QUARTERLY RESULTS (UNAUDITED)

12 Months Ended

Dec. 31, 2011

QUARTERLY RESULTS (UNAUDITED)

QUARTERLY RESULTS (UNAUDITED)

NOTE 21—QUARTERLY RESULTS (UNAUDITED)

	Quarter Ended March 31			Quarter Ended June 30			Quarter Ended September 30(a)			Quarter Ended December 31
	(In thousands, except per share data)
Year Ended December 31, 2011
Revenue	$	460,213		$	485,404		$	516,884		$	596,943
Cost of revenue		172,718			181,472			188,642			218,412
Operating income		37,336			58,231			46,740			55,455
Earnings from continuing operations		20,168			45,630			67,973			41,798
(Loss) earnings from discontinued operations, net of tax		(1,948	)		(2,488	)		(3,922	)		4,366
Net earnings		18,220			43,142			64,051			46,164
Net earnings attributable to IAC shareholders		18,070			42,424			64,973			48,766
Per share information attributable to IAC shareholders:
Basic earnings per share from continuing operations(d)	$	0.22		$	0.50		$	0.81		$	0.53
Diluted earnings per share from continuing operations(d)	$	0.21		$	0.46		$	0.73		$	0.48
Basic earnings per share(d)	$	0.20		$	0.47		$	0.77		$	0.58
Diluted earnings per share(d)	$	0.19		$	0.44		$	0.69		$	0.53

	Quarter Ended March 31(b)			Quarter Ended June 30			Quarter Ended September 30			Quarter Ended December 31(c)(e)
	(In thousands, except per share data)
Year Ended December 31, 2010
Revenue	$	378,178		$	394,244		$	412,966		$	451,427
Cost of revenue		131,149			140,638			147,933			174,096
Operating income (loss)		8,925			24,633			37,684			(21,447	)
(Loss) earnings from continuing operations		(14,597	)		15,421			22,440			(32,657	)
(Loss) earnings from discontinued operations, net of tax		(4,727	)		(2,586	)		(4,795	)		115,853
Net (loss) earnings		(19,324	)		12,835			17,645			83,196
Net (loss) earnings attributable to IAC shareholders		(18,705	)		13,591			17,509			86,964
Per share information attributable to IAC shareholders:
Basic (loss) earnings per share from continuing operations(d)	$	(0.12	)	$	0.15		$	0.22		$	(0.30	)
Diluted (loss) earnings per share from continuing operations(d)	$	(0.12	)	$	0.14		$	0.21		$	(0.30	)
Basic (loss) earnings per share(d)	$	(0.16	)	$	0.12		$	0.17		$	(0.90	)
Diluted (loss) earnings per share(d)	$	(0.16	)	$	0.12		$	0.16		$	(0.90	)

(a)

The third quarter of 2011 includes an after-tax loss of $11.7 million related to marking down the carrying value of Match's 27% equity method investment in Meetic to fair value (i.e., the tender offer price of €15.00 per share) upon achieving control. The third quarter of 2011 also includes the release of a previously established deferred tax liability of $43.6 million in connection with the acquisition of Meetic.

(b)

The first quarter of 2010 includes an after-tax impairment charge of $18.3 million related to the write-down of one of the Company's equity method investments to fair value.

(c)

The fourth quarter of 2010 includes after-tax impairment charges of $30.8 million related to the write-down of the goodwill and intangible assets of Shoebuy and $11.0 million related to the write-down of an indefinite-lived intangible asset of IAC Search & Media and an after-tax impairment charge of $4.6 million related to the write-down of one of the Company's cost method investments to fair value.

(d)

Quarterly per share amounts may not add to the related annual per share amount because of differences in the average common shares outstanding during each period.

Discontinued operations

(e)

The fourth quarter of 2010 includes a gain of $140.8 million related to the tax-free exchange of Evite, Gifts.com and IAC Advertising Solutions to Liberty, and an after-tax impairment charge of $31.6 million related to the write-down of the goodwill of InstantAction.