BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of combination:



	Angie's List
	(In thousands)
Cash and cash equivalents	$	44,270
Other current assets	11,280
Property and equipment	16,341
Goodwill	545,204
Intangible assets	317,300
Total assets	934,395
Deferred revenue	(32,595		)
Other current liabilities	(46,150		)
Long-term debt - related party	(61,498		)
Deferred income taxes	(11,363		)
Other long-term liabilities	(1,405		)
Net assets acquired	$	781,384

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:



	HomeStars
	(In thousands)
Cash and cash equivalents	$	181
Other current assets	165
Goodwill	9,841
Intangible assets	6,414
Total assets	16,601
Current liabilities	(649		)
Other long-term liabilities	(1,873		)
Net assets acquired	$	14,079

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:



	MyBuilder
	(In thousands)
Cash and cash equivalents	$	6,004
Other current assets	344
Goodwill	37,072
Intangible assets	15,239
Total assets	58,659
Current liabilities	(2,065		)
Other long-term liabilities	(2,595		)
Net assets acquired	$	53,999

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:



	Handy
	(In thousands)
Cash and cash equivalents	$	5,710
Other current assets	2,050
Goodwill	115,183
Intangible assets	38,800
Other non-current assets	8
Deferred income taxes	20,070
Total assets	181,821
Current liabilities	(13,419		)
Net assets acquired	$	168,402

Schedule of Preliminary Estimated Fair Value of Intangible Assets Acquired

The fair values of the identifiable intangible assets acquired at the date of acquisition are as follows:



	Handy
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	18,800	Indefinite
Developed technology	15,600		4
User base	3,400		1
Retail partners	600		3
Service professionals	400		1
Total identifiable intangible assets acquired	$	38,800

The fair values of the identifiable intangible assets acquired at the date of acquisition are as follows:



	HomeStars
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name	$	2,358	Indefinite
Contractor relationships	2,435		2
Developed technology	1,522		2
User base	99		1
Total identifiable intangible assets acquired	$	6,414

The fair values of the identifiable intangible assets acquired at the date of acquisition are as follows:



	MyBuilder
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name	$	7,994	Indefinite
Contractor relationships	4,122		2
Developed technology	1,499		2
User base	1,624		1
Total identifiable intangible assets acquired	$	15,239

The fair values of the identifiable intangible assets acquired at the date of combination are as follows:



	Angie's List
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	137,000	Indefinite
Service professionals	90,500		3
Developed technology	63,900		6
Memberships	15,900		3
User base	10,000		1
Total identifiable intangible assets acquired	$	317,300

Schedule of Purchase Price

The table below summarizes the purchase price:



	Angie's List
	(In thousands)
Class A common stock	$	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services	11,749
Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services	4,038
Total purchase price	$	781,384

Schedule of Pro Forma Financial Information

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below presents the combined results of the Company, Angie's List, HomeStars and MyBuilder as if these acquisitions had occurred on January 1, 2016 (the "2017 Acquisitions"), and Handy as if this acquisition had occurred on January 1, 2017. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the 2017 Acquisitions actually occurred on January 1, 2016 and the Handy acquisition actually occurred on January 1, 2017. For the year ended December 31, 2018, pro forma adjustments include a reduction in transaction related costs of $4.6 million because they are one-time in nature and will not have a continuing impact on operations and an increase in amortization of intangibles of $2.5 million. For the year ended December 31, 2017, pro forma adjustments include (i) reductions in stock-based compensation expense of $77.2 million and transaction related costs of $35.2 million because they are one-time in nature and will not have a continuing impact on operations; and (ii) an increase in amortization of intangibles of $39.1 million. The stock-based compensation expense is primarily 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. The transaction related costs include severance and retention costs of $19.8 million related to the Combination.



	Years Ended December 31,
	2018		2017
	(In thousands)
Revenue	$	1,155,960	$	986,301
Net earnings (loss) attributable to ANGI Homeservices Inc. shareholders	$	75,577	$	(46,459	)
Basic earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	0.16	$	(0.11	)
Diluted earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	0.15	$	(0.11	)