SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The overall concept that IAC employs in determining its operating segments is to present the financial information in a manner consistent with how the chief operating decision maker views the businesses, how the businesses are organized as to segment management, and the focus of the businesses with regards to the types of services or products offered or the target market. Operating segments are combined for reporting purposes if they meet certain aggregation criteria, which principally relate to the similarity of their economic characteristics or, in the case of the "eCommerce" reportable segment, do not meet the quantitative thresholds that require presentation as separate operating segments.

	Three Months Ended March 31,
	2014			2013
	(In thousands)
Revenue:
Search & Applications	$	398,035		$	397,192
The Match Group	211,187			192,875
Media	36,355			44,995
eCommerce	94,842			107,297
Inter-segment elimination	(172		)	(110		)
Total	$	740,247		$	742,249

	Three Months Ended March 31,
	2014			2013
	(In thousands)
Operating Income (Loss):
Search & Applications	$	70,337		$	86,983
The Match Group	39,803			37,359
Media	(8,566		)	(7,157		)
eCommerce	(1,561		)	(4,493		)
Corporate	(28,301		)	(28,141		)
Total	$	71,712		$	84,551

	Three Months Ended March 31,
	2014			2013
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	82,071		$	97,514
The Match Group	47,430			47,906
Media	(7,864		)	(6,180		)
eCommerce	2,804			723
Corporate	(16,346		)	(13,197		)
Total	$	108,095		$	126,766

Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:

	Three Months Ended March 31,
	2014		2013
	(In thousands)
Revenue:
United States	$	504,403	$	514,614
All other countries	235,844		227,635
Total	$	740,247	$	742,249

	March 31, 2014		December 31, 2013
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	269,057	$	271,916
All other countries	22,054		22,048
Total	$	291,111	$	293,964

The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income consisting of: (1) non-cash compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and goodwill and intangible asset impairments and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. The Company believes this measure is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses. IAC endeavors to compensate for the limitations of the non-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-GAAP measure.

The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments:

	Three Months Ended March 31, 2014
	Adjusted EBITDA			Non-Cash Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	82,071		$	—		$	(4,465	)	$	(7,269	)	$	—	$	70,337
The Match Group	47,430			(17		)	(5,800		)	(1,837		)	27		39,803
Media	(7,864		)	(164		)	(282		)	(256		)	—		(8,566		)
eCommerce	2,804			—			(1,748		)	(2,617		)	—		(1,561		)
Corporate	(16,346		)	(9,432		)	(2,523		)	—			—		(28,301		)
Total	$	108,095		$	(9,613	)	$	(14,818	)	$	(11,979	)	$	27	$	71,712

	Three Months Ended March 31, 2013
	Adjusted EBITDA			Non-Cash Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments			Operating Income (Loss)
	(In thousands)
Search & Applications	$	97,514		$	(3	)	$	(3,865	)	$	(6,663	)	$	—		$	86,983
The Match Group	47,906			157			(4,706		)	(4,540		)	(1,458		)	37,359
Media	(6,180		)	(205		)	(523		)	(249		)	—			(7,157		)
eCommerce	723			29			(2,619		)	(2,626		)	—			(4,493		)
Corporate	(13,197		)	(12,641		)	(2,303		)	—			—			(28,141		)
Total	$	126,766		$	(12,663	)	$	(14,016	)	$	(14,078	)	$	(1,458	)	$	84,551