SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Revenue:
Search & Applications	$	395,716		$	427,449		$	793,751		$	824,641
The Match Group	214,314			197,987			425,501			390,862
Media	36,656			57,495			73,011			102,490
eCommerce	109,949			116,591			204,791			223,888
Inter-segment elimination	(320		)	(111		)	(492		)	(221		)
Total	$	756,315		$	799,411		$	1,496,562		$	1,541,660

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Operating Income (Loss):
Search & Applications	$	77,771		$	89,346		$	148,108		$	176,329
The Match Group	61,198			53,129			101,001			90,488
Media	(9,794		)	(2,033		)	(18,360		)	(9,190		)
eCommerce	8			(4,603		)	(1,553		)	(9,096		)
Corporate	(33,493		)	(29,143		)	(61,794		)	(57,284		)
Total	$	95,690		$	106,696		$	167,402		$	191,247

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	91,258		$	102,420		$	173,329		$	199,934
The Match Group	69,368			67,685			116,798			115,591
Media	(8,911		)	(1,003		)	(16,775		)	(7,183		)
eCommerce	4,523			4,467			7,327			5,190
Corporate	(14,806		)	(15,631		)	(31,152		)	(28,828		)
Total	$	141,432		$	157,938		$	249,527		$	284,704

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 June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(In thousands)
Revenue:
United States	$	511,862	$	551,880	$	1,016,265	$	1,066,494
All other countries	244,453		247,531		480,297		475,166
Total	$	756,315	$	799,411	$	1,496,562	$	1,541,660

	June 30, 2014		December 31, 2013
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	269,746	$	271,916
All other countries	21,543		22,048
Total	$	291,289	$	293,964

The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (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 June 30, 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	$	91,258		$	—		$	(5,082	)	$	(8,405	)	$	—		$	77,771
The Match Group	69,368			(170		)	(5,589		)	(1,684		)	(727		)	61,198
Media	(8,911		)	(161		)	(224		)	(698		)	200			(9,794		)
eCommerce	4,523			—			(1,896		)	(2,619		)	—			8
Corporate	(14,806		)	(16,221		)	(2,466		)	—			—			(33,493		)
Total	$	141,432		$	(16,552	)	$	(15,257	)	$	(13,406	)	$	(527	)	$	95,690

	Three Months Ended June 30, 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	$	102,420		$	—		$	(6,413	)	$	(6,661	)	$	—		$	89,346
The Match Group	67,685			(363		)	(4,838		)	(5,106		)	(4,249		)	53,129
Media	(1,003		)	(213		)	(524		)	(293		)	—			(2,033		)
eCommerce	4,467			—			(2,993		)	(6,077		)	—			(4,603		)
Corporate	(15,631		)	(11,244		)	(2,268		)	—			—			(29,143		)
Total	$	157,938		$	(11,820	)	$	(17,036	)	$	(18,137	)	$	(4,249	)	$	106,696

	Six Months Ended June 30, 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	$	173,329		$	—		$	(9,547	)	$	(15,674	)	$	—		$	148,108
The Match Group	116,798			(187		)	(11,389		)	(3,521		)	(700		)	101,001
Media	(16,775		)	(325		)	(506		)	(954		)	200			(18,360		)
eCommerce	7,327			—			(3,644		)	(5,236		)	—			(1,553		)
Corporate	(31,152		)	(25,653		)	(4,989		)	—			—			(61,794		)
Total	$	249,527		$	(26,165	)	$	(30,075	)	$	(25,385	)	$	(500	)	$	167,402

	Six Months Ended June 30, 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	$	199,934		$	(3	)	$	(10,278	)	$	(13,324	)	$	—		$	176,329
The Match Group	115,591			(206		)	(9,544		)	(9,646		)	(5,707		)	90,488
Media	(7,183		)	(418		)	(1,047		)	(542		)	—			(9,190		)
eCommerce	5,190			29			(5,612		)	(8,703		)	—			(9,096		)
Corporate	(28,828		)	(23,885		)	(4,571		)	—			—			(57,284		)
Total	$	284,704		$	(24,483	)	$	(31,052	)	$	(32,215	)	$	(5,707	)	$	191,247