TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION

During the three and nine months ended September 30, 2018 and 2017, the Company incurred $0.3 million and $3.6 million, and $26.0 million and $29.7 million, respectively, in costs related to the Combination (including severance, retention, transaction and integration related costs); as well as deferred revenue write-offs of $0.7 million and $5.3 million, respectively, during the three and nine months ended September 30, 2018 and $0.1 million for both the three and nine months ended September 30, 2017. The Company also incurred $16.0 million and $51.9 million, respectively, in stock-based compensation expense during the three and nine months ended September 30, 2018 and $96.9 million for both the three and nine months ended September 30, 2017, related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination.

A summary of the costs incurred, payments made and the related accrual is presented below.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)				(In thousands)
Transaction and integration related costs	$	255	$	25,980	$	3,578	$	29,660
Stock-based compensation expense	16,039		96,938		51,868		96,938
Total	$	16,294	$	122,918	$	55,446	$	126,598



	Nine Months Ended September 30, 2018
	(In thousands)
Accrual as of January 1	$	8,480
Charges incurred	3,578
Payments made	(10,757		)
Accrual as of September 30	$	1,301

The costs are allocated as follows in the accompanying consolidated and combined statement of operations:



	Three Months Ended September 30,
	2018						2017
	Integration Related Costs		Stock-based Compensation Expense		Total		Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—	$	—	$	—	$	—
Selling and marketing expense	—		550		550		4,061		19,510		23,571
General and administrative expense	255		13,756		14,011		21,619		65,236		86,855
Product development expense	—		1,733		1,733		300		12,192		12,492
Total	$	255	$	16,039	$	16,294	$	25,980	$	96,938	$	122,918



	Nine Months Ended September 30,
	2018						2017
	Integration Related Costs		Stock-based Compensation Expense		Total		Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—	$	—	$	—	$	—
Selling and marketing expense	—		1,650		1,650		4,061		19,510		23,571
General and administrative expense	3,578		45,285		48,863		25,299		65,236		90,535
Product development expense	—		4,933		4,933		300		12,192		12,492
Total	$	3,578	$	51,868	$	55,446	$	29,660	$	96,938	$	126,598