Delaware (State or other jurisdiction of incorporation) | 0-20570 (Commission File Number) | 59-2712887 (IRS Employer Identification No.) |
555 West 18th Street, New York, NY (Address of principal executive offices) | 10011 (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
23.1 | Consent of Ernst & Young LLP | |
23.2 | Consent of Ernst & Young LLP | |
99.1 | Amended and Restated Part II - Item 8. Consolidated Financial Statements and Supplementary Data from the Registrant's 2012 Form 10-K | |
99.2 | Audited Consolidated Financial Statements of About, Inc. as of, and for the fiscal year ended December 25, 2011 | |
99.3 | Unaudited Interim Condensed Consolidated Financial Statements of About, Inc. as of June 24, 2012 (with comparative balances as of December 25, 2011), and for the three and six months ended June 24, 2012 and June 26, 2011 | |
101.INS XBRL | Instance | |
101.SCH XBRL | Taxonomy Extension Schema | |
101.CAL XBRL | Taxonomy Extension Calculation | |
101.DEF XBRL | Taxonomy Extension Definition | |
101.LAB XBRL | Taxonomy Extension Labels | |
101.PRE XBRL | Taxonomy Extension Presentation |
IAC/InterActiveCorp | |||
By: | /s/ Gregg Winiarski | ||
Name: | Gregg Winiarski | ||
Title: | Senior Vice President and General Counsel |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 749,977 | $ | 704,153 | |||
Marketable securities | 20,604 | 165,695 | |||||
Accounts receivable, net of allowance of $11,088 and $7,309, respectively | 229,830 | 177,030 | |||||
Other current assets | 156,339 | 112,255 | |||||
Total current assets | 1,156,750 | 1,159,133 | |||||
Property and equipment, net | 270,512 | 259,588 | |||||
Goodwill | 1,616,154 | 1,358,524 | |||||
Intangible assets, net | 482,904 | 378,107 | |||||
Long-term investments | 161,278 | 173,752 | |||||
Other non-current assets | 118,230 | 80,761 | |||||
TOTAL ASSETS | $ | 3,805,828 | $ | 3,409,865 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
LIABILITIES: | |||||||
Current maturities of long-term debt | $ | 15,844 | $ | — | |||
Accounts payable, trade | 98,314 | 64,398 | |||||
Deferred revenue | 155,499 | 126,297 | |||||
Accrued expenses and other current liabilities | 355,232 | 343,490 | |||||
Total current liabilities | 624,889 | 534,185 | |||||
Long-term debt, net of current maturities | 580,000 | 95,844 | |||||
Income taxes payable | 479,945 | 450,533 | |||||
Deferred income taxes | 323,403 | 302,213 | |||||
Other long-term liabilities | 31,830 | 16,601 | |||||
Redeemable noncontrolling interests | 58,126 | 50,349 | |||||
Commitments and contingencies | |||||||
SHAREHOLDERS' EQUITY: | |||||||
Common stock $.001 par value; authorized 1,600,000,000 shares; issued 250,982,079 and 234,100,950 shares, respectively, and outstanding 78,471,784 and 77,126,881 shares, respectively | 251 | 234 | |||||
Class B convertible common stock $.001 par value; authorized 400,000,000 shares; issued 16,157,499 shares and outstanding 5,789,499 shares, respectively | 16 | 16 | |||||
Additional paid-in capital | 11,607,367 | 11,280,173 | |||||
Accumulated deficit | (318,519 | ) | (477,785 | ) | |||
Accumulated other comprehensive loss | (32,169 | ) | (12,443 | ) | |||
Treasury stock 182,878,295 and 167,342,069 shares, respectively | (9,601,218 | ) | (8,885,146 | ) | |||
Total IAC shareholders' equity | 1,655,728 | 1,905,049 | |||||
Noncontrolling interests | 51,907 | 55,091 | |||||
Total shareholders' equity | 1,707,635 | 1,960,140 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,805,828 | $ | 3,409,865 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands, except per share data) | |||||||||||
Revenue | $ | 2,800,933 | $ | 2,059,444 | $ | 1,636,815 | |||||
Costs and expenses: | |||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 992,470 | 761,244 | 593,816 | ||||||||
Selling and marketing expense | 898,761 | 614,174 | 492,206 | ||||||||
General and administrative expense | 396,013 | 328,728 | 316,500 | ||||||||
Product development expense | 101,869 | 78,760 | 65,097 | ||||||||
Depreciation | 52,481 | 56,719 | 63,897 | ||||||||
Amortization of intangibles | 35,771 | 22,057 | 27,472 | ||||||||
Goodwill impairment | — | — | 28,032 | ||||||||
Total costs and expenses | 2,477,365 | 1,861,682 | 1,587,020 | ||||||||
Operating income | 323,568 | 197,762 | 49,795 | ||||||||
Equity in losses of unconsolidated affiliates | (25,345 | ) | (36,300 | ) | (25,676 | ) | |||||
Other (expense) income, net | (9,161 | ) | 10,060 | (1,433 | ) | ||||||
Earnings from continuing operations before income taxes | 289,062 | 171,522 | 22,686 | ||||||||
Income tax (provision) benefit | (119,215 | ) | 4,047 | (32,079 | ) | ||||||
Earnings (loss) from continuing operations | 169,847 | 175,569 | (9,393 | ) | |||||||
Gain on Liberty Exchange | — | — | 140,768 | ||||||||
Loss from discontinued operations, net of tax | (9,051 | ) | (3,992 | ) | (37,023 | ) | |||||
Net earnings | 160,796 | 171,577 | 94,352 | ||||||||
Net (earnings) loss attributable to noncontrolling interests | (1,530 | ) | 2,656 | 5,007 | |||||||
Net earnings attributable to IAC shareholders | $ | 159,266 | $ | 174,233 | $ | 99,359 | |||||
Per share information attributable to IAC shareholders: | |||||||||||
Basic earnings (loss) per share from continuing operations | $ | 1.95 | $ | 2.05 | $ | (0.04 | ) | ||||
Diluted earnings (loss) per share from continuing operations | $ | 1.81 | $ | 1.89 | $ | (0.04 | ) | ||||
Basic earnings per share | $ | 1.85 | $ | 2.01 | $ | 0.93 | |||||
Diluted earnings per share | $ | 1.71 | $ | 1.85 | $ | 0.93 | |||||
Dividends declared per share | $ | 0.72 | $ | 0.12 | $ | — | |||||
Non-cash compensation expense by function: | |||||||||||
Cost of revenue | $ | 6,219 | $ | 5,359 | $ | 4,510 | |||||
Selling and marketing expense | 4,760 | 4,807 | 4,228 | ||||||||
General and administrative expense | 68,640 | 70,894 | 69,082 | ||||||||
Product development expense | 6,006 | 7,528 | 6,460 | ||||||||
Total non-cash compensation expense | $ | 85,625 | $ | 88,588 | $ | 84,280 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Net earnings | $ | 160,796 | $ | 171,577 | $ | 94,352 | |||||
Other comprehensive income (loss): | |||||||||||
Change in foreign currency translation adjustment (net of tax benefit of $4,711 in 2010) | 712 | (49,438 | ) | (4,504 | ) | ||||||
Change in net unrealized (losses) gains on available-for-sale securities (net of tax benefit of $3,981 in 2012, tax provision of $5,460 in 2011, and tax benefit of $1,555 in 2010) | (19,827 | ) | 11,212 | (2,720 | ) | ||||||
Total other comprehensive loss | (19,115 | ) | (38,226 | ) | (7,224 | ) | |||||
Comprehensive income | 141,681 | 133,351 | 87,128 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (2,141 | ) | 10,893 | 5,274 | |||||||
Comprehensive income attributable to IAC shareholders | $ | 139,540 | $ | 144,244 | $ | 92,402 |
IAC Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Common Stock $.001 Par Value | Class B Convertible Common Stock $.001 Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | $ | Shares | $ | Shares | Accumulated Deficit | Total IAC Shareholders' Equity | Noncontrolling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2009 | $ | 28,180 | $ | 223 | 222,658 | $ | 16 | 16,157 | $ | 10,942,128 | $ | (751,377 | ) | $ | 24,503 | $ | (7,468,532 | ) | $ | 2,746,961 | $ | — | $ | 2,746,961 | ||||||||||||||||||||||
Net (loss) earnings for the year ended December 31, 2010 | (5,007 | ) | — | — | — | — | — | 99,359 | — | — | 99,359 | — | 99,359 | |||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (267 | ) | — | — | — | — | — | — | (6,957 | ) | — | (6,957 | ) | — | (6,957 | ) | ||||||||||||||||||||||||||||||
Noncontrolling interests related to acquisitions | 23,583 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Noncontrolling interests created by a decrease in the ownership of a subsidiary contributed to a consolidated Latin American venture | 15,750 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | — | — | — | 85,048 | — | — | — | 85,048 | — | 85,048 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes | — | 3 | 2,864 | — | — | 30,930 | — | — | — | 30,933 | — | 30,933 | ||||||||||||||||||||||||||||||||||
Income tax provision related to the exercise of stock options, vesting of restricted stock units and other | — | — | — | — | — | (12,237 | ) | — | — | — | (12,237 | ) | — | (12,237 | ) | |||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | — | (530,885 | ) | (530,885 | ) | — | (530,885 | ) | |||||||||||||||||||||||||||||||
Receipt of stock in the Liberty Exchange | — | — | — | — | — | — | — | — | (364,169 | ) | (364,169 | ) | — | (364,169 | ) | |||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | (2,059 | ) | — | — | — | — | 2,059 | — | — | — | 2,059 | — | 2,059 | |||||||||||||||||||||||||||||||||
Other | (311 | ) | — | 352 | — | — | (44 | ) | — | — | — | (44 | ) | — | (44 | ) | ||||||||||||||||||||||||||||||
Balance as of December 31, 2010 | $ | 59,869 | $ | 226 | 225,874 | $ | 16 | 16,157 | $ | 11,047,884 | $ | (652,018 | ) | $ | 17,546 | $ | (8,363,586 | ) | $ | 2,050,068 | $ | — | $ | 2,050,068 | ||||||||||||||||||||||
Net (loss) earnings for the year ended December 31, 2011 | (239 | ) | — | — | — | — | — | 174,233 | — | — | 174,233 | (2,417 | ) | 171,816 | ||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (2,968 | ) | — | — | — | — | — | — | (29,989 | ) | — | (29,989 | ) | (5,269 | ) | (35,258 | ) | |||||||||||||||||||||||||||||
Noncontrolling interests related to acquisition of Meetic S.A. | 36,656 | — | — | — | — | — | — | — | — | — | 64,831 | 64,831 | ||||||||||||||||||||||||||||||||||
Decrease in redeemable noncontrolling interests in a consolidated Latin American venture resulting from the acquisition of Meetic | (37,917 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | — | — | — | 86,725 | — | — | — | 86,725 | 1,049 | 87,774 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes | — | 5 | 5,010 | — | — | 56,731 | — | — | — | 56,736 | — | 56,736 | ||||||||||||||||||||||||||||||||||
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other | — | — | — | — | — | 28,363 | — | — | — | 28,363 | — | 28,363 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of warrants | — | 3 | 3,217 | — | — | 76,039 | — | — | — | 76,042 | — | 76,042 | ||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (11,296 | ) | — | — | — | (11,296 | ) | (3,103 | ) | (14,399 | ) | ||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | — | (518,637 | ) | (518,637 | ) | — | (518,637 | ) | |||||||||||||||||||||||||||||||
Receipt of stock in the Liberty Exchange | — | — | — | — | — | — | — | — | (2,923 | ) | (2,923 | ) | — | (2,923 | ) | |||||||||||||||||||||||||||||||
Purchase of noncontrolling interests | (5,779 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 4,273 | — | — | — | — | (4,273 | ) | — | — | — | (4,273 | ) | — | (4,273 | ) | |||||||||||||||||||||||||||||||
Other | (3,546 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2011 | $ | 50,349 | $ | 234 | 234,101 | $ | 16 | 16,157 | $ | 11,280,173 | $ | (477,785 | ) | $ | (12,443 | ) | $ | (8,885,146 | ) | $ | 1,905,049 | $ | 55,091 | $ | 1,960,140 |
IAC Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Common Stock $.001 Par Value | Class B Convertible Common Stock $.001 Par Value | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | ||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | $ | Shares | $ | Shares | Accumulated Deficit | Total IAC Shareholders' Equity | Noncontrolling Interests | Total Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) earnings for the year ended December 31, 2012 | (1,118 | ) | — | — | — | — | — | 159,266 | — | — | 159,266 | 2,648 | 161,914 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 207 | — | — | — | — | — | — | (19,726 | ) | — | (19,726 | ) | 404 | (19,322 | ) | |||||||||||||||||||||||||||||||
Non-cash compensation expense | — | — | — | — | — | 82,807 | — | — | — | 82,807 | 2,818 | 85,625 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes | — | 5 | 5,153 | — | — | (16,503 | ) | — | — | — | (16,498 | ) | — | (16,498 | ) | |||||||||||||||||||||||||||||||
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other | — | — | — | — | — | 49,967 | — | — | — | 49,967 | — | 49,967 | ||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of warrants | — | 12 | 11,728 | — | — | 284,099 | — | — | — | 284,111 | — | 284,111 | ||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | — | (68,901 | ) | — | — | — | (68,901 | ) | — | (68,901 | ) | |||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | — | — | (716,072 | ) | (716,072 | ) | — | (716,072 | ) | |||||||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interests | (2,955 | ) | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Adjustment of redeemable noncontrolling interests to fair value | 4,275 | — | — | — | — | (4,275 | ) | — | — | — | (4,275 | ) | — | (4,275 | ) | |||||||||||||||||||||||||||||||
Transfer from noncontrolling interests to redeemable noncontrolling interests | 10,049 | — | — | — | — | — | — | — | — | — | (10,049 | ) | (10,049 | ) | ||||||||||||||||||||||||||||||||
Other | (2,681 | ) | — | — | — | — | — | — | — | — | — | 995 | 995 | |||||||||||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 58,126 | $ | 251 | 250,982 | $ | 16 | 16,157 | $ | 11,607,367 | $ | (318,519 | ) | $ | (32,169 | ) | $ | (9,601,218 | ) | $ | 1,655,728 | $ | 51,907 | $ | 1,707,635 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash flows from operating activities attributable to continuing operations: | |||||||||||
Net earnings | $ | 160,796 | $ | 171,577 | $ | 94,352 | |||||
Less: (loss) earnings from discontinued operations, net of tax | (9,051 | ) | (3,992 | ) | 103,745 | ||||||
Earnings (loss) from continuing operations | 169,847 | 175,569 | (9,393 | ) | |||||||
Adjustments to reconcile earnings (loss) from continuing operations to net cash provided by operating activities attributable to continuing operations: | |||||||||||
Non-cash compensation expense | 85,625 | 88,588 | 84,280 | ||||||||
Depreciation | 52,481 | 56,719 | 63,897 | ||||||||
Amortization of intangibles | 35,771 | 22,057 | 27,472 | ||||||||
Goodwill impairment | — | — | 28,032 | ||||||||
Impairment of long-term investments | 8,685 | — | 7,844 | ||||||||
Deferred income taxes | 37,076 | (35,483 | ) | (6,074 | ) | ||||||
Equity in losses of unconsolidated affiliates | 25,345 | 36,300 | 25,676 | ||||||||
Changes in assets and liabilities, net of effects of acquisitions: | |||||||||||
Accounts receivable | (30,991 | ) | (58,314 | ) | (32,901 | ) | |||||
Other current assets | (22,991 | ) | 1,287 | (8,636 | ) | ||||||
Accounts payable and other current liabilities | (14,384 | ) | 57,228 | 54,188 | |||||||
Income taxes payable | (10,091 | ) | (29,215 | ) | 76,749 | ||||||
Deferred revenue | 1,864 | 48,950 | 19,653 | ||||||||
Other, net | 16,290 | 8,700 | 9,920 | ||||||||
Net cash provided by operating activities attributable to continuing operations | 354,527 | 372,386 | 340,707 | ||||||||
Cash flows from investing activities attributable to continuing operations: | |||||||||||
Acquisitions, net of cash acquired | (411,035 | ) | (278,469 | ) | (17,333 | ) | |||||
Capital expenditures | (51,201 | ) | (39,954 | ) | (39,829 | ) | |||||
Proceeds from maturities and sales of marketable debt securities | 195,501 | 584,935 | 763,326 | ||||||||
Purchases of marketable debt securities | (53,952 | ) | (203,970 | ) | (838,155 | ) | |||||
Proceeds from sales of long-term investments | 14,194 | 15,214 | 5,324 | ||||||||
Purchases of long-term investments | (36,094 | ) | (90,245 | ) | (2,283 | ) | |||||
Dividend received from Meetic S.A. | — | — | 11,355 | ||||||||
Other, net | (9,501 | ) | (12,697 | ) | (501 | ) | |||||
Net cash used in investing activities attributable to continuing operations | (352,088 | ) | (25,186 | ) | (118,096 | ) | |||||
Cash flows from financing activities attributable to continuing operations: | |||||||||||
Proceeds from issuance of long-term debt | 500,000 | — | — | ||||||||
Purchase of treasury stock | (691,830 | ) | (507,765 | ) | (539,598 | ) | |||||
Issuance of common stock, net of withholding taxes | 262,841 | 132,785 | 25,939 | ||||||||
Dividends | (68,163 | ) | (10,668 | ) | — | ||||||
Excess tax benefits from stock-based awards | 57,101 | 22,166 | 14,291 | ||||||||
Liberty Exchange | — | — | (217,921 | ) | |||||||
Other, net | (15,648 | ) | (8,751 | ) | 79 | ||||||
Net cash provided by (used in) financing activities attributable to continuing operations | 44,301 | (372,233 | ) | (717,210 | ) | ||||||
Total cash provided by (used in) continuing operations | 46,740 | (25,033 | ) | (494,599 | ) | ||||||
Total cash used in discontinued operations | (3,472 | ) | (8,417 | ) | (7,545 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 2,556 | (4,496 | ) | (1,754 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 45,824 | (37,946 | ) | (503,898 | ) | ||||||
Cash and cash equivalents at beginning of period | 704,153 | 742,099 | 1,245,997 | ||||||||
Cash and cash equivalents at end of period | $ | 749,977 | $ | 704,153 | $ | 742,099 |
Asset Category | Estimated Useful Lives |
Buildings and leasehold improvements | 3 to 39 Years |
Computer equipment and capitalized software | 2 to 3 Years |
Furniture and other equipment | 3 to 10 Years |
Operating Segment and Reporting Unit | Reportable Segment | |
Search & Applications | Search & Applications | |
Match | Match | |
HomeAdvisor | Local | |
CityGrid Media | Local | |
Connected Ventures | Media | |
DailyBurn | Media | |
Shoebuy | Other | |
Tutor | Other |
• | Level 1: Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets. |
• | Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data. The fair value of the Company's Level 2 financial assets are primarily obtained from observable market prices for identical underlying securities that may not be actively traded. Certain of these securities may have different market prices from multiple market data sources, in which case an average market price is used. |
• | Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. See Note 9 for a discussion of fair value measurements made using Level 3 inputs. |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Other current assets: | |||||||
Income taxes receivable | $ | 27,437 | $ | 7,728 | |||
Prepaid expenses | 22,877 | 19,769 | |||||
Capitalized downloadable search toolbar costs, net | 22,205 | 17,704 | |||||
Deferred income taxes | 20,343 | 41,045 | |||||
Production costs | 20,099 | 12,538 | |||||
Other | 43,378 | 13,471 | |||||
Other current assets | $ | 156,339 | $ | 112,255 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Property and equipment, net: | |||||||
Buildings and leasehold improvements | $ | 238,652 | $ | 235,737 | |||
Computer equipment and capitalized software | 197,402 | 186,016 | |||||
Furniture and other equipment | 42,949 | 43,156 | |||||
Projects in progress | 19,303 | 7,643 | |||||
Land | 5,117 | 5,117 | |||||
503,423 | 477,669 | ||||||
Accumulated depreciation and amortization | (232,911 | ) | (218,081 | ) | |||
Property and equipment, net | $ | 270,512 | $ | 259,588 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Other non-current assets: | |||||||
Income taxes receivable | $ | 79,130 | $ | 58,870 | |||
Other | 39,100 | 21,891 | |||||
Other non-current assets | $ | 118,230 | $ | 80,761 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Accrued expenses and other current liabilities: | |||||||
Accrued revenue share expense | $ | 78,196 | $ | 80,628 | |||
Accrued advertising expense | 73,381 | 68,782 | |||||
Accrued employee compensation and benefits | 51,537 | 83,692 | |||||
Unsettled treasury stock purchases | 35,113 | 10,871 | |||||
Income taxes payable | 17,679 | 3,630 | |||||
Other | 99,326 | 95,887 | |||||
Accrued expenses and other current liabilities | $ | 355,232 | $ | 343,490 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Accumulated other comprehensive loss: | |||||||
Foreign currency translation adjustment, net of tax | $ | (25,073 | ) | $ | (25,174 | ) | |
Unrealized (losses) gains on available-for-sale securities, net of tax | (7,096 | ) | 12,731 | ||||
Accumulated other comprehensive loss | $ | (32,169 | ) | $ | (12,443 | ) |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Revenue: | |||||||||||
Service revenue | $ | 2,639,409 | $ | 1,932,289 | $ | 1,522,217 | |||||
Product revenue | 161,524 | 127,155 | 114,598 | ||||||||
Revenue | $ | 2,800,933 | $ | 2,059,444 | $ | 1,636,815 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cost of revenue: | |||||||||||
Cost of service revenue | $ | 837,113 | $ | 666,424 | $ | 508,640 | |||||
Cost of product revenue | 155,357 | 94,820 | 85,176 | ||||||||
Cost of revenue | $ | 992,470 | $ | 761,244 | $ | 593,816 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Other (expense) income, net: | |||||||||||
Interest income | $ | 3,462 | $ | 5,205 | $ | 6,517 | |||||
Interest expense | (6,149 | ) | (5,430 | ) | (5,404 | ) | |||||
Non-income tax refunds related to Match Europe, which was sold in 2009 | — | 4,630 | — | ||||||||
Foreign currency exchange (losses) gains, net | (1,050 | ) | 3,660 | 314 | |||||||
Gains on sales of investments | 3,326 | 1,974 | 3,989 | ||||||||
Impairment of long-term investments | (8,685 | ) | — | (7,844 | ) | ||||||
Other | (65 | ) | 21 | 995 | |||||||
Other (expense) income, net | $ | (9,161 | ) | $ | 10,060 | $ | (1,433 | ) |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
U.S. | $ | 214,675 | $ | 142,623 | $ | 20,603 | |||||
Foreign | 74,387 | 28,899 | 2,083 | ||||||||
Total | $ | 289,062 | $ | 171,522 | $ | 22,686 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Current income tax provision (benefit): | |||||||||||
Federal | $ | 56,439 | $ | 49,450 | $ | 27,271 | |||||
State | 9,204 | (26,510 | ) | 7,785 | |||||||
Foreign | 16,496 | 8,496 | 3,097 | ||||||||
Current income tax provision | 82,139 | 31,436 | 38,153 | ||||||||
Deferred income tax provision (benefit): | |||||||||||
Federal | 40,414 | (23,293 | ) | (7,031 | ) | ||||||
State | 1,978 | 639 | 1,646 | ||||||||
Foreign | (5,316 | ) | (12,829 | ) | (689 | ) | |||||
Deferred income tax provision (benefit) | 37,076 | (35,483 | ) | (6,074 | ) | ||||||
Income tax provision (benefit) | $ | 119,215 | $ | (4,047 | ) | $ | 32,079 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Deferred tax assets: | |||||||
Accrued expenses | $ | 13,708 | $ | 25,130 | |||
Net operating loss carryforwards | 27,177 | 31,000 | |||||
Tax credit carryforwards | 5,095 | 10,518 | |||||
Stock-based compensation | 66,962 | 84,543 | |||||
Income tax reserves, including related interest | 60,596 | 57,016 | |||||
Fair value investments | 11,474 | 578 | |||||
Equity method investments | 13,809 | 12,850 | |||||
Other | 14,089 | 21,912 | |||||
Total deferred tax assets | 212,910 | 243,547 | |||||
Less valuation allowance | (60,783 | ) | (45,084 | ) | |||
Net deferred tax assets | 152,127 | 198,463 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | (6,018 | ) | (16,264 | ) | |||
Investment in subsidiaries | (373,652 | ) | (374,282 | ) | |||
Intangible and other assets | (60,830 | ) | (56,597 | ) | |||
Other | (14,602 | ) | (11,437 | ) | |||
Total deferred tax liabilities | (455,102 | ) | (458,580 | ) | |||
Net deferred tax liability | $ | (302,975 | ) | $ | (260,117 | ) |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Income tax provision at the federal statutory rate of 35% | $ | 101,172 | $ | 60,033 | $ | 7,940 | |||||
Reversal of deferred tax liability associated with investment in Meetic | — | (43,696 | ) | — | |||||||
Change in tax reserves, net | 17,703 | (15,493 | ) | 8,696 | |||||||
Foreign income taxed at a different statutory tax rate | (16,240 | ) | (11,774 | ) | (4,957 | ) | |||||
Net adjustment related to the reconciliation of income tax provision accruals to tax returns | (3,876 | ) | (7,298 | ) | (38 | ) | |||||
Federal valuation allowance on equity method investments | 979 | 4,595 | 2,420 | ||||||||
State income taxes, net of effect of federal tax benefit | 7,650 | 5,592 | 5,310 | ||||||||
Foreign tax credits | — | (1,076 | ) | (5,255 | ) | ||||||
Non-deductible impairments of goodwill and intangible assets | — | — | 13,661 | ||||||||
Other, net | 11,827 | 5,070 | 4,302 | ||||||||
Income tax provision (benefit) | $ | 119,215 | $ | (4,047 | ) | $ | 32,079 |
December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Balance at January 1 | $ | 351,561 | $ | 389,909 | $ | 394,294 | |||||
Additions based on tax positions related to the current year | 6,278 | 1,749 | 3,060 | ||||||||
Additions for tax positions of prior years | 45,287 | 9,560 | 9,897 | ||||||||
Reductions for tax positions of prior years | (17,545 | ) | (26,595 | ) | (13,164 | ) | |||||
Settlements | (5,349 | ) | (16,810 | ) | (1,025 | ) | |||||
Expiration of applicable statute of limitations | (951 | ) | (6,252 | ) | (3,153 | ) | |||||
Balance at December 31 | $ | 379,281 | $ | 351,561 | $ | 389,909 |
(In thousands) | |||
Cash and cash equivalents | $ | 998 | |
Other current assets | 22,657 | ||
Property and equipment | 8,988 | ||
Goodwill | 190,616 | ||
Intangible assets | 103,289 | ||
Other assets | 770 | ||
Total assets | 327,318 | ||
Current liabilities | (7,027 | ) | |
Other long-term liabilities | (3,179 | ) | |
Net assets | $ | 317,112 |
(In thousands) | Weighted-Average Useful Life (Years) | ||||
Indefinite-lived trade names | $ | 33,700 | Indefinite | ||
Content | 47,800 | 4.0 | |||
Technology | 12,789 | 3.0 | |||
Advertiser relationships | 7,500 | 2.0 | |||
Customer lists | 1,500 | 3.0 | |||
Total | $ | 103,289 | 3.6 |
Years Ended December 31, | |||||||
2012 | 2011 | ||||||
(In thousands, except per share data) | |||||||
Revenue | $ | 2,881,117 | $ | 2,374,812 | |||
Net earnings attributable to IAC shareholders | 179,839 | 228,116 | |||||
Basic earnings per share attributable to IAC shareholders | 2.09 | 2.63 | |||||
Diluted earnings per share attributable to IAC shareholders | 1.93 | 2.42 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Goodwill | $ | 1,616,154 | $ | 1,358,524 | |||
Intangible assets with indefinite lives | 378,964 | 351,488 | |||||
Intangible assets with definite lives, net | 103,940 | 26,619 | |||||
Total goodwill and intangible assets, net | $ | 2,099,058 | $ | 1,736,631 |
Balance at December 31, 2011 | Additions | (Deductions) | Foreign Exchange Translation | Balance at December 31, 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Search & Applications | $ | 526,444 | $ | 197,458 | $ | (252 | ) | $ | — | $ | 723,650 | ||||||||
Match | 667,073 | 23,250 | (555 | ) | (5,833 | ) | 683,935 | ||||||||||||
HomeAdvisor | 109,947 | 1,880 | — | (169 | ) | 111,658 | |||||||||||||
CityGrid Media | 17,751 | 14,373 | — | — | 32,124 | ||||||||||||||
Local | 127,698 | 16,253 | — | (169 | ) | 143,782 | |||||||||||||
Connected Ventures | 8,267 | — | — | — | 8,267 | ||||||||||||||
DailyBurn | 7,323 | — | — | — | 7,323 | ||||||||||||||
Media | 15,590 | — | — | — | 15,590 | ||||||||||||||
Shoebuy | 21,719 | — | — | — | 21,719 | ||||||||||||||
Tutor | — | 27,478 | — | — | 27,478 | ||||||||||||||
Other | 21,719 | 27,478 | — | — | 49,197 | ||||||||||||||
Total | $ | 1,358,524 | $ | 264,439 | $ | (807 | ) | $ | (6,002 | ) | $ | 1,616,154 |
Balance at December 31, 2010 | Additions | (Deductions) | Foreign Exchange Translation | Balance at December 31, 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Search & Applications | $ | 526,681 | $ | — | $ | (237 | ) | $ | — | $ | 526,444 | ||||||||
Match | 297,974 | 397,115 | — | (28,016 | ) | 667,073 | |||||||||||||
HomeAdvisor | 109,917 | — | (3 | ) | 33 | 109,947 | |||||||||||||
CityGrid Media | 17,450 | 301 | — | — | 17,751 | ||||||||||||||
Local | 127,367 | 301 | (3 | ) | 33 | 127,698 | |||||||||||||
Connected Ventures | 8,436 | — | (169 | ) | — | 8,267 | |||||||||||||
DailyBurn | 7,323 | — | — | — | 7,323 | ||||||||||||||
Media | 15,759 | — | (169 | ) | — | 15,590 | |||||||||||||
Shoebuy | 21,712 | 7 | — | — | 21,719 | ||||||||||||||
Other | 21,712 | 7 | — | — | 21,719 | ||||||||||||||
Total | $ | 989,493 | $ | 397,423 | $ | (409 | ) | $ | (27,983 | ) | $ | 1,358,524 |
Gross Carrying Amount | Accumulated Amortization | Net | Weighted-Average Useful Life (Years) | ||||||||||
(In thousands) | |||||||||||||
Content | $ | 47,800 | $ | (4,733 | ) | $ | 43,067 | 4.0 | |||||
Technology | 37,545 | (11,663 | ) | 25,882 | 2.9 | ||||||||
Trade names | 22,742 | (7,044 | ) | 15,698 | 3.6 | ||||||||
Advertiser and supplier relationships | 16,446 | (7,676 | ) | 8,770 | 4.4 | ||||||||
Customer lists | 11,800 | (1,277 | ) | 10,523 | 3.7 | ||||||||
Total | $ | 136,333 | $ | (32,393 | ) | $ | 103,940 | 3.7 |
Gross Carrying Amount | Accumulated Amortization | Net | Weighted-Average Useful Life (Years) | ||||||||||
(In thousands) | |||||||||||||
Customer lists | $ | 18,050 | $ | (8,837 | ) | $ | 9,213 | 1.0 | |||||
Technology | 16,145 | (3,858 | ) | 12,287 | 2.2 | ||||||||
Supplier relationships | 8,946 | (5,298 | ) | 3,648 | 6.4 | ||||||||
Trade names | 6,063 | (4,592 | ) | 1,471 | 3.4 | ||||||||
Total | $ | 49,204 | $ | (22,585 | ) | $ | 26,619 | 2.6 |
Years Ending December 31, | (In thousands) | ||
2013 | $ | 45,110 | |
2014 | 30,637 | ||
2015 | 17,157 | ||
2016 | 7,435 | ||
2017 | 2,472 | ||
Thereafter | 1,129 | ||
Total | $ | 103,940 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Corporate debt securities | $ | 13,608 | $ | 19 | $ | — | $ | 13,627 | |||||||
Total debt securities | 13,608 | 19 | — | 13,627 | |||||||||||
Equity security | — | 6,977 | — | 6,977 | |||||||||||
Total marketable securities | $ | 13,608 | $ | 6,996 | $ | — | $ | 20,604 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Corporate debt securities | $ | 48,621 | $ | 99 | $ | (15 | ) | $ | 48,705 | ||||||
States of the U.S. and state political subdivisions | 111,758 | 587 | (22 | ) | 112,323 | ||||||||||
Total debt securities | 160,379 | 686 | (37 | ) | 161,028 | ||||||||||
Equity security | 4,656 | 11 | — | 4,667 | |||||||||||
Total marketable securities | $ | 165,035 | $ | 697 | $ | (37 | ) | $ | 165,695 |
Amortized Cost | Estimated Fair Value | ||||||
(In thousands) | |||||||
Due in one year or less | $ | 12,606 | $ | 12,607 | |||
Due after one year through two years | 1,002 | 1,020 | |||||
Total | $ | 13,608 | $ | 13,627 |
Fair Value | Gross Unrealized Losses | ||||||
(In thousands) | |||||||
Corporate debt securities | $ | 12,920 | $ | (15 | ) | ||
States of the U.S. and state political subdivisions | 11,711 | (22 | ) | ||||
Total | $ | 24,631 | $ | (37 | ) |
December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Proceeds from maturities and sales of available-for-sale marketable securities | $ | 205,944 | $ | 600,149 | $ | 768,650 | |||||
Gross realized gains | 4,075 | 2,482 | 4,802 | ||||||||
Gross realized losses | (5 | ) | (41 | ) | (19 | ) |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Cost method investments | $ | 113,830 | $ | 82,318 | |||
Long-term marketable equity securities | 31,244 | 74,691 | |||||
Equity method investments | 8,104 | 10,873 | |||||
Auction rate security | 8,100 | 5,870 | |||||
Total long-term investments | $ | 161,278 | $ | 173,752 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Balance sheet data(a): | |||||||
Current assets | $ | 10,603 | $ | 42,527 | |||
Non-current assets | 25,472 | 45,852 | |||||
Current liabilities | (20,227 | ) | (47,085 | ) | |||
Non-current liabilities | (5,962 | ) | (11,044 | ) |
Twelve Months Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Operating data(a): | |||||||||||
Net sales | $ | 78,058 | $ | 368,433 | $ | 275,584 | |||||
Gross profit | 16,777 | 105,749 | 67,716 | ||||||||
Net (loss) income | (30,761 | ) | (17,636 | ) | 14,083 |
(a) | Summarized financial information for the Company's equity method investments is presented for the periods during which the Company holds or held an equity ownership interest. The summarized financial information for certain equity method investments is presented on a one quarter lag. |
December 31, 2012 | |||||||||||||||
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value Measurements | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Money market funds | $ | 545,290 | $ | — | $ | — | $ | 545,290 | |||||||
Time deposits | — | 11,994 | — | 11,994 | |||||||||||
Marketable securities: | |||||||||||||||
Corporate debt securities | — | 13,627 | — | 13,627 | |||||||||||
Equity security | 6,977 | — | — | 6,977 | |||||||||||
Long-term investments: | |||||||||||||||
Auction rate security | — | — | 8,100 | 8,100 | |||||||||||
Marketable equity securities | 31,244 | — | — | 31,244 | |||||||||||
Total | $ | 583,511 | $ | 25,621 | $ | 8,100 | $ | 617,232 |
December 31, 2011 | |||||||||||||||
Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value Measurements | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Treasury and government agency money market funds | $ | 321,314 | $ | — | $ | — | $ | 321,314 | |||||||
Commercial paper | — | 237,942 | — | 237,942 | |||||||||||
Time deposits | — | 4,750 | — | 4,750 | |||||||||||
Marketable securities: | |||||||||||||||
Corporate debt securities | — | 48,705 | — | 48,705 | |||||||||||
States of the U.S. and state political subdivisions | — | 112,323 | — | 112,323 | |||||||||||
Equity security | 4,667 | — | — | 4,667 | |||||||||||
Long-term investments: | |||||||||||||||
Auction rate security | — | — | 5,870 | 5,870 | |||||||||||
Marketable equity securities | 74,691 | — | — | 74,691 | |||||||||||
Total | $ | 400,672 | $ | 403,720 | $ | 5,870 | $ | 810,262 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration arrangement | $ | — | $ | — | $ | (10,000 | ) | $ | (10,000 | ) |
For the Year Ended | |||||||||||||||
December 31, 2012 | December 31, 2011 | ||||||||||||||
Auction Rate Security | Contingent Consideration Arrangement | Auction Rate Securities | Contingent Consideration Arrangement | ||||||||||||
(In thousands) | |||||||||||||||
Balance at January 1 | $ | 5,870 | $ | (10,000 | ) | $ | 13,100 | $ | — | ||||||
Total net gains (losses) (realized and unrealized): | |||||||||||||||
Included in other comprehensive loss | 2,230 | — | (2,230 | ) | — | ||||||||||
Fair value at date of acquisition | — | — | — | (40,000 | ) | ||||||||||
Settlements | — | 10,000 | (5,000 | ) | 30,000 | ||||||||||
Balance at December 31 | $ | 8,100 | $ | — | $ | 5,870 | $ | (10,000 | ) |
December 31, 2012 | December 31, 2011 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
(In thousands) | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 749,977 | $ | 749,977 | $ | 704,153 | $ | 704,153 | |||||||
Marketable securities | 20,604 | 20,604 | 165,695 | 165,695 | |||||||||||
Long-term marketable equity securities | 31,244 | 31,244 | 74,691 | 74,691 | |||||||||||
Liabilities: | |||||||||||||||
Current maturities of long-term debt | (15,844 | ) | (15,875 | ) | — | — | |||||||||
Long-term debt, net of current maturities | (580,000 | ) | (581,994 | ) | (95,844 | ) | (93,339 | ) |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
7.00% Senior Notes due January 15, 2013 (the "2002 Senior Notes"); interest payable each January 15 and July 15 which commenced July 15, 2003 | $ | 15,844 | $ | 15,844 | |||
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15 commencing June 15, 2013 | 500,000 | — | |||||
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035; interest payable each March 1 and September 1 which commenced March 1, 2006 | 80,000 | 80,000 | |||||
Total long-term debt | 595,844 | 95,844 | |||||
Less current maturities | (15,844 | ) | — | ||||
Long-term debt, net of current maturities | $ | 580,000 | $ | 95,844 |
Year | Percentage | ||
2017 | 102.375 | % | |
2018 | 101.583 | % | |
2019 | 100.792 | % | |
2020 and thereafter | 100.000 | % |
Years Ending December 31, | (In thousands) | ||
2013 | $ | 15,844 | |
2022 | 500,000 | ||
2035 | 80,000 | ||
Total | $ | 595,844 |
December 31, 2012 | ||||||
Number of IAC Common Shares Underlying Warrants | Weighted Average Strike Price | |||||
(Shares in thousands) | ||||||
Outstanding at January 1, 2012 | 14,348 | $ | 28.40 | |||
Exercised | (14,348 | ) | 28.40 | |||
Outstanding at December 31, 2012 | — | $ | — |
Years Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | ||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 169,847 | $ | 169,847 | $ | 175,569 | $ | 175,569 | $ | (9,393 | ) | $ | (9,393 | ) | |||||||||
Net (earnings) loss attributable to noncontrolling interests | (1,530 | ) | (1,530 | ) | 2,656 | 2,656 | 5,007 | 5,007 | |||||||||||||||
Earnings (loss) from continuing operations attributable to IAC shareholders | 168,317 | 168,317 | 178,225 | 178,225 | (4,386 | ) | (4,386 | ) | |||||||||||||||
(Loss) earnings from discontinued operations attributable to IAC shareholders(a) | (9,051 | ) | (9,051 | ) | (3,992 | ) | (3,992 | ) | 103,745 | 103,745 | |||||||||||||
Net earnings attributable to IAC shareholders | $ | 159,266 | $ | 159,266 | $ | 174,233 | $ | 174,233 | $ | 99,359 | $ | 99,359 | |||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average basic shares outstanding | 86,247 | 86,247 | 86,755 | 86,755 | 106,274 | 106,274 | |||||||||||||||||
Dilutive securities including stock options, warrants and RSUs(b)(c)(d) | — | 6,842 | — | 7,566 | — | — | |||||||||||||||||
Denominator for earnings per share—weighted average shares(b)(c)(d) | 86,247 | 93,089 | 86,755 | 94,321 | 106,274 | 106,274 | |||||||||||||||||
Earnings (loss) per share attributable to IAC shareholders: | |||||||||||||||||||||||
Earnings (loss) per share from continuing operations | $ | 1.95 | $ | 1.81 | $ | 2.05 | $ | 1.89 | $ | (0.04 | ) | $ | (0.04 | ) | |||||||||
Discontinued operations | (0.10 | ) | (0.10 | ) | (0.04 | ) | (0.04 | ) | 0.97 | 0.97 | |||||||||||||
Earnings per share | $ | 1.85 | $ | 1.71 | $ | 2.01 | $ | 1.85 | $ | 0.93 | $ | 0.93 |
(a) | Amounts in 2010 include the gain on the Liberty Exchange. |
(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 warrants and vesting of restricted stock units ("RSUs") and performance-based stock units ("PSUs"). At December 31, 2012, there are no warrants outstanding. For the years ended December 31, 2012 and 2011, approximately 0.8 million and 1.0 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. |
(c) | For the year ended December 31, 2010, the Company has a loss from continuing operations and as a result, no potentially dilutive securities are included in the denominator for computing diluted earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding are used to compute all earnings per share amounts. For the year ended December 31, 2010, approximately 36.3 million shares related to potentially dilutive securities are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. |
(d) | Prior to 2012, no PSUs are included in diluted earnings per share. During 2012, there are approximately 2.7 million PSUs included in the calculation of diluted earnings per share, as their performance conditions have been met. For the years ended December 31, 2012, 2011 and 2010 approximately 0.1 million, 3.1 million and 2.9 million PSUs are excluded from the calculation of diluted earnings per share. |
December 31, 2012 | ||||||||||||
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
(Shares and intrinsic value in thousands) | ||||||||||||
Outstanding at January 1, 2012 | 10,525 | $ | 24.88 | |||||||||
Granted | 3,639 | 47.42 | ||||||||||
Exercised | (2,974 | ) | 19.57 | |||||||||
Forfeited | (643 | ) | 33.69 | |||||||||
Expired | (87 | ) | 25.83 | |||||||||
Outstanding at December 31, 2012 | 10,460 | $ | 33.68 | 7.2 | $ | 146,556 | ||||||
Options exercisable | 4,518 | $ | 25.33 | 5.2 | $ | 99,010 |
Options Outstanding | Options Exercisable | |||||||||||||||||
Range of Exercise Prices | Outstanding at December 31, 2012 | Weighted- Average Remaining Contractual Life in Years | Weighted- Average Exercise Price | Exercisable at December 31, 2012 | Weighted- Average Remaining Contractual Life | Weighted- Average Exercise Price | ||||||||||||
(Shares in thousands) | ||||||||||||||||||
$0.01 to $10.00 | 10 | 0.8 | $ | 4.63 | 10 | 0.8 | $ | 4.63 | ||||||||||
$10.01 to $20.00 | 1,549 | 5.1 | 16.84 | 1,468 | 5.0 | 16.83 | ||||||||||||
$20.01 to $30.00 | 2,099 | 5.8 | 22.29 | 1,551 | 5.3 | 22.40 | ||||||||||||
$30.01 to $40.00 | 2,594 | 8.2 | 32.36 | 768 | 8.0 | 32.27 | ||||||||||||
$40.01 to $50.00 | 3,878 | 8.0 | 45.38 | 721 | 2.6 | 41.81 | ||||||||||||
$50.01 to $60.00 | 330 | 9.1 | 59.15 | — | — | — | ||||||||||||
10,460 | 7.2 | $ | 33.68 | 4,518 | 5.2 | $ | 25.33 |
Years Ended December 31, | ||||||||
2012 | 2011 | 2010 | ||||||
Expected volatility | 31 | % | 30 | % | 30 | % | ||
Risk-free interest rate | 0.6 | % | 2.3 | % | 2.4 | % | ||
Expected term | 4.4 years | 6.1 years | 5.6 years | |||||
Dividend yield | 1.2 | — | — |
RSUs | PSUs | ||||||||||||
Number of shares | Weighted Average Grant Date Fair Value | Number of shares(a) | Weighted Average Grant Date Fair Value | ||||||||||
(Shares in thousands) | |||||||||||||
Nonvested at January 1, 2012 | 560 | $ | 31.06 | 4,541 | $ | 24.41 | |||||||
Granted | 191 | 46.03 | 16 | 48.75 | |||||||||
Vested | (381 | ) | 27.08 | (2,671 | ) | 21.19 | |||||||
Forfeited | — | — | (616 | ) | 28.44 | ||||||||
Nonvested at December 31, 2012 | 370 | $ | 39.94 | 1,270 | $ | 29.39 |
(a) | Included in the table are PSUs which vest at the end of two or three years in varying amounts depending upon certain performance conditions. The PSU table above includes these awards at their maximum potential payout. |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Revenue: | |||||||||||
Search & Applications | $ | 1,465,795 | $ | 1,040,507 | $ | 805,284 | |||||
Match | 713,449 | 518,027 | 400,723 | ||||||||
Local | 322,627 | 303,418 | 263,749 | ||||||||
Media | 164,824 | 70,164 | 49,692 | ||||||||
Other | 134,555 | 128,065 | 118,749 | ||||||||
Inter-segment elimination | (317 | ) | (737 | ) | (1,382 | ) | |||||
Total | $ | 2,800,933 | $ | 2,059,444 | $ | 1,636,815 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Operating Income (Loss): | |||||||||||
Search & Applications | $ | 305,644 | $ | 204,006 | $ | 128,356 | |||||
Match | 205,492 | 137,555 | 115,367 | ||||||||
Local | 21,735 | 25,533 | 8,405 | ||||||||
Media | (51,776 | ) | (16,275 | ) | (23,385 | ) | |||||
Other | (7,689 | ) | (3,896 | ) | (31,600 | ) | |||||
Corporate | (149,838 | ) | (149,161 | ) | (147,348 | ) | |||||
Total | $ | 323,568 | $ | 197,762 | $ | 49,795 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Operating Income Before Amortization(a): | |||||||||||
Search & Applications | $ | 313,146 | $ | 204,980 | $ | 140,792 | |||||
Match | 225,765 | 156,274 | 122,057 | ||||||||
Local | 24,932 | 28,284 | 10,671 | ||||||||
Media | (44,827 | ) | (15,845 | ) | (21,849 | ) | |||||
Other | (6,095 | ) | (2,499 | ) | 2,091 | ||||||
Corporate | (67,957 | ) | (62,787 | ) | (64,183 | ) | |||||
Total | $ | 444,964 | $ | 308,407 | $ | 189,579 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Segment Assets(b): | |||||||
Search & Applications | $ | 355,159 | $ | 246,459 | |||
Match | 225,781 | 190,338 | |||||
Local | 46,842 | 46,581 | |||||
Media | 71,495 | 25,429 | |||||
Other | 28,842 | 15,910 | |||||
Corporate | 978,651 | 1,148,517 | |||||
Total | $ | 1,706,770 | $ | 1,673,234 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Depreciation: | |||||||||||
Search & Applications | $ | 14,995 | $ | 25,484 | $ | 35,754 | |||||
Match | 16,339 | 10,780 | 11,042 | ||||||||
Local | 10,136 | 10,388 | 7,785 | ||||||||
Media | 1,398 | 703 | 245 | ||||||||
Other | 1,074 | 851 | 828 | ||||||||
Corporate | 8,539 | 8,513 | 8,243 | ||||||||
Total | $ | 52,481 | $ | 56,719 | $ | 63,897 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Capital expenditures: | |||||||||||
Search & Applications | $ | 15,320 | $ | 8,698 | $ | 17,169 | |||||
Match | 19,853 | 17,447 | 10,087 | ||||||||
Local | 6,666 | 9,299 | 10,513 | ||||||||
Media | 1,178 | 905 | 474 | ||||||||
Other | 1,819 | 970 | 951 | ||||||||
Corporate | 6,365 | 2,635 | 635 | ||||||||
Total | $ | 51,201 | $ | 39,954 | $ | 39,829 |
(a) | The Company's primary metric is Operating Income Before Amortization, which is defined as operating income excluding, if applicable: (1) non-cash compensation expense, (2) amortization and impairment of intangibles, (3) goodwill impairment and (4) one-time items. The Company believes this measure is useful to investors because it represents the operating results from IAC's segments, taking into account depreciation, which it believes is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses, including non-cash compensation and acquisition related accounting. IAC endeavors to compensate for the limitations of the non-U.S. GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence, financial statements prepared in accordance with U.S. GAAP, and descriptions of the reconciling items, including quantifying such items, to derive the non-U.S. GAAP measure. |
(b) | Consistent with the Company's primary metric (described in (a) above), the Company excludes, if applicable, goodwill and intangible assets from the measure of segment assets presented above. |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Revenue | |||||||||||
United States | $ | 1,966,383 | $ | 1,583,322 | $ | 1,359,655 | |||||
All other countries | 834,550 | 476,122 | 277,160 | ||||||||
Total | $ | 2,800,933 | $ | 2,059,444 | $ | 1,636,815 |
December 31, | |||||||
2012 | 2011 | ||||||
(In thousands) | |||||||
Long-lived assets (excluding goodwill and intangible assets) | |||||||
United States | $ | 251,379 | $ | 246,550 | |||
All other countries | 19,133 | 13,038 | |||||
Total | $ | 270,512 | $ | 259,588 |
Year Ended December 31, 2012 | |||||||||||||||
Operating Income Before Amortization | Non-Cash Compensation Expense | Amortization of Intangibles | Operating Income (Loss) | ||||||||||||
(In thousands) | |||||||||||||||
Search & Applications | $ | 313,146 | $ | (34 | ) | $ | (7,468 | ) | $ | 305,644 | |||||
Match | 225,765 | (2,818 | ) | (17,455 | ) | 205,492 | |||||||||
Local | 24,932 | — | (3,197 | ) | 21,735 | ||||||||||
Media | (44,827 | ) | (770 | ) | (6,179 | ) | (51,776 | ) | |||||||
Other | (6,095 | ) | (122 | ) | (1,472 | ) | (7,689 | ) | |||||||
Corporate | (67,957 | ) | (81,881 | ) | — | (149,838 | ) | ||||||||
Total | $ | 444,964 | $ | (85,625 | ) | $ | (35,771 | ) | $ | 323,568 |
Year Ended December 31, 2011 | |||||||||||||||
Operating Income Before Amortization | Non-Cash Compensation Expense | Amortization of Intangibles | Operating Income (Loss) | ||||||||||||
(In thousands) | |||||||||||||||
Search & Applications | $ | 204,980 | $ | 202 | $ | (1,176 | ) | $ | 204,006 | ||||||
Match | 156,274 | (1,642 | ) | (17,077 | ) | 137,555 | |||||||||
Local | 28,284 | — | (2,751 | ) | 25,533 | ||||||||||
Media | (15,845 | ) | (427 | ) | (3 | ) | (16,275 | ) | |||||||
Other | (2,499 | ) | (347 | ) | (1,050 | ) | (3,896 | ) | |||||||
Corporate | (62,787 | ) | (86,374 | ) | — | (149,161 | ) | ||||||||
Total | $ | 308,407 | $ | (88,588 | ) | $ | (22,057 | ) | $ | 197,762 |
Year Ended December 31, 2010 | |||||||||||||||||||
Operating Income Before Amortization | Non-Cash Compensation Expense | Amortization of Intangibles | Goodwill Impairment | Operating (Loss) Income | |||||||||||||||
(In thousands) | |||||||||||||||||||
Search & Applications | $ | 140,792 | $ | (630 | ) | $ | (11,806 | ) | $ | — | $ | 128,356 | |||||||
Match | 122,057 | 153 | (6,843 | ) | — | 115,367 | |||||||||||||
Local | 10,671 | — | (2,266 | ) | — | 8,405 | |||||||||||||
Media | (21,849 | ) | (458 | ) | (1,078 | ) | — | (23,385 | ) | ||||||||||
Other | 2,091 | (180 | ) | (5,479 | ) | (28,032 | ) | (31,600 | ) | ||||||||||
Corporate | (64,183 | ) | (83,165 | ) | — | — | (147,348 | ) | |||||||||||
Total | $ | 189,579 | $ | (84,280 | ) | $ | (27,472 | ) | $ | (28,032 | ) | $ | 49,795 |
December 31, 2012 | |||||||||||||||||||
Segment Assets | Goodwill | Indefinite-Lived Intangible Assets | Definite-Lived Intangible Assets | Total Assets | |||||||||||||||
(In thousands) | |||||||||||||||||||
Search & Applications | $ | 355,159 | $ | 723,650 | $ | 197,304 | $ | 64,457 | $ | 1,340,570 | |||||||||
Match | 225,781 | 683,935 | 158,098 | 5,612 | 1,073,426 | ||||||||||||||
Local | 46,842 | 143,782 | 5,382 | 21,104 | 217,110 | ||||||||||||||
Media | 71,495 | 15,590 | 1,800 | 2,020 | 90,905 | ||||||||||||||
Other | 28,842 | 49,197 | 16,380 | 10,747 | 105,166 | ||||||||||||||
Corporate(c) | 978,651 | — | — | — | 978,651 | ||||||||||||||
Total | $ | 1,706,770 | $ | 1,616,154 | $ | 378,964 | $ | 103,940 | $ | 3,805,828 |
December 31, 2011 | |||||||||||||||||||
Segment Assets | Goodwill | Indefinite-Lived Intangible Assets | Definite-Lived Intangible Assets | Total Assets | |||||||||||||||
(In thousands) | |||||||||||||||||||
Search & Applications | $ | 246,459 | $ | 526,444 | $ | 163,604 | $ | 6 | $ | 936,513 | |||||||||
Match | 190,338 | 667,073 | 156,699 | 21,501 | 1,035,611 | ||||||||||||||
Local | 46,581 | 127,698 | 18,205 | 1,293 | 193,777 | ||||||||||||||
Media | 25,429 | 15,590 | 1,800 | — | 42,819 | ||||||||||||||
Other | 15,910 | 21,719 | 11,180 | 3,819 | 52,628 | ||||||||||||||
Corporate(c) | 1,148,517 | — | — | — | 1,148,517 | ||||||||||||||
Total | $ | 1,673,234 | $ | 1,358,524 | $ | 351,488 | $ | 26,619 | $ | 3,409,865 |
(c) | Corporate assets consist primarily of cash and cash equivalents, marketable securities and IAC's headquarters building. |
Years Ending December 31, | (In thousands) | ||
2013 | $ | 24,071 | |
2014 | 25,565 | ||
2015 | 23,812 | ||
2016 | 23,268 | ||
2017 | 20,593 | ||
Thereafter | 210,798 | ||
Total | $ | 328,107 |
Amount of Commitment Expiration Per Period | |||||||||||||||
Total Amounts Committed | Less Than 1 Year | 1-3 Years | 3-5 Years | ||||||||||||
(In thousands) | |||||||||||||||
Letters of credit | $ | 2,780 | $ | 2,780 | $ | — | $ | — | |||||||
Purchase obligations | 41,109 | 18,785 | 22,233 | 91 | |||||||||||
Total commercial commitments | $ | 43,889 | $ | 21,565 | $ | 22,233 | $ | 91 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
(In thousands) | |||||||||||
Cash paid (received) during the year for: | |||||||||||
Interest | $ | 5,214 | $ | 5,128 | $ | 5,113 | |||||
Income tax payments | 43,316 | 42,094 | 19,311 | ||||||||
Income tax refunds | (8,187 | ) | (3,609 | ) | (72,198 | ) |
Quarter Ended March 31 | Quarter Ended June 30 (a) | Quarter Ended September 30 | Quarter Ended December 31 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||
Revenue | $ | 640,600 | $ | 680,612 | $ | 714,470 | $ | 765,251 | |||||||
Cost of revenue | 223,571 | 236,690 | 261,932 | 270,277 | |||||||||||
Operating income | 62,765 | 97,476 | 78,033 | 85,294 | |||||||||||
Earnings from continuing operations | 31,153 | 48,101 | 46,185 | 44,408 | |||||||||||
Earnings (loss) from discontinued operations, net of tax | 3,684 | (4,641 | ) | (5,624 | ) | (2,470 | ) | ||||||||
Net earnings | 34,837 | 43,460 | 40,561 | 41,938 | |||||||||||
Net earnings attributable to IAC shareholders | 34,478 | 43,332 | 40,717 | 40,739 | |||||||||||
Per share information attributable to IAC shareholders: | |||||||||||||||
Basic earnings per share from continuing operations(c) | $ | 0.37 | $ | 0.56 | $ | 0.52 | $ | 0.49 | |||||||
Diluted earnings per share from continuing operations(c) | $ | 0.34 | $ | 0.52 | $ | 0.49 | $ | 0.46 | |||||||
Basic earnings per share(c) | $ | 0.42 | $ | 0.50 | $ | 0.46 | $ | 0.46 | |||||||
Diluted earnings per share(c) | $ | 0.38 | $ | 0.47 | $ | 0.43 | $ | 0.43 |
Quarter Ended March 31 | Quarter Ended June 30 | Quarter Ended September 30 (b) | 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(c) | $ | 0.22 | $ | 0.50 | $ | 0.81 | $ | 0.53 | |||||||
Diluted earnings per share from continuing operations(c) | $ | 0.21 | $ | 0.46 | $ | 0.73 | $ | 0.48 | |||||||
Basic earnings per share(c) | $ | 0.20 | $ | 0.47 | $ | 0.77 | $ | 0.58 | |||||||
Diluted earnings per share(c) | $ | 0.19 | $ | 0.44 | $ | 0.69 | $ | 0.53 |
(a) | The second quarter of 2012 includes an after-tax non-cash charge of $16.2 million related to the re-measurement of the carrying value of our equity method investment in News_Beast to fair value in connection with our acquisition of a controlling interest in June 2012. |
(b) | The third quarter of 2011 includes an after-tax non-cash charge of $11.7 million related to the re-measurement of 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) in connection with our acquisition of a controlling interest. The third quarter of 2011 also includes the reversal of a previously established deferred tax liability of $43.6 million in connection with the acquisition of Meetic. |
(c) | 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. |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Cash and cash equivalents | $ | 499,255 | $ | — | $ | 250,722 | $ | — | $ | 749,977 | |||||||||
Marketable securities | 20,604 | — | — | — | 20,604 | ||||||||||||||
Accounts receivable, net | 43 | 142,627 | 87,160 | — | 229,830 | ||||||||||||||
Other current assets | 58,441 | 54,568 | 44,367 | (1,037 | ) | 156,339 | |||||||||||||
Intercompany receivables | — | 500,566 | 10,638,417 | (11,138,983 | ) | — | |||||||||||||
Property and equipment, net | 4,116 | 179,582 | 86,814 | — | 270,512 | ||||||||||||||
Goodwill | — | 1,162,721 | 453,433 | — | 1,616,154 | ||||||||||||||
Intangible assets, net | — | 327,031 | 155,873 | — | 482,904 | ||||||||||||||
Investment in subsidiaries | 12,913,747 | 611,869 | — | (13,525,616 | ) | — | |||||||||||||
Other non-current assets | 320,586 | 16,509 | 109,912 | (167,499 | ) | 279,508 | |||||||||||||
Total assets | $ | 13,816,792 | $ | 2,995,473 | $ | 11,826,698 | $ | (24,833,135 | ) | $ | 3,805,828 | ||||||||
Accounts payable, trade | $ | 4,366 | $ | 64,888 | $ | 29,060 | $ | — | $ | 98,314 | |||||||||
Other current liabilities | 74,230 | 214,224 | 239,773 | (1,652 | ) | 526,575 | |||||||||||||
Long-term debt, net of current maturities | 500,000 | 80,000 | — | — | 580,000 | ||||||||||||||
Income taxes payable | 440,110 | 25,428 | 14,407 | — | 479,945 | ||||||||||||||
Intercompany liabilities | 11,138,983 | — | — | (11,138,983 | ) | — | |||||||||||||
Other long-term liabilities | 3,375 | 84,473 | 434,269 | (166,884 | ) | 355,233 | |||||||||||||
Redeemable noncontrolling interests | — | 1,388 | 56,738 | — | 58,126 | ||||||||||||||
IAC shareholders' equity | 1,655,728 | 2,525,072 | 11,000,544 | (13,525,616 | ) | 1,655,728 | |||||||||||||
Noncontrolling interests | — | — | 51,907 | — | 51,907 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 13,816,792 | $ | 2,995,473 | $ | 11,826,698 | $ | (24,833,135 | ) | $ | 3,805,828 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenue | $ | — | $ | 1,959,488 | $ | 847,798 | $ | (6,353 | ) | $ | 2,800,933 | ||||||||
Costs and expenses: | |||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 5,194 | 592,007 | 400,174 | (4,905 | ) | 992,470 | |||||||||||||
Selling and marketing expense | 4,081 | 659,498 | 236,647 | (1,465 | ) | 898,761 | |||||||||||||
General and administrative expense | 121,919 | 151,204 | 122,873 | 17 | 396,013 | ||||||||||||||
Product development expense | 5,611 | 64,222 | 32,036 | — | 101,869 | ||||||||||||||
Depreciation | 832 | 33,631 | 18,018 | — | 52,481 | ||||||||||||||
Amortization of intangibles | — | 10,881 | 24,890 | — | 35,771 | ||||||||||||||
Total costs and expenses | 137,637 | 1,511,443 | 834,638 | (6,353 | ) | 2,477,365 | |||||||||||||
Operating (loss) income | (137,637 | ) | 448,045 | 13,160 | — | 323,568 | |||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 309,693 | 37,849 | (22,548 | ) | (350,339 | ) | (25,345 | ) | |||||||||||
Other (expense) income, net | (84,735 | ) | (8,057 | ) | 83,631 | — | (9,161 | ) | |||||||||||
Earnings from continuing operations before income taxes | 87,321 | 477,837 | 74,243 | (350,339 | ) | 289,062 | |||||||||||||
Income tax benefit (provision) | 80,996 | (149,223 | ) | (50,988 | ) | — | (119,215 | ) | |||||||||||
Earnings from continuing operations | 168,317 | 328,614 | 23,255 | (350,339 | ) | 169,847 | |||||||||||||
(Loss) earnings from discontinued operations, net of tax | (9,051 | ) | — | 842 | (842 | ) | (9,051 | ) | |||||||||||
Net earnings | 159,266 | 328,614 | 24,097 | (351,181 | ) | 160,796 | |||||||||||||
Net loss (earnings) attributable to noncontrolling interests | — | 206 | (1,736 | ) | — | (1,530 | ) | ||||||||||||
Net earnings attributable to IAC shareholders | $ | 159,266 | $ | 328,820 | $ | 22,361 | $ | (351,181 | ) | $ | 159,266 | ||||||||
Comprehensive income attributable to IAC shareholders | $ | 139,540 | $ | 329,593 | $ | 22,484 | $ | (352,077 | ) | $ | 139,540 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (116,353 | ) | $ | 458,190 | $ | 12,690 | $ | — | $ | 354,527 | ||||||||
Cash flows from investing activities attributable to continuing operations: | |||||||||||||||||||
Acquisitions, net of cash acquired | (35,159 | ) | (340,648 | ) | (35,228 | ) | — | (411,035 | ) | ||||||||||
Capital expenditures | (3,969 | ) | (29,550 | ) | (17,682 | ) | — | (51,201 | ) | ||||||||||
Proceeds from maturities and sales of marketable debt securities | 195,501 | — | — | — | 195,501 | ||||||||||||||
Purchases of marketable debt securities | (53,952 | ) | — | — | — | (53,952 | ) | ||||||||||||
Proceeds from sales of long-term investments | 14,194 | — | — | — | 14,194 | ||||||||||||||
Purchases of long-term investments | (27,187 | ) | (724 | ) | (8,183 | ) | — | (36,094 | ) | ||||||||||
Other, net | (351 | ) | 117 | (9,267 | ) | — | (9,501 | ) | |||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 89,077 | (370,805 | ) | (70,360 | ) | — | (352,088 | ) | |||||||||||
Cash flows from financing activities attributable to continuing operations: | |||||||||||||||||||
Proceeds from issuance of long-term debt | 500,000 | — | — | — | 500,000 | ||||||||||||||
Purchase of treasury stock | (691,830 | ) | — | — | — | (691,830 | ) | ||||||||||||
Issuance of common stock, net of withholding taxes | 262,841 | — | — | — | 262,841 | ||||||||||||||
Dividends | (68,163 | ) | — | — | — | (68,163 | ) | ||||||||||||
Excess tax benefits from stock-based awards | 52,209 | 4,892 | — | — | 57,101 | ||||||||||||||
Intercompany | (56,840 | ) | (92,259 | ) | 149,099 | — | — | ||||||||||||
Other, net | (12,937 | ) | — | (2,711 | ) | — | (15,648 | ) | |||||||||||
Net cash (used in) provided by financing activities attributable to continuing operations | (14,720 | ) | (87,367 | ) | 146,388 | — | 44,301 | ||||||||||||
Total cash (used in) provided by continuing operations | (41,996 | ) | 18 | 88,718 | — | 46,740 | |||||||||||||
Total cash (used in) provided by discontinued operations | (3,971 | ) | — | 499 | — | (3,472 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (18 | ) | 2,574 | — | 2,556 | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (45,967 | ) | — | 91,791 | — | 45,824 | |||||||||||||
Cash and cash equivalents at beginning of period | 545,222 | — | 158,931 | — | 704,153 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 499,255 | $ | — | $ | 250,722 | $ | — | $ | 749,977 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Cash and cash equivalents | $ | 545,222 | $ | — | $ | 158,931 | $ | — | $ | 704,153 | |||||||||
Marketable securities | 165,695 | — | — | — | 165,695 | ||||||||||||||
Accounts receivable, net | 16 | 110,405 | 66,609 | — | 177,030 | ||||||||||||||
Other current assets | 22,936 | 50,470 | 33,863 | 4,986 | 112,255 | ||||||||||||||
Intercompany receivables | — | 1,133,800 | 10,147,279 | (11,281,079 | ) | — | |||||||||||||
Property and equipment, net | 897 | 175,453 | 83,238 | — | 259,588 | ||||||||||||||
Goodwill | — | 838,307 | 520,217 | — | 1,358,524 | ||||||||||||||
Intangible assets, net | — | 235,048 | 143,059 | — | 378,107 | ||||||||||||||
Investment in subsidiaries | 12,565,249 | 689,308 | — | (13,254,557 | ) | — | |||||||||||||
Other non-current assets | 384,683 | 15,903 | 61,954 | (208,027 | ) | 254,513 | |||||||||||||
Total assets | $ | 13,684,698 | $ | 3,248,694 | $ | 11,215,150 | $ | (24,738,677 | ) | $ | 3,409,865 | ||||||||
Accounts payable, trade | $ | 4,244 | $ | 36,717 | $ | 23,437 | $ | — | $ | 64,398 | |||||||||
Other current liabilities | 44,458 | 244,199 | 183,100 | (1,970 | ) | 469,787 | |||||||||||||
Long-term debt, net of current maturities | 15,844 | 80,000 | — | — | 95,844 | ||||||||||||||
Income taxes payable | 431,091 | 14,337 | 5,105 | — | 450,533 | ||||||||||||||
Intercompany liabilities | 11,281,079 | — | — | (11,281,079 | ) | — | |||||||||||||
Other long-term liabilities | 2,933 | 92,012 | 424,940 | (201,071 | ) | 318,814 | |||||||||||||
Redeemable noncontrolling interests | — | 1,593 | 48,756 | — | 50,349 | ||||||||||||||
IAC shareholders' equity | 1,905,049 | 2,779,836 | 10,474,721 | (13,254,557 | ) | 1,905,049 | |||||||||||||
Noncontrolling interests | — | — | 55,091 | — | 55,091 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 13,684,698 | $ | 3,248,694 | $ | 11,215,150 | $ | (24,738,677 | ) | $ | 3,409,865 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenue | $ | 413 | $ | 1,539,282 | $ | 522,496 | $ | (2,747 | ) | $ | 2,059,444 | ||||||||
Costs and expenses: | |||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 4,763 | 495,484 | 262,151 | (1,154 | ) | 761,244 | |||||||||||||
Selling and marketing expense | 4,385 | 490,877 | 120,527 | (1,615 | ) | 614,174 | |||||||||||||
General and administrative expense | 120,908 | 134,973 | 72,825 | 22 | 328,728 | ||||||||||||||
Product development expense | 7,299 | 58,223 | 13,238 | — | 78,760 | ||||||||||||||
Depreciation | 799 | 43,241 | 12,679 | — | 56,719 | ||||||||||||||
Amortization of intangibles | — | 3,593 | 18,464 | — | 22,057 | ||||||||||||||
Total costs and expenses | 138,154 | 1,226,391 | 499,884 | (2,747 | ) | 1,861,682 | |||||||||||||
Operating (loss) income | (137,741 | ) | 312,891 | 22,612 | — | 197,762 | |||||||||||||
Equity in earnings (loss) of unconsolidated affiliates | 696,250 | 29,607 | (32,866 | ) | (729,291 | ) | (36,300 | ) | |||||||||||
Other (expense) income, net | (733,699 | ) | (1,073 | ) | 744,832 | — | 10,060 | ||||||||||||
(Loss) earnings from continuing operations before income taxes | (175,190 | ) | 341,425 | 734,578 | (729,291 | ) | 171,522 | ||||||||||||
Income tax benefit (provision) | 353,415 | (130,124 | ) | (219,244 | ) | — | 4,047 | ||||||||||||
Earnings from continuing operations | 178,225 | 211,301 | 515,334 | (729,291 | ) | 175,569 | |||||||||||||
(Loss) earnings from discontinued operations, net of tax | (3,992 | ) | — | 4,877 | (4,877 | ) | (3,992 | ) | |||||||||||
Net earnings | 174,233 | 211,301 | 520,211 | (734,168 | ) | 171,577 | |||||||||||||
Net loss attributable to noncontrolling interests | — | 60 | 2,596 | — | 2,656 | ||||||||||||||
Net earnings attributable to IAC shareholders | $ | 174,233 | $ | 211,361 | $ | 522,807 | $ | (734,168 | ) | $ | 174,233 | ||||||||
Comprehensive income attributable to IAC shareholders | $ | 144,244 | $ | 211,709 | $ | 478,519 | $ | (690,228 | ) | $ | 144,244 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash (used in) provided by operating activities attributable to continuing operations | $ | (75,300 | ) | $ | 369,744 | $ | 77,942 | $ | — | $ | 372,386 | ||||||||
Cash flows from investing activities attributable to continuing operations: | |||||||||||||||||||
Acquisitions, net of cash acquired | — | (80,998 | ) | (197,471 | ) | — | (278,469 | ) | |||||||||||
Capital expenditures | (798 | ) | (28,924 | ) | (10,232 | ) | — | (39,954 | ) | ||||||||||
Proceeds from maturities and sales of marketable debt securities | 267,635 | — | 317,300 | — | 584,935 | ||||||||||||||
Purchases of marketable debt securities | (74,240 | ) | — | (129,730 | ) | — | (203,970 | ) | |||||||||||
Proceeds from sales of long-term investments | 10,214 | — | 5,000 | — | 15,214 | ||||||||||||||
Purchases of long-term investments | (35,263 | ) | (51,008 | ) | (3,974 | ) | — | (90,245 | ) | ||||||||||
Other, net | — | 1,886 | (14,583 | ) | — | (12,697 | ) | ||||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 167,548 | (159,044 | ) | (33,690 | ) | — | (25,186 | ) | |||||||||||
Cash flows from financing activities attributable to continuing operations: | |||||||||||||||||||
Purchase of treasury stock | (507,765 | ) | — | — | — | (507,765 | ) | ||||||||||||
Issuance of common stock, net of withholding taxes | 132,785 | — | — | — | 132,785 | ||||||||||||||
Dividends | (10,668 | ) | — | — | — | (10,668 | ) | ||||||||||||
Excess tax benefits from stock-based awards | 22,166 | — | — | — | 22,166 | ||||||||||||||
Intercompany | 824,194 | (210,593 | ) | (613,601 | ) | — | — | ||||||||||||
Other, net | (3,843 | ) | (249 | ) | (4,659 | ) | — | (8,751 | ) | ||||||||||
Net cash provided by (used in) financing activities attributable to continuing operations | 456,869 | (210,842 | ) | (618,260 | ) | — | (372,233 | ) | |||||||||||
Total cash provided by (used in) continuing operations | 549,117 | (142 | ) | (574,008 | ) | — | (25,033 | ) | |||||||||||
Total cash used in discontinued operations | (7,166 | ) | — | (1,251 | ) | — | (8,417 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 3,271 | 142 | (7,909 | ) | — | (4,496 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 545,222 | — | (583,168 | ) | — | (37,946 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | — | 742,099 | — | 742,099 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 545,222 | $ | — | $ | 158,931 | $ | — | $ | 704,153 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Revenue | $ | 2,944 | $ | 1,267,664 | $ | 371,739 | $ | (5,532 | ) | $ | 1,636,815 | ||||||||
Costs and expenses: | |||||||||||||||||||
Cost of revenue (exclusive of depreciation shown separately below) | 4,224 | 408,501 | 184,586 | (3,495 | ) | 593,816 | |||||||||||||
Selling and marketing expense | 4,085 | 401,086 | 89,067 | (2,032 | ) | 492,206 | |||||||||||||
General and administrative expense | 120,629 | 125,796 | 70,080 | (5 | ) | 316,500 | |||||||||||||
Product development expense | 6,613 | 49,108 | 9,376 | — | 65,097 | ||||||||||||||
Depreciation | 580 | 52,013 | 11,304 | — | 63,897 | ||||||||||||||
Amortization of intangibles | — | 7,605 | 19,867 | — | 27,472 | ||||||||||||||
Goodwill impairment | — | 28,032 | — | — | 28,032 | ||||||||||||||
Total costs and expenses | 136,131 | 1,072,141 | 384,280 | (5,532 | ) | 1,587,020 | |||||||||||||
Operating (loss) income | (133,187 | ) | 195,523 | (12,541 | ) | — | 49,795 | ||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | 267,342 | 5,168 | (1,969 | ) | (296,217 | ) | (25,676 | ) | |||||||||||
Other (expense) income, net | (276,947 | ) | (2,838 | ) | 278,352 | — | (1,433 | ) | |||||||||||
(Loss) earnings from continuing operations before income taxes | (142,792 | ) | 197,853 | 263,842 | (296,217 | ) | 22,686 | ||||||||||||
Income tax benefit (provision) | 138,406 | (71,917 | ) | (98,568 | ) | — | (32,079 | ) | |||||||||||
(Loss) earnings from continuing operations | (4,386 | ) | 125,936 | 165,274 | (296,217 | ) | (9,393 | ) | |||||||||||
Gain on Liberty Exchange | 140,768 | — | — | — | 140,768 | ||||||||||||||
Loss from discontinued operations, net of tax | (37,023 | ) | — | (51,325 | ) | 51,325 | (37,023 | ) | |||||||||||
Net earnings | 99,359 | 125,936 | 113,949 | (244,892 | ) | 94,352 | |||||||||||||
Net loss attributable to noncontrolling interests | — | 3,968 | 1,039 | — | 5,007 | ||||||||||||||
Net earnings attributable to IAC shareholders | $ | 99,359 | $ | 129,904 | $ | 114,988 | $ | (244,892 | ) | $ | 99,359 | ||||||||
Comprehensive income attributable to IAC shareholders | $ | 92,402 | $ | 129,904 | $ | 113,030 | $ | (242,934 | ) | $ | 92,402 |
IAC | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Total Eliminations | IAC Consolidated | |||||||||||||||
(In thousands) | |||||||||||||||||||
Net cash provided by operating activities attributable to continuing operations | $ | 13,637 | $ | 311,054 | $ | 16,016 | $ | — | $ | 340,707 | |||||||||
Cash flows from investing activities attributable to continuing operations: | |||||||||||||||||||
Acquisitions, net of cash acquired | — | (10,000 | ) | (7,333 | ) | — | (17,333 | ) | |||||||||||
Capital expenditures | — | (36,497 | ) | (3,332 | ) | — | (39,829 | ) | |||||||||||
Proceeds from maturities and sales of marketable debt securities | — | — | 763,326 | — | 763,326 | ||||||||||||||
Purchases of marketable debt securities | — | — | (838,155 | ) | — | (838,155 | ) | ||||||||||||
Proceeds from sales of long-term investments | 5,324 | — | — | — | 5,324 | ||||||||||||||
Purchases of long-term investments | (697 | ) | (9 | ) | (1,577 | ) | — | (2,283 | ) | ||||||||||
Dividend received from Meetic S.A. | — | — | 11,355 | — | 11,355 | ||||||||||||||
Other, net | 1,967 | (541 | ) | (1,927 | ) | — | (501 | ) | |||||||||||
Net cash provided by (used in) investing activities attributable to continuing operations | 6,594 | (47,047 | ) | (77,643 | ) | — | (118,096 | ) | |||||||||||
Cash flows from financing activities attributable to continuing operations: | |||||||||||||||||||
Purchase of treasury stock | (539,598 | ) | — | — | — | (539,598 | ) | ||||||||||||
Issuance of common stock, net of withholding taxes | 25,939 | — | — | — | 25,939 | ||||||||||||||
Excess tax benefits from stock-based awards | 5,202 | 4,285 | 4,804 | — | 14,291 | ||||||||||||||
Liberty Exchange | (217,921 | ) | — | — | — | (217,921 | ) | ||||||||||||
Intercompany | 703,868 | (268,041 | ) | (435,827 | ) | — | — | ||||||||||||
Other, net | — | — | 79 | — | 79 | ||||||||||||||
Net cash used in financing activities attributable to continuing operations | (22,510 | ) | (263,756 | ) | (430,944 | ) | — | (717,210 | ) | ||||||||||
Total cash (used in) provided by continuing operations | (2,279 | ) | 251 | (492,571 | ) | — | (494,599 | ) | |||||||||||
Total cash provided by (used in) discontinued operations | 457 | — | (8,002 | ) | — | (7,545 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (251 | ) | (1,503 | ) | — | (1,754 | ) | |||||||||||
Net decrease in cash and cash equivalents | (1,822 | ) | — | (502,076 | ) | — | (503,898 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 1,822 | — | 1,244,175 | — | 1,245,997 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | — | $ | 742,099 | $ | — | $ | 742,099 |
Description | Balance at Beginning of Period | Charges to Earnings | Charges to Other Accounts | Deductions | Balance at End of Period | ||||||||||||||
(In thousands) | |||||||||||||||||||
2012 | |||||||||||||||||||
Allowance for doubtful accounts and revenue reserves | $ | 7,309 | $ | 12,237 | (1) | $ | 654 | $ | (11,425 | ) | (5) | $ | 8,775 | ||||||
Magazine publishing allowance for newsstand returns | — | 10,426 | (2) | 33 | (8,146 | ) | (6) | 2,313 | |||||||||||
Sales returns accrual | 1,020 | 17,728 | — | (17,504 | ) | 1,244 | |||||||||||||
Deferred tax valuation allowance | 45,084 | 9,320 | (3) | 6,379 | (4) | — | 60,783 | ||||||||||||
Other reserves | 2,119 | 1,925 | |||||||||||||||||
2011 | |||||||||||||||||||
Allowance for doubtful accounts and revenue reserves | $ | 8,848 | $ | 8,898 | (1) | $ | (329 | ) | $ | (10,108 | ) | (5) | $ | 7,309 | |||||
Sales returns accrual | 913 | 16,573 | — | (16,466 | ) | 1,020 | |||||||||||||
Deferred tax valuation allowance | 40,266 | 5,732 | (7) | (914 | ) | (8) | — | 45,084 | |||||||||||
Other reserves | 1,555 | 2,119 | |||||||||||||||||
2010 | |||||||||||||||||||
Allowance for doubtful accounts and revenue reserves | $ | 10,515 | $ | 9,013 | (1) | $ | 81 | $ | (10,761 | ) | (5) | $ | 8,848 | ||||||
Sales returns accrual | 873 | 14,026 | — | (13,986 | ) | 913 | |||||||||||||
Deferred tax valuation allowance | 35,331 | 4,511 | (9) | 424 | (4) | — | 40,266 | ||||||||||||
Other reserves | 2,666 | 1,555 |
(1) | Additions to the allowance for doubtful accounts are charged to expense. Additions to the revenue reserves are charged against revenue. |
(2) | Additions to the magazine publishing allowance for newsstand returns are related to magazine publishing at News_Beast and are charged against revenue. |
(3) | Amount is primarily related to an unbenefited other-than-temporary impairment charge related to a long-term marketable equity security, an increase in deferred tax assets for investments in subsidiaries and an increase in federal net operating losses. |
(4) | Amount is primarily related to unbenefited unrealized losses on available-for-sale securities included in accumulated other comprehensive income. |
(5) | Write-off of fully reserved accounts receivable. |
(6) | Amount represents returns of magazines at News_Beast. |
(7) | Amount is primarily related to losses from equity method investments. |
(8) | Amount is primarily related to the net release of the valuation allowance on net benefited losses for 2011 unrealized gains on available-for-sale securities included in accumulated other comprehensive income. |
(9) | Amount is primarily related to net unbenefited unrealized losses including an impairment charge from equity method investments and an increase in foreign net operating losses partially offset by a write-off of previously unbenefited deferred tax assets for state capital loss carryforwards. |
Page | |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 25, 2011, AND FOR THE FISCAL YEAR ENDED DECEMBER 25, 2011: | |
/s/ERNST & YOUNG LLP |
Year Ended December 25, 2011 | |||
(In thousands) | |||
Revenues | |||
Advertising | $ | 105,135 | |
Other | 5,691 | ||
Total revenues | 110,826 | ||
Operating costs | |||
Production costs | 37,512 | ||
Selling, general and administrative costs | 19,398 | ||
Depreciation and amortization | 10,565 | ||
Impairment of assets | 3,116 | ||
Income before income taxes | 40,235 | ||
Income tax expense | 14,787 | ||
Net income | $ | 25,448 |
December 25, 2011 | |||
(In thousands) | |||
Assets | |||
Current assets | |||
Cash | $ | 5,499 | |
Accounts receivable (net of allowance of $138) | 14,368 | ||
Prepaid expenses | 1,169 | ||
Other current assets | 369 | ||
Total current assets | 21,405 | ||
Other Assets | |||
Property and equipment: | |||
Equipment and furniture | 7,298 | ||
Leasehold improvements | 580 | ||
Assets in progress | 18 | ||
Total, at cost | 7,896 | ||
Less: accumulated depreciation and amortization | (6,133 | ) | |
Property and equipment, net | 1,763 | ||
Intangible assets acquired: | |||
Goodwill | 367,276 | ||
Other intangible assets acquired (less accumulated amortization of $58,937) | 17,210 | ||
Total intangible assets acquired | 384,486 | ||
Miscellaneous assets | 9,909 | ||
Total assets | $ | 417,563 | |
Liabilities and shareholder's equity | |||
Current liabilities | |||
Accounts payable | $ | 4,235 | |
Accrued compensation and other related liabilities | 2,404 | ||
Accrued expenses | 838 | ||
Total current liabilities | 7,477 | ||
Deferred income taxes | 48,199 | ||
Other liabilities | 287 | ||
Commitments and contingencies | |||
Shareholder's equity | |||
Parent company investment | 361,600 | ||
Total shareholder's equity | 361,600 | ||
Total liabilities and shareholder's equity | $ | 417,563 |
Total Shareholder's Equity | |||
(In thousands) | |||
Balance as of December 26, 2010 | $ | 378,402 | |
Net income for the year ended December 25, 2011 | 25,448 | ||
Net decrease in Parent company investment | (42,250 | ) | |
Balance as of December 25, 2011 | $ | 361,600 |
Year Ended December 25, 2011 | |||
(In thousands) | |||
Cash flows from operating activities | |||
Net income | $ | 25,448 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 10,565 | ||
Impairment of assets | 3,116 | ||
Deferred income taxes | 5,892 | ||
Other—net | (1,935 | ) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 4,270 | ||
Other assets | (1,111 | ) | |
Accounts payable and other liabilities | (1,277 | ) | |
Net cash provided by operating activities | 44,968 | ||
Cash flows from investing activities | |||
Capital expenditures | (3,579 | ) | |
Proceeds from the sale of assets | 4,597 | ||
Net cash provided by investing activities | 1,018 | ||
Cash flows from financing activities | |||
Net transfers to the Parent company | (42,250 | ) | |
Net cash used in financing activities | (42,250 | ) | |
Net increase in cash | 3,736 | ||
Cash at the beginning of the year | 1,763 | ||
Cash at the end of the year | $ | 5,499 | |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes, including amounts paid to The New York Times Company for About, Inc.'s share of The New York Times Company consolidated tax liabilities and amounts paid by The New York Times Company on About, Inc.'s behalf for separate return liabilities | $ | 8,895 |
Asset Category | Estimated Useful Lives |
Equipment and furniture | 3 to 6 Years |
Leasehold improvements | 2 to 6 Years |
Amount | |||
(In thousands) | |||
Balance as of December 26, 2010 | $ | 369,978 | |
Goodwill disposed of during year | (2,702 | ) | |
Balance as of December 25, 2011 | |||
Goodwill | 367,276 | ||
Accumulated impairment losses | — | ||
Balance as of December 25, 2011 | $ | 367,276 |
December 25, 2011 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Weighted Average Useful Life (Years) | |||||||||||
(In thousands, except years) | ||||||||||||||
Amortized other intangible assets: | ||||||||||||||
Customer lists | $ | 34,197 | $ | (30,296 | ) | $ | 3,901 | 5.8 | ||||||
Content | 21,384 | (18,133 | ) | 3,251 | 7.8 | |||||||||
Other | 10,799 | (10,508 | ) | 291 | 5.6 | |||||||||
Total | $ | 66,380 | $ | (58,937 | ) | 7,443 | 6.4 | |||||||
Unamortized other intangible assets: | ||||||||||||||
Trade names | 9,767 | |||||||||||||
Total other intangible assets acquired | $ | 17,210 |
Year | Amount | ||
(In thousands) | |||
2012 | $ | 4,696 | |
2013 | 1,521 | ||
2014 | 560 | ||
2015 | 328 | ||
2016 | 251 | ||
Thereafter | 87 | ||
Total | $ | 7,443 |
Fair Value Measured and Recorded Using | |||||||||||||||||||
Net Carrying Value as of December 25, 2011 | Impairment Losses December 25, 2011 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Other intangible asset | $ | 2,864 | $ | — | $ | — | $ | 2,864 | $ | 3,116 |
December 25, 2011 | ||||||
Amount | % of Pre-tax | |||||
(In thousands) | ||||||
Tax at federal statutory rate | $ | 14,082 | 35.0 | % | ||
State and local taxes, net | 604 | 1.5 | % | |||
Other, net | 101 | 0.3 | % | |||
Income tax expense | $ | 14,787 | 36.8 | % |
December 25, 2011 | |||
(In thousands) | |||
Current tax expense | |||
Federal | $ | 7,844 | |
State and local | 1,051 | ||
Total current tax expense | 8,895 | ||
Deferred tax expense/(benefit) | |||
Federal | 5,969 | ||
State and local | (77 | ) | |
Total deferred tax expense | 5,892 | ||
Income tax expense | $ | 14,787 |
December 25, 2011 | |||
(In thousands) | |||
Deferred tax assets | |||
Accruals for employee compensation and benefits | $ | 761 | |
Accounts receivable allowances | 50 | ||
Other | 102 | ||
Gross deferred tax assets | 913 | ||
Deferred tax liabilities | |||
Property and equipment | (191 | ) | |
Intangible assets | (48,507 | ) | |
Other | (172 | ) | |
Gross deferred tax liabilities | (48,870 | ) | |
Net deferred tax liability | $ | (47,957 | ) |
Amounts recognized in the consolidated balance sheet | |||
Deferred tax asset—current (included in "Other current assets") | $ | 242 | |
Deferred tax liability—long-term | (48,199 | ) | |
Net deferred tax liability | $ | (47,957 | ) |
Amount | |||
(In thousands) | |||
2012 | $ | 1,489 | |
2013 | 127 | ||
Total minimum lease payments | 1,616 | ||
Less: noncancelable subleases | (190 | ) | |
Total minimum lease payments, net of noncancelable subleases | $ | 1,426 |
Amount | |||
(In thousands) | |||
Cash transfers from The About Group | $ | (113,137 | ) |
Funding by the Parent company for expenses | 59,916 | ||
Corporate allocations, including current income tax provision | 11,910 | ||
Other | (939 | ) | |
Net decrease in the Parent company investment | $ | (42,250 | ) |
Page | |
UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 24, 2012 (WITH COMPARATIVE BALANCES AS OF DECEMBER 25, 2011), AND FOR THE THREE AND SIX MONTHS ENDED JUNE 24, 2012 AND JUNE 26, 2011: | |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 24, 2012 | June 26, 2011 | June 24, 2012 | June 26, 2011 | ||||||||||||
(13 weeks) | (26 weeks) | ||||||||||||||
(In thousands) | |||||||||||||||
Revenues | |||||||||||||||
Advertising | $ | 24,031 | $ | 26,385 | $ | 46,665 | $ | 56,051 | |||||||
Other | 1,379 | 1,459 | 2,689 | 2,935 | |||||||||||
Total revenues | 25,410 | 27,844 | 49,354 | 58,986 | |||||||||||
Operating costs | |||||||||||||||
Production costs | 9,492 | 8,750 | 19,349 | 18,709 | |||||||||||
Selling, general and administrative costs | 5,750 | 4,913 | 10,667 | 9,199 | |||||||||||
Depreciation and amortization | 2,263 | 2,706 | 4,437 | 5,456 | |||||||||||
Impairment of goodwill | 194,732 | — | 194,732 | — | |||||||||||
(Loss)/income before income taxes | (186,827 | ) | 11,475 | (179,831 | ) | 25,622 | |||||||||
Income tax benefit/(expense) | 62,457 | (4,147 | ) | 59,930 | (9,260 | ) | |||||||||
Net (loss)/income | $ | (124,370 | ) | $ | 7,328 | $ | (119,901 | ) | $ | 16,362 |
June 24, 2012 | December 25, 2011 | ||||||
(In thousands) | |||||||
Assets | |||||||
Current assets | |||||||
Cash | $ | 1,241 | $ | 5,499 | |||
Accounts receivable (net of allowances of $135 in 2012 and $138 in 2011) | 18,157 | 14,368 | |||||
Other current assets | 2,240 | 1,538 | |||||
Total current assets | 21,638 | 21,405 | |||||
Other assets | |||||||
Property and equipment (less accumulated depreciation and amortization of $6,666 in 2012 and $6,133 in 2011) | 1,755 | 1,763 | |||||
Intangible assets acquired: | |||||||
Goodwill (less accumulated impairment loss of $194,732 in 2012) | 172,544 | 367,276 | |||||
Other intangible assets acquired (less accumulated amortization of $61,429 in 2012 and $58,937 in 2011) | 14,718 | 17,210 | |||||
Total intangible assets acquired | 187,262 | 384,486 | |||||
Deferred income taxes | 13,364 | — | |||||
Miscellaneous assets | 10,594 | 9,909 | |||||
Total assets | $ | 234,613 | $ | 417,563 | |||
Liabilities and shareholder's equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 3,930 | $ | 4,235 | |||
Accrued compensation and other related liabilities | 1,683 | 2,404 | |||||
Accrued expenses | 1,265 | 838 | |||||
Total current liabilities | 6,878 | 7,477 | |||||
Deferred income taxes | — | 48,199 | |||||
Other liabilities | 195 | 287 | |||||
Commitments and contingencies | |||||||
Shareholder's equity | |||||||
Parent company investment | 227,540 | 361,600 | |||||
Total shareholder's equity | 227,540 | 361,600 | |||||
Total liabilities and shareholder's equity | $ | 234,613 | $ | 417,563 |
Total Shareholder's Equity | |||
(In thousands) | |||
Balance as of December 25, 2011 | $ | 361,600 | |
Net loss for the six months ended June 24, 2012 | (119,901 | ) | |
Net decrease in Parent company investment | (14,159 | ) | |
Balance as of June 24, 2012 | $ | 227,540 |
For the Six Months Ended | |||||||
June 24, 2012 | June 26, 2011 | ||||||
(26 weeks) | |||||||
(In thousands) | |||||||
Net cash provided by operating activities | $ | 12,331 | $ | 20,847 | |||
Cash flows from investing activities | |||||||
Capital expenditures | (2,430 | ) | (1,493 | ) | |||
Proceeds from the sale of assets | — | 4,597 | |||||
Net cash (used in)/provided by investing activities | (2,430 | ) | 3,104 | ||||
Cash flows from financing activities | |||||||
Net transfers to the Parent company | (14,159 | ) | (24,612 | ) | |||
Net cash used in financing activities | (14,159 | ) | (24,612 | ) | |||
Net decrease in cash | (4,258 | ) | (661 | ) | |||
Cash at the beginning of the year | 5,499 | 1,763 | |||||
Cash at the end of the quarter | $ | 1,241 | $ | 1,102 |
Amount | |||
(In thousands) | |||
Balance as of December 25, 2011 | $ | 367,276 | |
Goodwill impairment recorded in the three months ended June 24, 2012 | (194,732 | ) | |
Balance as of June 24, 2012 | $ | 172,544 |
June 24, 2012 | December 25, 2011 | |||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Weighted Average Useful Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net | Weighted Average Useful Life (Years) | |||||||||||||||||||||||
(In thousands, except years) | ||||||||||||||||||||||||||||||
Amortized other intangible assets: | ||||||||||||||||||||||||||||||
Customer lists | $ | 34,197 | $ | (31,197 | ) | $ | 3,000 | 5.8 | $ | 34,197 | $ | (30,296 | ) | $ | 3,901 | 5.8 | ||||||||||||||
Content | 21,384 | (19,433 | ) | 1,951 | 7.8 | 21,384 | (18,133 | ) | 3,251 | 7.8 | ||||||||||||||||||||
Other | 10,799 | (10,799 | ) | — | 5.6 | 10,799 | (10,508 | ) | 291 | 5.6 | ||||||||||||||||||||
Total | $ | 66,380 | $ | (61,429 | ) | 4,951 | 6.4 | $ | 66,380 | $ | (58,937 | ) | 7,443 | 6.4 | ||||||||||||||||
Unamortized other intangible assets: | ||||||||||||||||||||||||||||||
Trade names | 9,767 | 9,767 | ||||||||||||||||||||||||||||
Total other intangible assets acquired | $ | 14,718 | $ | 17,210 |
Amount | |||
(In thousands) | |||
Remainder of 2012 | $ | 2,204 | |
2013 | 1,521 | ||
2014 | 560 | ||
2015 | 328 | ||
2016 | 251 | ||
2017 | 87 | ||
Total | $ | 4,951 |
Fair Value Measured and Recorded Using | |||||||||||||||||||
Carrying Value as of June 24, 2012 | Impairment Losses 2012 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Goodwill | $ | 172,544 | $ | — | $ | — | $ | 172,544 | $ | 194,732 |
Amount | |||
(In thousands) | |||
Cash transfers from The About Group | $ | (47,615 | ) |
Funding by the Parent company for expenses | 29,598 | ||
Corporate allocations, including current income tax benefit | 2,789 | ||
Other | 1,069 | ||
Net decrease in the Parent company investment | $ | (14,159 | ) |
LONG-TERM INVESTMENTS (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Long-term Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term investments | The balance of long-term investments is comprised of:
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Schedule of summarized aggregated financial information of equity method investments | Summarized aggregated financial information for the Company's equity method investments is as follows:
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental disclosure of cash flow information | During 2010, IAC received a dividend of $11.4 million from Meetic, which the Company deemed to be a partial return of its investment. Accordingly, the dividend is reflected as a cash inflow from an investing activity in the accompanying consolidated statement of cash flows.
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LONG-TERM INVESTMENTS (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
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Dec. 31, 2011
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Components of long-term investments | ||
Long-term investments | $ 161,278 | $ 173,752 |
Cost method investments
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Components of long-term investments | ||
Long-term investments | 113,830 | 82,318 |
Long-term marketable equity securities
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Components of long-term investments | ||
Long-term investments | 31,244 | 74,691 |
Equity method investments
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Components of long-term investments | ||
Long-term investments | 8,104 | 10,873 |
Auction rate security
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Components of long-term investments | ||
Long-term investments | $ 8,100 | $ 5,870 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $)
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12 Months Ended | ||
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Dec. 31, 2012
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Dec. 31, 2011
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Dec. 31, 2010
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Revenue, Major Customer [Line Items] | |||
Accounts receivable, net | $ 229,830,000 | $ 177,030,000 | |
Google Inc.
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Revenue, Major Customer [Line Items] | |||
Revenue earned | 1,400,000,000 | 970,400,000 | 727,900,000 |
Accounts receivable, net | $ 125,300,000 | $ 105,700,000 |
SHAREHOLDERS' EQUITY (Details 2) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2012
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Dec. 31, 2011
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Changes in outstanding warrants | ||
Outstanding at the beginning of the period (in shares) | $ 14,348 | |
Exercised (in shares) | (14,348) | (3,900) |
Outstanding at the end of the period (in shares) | $ 0 | $ 14,348 |
Outstanding at the beginning of the period (in dollars per share) | $ 28.40 | |
Exercised (in dollars per share) | $ 28.40 | |
Outstanding at the end of the period (in dollars per share) | $ 0.00 | $ 28.40 |
SEGMENT INFORMATION (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of revenues from segments to consolidated |
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Schedule of reconciliation of operating income from segments to consolidated |
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Schedule of reconciliation of Operating Income Before Amortization from segments to consolidated |
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Schedule of reconciliation of segment assets to consolidated assets |
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Schedule of reconciliation of depreciation from segments to consolidated |
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Schedule of reconciliation of capital expenditures from segments to consolidated |
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Schedule of revenue and long-lived assets, excluding goodwill and intangible assets, by geographical segments | Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:
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Schedule of reconciliation of Operating Income Before Amortization to operating income (loss) for the entity's reportable segments | The following tables reconcile Operating Income Before Amortization to operating income (loss) for the Company's reportable segments:
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Schedule of reconciliation of segment assets to total assets | The following tables reconcile segment assets to total assets:
_____________________________________
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
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||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of estimated useful lives of property and equipment |
|
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Schedule of operating segments, reporting units and reportable segments | The Company's operating segments, reporting units and reportable segments are as follows:
|
SHAREHOLDERS' EQUITY (Details 3) (USD $)
In Thousands, except Share data, unless otherwise specified |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
Common stock
|
May 01, 2012
Common stock
|
|
Shareholders' equity | |||||
Common stock repurchased (in shares) | 15,500,000 | 13,600,000 | |||
Aggregate consideration for common stock repurchased | $ 716,072 | $ 518,637 | $ 530,885 | ||
Additional shares authorized for repurchase | 10,000,000 | ||||
Shares remaining in share repurchase authorization | 3,100,000 |
FAIR VALUE MEASUREMENTS (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Assets: | ||
Marketable securities: | $ 20,604 | $ 165,695 |
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
|
||
Assets: | ||
Total Assets | 583,511 | 400,672 |
Liabilities: | ||
Contingent consideration arrangement | ||
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Treasury and government agency money market funds
|
||
Assets: | ||
Cash equivalents: | 545,290 | 321,314 |
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Commercial paper
|
||
Assets: | ||
Cash equivalents: | ||
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Time deposits
|
||
Assets: | ||
Cash equivalents: | ||
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities
|
||
Assets: | ||
Marketable securities: | ||
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | States of the U.S. and state political subdivisions
|
||
Assets: | ||
Marketable securities: | ||
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Equity security
|
||
Assets: | ||
Marketable securities: | 6,977 | 4,667 |
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Auction rate securities
|
||
Assets: | ||
Long-term investments: | ||
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Long-term marketable equity securities
|
||
Assets: | ||
Long-term investments: | 31,244 | 74,691 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2)
|
||
Assets: | ||
Total Assets | 25,621 | 403,720 |
Liabilities: | ||
Contingent consideration arrangement | ||
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Treasury and government agency money market funds
|
||
Assets: | ||
Cash equivalents: | ||
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper
|
||
Assets: | ||
Cash equivalents: | 237,942 | |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Time deposits
|
||
Assets: | ||
Cash equivalents: | 11,994 | 4,750 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities
|
||
Assets: | ||
Marketable securities: | 13,627 | 48,705 |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | States of the U.S. and state political subdivisions
|
||
Assets: | ||
Marketable securities: | 112,323 | |
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Equity security
|
||
Assets: | ||
Marketable securities: | ||
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Auction rate securities
|
||
Assets: | ||
Long-term investments: | ||
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Long-term marketable equity securities
|
||
Assets: | ||
Long-term investments: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3)
|
||
Assets: | ||
Total Assets | 8,100 | 5,870 |
Liabilities: | ||
Contingent consideration arrangement | (10,000) | |
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Treasury and government agency money market funds
|
||
Assets: | ||
Cash equivalents: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Commercial paper
|
||
Assets: | ||
Cash equivalents: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Time deposits
|
||
Assets: | ||
Cash equivalents: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Corporate debt securities
|
||
Assets: | ||
Marketable securities: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | States of the U.S. and state political subdivisions
|
||
Assets: | ||
Marketable securities: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Equity security
|
||
Assets: | ||
Marketable securities: | ||
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Auction rate securities
|
||
Assets: | ||
Long-term investments: | 8,100 | 5,870 |
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Long-term marketable equity securities
|
||
Assets: | ||
Long-term investments: | ||
Fair value on a recurring basis | Total Fair Value Measurements
|
||
Assets: | ||
Total Assets | 617,232 | 810,262 |
Liabilities: | ||
Contingent consideration arrangement | (10,000) | |
Fair value on a recurring basis | Total Fair Value Measurements | Treasury and government agency money market funds
|
||
Assets: | ||
Cash equivalents: | 545,290 | 321,314 |
Fair value on a recurring basis | Total Fair Value Measurements | Commercial paper
|
||
Assets: | ||
Cash equivalents: | 237,942 | |
Fair value on a recurring basis | Total Fair Value Measurements | Time deposits
|
||
Assets: | ||
Cash equivalents: | 11,994 | 4,750 |
Fair value on a recurring basis | Total Fair Value Measurements | Corporate debt securities
|
||
Assets: | ||
Marketable securities: | 13,627 | 48,705 |
Fair value on a recurring basis | Total Fair Value Measurements | States of the U.S. and state political subdivisions
|
||
Assets: | ||
Marketable securities: | 112,323 | |
Fair value on a recurring basis | Total Fair Value Measurements | Equity security
|
||
Assets: | ||
Marketable securities: | 6,977 | 4,667 |
Fair value on a recurring basis | Total Fair Value Measurements | Auction rate securities
|
||
Assets: | ||
Long-term investments: | 8,100 | 5,870 |
Fair value on a recurring basis | Total Fair Value Measurements | Long-term marketable equity securities
|
||
Assets: | ||
Long-term investments: | $ 31,244 | $ 74,691 |
CONTINGENCIES (Details)
|
12 Months Ended |
---|---|
Dec. 31, 2012
lawsuit
|
|
Contingencies Disclosure | |
Minimum number of lawsuits that could have material impact on the liquidity, results of operations, or financial condition | 1 |
CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Accumulated other comprehensive (loss) income | |||||||||||
Foreign currency translation adjustment, net of tax | $ (25,073) | $ (25,174) | $ (25,073) | $ (25,174) | |||||||
Unrealized (losses) gains on available-for-sale securities, net of tax | (7,096) | 12,731 | (7,096) | 12,731 | |||||||
Accumulated other comprehensive loss | (32,169) | (12,443) | (32,169) | (12,443) | |||||||
Revenue | |||||||||||
Service revenue | 2,639,409 | 1,932,289 | 1,522,217 | ||||||||
Product revenue | 161,524 | 127,155 | 114,598 | ||||||||
Revenue | 765,251 | 714,470 | 680,612 | 640,600 | 596,943 | 516,884 | 485,404 | 460,213 | 2,800,933 | 2,059,444 | 1,636,815 |
Cost of revenue | |||||||||||
Cost of service revenue | 837,113 | 666,424 | 508,640 | ||||||||
Cost of product revenue | 155,357 | 94,820 | 85,176 | ||||||||
Cost of revenue | $ 270,277 | $ 261,932 | $ 236,690 | $ 223,571 | $ 218,412 | $ 188,642 | $ 181,472 | $ 172,718 | $ 992,470 | $ 761,244 | $ 593,816 |
LONG-TERM DEBT (Details) (USD $)
|
0 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 21, 2012
Revolving Credit Facility
|
Dec. 31, 2012
Senior Notes
7.00% Senior Notes due January 15, 2013
|
Dec. 31, 2011
Senior Notes
7.00% Senior Notes due January 15, 2013
|
Dec. 31, 2012
Senior Notes
4.75% Senior Notes Due December 2022
|
Dec. 21, 2012
Senior Notes
4.75% Senior Notes Due December 2022
|
Dec. 31, 2011
Senior Notes
4.75% Senior Notes Due December 2022
|
Dec. 31, 2012
Senior Notes
4.75% Senior Notes Due December 2022
2017
|
Dec. 31, 2012
Senior Notes
4.75% Senior Notes Due December 2022
2018
|
Dec. 31, 2012
Senior Notes
4.75% Senior Notes Due December 2022
2019
|
Dec. 31, 2012
Senior Notes
4.75% Senior Notes Due December 2022
2020 and thereafter
|
Dec. 31, 2012
Bonds
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035
|
Dec. 31, 2011
Bonds
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035
|
Aug. 31, 2005
Bonds
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035
|
|
Long-term debt | |||||||||||||||
Total long-term debt | $ 595,844,000 | $ 95,844,000 | $ 15,844,000 | $ 15,844,000 | $ 500,000,000 | $ 80,000,000 | $ 80,000,000 | ||||||||
Less current maturities | (15,844,000) | ||||||||||||||
Long-term debt, net of current maturities | 580,000,000 | 95,844,000 | |||||||||||||
Face amount | 500,000,000 | 80,000,000 | |||||||||||||
Stated interest rate | 7.00% | 4.75% | 4.75% | 5.00% | |||||||||||
Redemption percentage | 102.375% | 101.583% | 100.792% | 100.00% | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||||||
Maximum borrowing capacity | 300,000,000 | ||||||||||||||
Commitment fee percentage | 0.25% | ||||||||||||||
Aggregate contractual maturities of long-term debt | |||||||||||||||
2013 | 15,844,000 | ||||||||||||||
2022 | 500,000,000 | ||||||||||||||
2035 | $ 80,000,000 |
SEGMENT INFORMATION (Details 2) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Revenue and long-lived assets by geography | |||||||||||
Revenue | $ 765,251 | $ 714,470 | $ 680,612 | $ 640,600 | $ 596,943 | $ 516,884 | $ 485,404 | $ 460,213 | $ 2,800,933 | $ 2,059,444 | $ 1,636,815 |
Long-lived assets (excluding goodwill and intangible assets) | 270,512 | 259,588 | 270,512 | 259,588 | |||||||
United States
|
|||||||||||
Revenue and long-lived assets by geography | |||||||||||
Revenue | 1,966,383 | 1,583,322 | 1,359,655 | ||||||||
Long-lived assets (excluding goodwill and intangible assets) | 251,379 | 246,550 | 251,379 | 246,550 | |||||||
All other countries
|
|||||||||||
Revenue and long-lived assets by geography | |||||||||||
Revenue | 834,550 | 476,122 | 277,160 | ||||||||
Long-lived assets (excluding goodwill and intangible assets) | $ 19,133 | $ 13,038 | $ 19,133 | $ 13,038 |
EARNINGS PER SHARE (Details 2)
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Anti-dilutive weighted average common shares | |||
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares) | 36,300,000 | ||
Dilutive Securities: | |||
Dilutive securities | 6,842,000 | 7,566,000 | |
RSUs
|
|||
Anti-dilutive weighted average common shares | |||
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares) | 800,000 | 1,000,000 | |
PSUs
|
|||
Anti-dilutive weighted average common shares | |||
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares) | 100,000 | 3,100,000 | 2,900,000 |
PSUs
|
|||
Dilutive Securities: | |||
Dilutive securities | 2,700,000 |
COMMITMENTS (Details) (USD $)
|
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Future minimum payments under operating lease agreements | |||
2013 | $ 24,071,000 | ||
2014 | 25,565,000 | ||
2015 | 23,812,000 | ||
2016 | 23,268,000 | ||
2017 | 20,593,000 | ||
Thereafter | 210,798,000 | ||
Total | 328,107,000 | ||
Expenses charged to operations under operating lease agreements | $ 30,600,000 | $ 31,300,000 | $ 31,100,000 |
Period of most significant operating leases (in years) | 77 years | ||
Percentage of most significant operating leases | 55.00% |
SHAREHOLDERS' EQUITY (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 02, 2010
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 02, 2010
Common stock
|
Dec. 31, 2012
Common stock
vote
|
Dec. 31, 2011
Common stock
|
Sep. 30, 2011
Common stock
Chairman of the Board and Senior Executive of the Company
|
Dec. 31, 2011
Common stock
Chairman of the Board and Senior Executive of the Company
|
Dec. 31, 2012
Class B convertible common stock
vote
|
Dec. 31, 2011
Class B convertible common stock
|
Dec. 31, 2010
Class B convertible common stock
Celebrate Interactive, Inc.
|
Dec. 02, 2010
Class B convertible common stock
Chairman of the Board and Senior Executive of the Company
|
Sep. 30, 2011
Class B convertible common stock
Chairman of the Board and Senior Executive of the Company
|
Dec. 31, 2012
Class B convertible common stock
Chairman of the Board and Senior Executive of the Company
|
Dec. 31, 2011
Class B convertible common stock
Chairman of the Board and Senior Executive of the Company
|
|
Shareholders' equity | ||||||||||||||||
Votes per share | 1 | 10 | ||||||||||||||
Percentage of the total number of directors the holders of common stock are entitled to elect | 25.00% | |||||||||||||||
Shares exchanged | 4,300,000 | 1,500,000 | 8,500,000 | 4,300,000 | 1,500,000 | |||||||||||
Number of shares of common stock exchanged for each share of Class B common stock | 1 | |||||||||||||||
Maximum number or shares that may be exchanged | 1,500,000 | |||||||||||||||
Cash payment component of tax-free exchange for substantially all of Liberty's stake in IAC | $ 217,900 | $ 217,921 | ||||||||||||||
Outstanding shares | 78,471,784 | 77,126,881 | 5,789,499 | 5,789,499 | 5,800,000 | |||||||||||
Percentage of the outstanding total voting power of the Company | 42.50% | |||||||||||||||
Common stock reserved | 19,800,000 |
LONG-TERM INVESTMENTS (Details2) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Equity method investments, summarized balance sheet data: | |||
Current assets | $ 10,603 | $ 42,527 | |
Non-current assets | 25,472 | 45,852 | |
Current liabilities | (20,227) | (47,085) | |
Non-current liabilities | (5,962) | (11,044) | |
Equity method investments, summarized operating data: | |||
Net sales | 78,058 | 368,433 | 275,584 |
Gross profit | 16,777 | 105,749 | 67,716 |
Net (loss) income | $ (30,761) | $ (17,636) | $ 14,083 |
CONTINGENCIES
|
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Contingencies Disclosure | |
CONTINGENCIES | CONTINGENCIES In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management's view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. See Note 4 for additional information related to income tax contingencies. |
GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
|
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Guarantor and Nonguarantor Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Condensed Balance Sheet | Balance sheet at December 31, 2012:
Balance sheet at December 31, 2011:
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Schedule of Condensed Income Statement | Statement of operations for the year ended December 31, 2011:
Statement of operations for the year ended December 31, 2010:
Statement of operations for the year ended December 31, 2012:
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Schedule of Condensed Cash Flow Statement | Statement of cash flows for the year ended December 31, 2010:
Statement of cash flows for the year ended December 31, 2011:
Statement of cash flows for the year ended December 31, 2012:
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LONG-TERM DEBT (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | The balance of long-term debt is comprised of:
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Schedule of debt instrument redemption | Thereafter, we may redeem the 2012 Senior Notes at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the 12-month period beginning on December 15 of the years indicated below:
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Schedule of aggregate contractual maturities of long-term debt | Long-term debt maturities are as follows:
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FINANCIAL INSTRUMENTS (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Assets: | ||
Marketable securities | $ 20,604 | $ 165,695 |
Liabilities: | ||
Less current maturities | (15,844) | |
Carrying Value
|
||
Assets: | ||
Cash and cash equivalents | 749,977 | 704,153 |
Marketable securities | 20,604 | 165,695 |
Liabilities: | ||
Less current maturities | (15,844) | |
Long-term debt | (580,000) | (95,844) |
Carrying Value | Long-term marketable equity securities
|
||
Assets: | ||
Long-term investments | 31,244 | 74,691 |
Fair Value
|
||
Assets: | ||
Cash and cash equivalents | 749,977 | 704,153 |
Marketable securities | 20,604 | 165,695 |
Liabilities: | ||
Less current maturities | (15,875) | |
Long-term debt | (581,994) | (93,339) |
Fair Value | Long-term marketable equity securities
|
||
Assets: | ||
Long-term investments | $ 31,244 | $ 74,691 |
GOODWILL AND INTANGIBLE ASSETS (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill and intangible assets, net | The balance of goodwill and intangible assets, net is as follows:
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Schedule of goodwill by reporting unit, including the changes in the carrying value | The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the year ended December 31, 2012:
Additions primarily relate to the acquisition of The About Group. The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the year ended December 31, 2011:
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Schedule of intangible assets with definite lives | Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2012, intangible assets with definite lives are as follows:
At December 31, 2011, intangible assets with definite lives are as follows:
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Schedule of expected amortization of intangible assets with definite-lives | At December 31, 2012, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |
---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Match
|
||
Deferred revenue | ||
Deferred revenue | $ 103.9 | $ 94.9 |
Match | Minimum
|
||
Deferred revenue | ||
Revenue recognition period (in months) | 1 month | |
Match | Maximum
|
||
Deferred revenue | ||
Revenue recognition period (in months) | 6 months | |
Service Magic
|
||
Deferred revenue | ||
Revenue recognition period (in months) | 24 months | |
Deferred revenue | $ 3.0 | $ 3.8 |
Media | Minimum
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||
Deferred revenue | ||
Revenue recognition period (in months) | 1 month | |
Media | Maximum
|
||
Deferred revenue | ||
Revenue recognition period (in months) | 1 year |
COMMITMENTS (Tables)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2012
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Commitments Disclosure | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum payments under operating lease agreements | Future minimum payments under operating lease agreements are as follows:
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Schedule of commercial commitments outstanding | The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events as follows:
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ORGANIZATION
|
12 Months Ended |
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Dec. 31, 2012
|
|
Organization [Abstract] | |
ORGANIZATION | ORGANIZATION IAC is a leading media and internet company comprised of more than 150 brands and products, including Ask.com, About.com, Match.com, HomeAdvisor.com and Vimeo.com. Focused in the areas of search, applications, online dating, local and media, IAC's family of websites is one of the largest in the world, with more than a billion monthly visits across more than 30 countries. IAC includes the businesses comprising its Search & Applications, Match, Local, Media and Other segments, as well as investments in unconsolidated affiliates. All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp. Search & Applications Our Search & Applications segment consists of: Websites, including Ask.com, About.com and Dictionary.com, through which we provide search services and content; and Applications, including our direct to consumer downloadable applications business ("B2C") and our partnership operations ("B2B"), as well as our Ask.com and Dictionary.com downloadable applications. Match Through the brands and businesses within our Match segment, we are a leading provider of subscription-based and ad-supported online personals services in North America, Europe, Latin America, Australia and Asia. We provide these services through websites and applications that we own and operate. Our European operations are conducted through an 81% stake in Meetic, S.A. ("Meetic"), which is based in France. See Note 5 for additional information related to the Meetic acquisition. Local Our Local segment consists of HomeAdvisor (formerly ServiceMagic) and CityGrid Media. HomeAdvisor is a leading online marketplace for matching consumers with home services professionals in the United States. HomeAdvisor connects consumers, by way of patented proprietary technologies, with home services professionals, all of which are pre-screened and the majority of which are customer-rated. Through a majority investment, HomeAdvisor also operates businesses in the online home services space in France and the United Kingdom under various brands. CityGrid Media is an online media company that owns and operates CityGrid, an advertising network that integrates local content and advertising for distribution to both affiliated and third party publishers across web and mobile platforms, as well as proprietary websites, such as Citysearch.com and Urbanspoon.com, through which consumers can access local merchant information and reviews online. Media Our Media segment consists primarily of Vimeo, Electus, Connected Ventures (which operates CollegeHumor Media and Notional), News_Beast (formerly The Newsweek/DailyBeast Company) and DailyBurn. Other Our Other segment consists primarily of Shoebuy, a leading internet retailer of footwear and related apparel and accessories, and Tutor, an online tutoring solution which was acquired in December 2012. Discontinued Operations On December 1, 2010, IAC exchanged (on a tax-free basis) the stock of a wholly-owned subsidiary that held our Evite, Gifts.com and IAC Advertising Solutions businesses and $217.9 million in cash for substantially all of Liberty Media Corporation's ("Liberty") equity stake in IAC (the "Liberty Exchange"). See Note 12 for additional information related to this exchange. In addition, during the fourth quarter of 2010, InstantAction ceased operations. Evite, Gifts.com, IAC Advertising Solutions and InstantAction were previously reported in IAC's former Media & Other segment. |
BUSINESS COMBINATIONS (Details) (USD $)
|
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2012
The About Group
|
Sep. 24, 2012
The About Group
topic
|
|
Business Acquisition [Line Items] | |||||
Number of topics on online library | 90,000 | ||||
Purchase consideration paid in cash | $ 300,000,000 | ||||
Purchase consideration, net working capital | 17,100,000 | ||||
Revenue of acquiree since acquisition date | 30,100,000 | ||||
Earnings of acquiree since aquisition date | 3,800,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Cash and cash equivalents | 998,000 | ||||
Other current assets | 22,657,000 | ||||
Property and equipment | 8,988,000 | ||||
Goodwill | 1,616,154,000 | 1,358,524,000 | 989,493,000 | 190,616,000 | |
Intangible assets | 103,289,000 | ||||
Total assets | 770,000 | ||||
Total assets | 327,318,000 | ||||
Current liabilities | (7,027,000) | ||||
Other long-term liabilities | (3,179,000) | ||||
Net assets | $ 317,112,000 |
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