EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2011

EARNINGS PER SHARE

Computation of basic and diluted earnings per share

	Three Months Ended September 30,
	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	67,973		$	67,973		$	22,440		$	22,440
Net loss (earnings) attributable to noncontrolling interests		922			922			(136	)		(136	)
Earnings from continuing operations attributable to IAC shareholders		68,895			68,895			22,304			22,304
Loss from discontinued operations, net of tax		(3,922	)		(3,922	)		(4,795	)		(4,795	)
Net earnings attributable to IAC shareholders	$	64,973		$	64,973		$	17,509		$	17,509
Denominator:
Weighted average basic shares outstanding		84,613			84,613			103,152			103,152
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			9,129			—			3,076
Denominator for earnings per share—weighted average shares(a)(b)		84,613			93,742			103,152			106,228
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.81		$	0.73		$	0.22		$	0.21
Discontinued operations, net of tax		(0.04	)		(0.04	)		(0.05	)		(0.05	)
Earnings per share	$	0.77		$	0.69		$	0.17		$	0.16

	Nine Months Ended September 30,
	2011						2010
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	133,771		$	133,771		$	23,264		$	23,264
Net loss attributable to noncontrolling interests		54			54			1,239			1,239
Earnings from continuing operations attributable to IAC shareholders		133,825			133,825			24,503			24,503
Loss from discontinued operations, net of tax		(8,358	)		(8,358	)		(12,108	)		(12,108	)
Net earnings attributable to IAC shareholders	$	125,467		$	125,467		$	12,395		$	12,395
Denominator:
Weighted average basic shares outstanding		87,898			87,898			109,580			109,580
Dilutive securities including stock options, warrants and RSUs(a)(b)		—			6,992			—			3,288
Denominator for earnings per share—weighted average shares(a)(b)		87,898			94,890			109,580			112,868
Earnings per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.52		$	1.41		$	0.22		$	0.22
Discontinued operations, net of tax		(0.09	)		(0.09	)		(0.11	)		(0.11	)
Earnings per share	$	1.43		$	1.32		$	0.11		$	0.11

(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 nine months ended September 30, 2011, approximately 0.8 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 nine months ended September 30, 2010, approximately 21.3 million and 21.7 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 nine months ended September 30, 2011, approximately 3.3 million PSUs are excluded from the calculation of diluted earnings per share. For the three and nine months ended September 30, 2010, approximately 1.8 million PSUs are excluded from the calculation of diluted earnings per share.