EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Computation of Basic and Diluted Earnings (Loss) Per Share

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



	Three Months Ended June 30,
	2019						2018
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings	$	146,791		$	146,791		$	280,854		$	280,854
Net earnings attributable to noncontrolling interests	(33,324		)	(33,324		)	(62,501		)	(62,501		)
Impact from publicly-traded subsidiaries' dilutive securities ^(a)	—			(6,136		)	—			(6,994		)
Net earnings attributable to IAC shareholders	$	113,467		$	107,331		$	218,353		$	211,359

Denominator:
Weighted average basic shares outstanding	84,139			84,139			83,604			83,604
Dilutive securities^{(a) (b) (c) (d)}	—			5,965			—			7,330
Denominator for earnings per share—weighted average shares ^{(a) (b) (c) (d)}	84,139			90,104			83,604			90,934

Earnings per share attributable to IAC shareholders:
Earnings per share	$	1.35		$	1.19		$	2.61		$	2.32



	Six Months Ended June 30,
	2019						2018
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings	$	259,776		$	259,776		$	368,693		$	368,693
Net earnings attributable to noncontrolling interests	(57,614		)	(57,614		)	(79,258		)	(79,258		)
Impact from publicly-traded subsidiaries' dilutive securities ^(a)	—			(12,832		)	—			(12,569		)
Net earnings attributable to IAC shareholders	$	202,162		$	189,330		$	289,435		$	276,866

Denominator:
Weighted average basic shares outstanding	84,023			84,023			83,296			83,296
Dilutive securities ^{(a) (b) (c) (d)}	—			6,205			—			7,438
Denominator for earnings per share—weighted average shares ^{(a) (b) (c) (d)}	84,023			90,228			83,296			90,734

Earnings per share attributable to IAC shareholders:
Earnings per share	$	2.41		$	2.10		$	3.47		$	3.05

_____________________


^(a)	IAC has the option to settle certain MTCH and ANGI stock-based awards in its shares. For the three and six months ended June 30, 2019, it is more dilutive for IAC to settle certain ANGI equity awards and MTCH to settle certain MTCH equity awards. For the three and six months ended June 30, 2018, it is more dilutive for IAC to settle certain MTCH and ANGI equity awards.

^(b)

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. For both the three and six months ended June 30, 2019, 11.2 million 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 six months ended June 30, 2018, 3.4 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.

^(c)

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 three and six months ended June 30, 2019, 0.3 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. For both the three and six months ended June 30, 2018, 0.2 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.

^(d)

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, $302.77 and $291.35 per share exchange price per $1,000 principal amount of the 0.875% Exchangeable Notes due 2022, the 0.875% Exchangeable Notes due 2026 and the 2.00% Exchangeable Notes due 2030, respectively. The average price of IAC common stock was $223.29 and $215.28 for the three and six months ended June 30, 2019, respectively, and the dilutive impact of the 0.875% Exchangeable Notes due 2022, which is the only series of Exchangeable Notes that is currently dilutive, was 1.1 million and 1.0 million shares, respectively.

For the three months ended June 30, 2018, the average price of IAC common stock was $153.21 and the dilutive impact of the 0.875% Exchangeable Notes due 2022 was less than 0.1 million shares. For the six months ended June 30, 2018, the average price of IAC common stock was $150.39 and the 0.875% Exchangeable Notes due 2022 were anti-dilutive.