SEGMENT INFORMATION

12 Months Ended

Dec. 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.

	Years Ended December 31,
	2014			2013			2012
	(In thousands)
Revenue:
Search & Applications	$	1,596,251		$	1,604,950		$	1,465,795
The Match Group	897,245			805,390			714,222
Media	181,780			191,434			164,051
eCommerce	435,361			422,066			457,182
Inter-segment elimination	(1,090		)	(853		)	(317		)
Total	$	3,109,547		$	3,022,987		$	2,800,933

	Years Ended December 31,
	2014			2013			2012
	(In thousands)
Operating Income (Loss):
Search & Applications	$	311,340		$	340,117		$	305,644
The Match Group	240,912			228,155			200,166
Media	(40,177		)	(20,803		)	(46,902		)
eCommerce	(1,257		)	(61		)	15,323
Corporate	(132,091		)	(121,205		)	(150,663		)
Total	$	378,727		$	426,203		$	323,568

	Years Ended December 31,
	2014			2013			2012
	(In thousands)
Adjusted EBITDA:(a)
Search & Applications	$	362,029		$	385,851		$	328,141
The Match Group	264,736			266,949			236,778
Media	(36,720		)	(16,976		)	(38,555		)
eCommerce	17,282			22,890			31,200
Corporate	(63,251		)	(60,411		)	(60,119		)
Total	$	544,076		$	598,303		$	497,445

	December 31,
	2014		2013
	(In thousands)
Segment Assets:(b)
Search & Applications	$	341,886	$	409,116
The Match Group	297,166		341,377
Media	87,448		92,500
eCommerce	50,133		41,827
Corporate	1,251,383		1,229,205
Total	$	2,028,016	$	2,114,025

	Years Ended December 31,
	2014		2013		2012
	(In thousands)
Capital expenditures:
Search & Applications	$	17,701	$	22,215	$	15,320
The Match Group	22,105		19,997		19,853
Media	1,566		1,197		1,178
eCommerce	9,620		8,921		8,485
Corporate	6,241		27,981		6,365
Total	$	57,233	$	80,311	$	51,201

_______________________________________________________________________________

(a) 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.

(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.

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

	Years Ended December 31,
	2014		2013		2012
	(In thousands)
Revenue
United States	$	2,146,189	$	2,081,485	$	1,966,383
All other countries	963,358		941,502		834,550
Total	$	3,109,547	$	3,022,987	$	2,800,933

	December 31,
	2014		2013
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	281,879	$	271,916
All other countries	20,580		22,048
Total	$	302,459	$	293,964

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

	Year Ended December 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	$	362,029		$	—		$	(16,461	)	$	(33,902	)	$	(326	)	$	311,340
The Match Group	264,736			287			(25,628		)	(11,395		)	12,912			240,912
Media	(36,720		)	(647		)	(927		)	(2,098		)	215			(40,177		)
eCommerce	17,282			(559		)	(8,015		)	(10,531		)	566			(1,257		)
Corporate	(63,251		)	(58,715		)	(10,125		)	—			—			(132,091		)
Total	$	544,076		$	(59,634	)	$	(61,156	)	$	(57,926	)	$	13,367		$	378,727

	Year Ended December 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	$	385,851		$	(3	)	$	(18,177	)	$	(27,554	)	$	—		$	340,117
The Match Group	266,949			(1,122		)	(20,203		)	(17,126		)	(343		)	228,155
Media	(16,976		)	(633		)	(2,124		)	(1,070		)	—			(20,803		)
eCommerce	22,890			29			(8,887		)	(14,093		)	—			(61		)
Corporate	(60,411		)	(51,276		)	(9,518		)	—			—			(121,205		)
Total	$	598,303		$	(53,005	)	$	(58,909	)	$	(59,843	)	$	(343	)	$	426,203

	Year Ended December 31, 2012
	Adjusted EBITDA			Non-Cash Compensation Expense			Depreciation			Amortization of Intangibles			Operating Income (Loss)
	(In thousands)
Search & Applications	$	328,141		$	(34	)	$	(14,995	)	$	(7,468	)	$	305,644
The Match Group	236,778			(2,818		)	(16,339		)	(17,455		)	200,166
Media	(38,555		)	(770		)	(1,398		)	(6,179		)	(46,902		)
eCommerce	31,200			2			(11,210		)	(4,669		)	15,323
Corporate	(60,119		)	(82,005		)	(8,539		)	—			(150,663		)
Total	$	497,445		$	(85,625	)	$	(52,481	)	$	(35,771	)	$	323,568

The following tables reconcile segment assets to total assets:

	December 31, 2014
	Segment Assets		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets		Total Assets
	(In thousands)
Search & Applications	$	341,886	$	774,822	$	211,095	$	44,355	$	1,372,158
The Match Group	297,166		798,797		180,558		27,055		1,303,576
Media	87,448		8,267		1,800		4,900		102,415
eCommerce	50,133		173,040		11,781		10,392		245,346
Corporate(c)	1,251,383		—		—		—		1,251,383
Total	$	2,028,016	$	1,754,926	$	405,234	$	86,702	$	4,274,878

	December 31, 2013
	Segment Assets		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets		Total Assets
	(In thousands)
Search & Applications	$	409,116	$	738,062	$	195,805	$	40,550	$	1,383,533
The Match Group	341,377		775,403		167,544		11,818		1,296,142
Media	92,500		8,267		1,800		944		103,511
eCommerce	41,827		153,591		11,180		15,695		222,293
Corporate(c)	1,229,205		—		—		—		1,229,205
Total	$	2,114,025	$	1,675,323	$	376,329	$	69,007	$	4,234,684

_____________________________________

(c) Corporate assets consist primarily of cash and cash equivalents, marketable securities and IAC's headquarters building.