EARNINGS PER SHARE

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



	Three Months Ended June 30,
	2014						2013
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
(Loss) earnings from continuing operations	$	(17,995	)	$	(17,995	)	$	58,540		$	58,540
Net loss attributable to noncontrolling interests	867			867			818			818
(Loss) earnings from continuing operations attributable to IAC shareholders	(17,128		)	(17,128		)	59,358			59,358
Loss from discontinued operations attributable to IAC shareholders	(868		)	(868		)	(1,068		)	(1,068		)
Net (loss) earnings attributable to IAC shareholders	$	(17,996	)	$	(17,996	)	$	58,290		$	58,290

Denominator:
Weighted average basic shares outstanding	83,178			83,178			83,609			83,609
Dilutive securities including stock options and RSUs^(a)	—			—			—			2,954
Denominator for earnings per share—weighted average shares^(a)	83,178			83,178			83,609			86,563

(Loss) earnings per share attributable to IAC shareholders:
(Loss) earnings per share from continuing operations	$	(0.21	)	$	(0.21	)	$	0.71		$	0.69
Discontinued operations	(0.01		)	(0.01		)	(0.01		)	(0.02		)
(Loss) earnings per share	$	(0.22	)	$	(0.22	)	$	0.70		$	0.67



	Six Months Ended June 30,
	2014						2013
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	16,310		$	16,310		$	111,249		$	111,249
Net loss attributable to noncontrolling interests	3,261			3,261			2,690			2,690
Earnings from continuing operations attributable to IAC shareholders	19,571			19,571			113,939			113,939
Loss from discontinued operations attributable to IAC shareholders	(1,682		)	(1,682		)	(2,012		)	(2,012		)
Net earnings attributable to IAC shareholders	$	17,889		$	17,889		$	111,927		$	111,927

Denominator:
Weighted average basic shares outstanding	82,833			82,833			83,912			83,912
Dilutive securities including stock options and RSUs^(b)	—			5,150			—			3,058
Denominator for earnings per share—weighted average shares^(b)	82,833			87,983			83,912			86,970

Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	0.24		$	0.22		$	1.36		$	1.31
Discontinued operations	(0.02		)	(0.02		)	(0.03		)	(0.02		)
Earnings per share	$	0.22		$	0.20		$	1.33		$	1.29

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^(a)

For the three months ended June 30, 2014, the Company has a loss from continuing operations and as a result, approximately 11.5 million shares related to potentially dilutive securities were excluded 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.

^(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 and vesting of restricted stock units ("RSUs"). For the six months ended June 30, 2014, there are no shares excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2013, approximately 0.7 million and 3.8 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.