net earnings attributable to IAC shareholders	$	208,867	$	208,867	$	118,527		$	118,527

Denominator:
Weighted average basic shares outstanding	83,636		83,636		85,766			85,766
Dilutive securities including stock options, warrants and RSUs^(a)(b)	—		3,032		—			7,026
Denominator for earnings per share—weighted average shares^(a)(b)	83,636		86,668		85,766			92,792

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	2.47	$	2.39	$	1.46		$	1.35
Discontinued operations	0.03		0.02		(0.08		)	(0.07		)
Earnings per share	$	2.50	$	2.41	$	1.38		$	1.28

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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 nine months ended September 30, 2013, approximately 0.3 million and 0.7 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 the three and nine months ended September 30, 2012, approximately 0.3 million and 0.7 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.

(b)

Performance-based stock units ("PSUs") are included in the denominator for earnings per share if (i) the applicable performance condition(s) has been met and (ii) the inclusion of the PSUs is dilutive for the respective reporting periods. For the three and nine months ended September 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. At September 30, 2012, there were approximately 2.3 million PSUs included in the calculation of diluted earnings per share, as their performance conditions had been met. For the three and nine months ended September 30, 2012, approximately 0.6 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.