EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Computation of Basic and Diluted Earnings per Share

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



	Years Ended December 31,
	2019						2018						2017
	Basic			Diluted			Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings	$	543,820		$	543,820		$	757,747		$	757,747		$	358,008		$	358,008
Net earnings attributable to noncontrolling interests	(112,689		)	(112,689		)	(130,786		)	(130,786		)	(53,084		)	(53,084		)
Impact from public subsidiaries' dilutive securities^(a)	—			(26,063		)	—			(25,228		)	—			(33,531		)
Net earnings attributable to IAC shareholders	$	431,131		$	405,068		$	626,961		$	601,733		$	304,924		$	271,393

Denominator:
Weighted average basic shares outstanding	84,261			84,261			83,407			83,407			80,089			80,089
Dilutive securities^{(a) (b) (c) (d) (e)}	—			5,782			—			7,915			—			5,221
Denominator for earnings per share—weighted average shares^{(a) (b) (c) (d) (e)}	84,261			90,043			83,407			91,322			80,089			85,310

Earnings per share attributable to IAC shareholders:
Earnings per share	$	5.12		$	4.50		$	7.52		$	6.59		$	3.81		$	3.18

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(a)

IAC has the option to settle certain MTCH and ANGI stock-based awards in its shares. For the years ended December 31, 2019 and 2017, it is more dilutive for MTCH to settle these MTCH equity awards. For the year ended December 31, 2018, it is more dilutive for IAC to settle these MTCH equity awards. For the years ended December 31, 2019, 2018 and 2017, it is more dilutive for IAC to settle these 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 ("RSUs"). For the years ended December 31, 2019, 2018 and 2017, 11.1 million, 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.

(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 the years ended December 31, 2019, 2018 and 2017, 0.2 million, 0.1 million and 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.

(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 2022 Exchangeable Notes, the 2026 Exchangeable Notes and the 2030 Exchangeable Notes, respectively. The average price of IAC common stock was $223.89 and $167.61 for the years ended December 31, 2019 and 2018, respectively, and the dilutive impact of the 2022 Exchangeable Notes, which is the only series of Exchangeable Notes that is currently dilutive, was 1.1 million and 0.3 million shares, respectively. For the year ended December 31, 2017, the 2022 Exchangeable Notes were anti-dilutive as the average price of IAC common stock was $100.54.

(e)

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