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



	Years Ended December 31,
	2014				2013				2012
	Basic		Diluted		Basic		Diluted		Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	234,557	$	234,557	$	281,799	$	281,799	$	169,847		$	169,847
Net loss (earnings) attributable to noncontrolling interests	5,643		5,643		2,059		2,059		(1,530		)	(1,530		)
Earnings from continuing operations attributable to IAC shareholders	240,200		240,200		283,858		283,858		168,317			168,317
Earnings (loss) from discontinued operations attributable to IAC shareholders	174,673		174,673		1,926		1,926		(9,051		)	(9,051		)
Net earnings attributable to IAC shareholders	$	414,873	$	414,873	$	285,784	$	285,784	$	159,266		$	159,266

Denominator:
Weighted average basic shares outstanding	83,292		83,292		83,480		83,480		86,247			86,247
Dilutive securities including stock options, warrants and RSUs^(a)(b)	—		5,266		—		3,262		—			6,842
Denominator for earnings per share—weighted average shares^(a)(b)	83,292		88,558		83,480		86,742		86,247			93,089

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	2.88	$	2.71	$	3.40	$	3.27	$	1.95		$	1.81
Discontinued operations	2.10		1.97		0.02		0.02		(0.10		)	(0.10		)
Earnings per share	$	4.98	$	4.68	$	3.42	$	3.29	$	1.85		$	1.71

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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 vesting of restricted stock units ("RSUs"). For the years ended December 31, 2014, 2013 and 2012 approximately 0.3 million, 0.4 million and 0.8 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.

(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 each of the years ended December 31, 2014 and 2012 less than 0.1 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. For the year ended December 31, 2013, all PSUs that were considered to be probable of vesting were included in the calculation of diluted earnings per share as their performance conditions had been met.