EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2011

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

NOTE 9—EARNINGS (LOSS) PER SHARE

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

	Three Months Ended March 31,
	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings (loss) from continuing operations	$	20,168		$	20,168		$	(14,597	)	$	(14,597	)
Net (earnings) loss attributable to noncontrolling interests		(150	)		(150	)		619			619
Earnings (loss) from continuing operations attributable to IAC shareholders		20,018			20,018			(13,978	)		(13,978	)
Loss from discontinued operations, net of tax		(1,948	)		(1,948	)		(4,727	)		(4,727	)
Net earnings (loss) attributable to IAC shareholders	$	18,070		$	18,070		$	(18,705	)	$	(18,705	)
Denominator:
Weighted average basic shares outstanding		89,081			89,081			116,446			116,446
Dilutive securities including stock options, warrants, RSUs and PSUs(a)(b)		—			4,595			—			—
Denominator for earnings per share—weighted average shares(a)(b)		89,081			93,676			116,446			116,446
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share from continuing operations	$	0.22		$	0.21		$	(0.12	)	$	(0.12	)
Discontinued operations, net of tax		(0.02	)		(0.02	)		(0.04	)		(0.04	)
Earnings (loss) per share	$	0.20		$	0.19		$	(0.16	)	$	(0.16	)

(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") and performance stock units ("PSUs"). For the three months ended March 31, 2011, approximately 12.4 million shares related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

(b)

For the three months ended March 31, 2010, the Company had a loss from continuing operations and as a result, no potentially dilutive securities were included in the denominator for 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. For the three months ended March 31, 2010, approximately 39.0 million shares related to potentially dilutive securities were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.