EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

NOTE 9—EARNINGS (LOSS) PER SHARE

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

	Three Months Ended June 30,
	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	45,630		$	45,630		$	15,421		$	15,421
Net (earnings) loss attributable to noncontrolling interests		(718	)		(718	)		756			756
Earnings from continuing operations attributable to IAC shareholders		44,912			44,912			16,177			16,177
Loss from discontinued operations, net of tax		(2,488	)		(2,488	)		(2,586	)		(2,586	)
Net earnings attributable to IAC shareholders	$	42,424		$	42,424		$	13,591		$	13,591
Denominator:
Weighted average basic shares outstanding		90,050			90,050			109,287			109,287
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			7,252			—			3,320
Denominator for earnings per share—weighted average shares(a)(b)		90,050			97,302			109,287			112,607
Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.50		$	0.46		$	0.15		$	0.14
Discontinued operations, net of tax		(0.03	)		(0.02	)		(0.03	)		(0.02	)
Earnings per share	$	0.47		$	0.44		$	0.12		$	0.12

	Six Months Ended June 30,
	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	65,798		$	65,798		$	824		$	824
Net (earnings) loss attributable to noncontrolling interests		(868	)		(868	)		1,375			1,375
Earnings from continuing operations attributable to IAC shareholders		64,930			64,930			2,199			2,199
Loss from discontinued operations, net of tax		(4,436	)		(4,436	)		(7,313	)		(7,313	)
Net earnings (loss) attributable to IAC shareholders	$	60,494		$	60,494		$	(5,114	)	$	(5,114	)
Denominator:
Weighted average basic shares outstanding		89,568			89,568			112,847			112,847
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			5,923			—			3,394
Denominator for earnings per share—weighted average shares(a)(b)		89,568			95,491			112,847			116,241
Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.72		$	0.68		$	0.02		$	0.02
Discontinued operations, net of tax		(0.04	)		(0.05	)		(0.07	)		(0.06	)
Earnings (loss) per share	$	0.68		$	0.63		$	(0.05	)	$	(0.04	)

(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"). For the three and six months ended June 30, 2011, approximately 1.2 million and 1.3 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. For the three and six months ended June 30, 2010, approximately 22.1 million and 22.6 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)

There are no performance-based stock units ("PSUs") included in the denominator for earnings per share as the performance conditions have not been met for the respective reporting periods. For the three and six months ended June 30, 2011, approximately 3.3 million PSUs are excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2010, approximately 1.9 million PSUs are excluded from the calculation of diluted earnings per share.