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SEGMENT INFORMATION
 9 Months Ended
Sep. 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 September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Revenue:
 
 
 
 
 
 
 
Search & Applications
$
394,659

 
$
407,291

 
$
1,188,410

 
$
1,231,932

The Match Group
230,198

 
205,196

 
655,699

 
596,058

Media
49,895

 
50,299

 
122,906

 
152,789

eCommerce
107,825

 
94,438

 
312,616

 
318,326

Inter-segment elimination
(346
)
 
(352
)
 
(838
)
 
(573
)
Total
$
782,231

 
$
756,872

 
$
2,278,793

 
$
2,298,532


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Operating Income (Loss):
 
 
 
 
 
 
 
Search & Applications
$
80,384

 
$
87,756

 
$
228,492

 
$
264,085

The Match Group
66,393

 
60,164

 
167,394

 
150,652

Media
(8,723
)
 
(5,558
)
 
(27,083
)
 
(14,748
)
eCommerce
(1,585
)
 
9,285

 
(3,138
)
 
189

Corporate
(35,516
)
 
(29,643
)
 
(97,310
)
 
(86,927
)
Total
$
100,953

 
$
122,004

 
$
268,355

 
$
313,251


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Adjusted EBITDA:
 
 
 
 
 
 
 
Search & Applications
$
93,127

 
$
98,512

 
$
266,456

 
$
298,446

The Match Group
61,371

 
69,328

 
178,169

 
184,919

Media
(7,702
)
 
(4,541
)
 
(24,477
)
 
(11,724
)
eCommerce
3,865

 
13,649

 
11,192

 
18,839

Corporate
(16,073
)
 
(13,426
)
 
(47,225
)
 
(42,254
)
Total
$
134,588

 
$
163,522

 
$
384,115

 
$
448,226


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 September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Revenue:
 
 
 
 
 
 
 
United States
$
544,486

 
$
527,675

 
$
1,560,751

 
$
1,594,169

All other countries
237,745

 
229,197

 
718,042

 
704,363

 Total
$
782,231

 
$
756,872

 
$
2,278,793

 
$
2,298,532

 
September 30,
2014
 
December 31,
2013
 
(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
 
 
 
 United States
$
280,133

 
$
271,916

 All other countries
20,822

 
22,048

Total
$
300,955

 
$
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 GAAP measure with equal or greater prominence, financial statements prepared in accordance with 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 September 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
$
93,127

 
$
—

 
$
(3,596
)
 
$
(9,147
)
 
$
—

 
$
80,384

The Match Group
61,371

 
(145
)
 
(5,794
)
 
(3,320
)
 
14,281

 
66,393

Media
(7,702
)
 
(161
)
 
(225
)
 
(635
)
 
—

 
(8,723
)
eCommerce
3,865

 
(138
)
 
(1,963
)
 
(3,349
)
 
—

 
(1,585
)
Corporate
(16,073
)
 
(16,888
)
 
(2,555
)
 
—

 
—

 
(35,516
)
Total
$
134,588

 
$
(17,332
)
 
$
(14,133
)
 
$
(16,451
)
 
$
14,281

 
$
100,953

 
Three Months Ended September 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
$
98,512

 
$
—

 
$
(3,865
)
 
$
(6,891
)
 
$
—

 
$
87,756

The Match Group
69,328

 
(336
)
 
(5,043
)
 
(3,153
)
 
(632
)
 
60,164

Media
(4,541
)
 
(219
)
 
(526
)
 
(272
)
 
—

 
(5,558
)
eCommerce
13,649

 
—

 
(1,648
)
 
(2,716
)
 
—

 
9,285

Corporate
(13,426
)
 
(13,810
)
 
(2,407
)
 
—

 
—

 
(29,643
)
Total
$
163,522

 
$
(14,365
)
 
$
(13,489
)
 
$
(13,032
)
 
$
(632
)
 
$
122,004


 
Nine Months Ended September 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
$
266,456

 
$
—

 
$
(13,143
)
 
$
(24,821
)
 
$
—

 
$
228,492

The Match Group
178,169

 
(332
)
 
(17,183
)
 
(6,841
)
 
13,581

 
167,394

Media
(24,477
)
 
(486
)
 
(731
)
 
(1,589
)
 
200

 
(27,083
)
eCommerce
11,192

 
(138
)
 
(5,607
)
 
(8,585
)
 
—

 
(3,138
)
Corporate
(47,225
)
 
(42,541
)
 
(7,544
)
 
—

 
—

 
(97,310
)
Total
$
384,115

 
$
(43,497
)
 
$
(44,208
)
 
$
(41,836
)
 
$
13,781

 
$
268,355

 
Nine Months Ended September 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
$
298,446

 
$
(3
)
 
$
(14,143
)
 
$
(20,215
)
 
$
—

 
$
264,085

The Match Group
184,919

 
(542
)
 
(14,587
)
 
(12,799
)
 
(6,339
)
 
150,652

Media
(11,724
)
 
(637
)
 
(1,573
)
 
(814
)
 
—

 
(14,748
)
eCommerce
18,839

 
29

 
(7,260
)
 
(11,419
)
 
—

 
189

Corporate
(42,254
)
 
(37,695
)
 
(6,978
)
 
—

 
—

 
(86,927
)
Total
$
448,226

 
$
(38,848
)
 
$
(44,541
)
 
$
(45,247
)
 
$
(6,339
)
 
$
313,251