EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders:



	Years Ended December 31,
	2018						2017						2016
	Basic			Diluted			Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings (loss)	$	757,747		$	757,747		$	358,008		$	358,008		$	(16,151	)	$	(16,151	)
Net earnings attributable to noncontrolling interests	(130,786		)	(130,786		)	(53,084		)	(53,084		)	(25,129		)	(25,129		)
Impact from public subsidiaries' dilutive securities ^(a)(b)	—			(25,228		)	—			(33,531		)	—			—
Net earnings (loss) attributable to IAC shareholders	$	626,961		$	601,733		$	304,924		$	271,393		$	(41,280	)	$	(41,280	)

Denominator:
Weighted average basic shares outstanding	83,407			83,407			80,089			80,089			80,045			80,045
Dilutive securities ^{(a) (b) (c) (d) (e) (f) (g)}	—			7,915			—			5,221			—			—
Denominator for earnings per share—weighted average shares^{(a) (b) (c) (d) (e) (f) (g)}	83,407			91,322			80,089			85,310			80,045			80,045

Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share	$	7.52		$	6.59		$	3.81		$	3.18		$	(0.52	)	$	(0.52	)

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(a)	For the year ended December 31, 2018, it is more dilutive for IAC to settle certain MTCH equity awards. For the years ended December 31, 2017 and 2016, it is more dilutive for MTCH to settle certain MTCH equity awards.


(b)	For the years ended December 31, 2018 and 2017, it is more dilutive for IAC to settle certain ANGI equity awards. The impact on earnings of ANGI dilutive securities is not applicable for periods prior to the Combination.

(c)

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, warrants and subsidiary denominated equity, exchange of the Company's Exchangeable Notes and vesting of restricted stock units ("RSUs"). For the years ended December 31, 2018 and 2017, 3.5 million and 6.9 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.


(d)	For the year ended December 31, 2016, the Company had a loss from operations; therefore, approximately 11.3 million potentially dilutive securities were excluded from computing dilutive earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts.

(e)

Market-based awards and performance-based stock units ("PSUs") are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For both the years ended December 31, 2018 and 2017, 0.1 million shares underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met.

(f)

It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; therefore, the Exchangeable Notes are only dilutive for periods during which the average price of IAC common stock exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. For the year ended December 31, 2018, the average price of IAC common stock exceeded $152.18 and the dilutive impact of the Exchangeable Notes was 0.3 million shares. For the year ended December 31, 2017, the Exchangeable Notes were anti-dilutive.


(g)	See "Note 11—Stock-based Compensation" for additional information on equity instruments denominated in the shares of certain subsidiaries.