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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 12—(LOSS) EARNINGS PER SHARE (Continued)
NOTE 13—STOCK-BASED COMPENSATION
IAC currently has three active plans under which awards have been granted, which cover stock options to acquire shares of IAC common
stock, RSUs, PSUs and restricted stock, as well as provide for the future grant of these and other equity awards. These plans are: the IAC 2008
Stock and Annual Incentive Plan (the "2008 Plan"), the IAC 2005 Stock and Annual Incentive Plan (the "2005 Plan") and the Amended and
Restated IAC 2000 Stock and Annual Incentive Plan (the "2000 Plan"). Under the 2008 Plan, the Company was originally authorized to grant
Years Ended December 31,
2009
2008
2007
Basic
Diluted
Basic
Diluted
Basic
Diluted
(In thousands, except per share data)
Denominator:
Weighted
average basic
shares
outstanding
138,599
138,599
139,850
139,850
142,843
142,843
Dilutive
securities
including stock
options,
warrants,
RSUs and
PSUs
—
—
—
4,126
—
—
Denominator for
earnings per
share—
weighted
average shares
(a)(b)
138,599
138,599
139,850
143,976
142,843
142,843
(Loss) earnings
per share
attributable
to IAC
shareholders:
(Loss) earnings
per share from
continuing
operations
$
(6.98
)
$
(6.98
)
$
0.98
$
0.95
(0.03
)
$
(0.03
)
Discontinued
operations, net
of tax
(0.08
)
(0.08
)
(2.10
)
(2.03
)
(0.98
)
(0.98
)
Loss per share
$
(7.06
)
$
(7.06
)
$
(1.12
)
$
(1.08
)
(1.01
)
$
(1.01
)
(a) Weighted average common shares outstanding includes the incremental shares that would be issued upon the assumed
exercise of stock options and warrants, vesting of RSUs and PSUs and conversion of the Ask Zero Coupon Convertible
Subordinated Notes due June 1, 2008 (the "Convertible Notes") if the effect is dilutive. For the year ended December 31,
2008, approximately 39.9 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. During the second quarter of 2008 all
outstanding Convertible Notes were fully converted.
(b) For the years ended December 31, 2009 and 2007, the Company had losses 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 years ended December 31, 2009 and 2007, approximately 38.0 million and
28.7 million shares, respectively, related to potentially dilutive securities were excluded from the calculation of diluted
earnings per share because their inclusion would have been anti
-
dilutive.