10-Q

As filed with the Securities and Exchange Commission on July 31, 2015

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2015
Or
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________to__________

Commission File No. 0-20570

IAC/INTERACTIVECORP

(Exact name of registrant as specified in its charter)

Delaware  (State or other jurisdiction of incorporation or organization)	59-2712887 (I.R.S. Employer Identification No.)
555 West 18th Street, New York, New York 10011  (Address of registrant's principal executive offices)
(212) 314-7300 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý Accelerated filer o Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

As of July 24, 2015, the following shares of the registrant's common stock were outstanding:

Common Stock	77,130,396
Class B Common Stock	5,789,499
Total outstanding Common Stock	82,919,895

The aggregate market value of the voting common stock held by non-affiliates of the registrant as of July 24, 2015 was $6,259,982,574. For the purpose of the foregoing calculation only, all directors and executive officers of the registrant are assumed to be affiliates of the registrant.

TABLE OF CONTENTS

		Page Number
PART I
Item 1.	Consolidated Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
Item 4.	Controls and Procedures	48
PART II
Item 1A.	Risk Factors	49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 6.	Exhibits	50
	Signatures	51

PART I

FINANCIAL INFORMATION

Item 1.    Consolidated Financial Statements

IAC/INTERACTIVECORP

CONSOLIDATED BALANCE SHEET

(Unaudited)

	June 30, 2015			December 31, 2014
	(In thousands, except share data)
ASSETS
Cash and cash equivalents	$	656,409		$	990,405
Marketable securities	233,523			160,648
Accounts receivable, net of allowance of $15,730 and $12,437, respectively	223,106			236,086
Other current assets	209,724			166,742
Total current assets	1,322,762			1,553,881
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	297,158			302,459
Goodwill	1,778,830			1,754,926
Intangible assets, net of accumulated amortization of $116,626 and $98,937, respectively	472,082			491,936
Long-term investments	131,385			114,983
Other non-current assets	72,841			56,693
TOTAL ASSETS	$	4,075,058		$	4,274,878
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Current portion of long-term debt	$	80,000		$	—
Accounts payable, trade	79,434			81,163
Deferred revenue	232,673			194,988
Accrued expenses and other current liabilities	322,750			397,803
Total current liabilities	714,857			673,954
Long-term debt, net of current portion	1,000,000			1,080,000
Income taxes payable	24,768			32,635
Deferred income taxes	432,688			409,529
Other long-term liabilities	59,182			45,191
Redeemable noncontrolling interests	28,177			40,427
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock $.001 par value; authorized 1,600,000,000 shares; issued 253,641,102 and 252,170,058 shares, respectively and outstanding 76,871,835 and 78,356,057 shares, respectively	254			252
Class B convertible common stock $.001 par value; authorized 400,000,000 shares; issued 16,157,499 shares and outstanding 5,789,499 shares	16			16
Additional paid-in capital	11,452,662			11,415,617
Retained earnings	354,099			325,118
Accumulated other comprehensive loss	(130,295		)	(87,700		)
Treasury stock 187,137,267 and 184,182,001 shares, respectively	(9,861,350		)	(9,661,350		)
Total IAC shareholders' equity	1,815,386			1,991,953
Noncontrolling interests	—			1,189
Total shareholders' equity	1,815,386			1,993,142
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	4,075,058		$	4,274,878

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

3

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands, except per share data)
Revenue	$	771,132		$	756,315		$	1,543,644		$	1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	183,276			210,730			374,829			419,964
Selling and marketing expense	319,397			272,490			677,063			571,089
General and administrative expense	129,349			109,897			244,143			204,986
Product development expense	46,430			38,845			91,687			77,661
Depreciation	15,500			15,257			31,068			30,075
Amortization of intangibles	14,411			13,406			26,966			25,385
Total operating costs and expenses	708,363			660,625			1,445,756			1,329,160
Operating income	62,769			95,690			97,888			167,402
Interest expense	(15,214		)	(14,046		)	(29,278		)	(28,110		)
Other (expense) income, net	(1,638		)	(69,750		)	5,350			(71,708		)
Earnings from continuing operations before income taxes	45,917			11,894			73,960			67,584
Income tax benefit (provision)	11,968			(29,889		)	5,788			(51,274		)
Earnings (loss) from continuing operations	57,885			(17,995		)	79,748			16,310
Loss from discontinued operations, net of tax	(153		)	(868		)	(28		)	(1,682		)
Net earnings (loss)	57,732			(18,863		)	79,720			14,628
Net loss attributable to noncontrolling interests	1,573			867			5,990			3,261
Net earnings (loss) attributable to IAC shareholders	$	59,305		$	(17,996	)	$	85,710		$	17,889
Per share information attributable to IAC shareholders:
Basic earnings(loss)per share from continuing operations	$	0.72		$	(0.21	)	$	1.03		$	0.24
Diluted earnings (loss)per share from continuing operations	$	0.68		$	(0.21	)	$	0.98		$	0.22
Basic earnings(loss) per share	$	0.72		$	(0.22	)	$	1.03		$	0.22
Diluted earnings(loss) per share	$	0.68		$	(0.22	)	$	0.97		$	0.20
Dividends declared per share	$	0.34		$	0.24		$	0.68		$	0.48
Stock-based compensation expense by function:
Cost of revenue	$	294		$	459		$	539		$	451
Selling and marketing expense	3,119			657			4,842			853
General and administrative expense	20,039			13,707			34,637			21,659
Product development expense	2,497			1,729			4,842			3,202
Total stock-based compensation expense	$	25,949		$	16,552		$	44,860		$	26,165

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

4

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2015		2014			2015			2014
	(In thousands)
Net earnings (loss)	$	57,732	$	(18,863	)	$	79,720		$	14,628
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustment	8,613		(187		)	(48,001		)	5,190
Change in unrealized gains and losses of available-for-sale securities (net of tax benefits of $126 and $182 for the three and six months ended June 30, 2015, respectively, and net of tax benefits of $865 and $1,438 for the three and six months ended June 30, 2014, respectively)	3,615		(2,139		)	4,249			(2,250		)
Total other comprehensive income (loss), net of tax	12,228		(2,326		)	(43,752		)	2,940
Comprehensive income (loss)	69,960		(21,189		)	35,968			17,568
Comprehensive loss attributable to noncontrolling interests	2,323		984			7,147			3,461
Comprehensive income (loss) attributable to IAC shareholders	$	72,283	$	(20,205	)	$	43,115		$	21,029

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

5

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

(Unaudited)

				IAC Shareholders' Equity
							Class B Convertible Common Stock $.001 Par Value
				Common Stock $.001 Par Value
																Accumulated Other Comprehensive Loss						Total IAC Shareholders' Equity
	Redeemable Noncontrolling Interests									Additional Paid-in Capital			Retained Earnings							Treasury Stock						Noncontrolling Interests			Total Shareholders' Equity
				$		Shares	$		Shares
				(In thousands)
Balance as of December 31, 2014	$	40,427		$	252	252,170	$	16	16,157	$	11,415,617		$	325,118		$	(87,700	)	$	(9,661,350	)	$	1,991,953		$	1,189		$	1,993,142
Net (loss) earnings for the six months ended June 30, 2015	(5,990		)	—		—	—		—	—			85,710			—			—			85,710			—			85,710
Other comprehensive loss, net of tax	(1,157		)	—		—	—		—	—			—			(42,595		)	—			(42,595		)	—			(42,595		)
Stock-based compensation expense	3,509			—		—	—		—	38,189			—			—			—			38,189			—			38,189
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes	—			2		1,471	—		—	(20,668		)	—			—			—			(20,666		)	—			(20,666		)
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other	—			—		—	—		—	24,636			—			—			—			24,636			—			24,636
Dividends	—			—		—	—		—	—			(56,729		)	—			—			(56,729		)	—			(56,729		)
Purchase of treasury stock	—			—		—	—		—	—			—			—			(200,000		)	(200,000		)	—			(200,000		)
Purchase of redeemable noncontrolling interests	(15,338		)	—		—	—		—	—			—			—			—			—			—			—
Adjustment of redeemable noncontrolling interests to fair value	5,320			—		—	—		—	(5,320		)	—			—			—			(5,320		)	—			(5,320		)
Transfer from noncontrolling interests to redeemable noncontrolling interests	1,189			—		—	—		—	—			—			—			—			—			(1,189		)	(1,189		)
Other	217			—		—	—		—	208			—			—			—			208			—			208
Balance as of June 30, 2015	$	28,177		$	254	253,641	$	16	16,157	$	11,452,662		$	354,099		$	(130,295	)	$	(9,861,350	)	$	1,815,386		$	—		$	1,815,386

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

6

IAC/INTERACTIVECORP

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	Six Months Ended June 30,
	2015			2014
	(In thousands)
Cash flows from operating activities attributable to continuing operations:
Net earnings	$	79,720		$	14,628
Less: loss from discontinued operations, net of tax	(28		)	(1,682		)
Earnings from continuing operations	79,748			16,310
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities attributable to continuing operations:
Stock-based compensation expense	44,860			26,165
Depreciation	31,068			30,075
Amortization of intangibles	26,966			25,385
Excess tax benefits from stock-based awards	(36,465		)	(32,889		)
Deferred income taxes	7,260			5,849
Impairment of long-term investments	500			64,281
Equity in losses of unconsolidated affiliates	477			8,785
Acquisition-related contingent consideration fair value adjustments	(16,946		)	500
Other adjustments, net	8,369			5,362
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	2,710			(5,718		)
Other assets	(6,458		)	(19,238		)
Accounts payable and other current liabilities	(33,231		)	(31,242		)
Income taxes payable	(63,304		)	29,299
Deferred revenue	40,407			25,851
Other changes in assets and liabilities, net	(182		)	(4		)
Net cash provided by operating activities attributable to continuing operations	85,779			148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286		)	(103,380		)
Capital expenditures	(26,816		)	(26,557		)
Proceeds from maturities and sales of marketable debt securities	14,613			998
Purchases of marketable debt securities	(93,134		)	(78,380		)
Purchases of long-term investments	(12,840		)	(14,701		)
Other, net	8,599			2,187
Net cash used in investing activities attributable to continuing operations	(152,864		)	(219,833		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—
Dividends	(56,729		)	(40,086		)
Issuance of common stock, net of withholding taxes	(20,656		)	(13,823		)
Excess tax benefits from stock-based awards	36,465			32,889
Purchase of noncontrolling interests	(15,338		)	(30,000		)
Funds returned from escrow for Meetic tender offer	—			12,354
Acquisition-related contingent consideration payments	(5,705		)	(7,630		)
Other, net	430			(141		)
Net cash used in financing activities attributable to continuing operations	(261,533		)	(46,437		)
Total cash used in continuing operations	(328,618		)	(117,499		)
Total cash used in discontinued operations	(243		)	(157		)
Effect of exchange rate changes on cash and cash equivalents	(5,135		)	4,538
Net decrease in cash and cash equivalents	(333,996		)	(113,118		)
Cash and cash equivalents at beginning of period	990,405			1,100,444
Cash and cash equivalents at end of period	$	656,409		$	987,326

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

7

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

IAC is a leading media and Internet company. The Company is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which includes businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world, reaching users in over 200 countries.

On June 25, 2015, the Company announced the intent to pursue an initial public offering ("IPO") of less than 20% of the common stock of The Match Group. The IPO is expected to be completed during the fourth quarter of 2015.

All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp.

Basis of Presentation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

Basis of Consolidation and Accounting for Investments

The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated.

Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying consolidated balance sheet.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.

On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recovery of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.

8

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Certain Risks and Concentrations

A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google Inc. ("Google"), which expires on March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations. For the three and six months ended June 30, 2015, revenue earned from Google is $308.2 million and $647.8 million, respectively. For the three and six months ended June 30, 2014, revenue earned from Google is $349.5 million and $704.6 million, respectively. This revenue is earned by the businesses comprising the Search & Applications segment. Accounts receivable related to revenue earned from Google totaled $108.3 million and $118.7 million at June 30, 2015 and December 31, 2014, respectively.

Recent Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. In July 2015, the FASB decided to defer the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted beginning on the original effective date of December 15, 2016. Upon adoption, ASU No. 2014-09 may either be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method and timing of adoption.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

NOTE 2—INCOME TAXES

At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or the liabilities for uncertain tax positions is recognized in the interim period in which the change occurs.

The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs.

For the three and six months ended June 30, 2015, the Company recorded an income tax benefit for continuing operations of $12.0 million and $5.8 million, respectively. The income tax benefit for the three and six months ended June 30, 2015 are due primarily to the realization of certain deferred tax assets, a reduction in tax reserves and related interest due to the expiration of statutes of limitations, and the non-taxable gain on contingent consideration fair value adjustments in the current year period, partially offset by state taxes. For the three and six months ended June 30, 2014, the Company recorded an income tax provision for continuing operations of $29.9 million and $51.3 million, respectively, which represents effective income tax rates of 251% and 76%, respectively. The effective rates for the three and six months ended June 30, 2014 are higher than the statutory rate of 35% due primarily to the largely unbenefited loss associated with the write-downs of certain of the Company's

9

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

investments, interest on reserves for income tax contingencies, and state taxes, partially offset by foreign income taxed at lower rates.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Included in the income tax provision for continuing operations for the three and six months ended June 30, 2015, is a $0.1 million benefit and a $0.2 million benefit, respectively, net of related deferred taxes, for interest on unrecognized tax benefits. At June 30, 2015 and December 31, 2014, the Company has accrued $2.2 million and $2.8 million, respectively, for the payment of interest. At June 30, 2015 and December 31, 2014, the Company has accrued $2.3 million and $2.9 million, respectively, for penalties.

The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for uncertain tax positions and the amounts owed by the Company are recorded in the period they become known.

At June 30, 2015 and December 31, 2014, unrecognized tax benefits, including interest and penalties, are $25.9 million and $33.2 million, respectively. If unrecognized tax benefits at June 30, 2015 are subsequently recognized, $23.9 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $3.4 million within twelve months of June 30, 2015 primarily due to settlements and expiration of statutes of limitations.

NOTE 3—MARKETABLE SECURITIES

At June 30, 2015, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Corporate debt securities	$	232,766	$	151	$	—	$	232,917
Equity security	97		509		—		606
Total marketable securities	$	232,863	$	660	$	—	$	233,523

At December 31, 2014, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	159,418	$	34	$	(255	)	$	159,197
Equity security	98		1,353		—			1,451
Total marketable securities	$	159,516	$	1,387	$	(255	)	$	160,648

The unrealized gains and losses in the tables above are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet.

10

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

The contractual maturities of debt securities classified as current available-for-sale at June 30, 2015 are as follows:

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	95,946	$	95,979
Due after one year through five years	136,820		136,938
Total	$	232,766	$	232,917

The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities	$	8,563	$	3,462	$	14,613	$	3,462
Gross realized gains	5		2,299		5		2,299

There were no gross realized losses from the maturities and sales of available-for-sale marketable securities for the three and six months ended June 30, 2015 and 2014. However, during the second quarter of 2015, the Company recognized $0.3 million in losses that were deemed to be other-than-temporary related to various corporate debt securities that are expected to be sold by the Company in the third quarter of 2015, in part, to fund its cash needs related to The Match Group's acquisition of PlentyOfFish for $575 million.

Gross realized gains from the maturities and sales of available-for-sale marketable securities and losses that were deemed to be other-than-temporary are included in "Other (expense) income, net" in the accompanying consolidated statement of operations.

The specific-identification method is used to determine the cost of securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income into earnings.

NOTE 4—FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are:

• Level 1: Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which 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 values 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 below for a discussion of fair value measurements made using Level 3 inputs.

The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:

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(Unaudited)

	June 30, 2015
	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	$	207,014	$	—	$	—		$	207,014
Commercial paper	—		76,789		—			76,789
Time deposits	—		32,457		—			32,457
Marketable securities:
Corporate debt securities	—		232,917		—			232,917
Equity security	606		—		—			606
Long-term investments:
Auction rate security	—		—		6,630			6,630
Marketable equity security	11,388		—		—			11,388
Total	$	219,008	$	342,163	$	6,630		$	567,801
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(31,858	)	$	(31,858	)

	December 31, 2014
	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	$	174,720	$	—	$	—		$	174,720
Commercial paper	—		388,801		—			388,801
Time deposits	—		42,914		—			42,914
Marketable securities:
Corporate debt securities	—		159,197		—			159,197
Equity security	1,451		—		—			1,451
Long-term investments:
Auction rate security	—		—		6,070			6,070
Marketable equity security	7,410		—		—			7,410
Total	$	183,581	$	590,912	$	6,070		$	780,563
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(30,140	)	$	(30,140	)

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(Unaudited)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at April 1	$	6,190	$	(20,964	)	$	9,150	$	(48,758	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		9,950			—		(527		)
Foreign currency exchange losses	—		(4		)	—		—
Included in other comprehensive income (loss)	440		384			100		499
Fair value at date of acquisition	—		(26,749		)	—		—
Settlements	—		5,525			—		7,389
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

	Six Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070	$	(30,140	)	$	8,920	$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		16,946			—		(500		)
Foreign currency exchange gains	—		626			—		—
Included in other comprehensive income (loss)	560		2,117			330		136
Fair value at date of acquisition	—		(27,112		)	—		(2,835		)
Settlements	—		5,705			—		7,630
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

Auction rate security

The Company's auction rate security is valued by discounting the estimated future cash flow streams of the security over the life of the security. Credit spreads and other risk factors are also considered in establishing fair value. The cost basis of the auction rate security is $10.0 million, with gross unrealized losses of $3.4 million and $3.9 million at June 30, 2015 and December 31, 2014, respectively. The unrealized losses are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. At June 30, 2015, the auction rate security is rated BBB- and matures in 2035. The Company does not consider the auction rate security to be other-than-temporarily impaired at June 30, 2015, due to its credit rating and because the Company does not intend to sell this security, and it is not more likely than not that the Company will be required to sell this security, before the recovery of its amortized cost basis, which may be maturity.

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(Unaudited)

Contingent Consideration Arrangements

As of June 30, 2015, there are nine contingent consideration arrangements related to business acquisitions. Eight of the contingent consideration arrangements have limits as to the maximum amount that can be paid; the maximum contingent payments related to these arrangements is $240.7 million and the fair value of these arrangements at June 30, 2015 is $31.4 million. The fair value of the one contingent consideration arrangement without a limit on the maximum amount is $0.5 million at June 30, 2015. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics such as monthly active users. The Company typically determines the fair value of the contingent consideration arrangements by using a probability-weighted analysis to determine the amount of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that captures the risks associated with the obligation. The number of scenarios in the probability-weighted analyses can vary; generally, more scenarios are prepared for longer duration and more complex arrangements. The contingent consideration arrangements fair values at June 30, 2015 reflect discount rates ranging from 12-25%.

The fair values of the contingent consideration arrangements are sensitive to changes in the forecasts of earnings and/or the relevant operating metrics and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at June 30, 2015 includes a current portion of $2.8 million and non-current portion of $29.1 million, which are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet.

Assets measured at fair value on a nonrecurring basis

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity and cost method investments, are adjusted to fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

Cost method investments

At June 30, 2015 and December 31, 2014, the carrying values of the Company's investments accounted for under the cost method totaled $103.3 million and $90.9 million, respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. The Company evaluates each cost method investment for impairment on a quarterly basis and recognizes an impairment loss if a decline in value is determined to be other-than-temporary. If the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of a cost method investment, then the fair value of such cost method investment is not estimated, as it is impracticable to do so.

In the second quarter of 2014, the Company recorded $64.2 million of other-than-temporary impairment charges for certain cost method investments as a result of our assessment of the near-term prospects and financial condition of the investees. This charge is included in "Other (expense) income, net" in the accompanying consolidated statement of operations.

Equity method investments

In the second quarter of 2014, the Company recorded a $4.2 million other-than-temporary impairment charge on an equity method investment following the sale of a majority of the investee's assets. This charge is included in "Other (expense) income, net" in the accompanying consolidated statement of operations.

Long-term marketable equity securities

The cost basis of the Company's long-term marketable equity security at June 30, 2015 and December 31, 2014 is $8.7 million, with a gross unrealized gain of $2.7 million and loss of $1.2 million at June 30, 2015 and December 31, 2014, respectively. The gross unrealized gain at June 30, 2015 and gross unrealized loss at December 31, 2014 are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet.

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(Unaudited)

Financial instruments measured at fair value only for disclosure purposes

The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes:

	June 30, 2015						December 31, 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Current portion of long-term debt	$	(80,000	)	$	(80,000	)	$	—		$	—
Long-term debt, net of current portion	(1,000,000		)	(1,025,345		)	(1,080,000		)	(1,099,813		)

The fair value of long-term debt is estimated using market prices or indices for similar liabilities and taking into consideration other factors such as credit quality and maturity, which are Level 3 inputs.

NOTE 5—LONG-TERM DEBT

Long-term debt consists of:

	June 30, 2015		December 31, 2014
	(In thousands)
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014	$	500,000	$	500,000
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013	500,000		500,000
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006(a)	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

_________________________________________

^(a)$80.0 million reflected as short-term debt at June 30, 2015 as the Liberty Bonds are scheduled to be redeemed on September 1, 2015.

The 2013 and 2012 Senior Notes were issued on November 15, 2013 and December 21, 2012, respectively. On December 21, 2012, the Company entered into a $300 million revolving credit facility, which expires on December 21, 2017. The annual fee to maintain the revolving credit facility is 30 basis points. At June 30, 2015 and December 31, 2014, there are no outstanding borrowings under the revolving credit facility.

The 2013 and 2012 Senior Notes are unconditionally guaranteed by certain domestic subsidiaries, which are designated as guarantor subsidiaries. The guarantor subsidiaries are the same for the 2013 and 2012 Senior Notes and the revolving credit facility; any borrowings under the revolving credit facility would also be secured by the stock of certain of our domestic and foreign subsidiaries. See Note 10 for guarantor and non-guarantor financial information.

The indentures governing the 2013 and 2012 Senior Notes restrict our ability to incur additional indebtedness in the event we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. In addition, the terms of the revolving credit facility require that we maintain a leverage ratio of not more than 3.0 to 1.0 and restrict our ability to incur additional indebtedness. As of June 30, 2015, the Company was in compliance with all of these covenants.

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(Unaudited)

NOTE 6—ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of accumulated other comprehensive (loss) income.

	Three Months Ended June 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of April 1	$	(143,182	)	$	(91	)	$	(143,273	)
Other comprehensive income, net of tax benefit of $0.2 million related to unrealized losses on available-for-sale securities	9,287			3,528			12,815
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of a tax benefit of $0.1 million	—			163			163
Net current period other comprehensive income	9,287			3,691			12,978
Balance as of June 30	$	(133,895	)	$	3,600		$	(130,295	)

	Three Months Ended June 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains (Losses)On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of April 1	$	(15,132	)	$	7,435		$	(7,697	)
Other comprehensive loss before reclassifications, net of tax benefit of $0.1 million related to unrealized gains on available-for-sale securities	(150		)	(799		)	(949		)
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of tax benefit of $0.8 million	—			(1,260		)	(1,260		)
Net current period other comprehensive loss	(150		)	(2,059		)	(2,209		)
Balance as of June 30	$	(15,282	)	$	5,376		$	(9,906	)

	Six Months Ended June 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31	$	(86,848	)	$	(852	)	$	(87,700	)
Other comprehensive (loss) income, net of tax benefit of $0.3 million related to unrealized losses on available-for-sale securities	(47,047		)	4,289			(42,758		)
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of a tax benefit of $0.1 million	—			163			163
Net current period other comprehensive (loss) income	(47,047		)	4,452			(42,595		)
Balance as of June 30	$	(133,895	)	$	3,600		$	(130,295	)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Six Months Ended June 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains (Losses)On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31	$	(20,352	)	$	7,306		$	(13,046	)
Other comprehensive income (loss) before reclassifications, net of tax benefit of $0.7 million related to unrealized gains on available-for-sale securities	5,070			(670		)	4,400
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of tax benefit of $0.8 million	—			(1,260		)	(1,260		)
Net current period other comprehensive income (loss)	5,070			(1,930		)	3,140
Balance as of June 30	$	(15,282	)	$	5,376		$	(9,906	)

NOTE 7—EARNINGS (LOSS) PER SHARE

The following tables set forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders.

	Three Months Ended June 30,
	2015						2014
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings (loss) from continuing operations	$	57,885		$	57,885		$	(17,995	)	$	(17,995	)
Net loss attributable to noncontrolling interests	1,573			1,573			867			867
Earnings (loss) from continuing operations attributable to IAC shareholders	59,458			59,458			(17,128		)	(17,128		)
Loss from discontinued operations attributable to IAC shareholders	(153		)	(153		)	(868		)	(868		)
Net earnings (loss) attributable to IAC shareholders	$	59,305		$	59,305		$	(17,996	)	$	(17,996	)
Denominator:
Weighted average basic shares outstanding	82,416			82,416			83,178			83,178
Dilutive securities including stock options and RSUs(a)(b)	—			4,674			—			—
Denominator for earnings per share—weighted average shares(a)(b)	82,416			87,090			83,178			83,178
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share from continuing operations	$	0.72		$	0.68		$	(0.21	)	$	(0.21	)
Discontinued operations	—			—			(0.01		)	(0.01		)
Earnings (loss) per share	$	0.72		$	0.68		$	(0.22	)	$	(0.22	)

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(Unaudited)

	Six Months Ended June 30,
	2015						2014
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	79,748		$	79,748		$	16,310		$	16,310
Net loss attributable to noncontrolling interests	5,990			5,990			3,261			3,261
Earnings from continuing operations attributable to IAC shareholders	85,738			85,738			19,571			19,571
Loss from discontinued operations attributable to IAC shareholders	(28		)	(28		)	(1,682		)	(1,682		)
Net earnings attributable to IAC shareholders	$	85,710		$	85,710		$	17,889		$	17,889
Denominator:
Weighted average basic shares outstanding	82,932			82,932			82,833			82,833
Dilutive securities including stock options and RSUs(a)	—			4,989			—			5,150
Denominator for earnings per share—weighted average shares(a)	82,932			87,921			82,833			87,983
Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.03		$	0.98		$	0.24		$	0.22
Discontinued operations	—			(0.01		)	(0.02		)	(0.02		)
Earnings per share	$	1.03		$	0.97		$	0.22		$	0.20

_________________________________________

^(a)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 vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2015 approximately 1.0 million and 1.2 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the six months ended June 30, 2014, there are no securities that are excluded from the calculation of diluted earnings per share.

^(b)For the three months ended June 30, 2014, the Company had a loss from continuing operations and as a result, approximately 11.5 million potentially dilutive securities were excluded for computing dilutive earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts.

NOTE 8—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.

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(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Revenue:
Search & Applications	$	351,366		$	395,716		$	734,264		$	793,751
The Match Group	254,690			214,314			493,901			425,501
Media	36,210			36,656			79,822			73,011
eCommerce	128,986			109,949			235,996			204,791
Inter-segment eliminations	(120		)	(320		)	(339		)	(492		)
Total	$	771,132		$	756,315		$	1,543,644		$	1,496,562

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Operating Income (Loss):
Search & Applications	$	68,592		$	77,771		$	132,892		$	148,108
The Match Group	51,441			61,198			76,753			101,001
Media	(13,775		)	(9,794		)	(29,127		)	(18,360		)
eCommerce	(1,004		)	8			(7,858		)	(1,553		)
Corporate	(42,485		)	(33,493		)	(74,772		)	(61,794		)
Total	$	62,769		$	95,690		$	97,888		$	167,402

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	72,910		$	91,258		$	151,811		$	173,329
The Match Group	64,822			69,368			90,678			116,798
Media	(15,452		)	(8,911		)	(30,035		)	(16,775		)
eCommerce	2,681			4,523			(456		)	7,327
Corporate	(16,282		)	(14,806		)	(28,162		)	(31,152		)
Total	$	108,679		$	141,432		$	183,836		$	249,527

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,
	2015		2014		2015		2014
	(In thousands)
Revenue:
United States	$	566,224	$	511,862	$	1,136,237	$	1,016,265
All other countries	204,908		244,453		407,407		480,297
Total	$	771,132	$	756,315	$	1,543,644	$	1,496,562

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(Unaudited)

	June 30, 2015		December 31, 2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	278,004	$	281,879
All other countries	19,154		20,580
Total	$	297,158	$	302,459

The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets 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.

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

	Three Months Ended June 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	72,910		$	—		$	(3,685	)	$	(6,930	)	$	6,297	$	68,592
The Match Group	64,822			(2,056		)	(6,647		)	(5,901		)	1,223		51,441
Media	(15,452		)	(147		)	(228		)	(378		)	2,430		(13,775		)
eCommerce	2,681			(420		)	(2,063		)	(1,202		)	—		(1,004		)
Corporate	(16,282		)	(23,326		)	(2,877		)	—			—		(42,485		)
Total	$	108,679		$	(25,949	)	$	(15,500	)	$	(14,411	)	$	9,950	$	62,769

	Three Months Ended June 30, 2014
	Adjusted EBITDA			Stock-Based 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

20

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(Unaudited)

	Six Months Ended June 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	151,811		$	—		$	(7,301	)	$	(13,895	)	$	2,277	$	132,892
The Match Group	90,678			(2,669		)	(13,712		)	(9,778		)	12,234		76,753
Media	(30,035		)	(294		)	(432		)	(801		)	2,435		(29,127		)
eCommerce	(456		)	(840		)	(4,070		)	(2,492		)	—		(7,858		)
Corporate	(28,162		)	(41,057		)	(5,553		)	—			—		(74,772		)
Total	$	183,836		$	(44,860	)	$	(31,068	)	$	(26,966	)	$	16,946	$	97,888

	Six Months Ended June 30, 2014
	Adjusted EBITDA			Stock-Based 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

NOTE 9—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-income 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 2 for additional information related to income tax contingencies.

NOTE 10—GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The 2013 and 2012 Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries that are 100% owned by the Company. The following tables present condensed consolidating financial information at June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.

21

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Balance sheet at June 30, 2015:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	431,731	$	4,121	$	220,557	$	—		$	656,409
Marketable securities	232,917		—		606		—			233,523
Accounts receivable, net	4		132,223		90,879		—			223,106
Other current assets	47,233		97,670		69,692		(4,871		)	209,724
Intercompany receivables	—		1,635,189		942,583		(2,577,772		)	—
Property and equipment, net	4,867		228,061		64,230		—			297,158
Goodwill	—		1,250,801		528,029		—			1,778,830
Intangible assets, net	—		313,275		158,807		—			472,082
Investment in subsidiaries	4,971,322		932,210		—		(5,903,532		)	—
Other non-current assets	69,644		20,715		115,405		(1,538		)	204,226
Total assets	$	5,757,718	$	4,614,265	$	2,190,788	$	(8,487,713	)	$	4,075,058
Current portion of long-term debt	$	—	$	80,000	$	—	$	—		$	80,000
Accounts payable, trade	3,078		57,265		19,091		—			79,434
Other current liabilities	32,661		320,261		203,239		(738		)	555,423
Long-term debt, net of current portion	1,000,000		—		—		—			1,000,000
Income taxes payable	892		4,829		19,047		—			24,768
Intercompany liabilities	2,577,772		—		—		(2,577,772		)	—
Other long-term liabilities	327,929		100,370		69,242		(5,671		)	491,870
Redeemable noncontrolling interests	—		—		28,177		—			28,177
IAC shareholders' equity	1,815,386		4,051,540		1,851,992		(5,903,532		)	1,815,386
Total liabilities and shareholders' equity	$	5,757,718	$	4,614,265	$	2,190,788	$	(8,487,713	)	$	4,075,058

22

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Balance sheet at December 31, 2014:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	766,076	$	1,021	$	223,308	$	—		$	990,405
Marketable securities	159,197		—		1,451		—			160,648
Accounts receivable, net	13		155,262		80,811		—			236,086
Other current assets	23,923		91,105		57,487		(5,773		)	166,742
Intercompany receivables	—		1,688,403		970,810		(2,659,213		)	—
Property and equipment, net	4,950		232,819		64,690		—			302,459
Goodwill	—		1,249,807		505,119		—			1,754,926
Intangible assets, net	—		325,771		166,165		—			491,936
Investment in subsidiaries	5,035,304		930,443		—		(5,965,747		)	—
Other non-current assets	44,610		20,682		109,372		(2,988		)	171,676
Total assets	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878
Accounts payable, trade	$	3,059	$	55,320	$	22,784	$	—		$	81,163
Other current liabilities	73,491		328,920		191,197		(817		)	592,791
Long-term debt	1,000,000		80,000		—		—			1,080,000
Income taxes payable	2,240		4,771		25,624		—			32,635
Intercompany liabilities	2,659,213		—		—		(2,659,213		)	—
Other long-term liabilities	304,117		104,219		54,328		(7,944		)	454,720
Redeemable noncontrolling interests	—		—		40,427		—			40,427
IAC shareholders' equity	1,991,953		4,122,083		1,843,664		(5,965,747		)	1,991,953
Noncontrolling interests	—		—		1,189		—			1,189
Total liabilities and shareholders' equity	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878

23

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the three months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	586,067		$	188,460		$	(3,395	)	$	771,132
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	294			117,383			65,792			(193		)	183,276
Selling and marketing expense	1,010			264,647			56,949			(3,209		)	319,397
General and administrative expense	33,942			66,336			29,064			7			129,349
Product development expense	2,330			30,996			13,104			—			46,430
Depreciation	426			11,110			3,964			—			15,500
Amortization of intangibles	—			6,226			8,185			—			14,411
Total operating costs and expenses	38,002			496,698			177,058			(3,395		)	708,363
Operating (loss) income	(38,002		)	89,369			11,402			—			62,769
Equity in earnings of unconsolidated affiliates	70,523			13,353			—			(83,876		)	—
Interest expense	(12,992		)	(2,211		)	(11		)	—			(15,214		)
Other (expense) income, net	(7,506		)	17,787			(11,919		)	—			(1,638		)
Earnings (loss) from continuing operations before income taxes	12,023			118,298			(528		)	(83,876		)	45,917
Income tax benefit (provision)	47,435			(40,470		)	5,003			—			11,968
Earnings from continuing operations	59,458			77,828			4,475			(83,876		)	57,885
(Loss) earnings from discontinued operations, net of tax	(153		)	—			3			(3		)	(153		)
Net earnings	59,305			77,828			4,478			(83,879		)	57,732
Net loss attributable to noncontrolling interests	—			—			1,573			—			1,573
Net earnings attributable to IAC shareholders	$	59,305		$	77,828		$	6,051		$	(83,879	)	$	59,305
Comprehensive income attributable to IAC shareholders	$	72,283		$	79,129		$	15,106		$	(94,235	)	$	72,283

24

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the three months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	556,162		$	203,497		$	(3,344	)	$	756,315
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	383			126,162			84,872			(687		)	210,730
Selling and marketing expense	619			220,152			54,158			(2,439		)	272,490
General and administrative expense	26,609			48,459			34,816			13			109,897
Product development expense	1,705			26,305			11,066			(231		)	38,845
Depreciation	312			9,224			5,721			—			15,257
Amortization of intangibles	—			9,659			3,747			—			13,406
Total operating costs and expenses	29,628			439,961			194,380			(3,344		)	660,625
Operating (loss) income	(29,628		)	116,201			9,117			—			95,690
Equity in earnings of unconsolidated affiliates	8,264			5,297			—			(13,561		)	—
Interest expense	(12,985		)	(1,052		)	(9		)	—			(14,046		)
Other income (expense), net	6,537			(13,834		)	(62,453		)	—			(69,750		)
(Loss) earnings from continuing operations before income taxes	(27,812		)	106,612			(53,345		)	(13,561		)	11,894
Income tax benefit (provision)	10,684			(39,785		)	(788		)	—			(29,889		)
(Loss) earnings from continuing operations	(17,128		)	66,827			(54,133		)	(13,561		)	(17,995		)
Loss from discontinued operations, net of tax	(868		)	—			(27		)	27			(868		)
Net (loss) earnings	(17,996		)	66,827			(54,160		)	(13,534		)	(18,863		)
Net loss attributable to noncontrolling interests	—			—			867			—			867
Net (loss) earnings attributable to IAC shareholders	$	(17,996	)	$	66,827		$	(53,293	)	$	(13,534	)	$	(17,996	)
Comprehensive (loss) income attributable to IAC shareholders	$	(20,205	)	$	66,163		$	(55,879	)	$	(10,284	)	$	(20,205	)

25

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the six months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,180,868		$	368,820		$	(6,044	)	$	1,543,644
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	539			237,124			137,556			(390		)	374,829
Selling and marketing expense	2,065			553,272			127,345			(5,619		)	677,063
General and administrative expense	58,006			132,089			54,083			(35		)	244,143
Product development expense	4,507			62,130			25,050			—			91,687
Depreciation	827			22,690			7,551			—			31,068
Amortization of intangibles	—			12,496			14,470			—			26,966
Total operating costs and expenses	65,944			1,019,801			366,055			(6,044		)	1,445,756
Operating (loss) income	(65,944		)	161,067			2,765			—			97,888
Equity in earnings of unconsolidated affiliates	124,647			17,049			—			(141,696		)	—
Interest expense	(25,982		)	(3,257		)	(39		)	—			(29,278		)
Other (expense) income, net	(16,859		)	29,179			(6,970		)	—			5,350
Earnings (loss) from continuing operations before income taxes	15,862			204,038			(4,244		)	(141,696		)	73,960
Income tax benefit (provision)	69,876			(72,266		)	8,178			—			5,788
Earnings from continuing operations	85,738			131,772			3,934			(141,696		)	79,748
(Loss) earnings from discontinued operations, net of tax	(28		)	—			3			(3		)	(28		)
Net earnings	85,710			131,772			3,937			(141,699		)	79,720
Net loss attributable to noncontrolling interests	—			—			5,990			—			5,990
Net earnings attributable to IAC shareholders	$	85,710		$	131,772		$	9,927		$	(141,699	)	$	85,710
Comprehensive income (loss) attributable to IAC shareholders	$	43,115		$	127,288		$	(37,762	)	$	(89,526	)	$	43,115

26

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of operations for the six months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,102,488		$	400,404		$	(6,330	)	$	1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	355			255,463			165,793			(1,647		)	419,964
Selling and marketing expense	811			456,493			117,922			(4,137		)	571,089
General and administrative expense	49,055			94,134			61,771			26			204,986
Product development expense	3,176			53,401			21,656			(572		)	77,661
Depreciation	641			18,785			10,649			—			30,075
Amortization of intangibles	—			18,660			6,725			—			25,385
Total operating costs and expenses	54,038			896,936			384,516			(6,330		)	1,329,160
Operating (loss) income	(54,038		)	205,552			15,888			—			167,402
Equity in earnings of unconsolidated affiliates	62,561			5,541			—			(68,102		)	—
Interest expense	(25,970		)	(2,094		)	(46		)	—			(28,110		)
Other income (expense), net	16,222			(24,361		)	(63,569		)	—			(71,708		)
(Loss) earnings from continuing operations before income taxes	(1,225		)	184,638			(47,727		)	(68,102		)	67,584
Income tax benefit (provision)	20,796			(69,729		)	(2,341		)	—			(51,274		)
Earnings (loss) from continuing operations	19,571			114,909			(50,068		)	(68,102		)	16,310
Loss from discontinued operations, net of tax	(1,682		)	—			(40		)	40			(1,682		)
Net earnings (loss)	17,889			114,909			(50,108		)	(68,062		)	14,628
Net loss attributable to noncontrolling interests	—			—			3,261			—			3,261
Net earnings (loss) attributable to IAC shareholders	$	17,889		$	114,909		$	(46,847	)	$	(68,062	)	$	17,889
Comprehensive income (loss) attributable to IAC shareholders	$	21,029		$	114,629		$	(45,764	)	$	(68,865	)	$	21,029

27

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of cash flows for the six months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(124,420	)	$	232,853		$	(22,654	)	$	85,779
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(3,675		)	(39,611		)	(43,286		)
Capital expenditures	(988		)	(18,242		)	(7,586		)	(26,816		)
Proceeds from maturities and sales of marketable debt securities	14,613			—			—			14,613
Purchases of marketable debt securities	(93,134		)	—			—			(93,134		)
Purchases of long-term investments	—			—			(12,840		)	(12,840		)
Other, net	3,613			(1,086		)	6,072			8,599
Net cash used in investing activities attributable to continuing operations	(75,896		)	(23,003		)	(53,965		)	(152,864		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—			—			(200,000		)
Dividends	(56,729		)	—			—			(56,729		)
Issuance of common stock, net of withholding taxes	(20,656		)	—			—			(20,656		)
Excess tax benefits from stock-based awards	36,334			—			131			36,465
Purchase of noncontrolling interests	—			—			(15,338		)	(15,338		)
Acquisition-related contingent consideration payments	—			(195		)	(5,510		)	(5,705		)
Intercompany	107,102			(206,557		)	99,455			—
Other, net	166			—			264			430
Net cash (used in) provided by financing activities attributable to continuing operations	(133,783		)	(206,752		)	79,002			(261,533		)
Total cash (used in) provided by continuing operations	(334,099		)	3,098			2,383			(328,618		)
Total cash (used in) provided by discontinued operations	(246		)	—			3			(243		)
Effect of exchange rate changes on cash and cash equivalents	—			2			(5,137		)	(5,135		)
Net (decrease) increase in cash and cash equivalents	(334,345		)	3,100			(2,751		)	(333,996		)
Cash and cash equivalents at beginning of period	766,076			1,021			223,308			990,405
Cash and cash equivalents at end of period	$	431,731		$	4,121		$	220,557		$	656,409

28

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Statement of cash flows for the six months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(38,576	)	$	193,388		$	(6,041	)	$	148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(88,205		)	(15,175		)	(103,380		)
Capital expenditures	(2,390		)	(16,477		)	(7,690		)	(26,557		)
Proceeds from maturities and sales of marketable debt securities	998			—			—			998
Purchases of marketable debt securities	(78,380		)	—			—			(78,380		)
Purchases of long-term investments	(3,000		)	(6,761		)	(4,940		)	(14,701		)
Other, net	—			11			2,176			2,187
Net cash used in investing activities attributable to continuing operations	(82,772		)	(111,432		)	(25,629		)	(219,833		)
Cash flows from financing activities attributable to continuing operations:
Dividends	(40,086		)	—			—			(40,086		)
Issuance of common stock, net of withholding taxes	(13,823		)	—			—			(13,823		)
Excess tax benefits from stock-based awards	22,116			—			10,773			32,889
Purchase of noncontrolling interests	—			(30,000		)	—			(30,000		)
Funds returned from escrow for Meetic tender offer	—			—			12,354			12,354
Acquisition-related contingent consideration payments	—			(257		)	(7,373		)	(7,630		)
Intercompany	104,410			(51,723		)	(52,687		)	—
Other, net	(383		)	—			242			(141		)
Net cash provided by (used in) financing activities attributable to continuing operations	72,234			(81,980		)	(36,691		)	(46,437		)
Total cash used in continuing operations	(49,114		)	(24		)	(68,361		)	(117,499		)
Total cash used in discontinued operations	(116		)	—			(41		)	(157		)
Effect of exchange rate changes on cash and cash equivalents	—			24			4,514			4,538
Net decrease in cash and cash equivalents	(49,230		)	—			(63,888		)	(113,118		)
Cash and cash equivalents at beginning of period	782,022			—			318,422			1,100,444
Cash and cash equivalents at end of period	$	732,792		$	—		$	254,534		$	987,326

29

IAC/INTERACTIVECORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 11—SUBSEQUENT EVENT

On July 14, 2015, the Company announced that The Match Group had entered into a definitive agreement to purchase PlentyOfFish for $575 million in cash. The acquisition is expected to close in the fourth quarter of 2015.

30

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

GENERAL

Management Overview

IAC is a leading media and Internet company. The Company is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which includes businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world, reaching users in over 200 countries.

On June 25, 2015, the Company announced the intent to pursue an initial public offering ("IPO") of less than 20% of the common stock of The Match Group. The IPO is expected to be completed during the fourth quarter of 2015.

For a more detailed description of the Company's operating businesses, see the Company's annual report on Form 10-K for the year ended December 31, 2014.

A substantial portion of the Company's revenue is derived from online advertising. Most of the Company's online advertising revenue is attributable to our services agreement with Google Inc. ("Google"), which expires on March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations. For the three and six months ended June 30, 2015, revenue earned from Google is $308.2 million and $647.8 million, respectively. For the three and six months ended June 30, 2014, revenue earned from Google is $349.5 million and $704.6 million, respectively. This revenue is earned by the businesses comprising the Search & Applications segment.

Factors Affecting Consolidated Results

For the three months ended June 30, 2015, the Company delivered 2% revenue growth; however, Adjusted EBITDA and operating income declined 23% and 34%, respectively. The revenue increase was driven by strong growth from The Match Group and eCommerce, partially offset by declines at Search & Applications. The Adjusted EBITDA and operating income declines were driven by lower revenue at Search & Applications, $9.0 million of costs at The Match Group related to the ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses and increased investment at Media and eCommerce.

For the six months ended June 30, 2015, the Company delivered 3% revenue growth; however, Adjusted EBITDA and operating income declined 26% and 42%, respectively. The consolidated results for the six months were driven primarily by the factors described above.

31

Results of Operations for the three and six months ended June 30, 2015 compared to the three and six months ended June 30, 2014

Revenue

	Three Months Ended June 30,										Six Months Ended June 30,
	2015			$ Change			% Change	2014			2015			$ Change			% Change	2014
	(Dollars in thousands)
Search & Applications	$	351,366		$	(44,350	)	(11)%	$	395,716		$	734,264		$	(59,487	)	(7)%	$	793,751
The Match Group	254,690			40,376			19%	214,314			493,901			68,400			16%	425,501
Media	36,210			(446		)	(1)%	36,656			79,822			6,811			9%	73,011
eCommerce	128,986			19,037			17%	109,949			235,996			31,205			15%	204,791
Inter-segment eliminations	(120		)	200			62%	(320		)	(339		)	153			31%	(492		)
Total	$	771,132		$	14,817		2%	$	756,315		$	1,543,644		$	47,082		3%	$	1,496,562

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

Search & Applications revenue decreased 11% reflecting declines from Websites (which is principally composed of Ask.com, About.com, CityGrid, Dictionary.com, Investopedia, PriceRunner and Ask.fm) and Applications (which includes our direct-to-consumer downloadable desktop search and mobile applications operations ("B2C") and our partnership operations ("B2B")). Websites revenue decreased 20% to $164.8 million due primarily to a decline in revenue at Ask.com and certain legacy businesses, partially offset by strong growth at About.com. Applications revenue decreased 2% to $186.5 million due to lower revenue from our B2B operations, partially offset by 18% growth from our B2C operations driven by higher queries from our desktop search applications and from the contribution from our mobile applications (via our acquisition of Apalon on November 3, 2014).

The Match Group revenue increased 19%, or 25% excluding the effects of foreign exchange, driven by a 7% increase in Dating revenue and 370% increase in non-dating revenue. Dating North America (which includes Match, Chemistry, People Media, OkCupid, Tinder and other dating businesses operating within the United States and Canada) revenue increased 12% to $155.0 million driven by an 11% increase in paid subscribers. Dating International (which includes Meetic, Tinder's international operations and all other dating businesses operating outside of the United States and Canada) revenue decreased 2% despite a 34% increase in paid subscribers, due to foreign exchange effects. Excluding foreign exchange effects, total Dating revenue and Dating International revenue would have increased 14% and 18%, respectively. Non-dating (consisting of The Princeton Review, Tutor.com and DailyBurn) revenue benefited from the acquisition of The Princeton Review on August 1, 2014.

Media revenue decreased 1% despite the contribution from IAC Films and strong growth at Vimeo, driven by lower revenue from Electus, in part to the timing of certain projects. IAC Films released the movie While We're Young in theaters in March 2015.

eCommerce revenue increased 17% due to 26% growth at HomeAdvisor driven by domestic revenue and service requests increasing 41% and 49%, respectively. Excluding foreign exchange effects, HomeAdvisor revenue would have increased 29%.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

Search & Applications revenue decreased 7% reflecting declines from Websites and Applications. Websites and Applications revenue decreased 13% and 1%, respectively, to $354.6 million and $379.9 million, respectively. The decreases in Websites and Applications revenue are primarily due to the factors described above in the three month discussion.

The Match Group revenue increased 16%, or 22% excluding the effects of foreign exchange, driven by a 5% increase in Dating revenue and 371% increase in non-dating revenue, due primarily to the factors described above in the three month discussion. Dating North America revenue increased 10% to $300.3 million and Dating International revenue decreased 5% to $132.8 million. Excluding foreign exchange effects, total Dating revenue and Dating International revenue would have increased 11% and 13%, respectively.

32

Media and eCommerce revenue increased 9% and 15%, respectively, principally due to the factors described above in the three month discussion.

Cost of revenue

Cost of revenue consists primarily of traffic acquisition costs and includes payments made to partners who distribute our B2B customized browser-based applications, integrate our paid listings into their websites or direct traffic to our websites. These payments include amounts based on revenue share and other arrangements. Cost of revenue also includes ShoeBuy's cost of products sold and shipping and handling costs, production costs related to media produced by Electus and other businesses within our Media segment, content acquisition costs, expenses associated with the operation of the Company's data centers, including compensation (including stock-based compensation) and other employee-related costs for personnel engaged in data center functions, rent, energy and hosting fees.

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Cost of revenue (exclusive of depreciation shown separately below)	$183,276	$(27,454)	(13)%	$210,730
As a percentage of revenue	24%			28%

Cost of revenue in 2015 decreased from 2014 due to a decrease of $47.0 million from Search & Applications, partially offset by an increase of $19.7 million from The Match Group.

• The Search & Applications decrease was primarily due to a reduction of $48.3 million in traffic acquisition costs driven by a decline in revenue at Ask.com and our B2B operations.

• The Match Group increase was primarily due to the acquisition of The Princeton Review and increases in revenue share payments made in connection with in-app purchases sold through Dating's mobile products and hosting fees.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Cost of revenue (exclusive of depreciation shown separately below)	$374,829	$(45,135)	(11)%	$419,964
As a percentage of revenue	24%			28%

Cost of revenue in 2015 decreased from 2014 due to a decrease of $84.0 million from Search & Applications, partially offset by increases of $32.7 million from The Match Group and $6.8 million from Media.

• The Search & Applications decrease and The Match Group increase are primarily due to the factors described above in the three month discussion.

• The Media increase was primarily due to production costs at IAC Films related to the release of the movie While We’re Young in March 2015, partially offset by decreased production costs at Electus due, in part, to the timing of certain projects.

Selling and marketing expense

Selling and marketing expense consists primarily of advertising expenditures and compensation (including stock-based compensation) and other employee-related costs for personnel engaged in sales, sales support and customer service functions. Advertising expenditures include online marketing, including fees paid to search engines and third parties that distribute our B2C downloadable applications, and offline marketing, which is primarily television advertising.

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

33

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Selling and marketing expense	$319,397	$46,907	17%	$272,490
As a percentage of revenue	41%			36%

Selling and marketing expense in 2015 increased from 2014 due to increases of $18.2 million from Search & Applications, $16.7 million from eCommerce, $6.1 million from Media and $5.5 million from The Match Group.

• The Search & Applications increase was primarily due to a $17.9 million increase in online marketing, which was primarily related to the growth in About.com and new B2C downloadable applications, partially offset by a decline at Ask.com.

• The eCommerce increase was primarily due to increases of $10.9 million in offline and online marketing related to HomeAdvisor and $5.1 million in compensation due, in part, to increased headcount at HomeAdvisor.

• The Media increase was primarily due to an increase of $5.4 million in online marketing at Vimeo.

• The Match Group increase was primarily due to the acquisition of The Princeton Review and an increase in compensation.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Selling and marketing expense	$677,063	$105,974	19%	$571,089
As a percentage of revenue	44%			38%

Selling and marketing expense in 2015 increased from 2014 due to increases of $40.2 million from Search & Applications, $32.3 million from eCommerce, $20.8 million from The Match Group and $11.4 million from Media.

• The increases from Search & Applications, eCommerce, The Match Group and Media are primarily due to the factors described above in the three month discussion.

• The Match Group increase was also impacted by an increase in online marketing at Dating and DailyBurn.

General and administrative expense

General and administrative expense consists primarily of compensation (including stock-based compensation) and other employee-related costs for personnel engaged in executive management, finance, legal, tax and human resources, facilities costs and fees for professional services.

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
General and administrative expense	$129,349	$19,452	18%	$109,897
As a percentage of revenue	17%			15%

General and administrative expense in 2015 increased from 2014 due to increases of $14.4 million from The Match Group and $7.7 million from Corporate.

34

• The Match Group increase was primarily due to the acquisition of The Princeton Review, an increase in severance expense and costs in the current year related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses.

• The Corporate increase was primarily due to an increase in stock-based compensation expense, which was driven by the issuance of equity awards since the prior year.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
General and administrative expense	$244,143	$39,157	19%	$204,986
As a percentage of revenue	16%			14%

General and administrative expense in 2015 increased from 2014 due to increases of $21.6 million from The Match Group, $9.6 million from Corporate, $5.6 million from eCommerce and $3.9 million from Search & Applications.

• The Match Group increase was primarily due to the factors described above in the three month discussion. General and administrative expense was also impacted by a decrease of $12.9 million in acquisition-related contingent consideration fair value adjustments, partially offset by a $3.9 million benefit in the prior year related to the expiration of the statute of limitations for a non-income tax matter.

• The Corporate increase was primarily due to an increase in stock-based compensation expense, which was driven by a higher number of forfeited awards in the prior year, the impact of a modification of certain awards in the current year and the issuance of equity awards since the prior year.

• The eCommerce increase was primarily due to increases in compensation and employee-related costs as a result of increased headcount and an increase in bad debt expense at HomeAdvisor.

• The Search & Applications increase was primarily due to acquisitions and an increase in bad debt expense, partially offset by $2.3 million in acquisition-related contingent consideration fair value adjustments.

Product development expense

Product development expense consists primarily of compensation (including stock-based compensation) and other employee-related costs that are not capitalized for personnel engaged in the design, development, testing and enhancement of product offerings and related technology.

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Product development expense	$46,430	$7,585	20%	$38,845
As a percentage of revenue	6%			5%

Product development expense in 2015 increased from 2014 due to increases of $5.3 million from The Match Group and $1.9 million from eCommerce.

• The Match Group increase is primarily related to severance expense in the current year related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses.

• The eCommerce increase is primarily related to an increase in compensation at HomeAdvisor due, in part, to increased headcount.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

35

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Product development expense	$91,687	$14,026	18%	$77,661
As a percentage of revenue	6%			5%

Product development expense in 2015 increased from 2014 due to increases of $9.0 million from The Match Group, $2.8 million from eCommerce and $1.1 million from Media.

• The increases from The Match Group and eCommerce are primarily due to the factors described above in the three month discussion.

• The Media increase is primarily due to increased headcount at Vimeo.

Depreciation

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Depreciation	$15,500	$243	2%	$15,257
As a percentage of revenue	2%			2%

Depreciation in 2015 increased from 2014 primarily due to acquisitions.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Depreciation	$31,068	$993	3%	$30,075
As a percentage of revenue	2%			2%

Depreciation in 2015 increased from 2014 primarily due to acquisitions.

Adjusted EBITDA

	Three Months Ended June 30,										Six Months Ended June 30,
	2015			$ Change			% Change	2014			2015			$ Change			% Change	2014
	(Dollars in thousands)
Search & Applications	$	72,910		$	(18,348	)	(20)%	$	91,258		$	151,811		$	(21,518	)	(12)%	$	173,329
The Match Group	64,822			(4,546		)	(7)%	69,368			90,678			(26,120		)	(22)%	116,798
Media	(15,452		)	(6,541		)	(73)%	(8,911		)	(30,035		)	(13,260		)	(79)%	(16,775		)
eCommerce	2,681			(1,842		)	(41)%	4,523			(456		)	(7,783		)	NM	7,327
Corporate	(16,282		)	(1,476		)	(10)%	(14,806		)	(28,162		)	2,990			10%	(31,152		)
Total	$	108,679		$	(32,753	)	(23)%	$	141,432		$	183,836		$	(65,691	)	(26)%	$	249,527
As a percentage of revenue	14%							19%			12%							17%

________________________

NM = not meaningful

36

Refer to Note 8 to the consolidated financial statements for reconciliations of Adjusted EBITDA to operating income (loss) by reportable segment.

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

Search & Applications Adjusted EBITDA decreased 20% due primarily to lower revenue and an increase in selling and marketing expense, partially offset by a decrease in cost of revenue. The increase in selling and marketing expense was primarily due to an increase in online marketing related to About.com and new B2C downloadable applications, partially offset by a decline at Ask.com. The decrease in cost of revenue was primarily due to a decrease in traffic acquisition costs driven from lower revenue from Ask.com and our B2B operations.

The Match Group Adjusted EBITDA decreased 7% despite higher revenue primarily due to $9.0 million of costs in the current year related to our ongoing consolidation and streamlining of technology systems and European operations at our Dating businesses, losses from The Princeton Review, which was acquired on August 1, 2014, and higher cost of revenue. The increase in cost of revenue was primarily due to increases in revenue share payments made in connection with in-app purchases sold through Dating's mobile products and hosting fees.

Media Adjusted EBITDA loss was larger than the prior year due primarily to increased investment in online marketing at Vimeo.

eCommerce Adjusted EBITDA decreased 41%, principally due to increased investment in offline and online marketing and higher compensation at HomeAdvisor.

Corporate Adjusted EBITDA loss increased due to higher compensation.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

Search & Applications Adjusted EBITDA decreased 12% due primarily to the factors described above in the three month discussion.

The Match Group Adjusted EBITDA decreased 22% due primarily to the factors described above in the three month discussion. Adjusted EBITDA was further impacted by an increase in selling and marketing expense and a $3.9 million benefit in the prior year related to the expiration of the statute of limitations for a non-income tax matter. The increase in selling and marketing expense was primarily due to an increase in online marketing at Dating and DailyBurn.

Media Adjusted EBITDA loss was larger than the prior year, due primarily to the factors described above in the three month discussion.

eCommerce Adjusted EBITDA turned to a loss in the current year, despite higher revenue, principally due to the factors described above in the three month discussion.

Corporate Adjusted EBITDA loss decreased due to lower compensation.

37

Operating income (loss)

	Three Months Ended June 30,										Six Months Ended June 30,
	2015			$ Change			% Change	2014			2015			$ Change			% Change	2014
	(Dollars in thousands)
Search & Applications	$	68,592		$	(9,179	)	(12)%	$	77,771		$	132,892		$	(15,216	)	(10)%	$	148,108
The Match Group	51,441			(9,757		)	(16)%	61,198			76,753			(24,248		)	(24)%	101,001
Media	(13,775		)	(3,981		)	(41)%	(9,794		)	(29,127		)	(10,767		)	(59)%	(18,360		)
eCommerce	(1,004		)	(1,012		)	NM	8			(7,858		)	(6,305		)	(406)%	(1,553		)
Corporate	(42,485		)	(8,992		)	(27)%	(33,493		)	(74,772		)	(12,978		)	(21)%	(61,794		)
Total	$	62,769		$	(32,921	)	(34)%	$	95,690		$	97,888		$	(69,514	)	(42)%	$	167,402
As a percentage of revenue	8%							13%			6%							11%

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

Operating income in 2015 decreased from 2014 due to the decrease of $32.8 million in Adjusted EBITDA described above and increases of $9.4 million in stock-based compensation and $1.0 million in amortization of intangibles, partially offset by a decrease of $10.5 million in acquisition-related contingent consideration fair value adjustments. The increase in stock-based compensation was primarily due to the issuance of equity awards since the prior year. The decrease in acquisition-related contingent consideration fair value adjustments was the result of an update of the future forecast of earnings and operating metrics related to certain acquired businesses.

At June 30, 2015, there was $186.2 million of unrecognized compensation cost, net of estimated forfeitures, related to all equity-based awards, which is expected to be recognized over a weighted average period of approximately 2.7 years.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

Operating income in 2015 decreased from 2014 due to the decrease of $65.7 million in Adjusted EBITDA described above and increases of $18.7 million in stock-based compensation, $1.6 million in amortization of intangibles and $1.0 million in depreciation, partially offset by a decrease of $17.4 million in acquisition-related contingent consideration fair value adjustments. The increase in stock-based compensation and decrease in acquisition-related contingent consideration fair value adjustments are primarily due to the factors described above in the three month discussion. Stock-based compensation was also impacted by a higher number of forfeited awards in the prior year and the impact of a modification of certain awards in the current year.

Interest expense

Interest expense relates to our 4.875% Senior Notes due November 30, 2018 ("2013 Senior Notes"), 4.75% Senior Notes due December 21, 2012 ("2012 Senior Notes") and 5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 ("Liberty Bonds").

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Interest expense	$(15,214)	$(1,168)	(8)%	$(14,046)

Interest expense increased in 2015 from 2014 due to the accelerated amortization of deferred financing costs associated with the planned redemption of the Liberty Bonds on September 1, 2015.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

38

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Interest expense	$(29,278)	$(1,168)	(4)%	$(28,110)

Interest expense in 2015 increased from 2014 primarily due to the factor described above in the three month discussion.

Other (expense) income, net

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Other expense, net	$(1,638)	$68,112	98%	$(69,750)

Other expense, net in 2015 decreased from 2014 principally due to the inclusion in the prior year of $64.2 million in other-than-temporary impairment charges related to certain cost method investments. These charges resulted from our assessment of the near-term prospects and financial condition of the investees. Also included in the prior year is a $4.2 million other-than-temporary impairment charge related to an equity method investment following the sale of a majority of the investee's assets.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Other income (expense), net	$5,350	$77,058	NM	$(71,708)

Other income (expense), net in 2015 increased from 2014 primarily due to the impairment charges described above in the three month discussion and an increase in net foreign currency exchange gains and reduced losses associated with our equity method investments.

Income tax benefit (provision)

For the three months ended June 30, 2015 compared to the three months ended June 30, 2014

	Three Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Income tax benefit (provision)	$11,968	NM	NM	$(29,889)
Effective income tax rate	NM			251%

The 2015 income tax benefit is due primarily to the realization of certain deferred tax assets, a reduction in tax reserves and related interest due to the expiration of statutes of limitations, and the non-taxable gain on contingent consideration fair value adjustments in the current year period, partially offset by state taxes. The 2014 effective income tax rate is higher than the statutory rate of 35% due primarily to the largely unbenefited loss associated with the write-downs of certain of the Company's investments, interest on reserves for income tax contingencies and state taxes, partially offset by foreign income taxed at lower rates.

For the six months ended June 30, 2015 compared to the six months ended June 30, 2014

39

	Six Months Ended June 30,
	2015	$ Change	% Change	2014
	(Dollars in thousands)
Income tax benefit (provision)	$5,788	NM	NM	$(51,274)
Effective income tax rate	NM			76%

The 2015 income tax benefit is due primarily to the factors described above in the three month discussion. The 2014 effective income tax rate is higher than the statutory rate of 35% due primarily to the factors described above in the three month discussion.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in income tax provision. Included in the income tax provision for continuing operations for the three and six months ended June 30, 2015, is a $0.1 million benefit and a $0.2 million benefit, respectively, net of related deferred taxes, for interest on unrecognized tax benefits. At June 30, 2015 and December 31, 2014, the Company has accrued $2.2 million and $2.8 million, respectively, for the payment of interest. At June 30, 2015 and December 31, 2014, the Company has accrued $2.3 million and $2.9 million, respectively, for penalties.

The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for uncertain tax positions and the amounts owed by the Company are recorded in the period they become known.

At June 30, 2015 and December 31, 2014, unrecognized tax benefits, including interest and penalties, are $25.9 million and $33.2 million, respectively. If unrecognized tax benefits at June 30, 2015 are subsequently recognized, $23.9 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $3.4 million within twelve months of June 30, 2015 primarily due to settlements and expiration of statutes of limitations.

40

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

Financial Position

	June 30, 2015		December 31, 2014
	(In thousands)
Cash and cash equivalents:
United States (1)	$	438,730	$	770,050
All other countries (2)	217,679		220,355
Marketable securities (United States) (3)	233,523		160,648
Total cash and cash equivalents and marketable securities	$	889,932	$	1,151,053
Long-term debt:
2013 Senior Notes due November 30, 2018	$	500,000	$	500,000
2012 Senior Notes due December 15, 2022	500,000		500,000
Liberty Bonds due September 1, 2035 (4)	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

⁽¹⁾ Domestically, cash equivalents primarily consist of commercial paper rated A2/P2 or better and AAA rated money market funds.

⁽²⁾ Internationally, cash equivalents primarily consist of AAA rated money market funds and time deposits. If needed for our U.S. operations, most of the cash and cash equivalents held by the Company's foreign subsidiaries could be repatriated; however, under current law, would be subject to U.S. federal and state income taxes. We have not provided for any such tax because the Company currently does not anticipate a need to repatriate these funds to finance our U.S. operations and it is the Company's intent to indefinitely reinvest these funds outside of the U.S.

⁽³⁾ Marketable securities consist of short-to-medium-term debt securities issued by investment grade corporate issuers and an equity security. The Company invests in marketable debt securities with active secondary or resale markets to ensure portfolio liquidity to fund current operations or satisfy other cash requirements as needed. The Company also invests in equity securities as part of its investment strategy.

⁽⁴⁾$80.0 million reflected as short-term debt at June 30, 2015 as the Liberty Bonds are scheduled to be redeemed on September 1, 2015.

Cash Flow Information

In summary, the Company's cash flows attributable to continuing operations are as follows:

	Six Months Ended June 30,
	2015	2014
	(In thousands)
Net cash provided by operating activities	$85,779	$148,771
Net cash used in investing activities	(152,864)	(219,833)
Net cash used in financing activities	(261,533)	(46,437)

2015

Net cash provided by operating activities attributable to continuing operations consists of earnings or loss from continuing operations adjusted for non-cash items, including stock-based compensation expense, depreciation, amortization of intangibles, asset impairment charges, excess tax benefits from stock-based awards, deferred income taxes, equity in earnings or losses of unconsolidated affiliates, acquisition-related contingent consideration fair value adjustments and the effect of changes in

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working capital. Net cash provided by operating activities attributable to continuing operations in 2015 consists of earnings from continuing operations of $79.7 million and adjustments for non-cash items of $66.1 million, partially offset by a $60.1 million decrease in cash from changes in working capital. Adjustments for non-cash items primarily consist of $44.9 million of stock-based compensation, $31.1 million of depreciation and $27.0 million of amortization of intangibles, partially offset by $36.5 million of excess tax benefits from stock-based awards and $16.9 million in acquisition-related contingent consideration fair value adjustments. The decrease from changes in working capital consist primarily of a decrease in income taxes payable of $63.3 million and a decrease of $33.2 million in accounts payable and other current liabilities, partially offset by an increase in deferred revenue of $40.4 million. The decrease in income taxes payable is primarily due to the payment of 2014 tax liabilities in 2015 and the realization of a capital loss in the current year. The decrease in accounts payable and other current liabilities is due mainly to a decrease in accrued revenue share and accrued advertising expense at the Search & Applications segment, partially offset by an increase in accrued advertising at The Match Group segment. The decrease at Search & Applications in accrued revenue share is due mainly to lower B2B revenue. The decrease at Search & Applications in accrued advertising is due mainly to lower fees paid to search enginesand timing of payments. The increase in accrued advertising at The Match Group segment is due mainly to increased online spending. The increase in deferred revenue is due mainly to growth in subscription revenue at The Match Group, Vimeo, and HomeAdvisor, as well as an increase at Electus due to the timing of cash received related to various production deals, and acquisitions.

Net cash used in investing activities attributable to continuing operations in 2015 includes the purchase of marketable debt securities, net of proceeds from maturities and sales, of $78.5 million, the purchase of investments and acquisitions of $56.1 million and capital expenditures of $26.8 million, primarily related to the internal development of software to support our products and services, and computer hardware.

Net cash used in financing activities attributable to continuing operations in 2015 includes $200.0 million for the repurchase of 3.0 million shares of common stock at an average price of $67.68 per share, $56.7 million related to the payment of cash dividends to IAC shareholders, $20.7 million in proceeds related to the issuance of common stock, net of withholding taxes, $15.3 million for the purchase of noncontrolling interests and $5.7 million in contingent consideration payments, partially offset by excess tax benefits from stock-based awards of $36.5 million.

2014

Net cash provided by operating activities attributable to continuing operations in 2014 consists of earnings from continuing operations of $16.3 million and adjustments for non-cash items of $133.5 million, partially offset by a decrease in cash from changes in working capital of $1.0 million. Adjustments for non-cash items primarily consist of $64.3 million in impairments related to long-term investments, $30.1 million of depreciation, $26.2 million of stock-based compensation expense and $25.4 million of amortization of intangibles, partially offset by $32.9 million of excess tax benefits from stock-based awards. The decrease in cash from changes in working capital activities primarily consists of a decrease of $31.2 million in accounts payable and other current liabilities and an increase in other assets of $19.2 million, partially offset by an increase in income taxes payable of $29.3 million and an increase in deferred revenue of $25.9 million. The decrease in accounts payable and other current liabilities is due to a decrease in accrued revenue share, accrued employee compensation and benefits, and a seasonal decrease in payables to suppliers at ShoeBuy, partially offset by an increase in accrued advertising expense at The Match Group. The decrease in accrued revenue share is primarily due to lower B2B revenue in the Search & Applications segment. The decrease in accrued employee compensation and benefits is due to the payment of 2013 cash bonuses in 2014. The increase in other assets is primarily due to a receivable related to amounts collected on our behalf by a third-party and an increase in short-term and long-term production costs at certain of our media businesses that are capitalized as the television program, video or film is being produced. The increase in income taxes payable is due to current year income tax accruals in excess of current year income tax payments. The increase in deferred revenue is primarily due to growth in subscription revenue at The Match Group and Vimeo as well as an increase at Electus due to the timing of cash received related to various production deals.

Net cash used in investing activities attributable to continuing operations in 2014 includes cash consideration used in acquisitions and investments of $118.1 million, which includes the acquisition of the ValueClick O&O website businesses and SlimWare, the purchase of marketable debt securities of $78.4 million and capital expenditures of $26.6 million, primarily related to the internal development of software to support our products and services.

Net cash used in financing activities attributable to continuing operations in 2014 includes $40.1 million, related to the payment of cash dividends to IAC shareholders, $30.0 million for the purchase of noncontrolling interests, $13.8 million in proceeds related to the issuance of common stock, net of withholding taxes and $7.6 million in contingent consideration

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payments related principally to the 2013 Twoo acquisition, partially offset by excess tax benefits from stock-based awards of $32.9 million and the return of $12.4 million of funds held in escrow related to the Meetic tender offer.

Liquidity and Capital Resources

The Company's principal sources of liquidity are its cash and cash equivalents and marketable securities as well as cash flows generated from operations. The Company has a $300 million revolving credit facility, which expires on December 21, 2017, and is available as an additional source of financing. At June 30, 2015, there were no outstanding borrowings under the revolving credit facility.

The Company anticipates that it will need to make capital and other expenditures in connection with the development and expansion of its operations. The Company expects that 2015 capital expenditures will be higher than 2014. At June 30, 2015, IAC had 5.6 million shares remaining in its share repurchase authorization. IAC may purchase shares over an indefinite period of time on the open market and in privately negotiated transactions, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook. On July 28, 2015, IAC declared a quarterly cash dividend of $0.34 per share of common and Class B common stock outstanding payable on September 1, 2015 to stockholders of record on August 15, 2015. Future declarations of dividends are subject to the determination of IAC's Board of Directors.

The Company believes its existing cash, cash equivalents and marketable securities, together with its expected positive cash flows generated from operations and available borrowing capacity under its $300 million revolving credit facility, will be sufficient to fund its normal operating requirements, including capital expenditures, quarterly cash dividends, and investing and other commitments for the foreseeable future. Our liquidity could be negatively affected by a decrease in demand for our products and services. The $575 million purchase price of the planned acquisition of PlentyOfFish, which was announced on July 14, 2015, is expected to be funded by cash on hand, the proceeds from the sales of marketable securities and the available borrowings under the $300 million revolving credit facility. The Company may make additional acquisitions and investments and, as a result, the Company may need to raise additional capital through future debt or equity financing to provide for greater financial flexibility. Additional financing may not be available at all or on terms favorable to us. The indentures governing the 2013 and 2012 Senior Notes restrict our ability to incur additional indebtedness in the event we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. In addition, the terms of the revolving credit facility require that we maintain a leverage ratio of not more than 3.0 to 1.0 and restrict our ability to incur additional indebtedness. As of June 30, 2015, the Company was in compliance with all of these covenants.

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CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

	Payments Due by Period
Contractual Obligations(a)	Less Than 1 Year		1–3 Years		3–5 Years		More Than 5 Years		Total
	(In thousands)
Long-term debt(b)	$	130,125	$	96,250	$	559,688	$	559,375	$	1,345,438
Operating leases(c)	34,699		55,593		33,252		186,959		310,503
Purchase obligations(d)	5,079		354		—		—		5,433
Total contractual cash obligations	$	169,903	$	152,197	$	592,940	$	746,334	$	1,661,374

_______________________________________________________________________________

^(a)  The Company has excluded $24.2 million in unrecognized tax benefits and related interest from the table above as we are unable to make a reasonably reliable estimate of the period in which these liabilities might be paid. For additional information on income taxes, see Note 2 to the consolidated financial statements.

^(b)  Represents contractual amounts due including interest. With the scheduled redemption of the Liberty Bonds (due September 1, 2035) on September 1, 2015, $80.0 million of future interest payments will no longer be made.

^(c)  The Company leases land, office space, data center facilities and equipment used in connection with operations under various operating leases, many of which contain escalation clauses. The Company is also committed to pay a portion of the related operating expenses under a data center lease agreement. These operating expenses are not included in the table above.

^(d)  The purchase obligations primarily include advertising commitments, which commitments are reducible or terminable such that these commitments can never exceed associated revenue by a meaningful amount.

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IAC'S PRINCIPLES OF FINANCIAL REPORTING

IAC reports Adjusted EBITDA as a supplemental measure to U.S. generally accepted accounting principles ("GAAP"). This measure is one of the primary metrics by which we evaluate the performance of our businesses, on which our internal budgets are based and by which management is compensated. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. IAC endeavors to compensate for the limitations of the non-GAAP measure presented by providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measure. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measure, which we discuss below.

Definition of IAC's Non-GAAP Measure

        Adjusted EBITDA is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. We believe 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.

Non-Cash Expenses That Are Excluded From IAC's Non-GAAP Measure

Stock-based compensationexpense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions, of stock options, restricted stock units ("RSUs") and performance-based RSUs. These expenses are not paid in cash, and we include the related shares in our fully diluted shares outstanding using the treasury stock method; however, performance-based RSUs are included only to the extent the performance criteria have been met (assuming the end of the reporting period is the end of the contingency period). Upon the exercise of certain stock options and vesting of RSUs and performance-based RSUs, the awards are settled, at the Company's discretion, on a net basis, with the Company remitting the required tax-withholding amount from its current funds.

Depreciation is a non-cash expense relating to our property and equipment and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives.

Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses. At the time of an acquisition, the identifiable definite-lived intangible assets of the acquired company, such as content, technology, customer lists, advertiser and supplier relationships, are valued and amortized over their estimated lives. Value is also assigned to acquired indefinite-lived intangible assets, which comprise trade names and trademarks, and goodwill that are not subject to amortization. An impairment is recorded when the carrying value of an intangible asset or goodwill exceeds its fair value. While it is likely that we will have significant intangible amortization expense as we continue to acquire companies, we believe that intangible assets represent costs incurred by the acquired company to build value prior to acquisition and the related amortization and impairment charges of goodwill or intangible assets, if applicable, are not ongoing costs of doing business.

Gains and losses recognized on changes in the fair value of contingent consideration arrangements are accounting adjustments to report contingent consideration liabilities at fair value. These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance or ongoing costs of doing business.

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RECONCILIATION OF ADJUSTED EBITDA

For a reconciliation of Adjusted EBITDA to operating income (loss) by reportable segment for the three and six months ended June 30, 2015 and 2014, see Note 8 to the consolidated financial statements.

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Item 3.    Quantitative and Qualitative Disclosures about Market Risk

At June 30, 2015, there have been no material changes to the Company's instruments or positions that are sensitive to interest rate risk and equity price risk since the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2014.

Foreign Currency Exchange Risk

The Company conducts business in certain foreign markets, primarily in the European Union. For the three and six months ended June 30, 2015, international revenue accounted for 27% and 26%, respectively, of consolidated revenue. The Company's primary exposure to foreign currency exchange risk relates to investments in foreign subsidiaries that transact business in a functional currency other than the U.S. Dollar, primarily the Euro. As foreign currency exchange rates change, translation of the statements of operations of the Company's international businesses into U.S. dollars affects year-over-year comparability of operating results. The average Euro versus the U.S. Dollar exchange rate was 18% lower in the second quarter of 2015 than 2014. The decrease had a significant impact to the revenue of The Match Group. For the three months ended June 30, 2015, The Match Group revenue, Dating revenue and Dating International revenue would have increased approximately 25%, 14% and 18%, respectively, as compared to the reported increases of 19% and 7% and a decrease of 2%, respectively, had the foreign currency exchange rates been the same as the second quarter of 2014. For the six months ended June 30, 2015, The Match Group revenue, Dating revenue and Dating International revenue would have increased approximately 22%, 11% and 13%, respectively, as compared to the reported increases of 16% and 5% and a decrease of 5%, respectively, had the foreign currency exchange rates been the same as the first six months of 2014.

Historically, the Company has not hedged any foreign currency exposures. Our continued international expansion increases our exposure to exchange rate fluctuations and as a result such fluctuations could have a significant impact on our future results of operations.

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Item 4.    Controls and Procedures

The Company monitors and evaluates on an ongoing basis its disclosure controls and internal control over financial reporting in order to improve its overall effectiveness. In the course of these evaluations, the Company modifies and refines its internal processes as conditions warrant.

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), IAC management, including our principal executive and principal financial officers, or persons performing similar functions, evaluated the effectiveness of the Company's disclosure controls and procedures as defined by Rule 13a-15(e) under the Exchange Act. Based on this evaluation, management has concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report in providing reasonable assurance that information we are required to disclose in our filings with the Securities and Exchange Commission under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and Forms, and include controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

There were no changes to the Company's internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

OTHER INFORMATION

Item 1A.    Risk Factors

Cautionary Statement Regarding Forward-Looking Information

This quarterly report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipates," "estimates," "expects," "intends," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: IAC's future financial performance, IAC's business prospects and strategy, anticipated trends and prospects in the industries in which IAC's businesses operate and other similar matters. These forward-looking statements are based on IAC management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: changes in senior management at IAC and/or its businesses, changes in our relationship with, or policies implemented by, Google, adverse changes in economic conditions, either generally or in any of the markets or industries in which IAC's businesses operate, adverse trends in the online advertising industry or the advertising industry generally, our ability to convert visitors to our various websites into users and customers, our ability to offer new or alternative products and services in a cost-effective manner and consumer acceptance of these products and services, changes in industry standards and technology, actual tax liabilities that differ materially from our estimates, operational and financial risks relating to acquisitions, our ability to expand successfully into international markets and regulatory changes. Certain of these and other risks and uncertainties are discussed in IAC's filings with the SEC, including in Part I "Item 1A. Risk Factors" of our annual report on Form 10-K for the fiscal year ended December 31, 2014. Other unknown or unpredictable factors that could also adversely affect IAC's business, financial condition and operating results may arise from time to time. In light of these risks and uncertainties, the forward-looking statements discussed in this report may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of IAC management as of the date of this quarterly report. IAC does not undertake to update these forward-looking statements.

Risk Factors

In addition to the other information set forth in this quarterly report, you should carefully consider the risk factors discussed in Part I "Item 1A. Risk Factors" of our annual report on Form 10-K for the fiscal year ended December 31, 2014, which could materially affect our business, financial condition or future operating results. The risks described in this report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or future operating results.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The Company did not purchase any shares of its common stock during the quarter ended June 30, 2015. As of that date, 5,606,904 shares of common stock remained available for repurchase under the Company's previously announced April 2013 repurchase authorization. IAC may purchase shares pursuant to this repurchase authorization over an indefinite period in the open market and/or privately negotiated transactions, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market conditions, share price and future outlook.

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Item 6.    Exhibits

The documents set forth below, numbered in accordance with Item 601 of Regulation S-K, are filed herewith, incorporated by reference to the location indicated or furnished herewith.

Exhibit Number	Description	Location
3.1	Restated Certificate of Incorporation of IAC/InterActiveCorp.	Exhibit 3.1 to the Registrant's Registration Statement on Form 8-A/A, filed on August 12, 2005.
3.2	Certificate of Amendment of the Restated Certificate of Incorporation of IAC/InterActiveCorp.	Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on August 22, 2008.
3.3	Amended and Restated By-Laws of IAC/InterActiveCorp.	Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on December 6, 2010.
31.1	Certification of the Chairman and Senior Executive pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act.(1)
31.2	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act.(1)
31.3	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act.(1)
32.1	Certification of the Chairman and Senior Executive pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.(2)
32.2	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.(2)
32.3	Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.(2)
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

_______________________________________________________________________________

⁽¹⁾  Filed herewith.

⁽²⁾  Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:	July 31, 2015
		IAC/INTERACTIVECORP
		By:	/s/ GREGG WINIARSKI
			Gregg Winiarski
			Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)

Signature	Title	Date
/s/ GREGG WINIARSKI	Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)	July 31, 2015
Gregg Winiarski

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QuickLinks

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EX-31.1

Exhibit 31.1

Certification

I, Barry Diller, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2015 of IAC/InterActiveCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:            

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	July 31, 2015	/s/ BARRY DILLER
		Barry Diller Chairman and Senior Executive

EX-31.2

Exhibit 31.2

Certification

I, Joseph Levin, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2015 of IAC/InterActiveCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:            

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	July 31, 2015	/s/ JOSEPH LEVIN
		Joseph Levin Chief Executive Officer

EX-31.3

Exhibit 31.3

Certification

I, Gregg Winiarski, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2015 of IAC/InterActiveCorp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:  

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and  

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who     have a significant role in the registrant's internal control over financial reporting.

Dated:	July 31, 2015	/s/ GREGG WINIARSKI
		Gregg Winiarski Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Barry Diller, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 of IAC/InterActiveCorp (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IAC/InterActiveCorp.

Dated:	July 31, 2015	/s/ BARRY DILLER
		Barry Diller Chairman and Senior Executive

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph Levin, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 of IAC/InterActiveCorp (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IAC/InterActiveCorp.

Dated:	July 31, 2015	/s/ JOSEPH LEVIN
		Joseph Levin Chief Executive Officer

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregg Winiarski, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 of IAC/InterActiveCorp (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of IAC/InterActiveCorp.

Dated:	July 31, 2015	/s/ GREGG WINIARSKI
		Gregg Winiarski Executive Vice President, General Counsel & Secretary (acting Principal Financial Officer)

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EARNINGS PER SHARE (Details 2) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
RSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (in shares)	1,000,000	11,500,000	1,200,000	0

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets:
Marketable securities	$ 233,523	$ 160,648
Fair value on a recurring basis
Assets:
Total Assets	567,801	780,563
Liabilities:
Contingent consideration arrangement	(31,858)	(30,140)
Fair value on a recurring basis | Money market funds
Assets:
Cash equivalents:	207,014	174,720
Fair value on a recurring basis | Commercial paper
Assets:
Cash equivalents:	76,789	388,801
Fair value on a recurring basis | Time deposits
Assets:
Cash equivalents:	32,457	42,914
Fair value on a recurring basis | Corporate debt securities
Assets:
Marketable securities	232,917	159,197
Fair value on a recurring basis | Equity security
Assets:
Marketable securities	606	1,451
Long-term investments:	11,388	7,410
Fair value on a recurring basis | Auction rate security
Assets:
Long-term investments:	6,630	6,070
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Assets:
Total Assets	219,008	183,581
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Assets:
Cash equivalents:	207,014	174,720
Fair value on a recurring basis | Quoted Market Prices in Active Markets for Identical Assets (Level 1) | Equity security
Assets:
Marketable securities	606	1,451
Long-term investments:	11,388	7,410
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2)
Assets:
Total Assets	342,163	590,912
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Commercial paper
Assets:
Cash equivalents:	76,789	388,801
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Time deposits
Assets:
Cash equivalents:	32,457	42,914
Fair value on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities
Assets:
Marketable securities	232,917	159,197
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3)
Assets:
Total Assets	6,630	6,070
Liabilities:
Contingent consideration arrangement	(31,858)	(30,140)
Fair value on a recurring basis | Significant Unobservable Inputs (Level 3) | Auction rate security
Assets:
Long-term investments:	$ 6,630	$ 6,070

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

The following tables set forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders.

	Three Months Ended June 30,
	2015						2014
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings (loss) from continuing operations	$	57,885		$	57,885		$	(17,995	)	$	(17,995	)
Net loss attributable to noncontrolling interests	1,573			1,573			867			867
Earnings (loss) from continuing operations attributable to IAC shareholders	59,458			59,458			(17,128		)	(17,128		)
Loss from discontinued operations attributable to IAC shareholders	(153		)	(153		)	(868		)	(868		)
Net earnings (loss) attributable to IAC shareholders	$	59,305		$	59,305		$	(17,996	)	$	(17,996	)
Denominator:
Weighted average basic shares outstanding	82,416			82,416			83,178			83,178
Dilutive securities including stock options and RSUs(a)(b)	—			4,674			—			—
Denominator for earnings per share—weighted average shares(a)(b)	82,416			87,090			83,178			83,178
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share from continuing operations	$	0.72		$	0.68		$	(0.21	)	$	(0.21	)
Discontinued operations	—			—			(0.01		)	(0.01		)
Earnings (loss) per share	$	0.72		$	0.68		$	(0.22	)	$	(0.22	)

	Six Months Ended June 30,
	2015						2014
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	79,748		$	79,748		$	16,310		$	16,310
Net loss attributable to noncontrolling interests	5,990			5,990			3,261			3,261
Earnings from continuing operations attributable to IAC shareholders	85,738			85,738			19,571			19,571
Loss from discontinued operations attributable to IAC shareholders	(28		)	(28		)	(1,682		)	(1,682		)
Net earnings attributable to IAC shareholders	$	85,710		$	85,710		$	17,889		$	17,889
Denominator:
Weighted average basic shares outstanding	82,932			82,932			82,833			82,833
Dilutive securities including stock options and RSUs(a)	—			4,989			—			5,150
Denominator for earnings per share—weighted average shares(a)	82,932			87,921			82,833			87,983
Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.03		$	0.98		$	0.24		$	0.22
Discontinued operations	—			(0.01		)	(0.02		)	(0.02		)
Earnings per share	$	1.03		$	0.97		$	0.22		$	0.20

_________________________________________

^(a)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 vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2015 approximately 1.0 million and 1.2 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the six months ended June 30, 2014, there are no securities that are excluded from the calculation of diluted earnings per share.

^(b)For the three months ended June 30, 2014, the Company had a loss from continuing operations and as a result, approximately 11.5 million potentially dilutive securities were excluded for computing dilutive earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts.

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CONTINGENCIES (Details)	6 Months Ended
	Jun. 30, 2015 lawsuit
Loss Contingency [Abstract]
Minimum number of lawsuits that could have material impact on the liquidity, results of operations, or financial condition	1

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			$ (87,700)
Total other comprehensive income (loss), net of tax	$ 12,228	$ (2,326)	(43,752)	$ 2,940
Ending balance	(130,295)		(130,295)
Tax provision (benefit) of other comprehensive loss before reclassifications related to unrealized losses on available-for-sale securities	(200)	(100)	(300)	(700)
Tax provision (benefit) for amounts reclassified from accumulated other comprehensive loss	(100)	(800)	(100)	(800)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(143,182)	(15,132)	(86,848)	(20,352)
Other comprehensive income before reclassifications, net of tax benefit (provision) related to unrealized gains on available-for-sale securities	9,287	(150)	(47,047)	5,070
Amounts reclassified related to unrealized losses on available for sale securities, net of tax benefit of $0.8 million	0	0	0	0
Total other comprehensive income (loss), net of tax	9,287	(150)	(47,047)	5,070
Ending balance	(133,895)	(15,282)	(133,895)	(15,282)
Unrealized (Losses) Gains On Available-For-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(91)	7,435	(852)	7,306
Other comprehensive income before reclassifications, net of tax benefit (provision) related to unrealized gains on available-for-sale securities	3,528	(799)	4,289	(670)
Amounts reclassified related to unrealized losses on available for sale securities, net of tax benefit of $0.8 million	163	(1,260)	163	(1,260)
Total other comprehensive income (loss), net of tax	3,691	(2,059)	4,452	(1,930)
Ending balance	3,600	5,376	3,600	5,376
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(143,273)	(7,697)	(87,700)	(13,046)
Other comprehensive income before reclassifications, net of tax benefit (provision) related to unrealized gains on available-for-sale securities	12,815	(949)	(42,758)	4,400
Amounts reclassified related to unrealized losses on available for sale securities, net of tax benefit of $0.8 million	163	(1,260)	163	(1,260)
Total other comprehensive income (loss), net of tax	12,978	(2,209)	(42,595)	3,140
Ending balance	$ (130,295)	$ (9,906)	$ (130,295)	$ (9,906)

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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

IAC is a leading media and Internet company. The Company is organized into four segments: The Match Group, which consists of dating, education and fitness businesses with brands such as Match, OkCupid, Tinder, The Princeton Review and DailyBurn; Search & Applications, which includes brands such as About.com, Ask.com, Dictionary.com and Investopedia; Media, which includes businesses such as Vimeo, Electus, The Daily Beast and CollegeHumor; and eCommerce, which includes HomeAdvisor and ShoeBuy. IAC's brands and products are among the most recognized in the world, reaching users in over 200 countries.

On June 25, 2015, the Company announced the intent to pursue an initial public offering ("IPO") of less than 20% of the common stock of The Match Group. The IPO is expected to be completed during the fourth quarter of 2015.

All references to "IAC," the "Company," "we," "our" or "us" in this report are to IAC/InterActiveCorp.

Basis of Presentation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

Basis of Consolidation and Accounting for Investments

The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated.

Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying consolidated balance sheet.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.

On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recovery of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.

Certain Risks and Concentrations

A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google Inc. ("Google"), which expires on March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations. For the three and six months ended June 30, 2015, revenue earned from Google is $308.2 million and $647.8 million, respectively. For the three and six months ended June 30, 2014, revenue earned from Google is $349.5 million and $704.6 million, respectively. This revenue is earned by the businesses comprising the Search & Applications segment. Accounts receivable related to revenue earned from Google totaled $108.3 million and $118.7 million at June 30, 2015 and December 31, 2014, respectively.

Recent Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. In July 2015, the FASB decided to defer the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted beginning on the original effective date of December 15, 2016. Upon adoption, ASU No. 2014-09 may either be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method and timing of adoption.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 656,409	$ 990,405	$ 987,326	$ 1,100,444
Marketable securities	233,523	160,648
Accounts receivable, net	223,106	236,086
Other current assets	209,724	166,742
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	297,158	302,459
Goodwill	1,778,830	1,754,926
Intangible assets, net	472,082	491,936
Other non-current assets	72,841	56,693
TOTAL ASSETS	4,075,058	4,274,878
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt	80,000	0
Accounts payable, trade	79,434	81,163
Long-term debt, net of current portion	1,000,000	1,080,000
Income taxes payable	24,768	32,635
Other long-term liabilities	59,182	45,191
Redeemable noncontrolling interests	28,177	40,427
IAC shareholders' equity	1,815,386	1,991,953
Noncontrolling interests	0	1,189
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,075,058	4,274,878
Intersegment eliminations
ASSETS
Cash and cash equivalents	0	0
Marketable securities	0	0
Accounts receivable, net	0	0
Other current assets	(4,871)	(5,773)
Intercompany receivables	(2,577,772)	(2,659,213)
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	0	0
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	(5,903,532)	(5,965,747)
Other non-current assets	(1,538)	(2,988)
TOTAL ASSETS	(8,487,713)	(8,633,721)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt	0
Accounts payable, trade	0	0
Other current liabilities	(738)	(817)
Long-term debt, net of current portion	0	0
Income taxes payable	0	0
Intercompany liabilities	(2,577,772)	(2,659,213)
Other long-term liabilities	(5,671)	(7,944)
Redeemable noncontrolling interests	0	0
IAC shareholders' equity	(5,903,532)	(5,965,747)
Noncontrolling interests		0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(8,487,713)	(8,633,721)
IAC Consolidated
ASSETS
Cash and cash equivalents	656,409	990,405	987,326	1,100,444
Marketable securities	233,523	160,648
Accounts receivable, net	223,106	236,086
Other current assets	209,724	166,742
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	297,158	302,459
Goodwill	1,778,830	1,754,926
Intangible assets, net	472,082	491,936
Investment in subsidiaries	0	0
Other non-current assets	204,226	171,676
TOTAL ASSETS	4,075,058	4,274,878
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt	80,000
Accounts payable, trade	79,434	81,163
Other current liabilities	555,423	592,791
Long-term debt, net of current portion	1,000,000	1,080,000
Income taxes payable	24,768	32,635
Intercompany liabilities	0	0
Other long-term liabilities	491,870	454,720
Redeemable noncontrolling interests	28,177	40,427
IAC shareholders' equity	1,815,386	1,991,953
Noncontrolling interests		1,189
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,075,058	4,274,878
IAC
ASSETS
Cash and cash equivalents	431,731	766,076	732,792	782,022
Marketable securities	232,917	159,197
Accounts receivable, net	4	13
Other current assets	47,233	23,923
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	4,867	4,950
Goodwill	0	0
Intangible assets, net	0	0
Investment in subsidiaries	4,971,322	5,035,304
Other non-current assets	69,644	44,610
TOTAL ASSETS	5,757,718	6,034,073
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt	0
Accounts payable, trade	3,078	3,059
Other current liabilities	32,661	73,491
Long-term debt, net of current portion	1,000,000	1,000,000
Income taxes payable	892	2,240
Intercompany liabilities	2,577,772	2,659,213
Other long-term liabilities	327,929	304,117
Redeemable noncontrolling interests	0	0
IAC shareholders' equity	1,815,386	1,991,953
Noncontrolling interests		0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	5,757,718	6,034,073
Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	4,121	1,021	0	0
Marketable securities	0	0
Accounts receivable, net	132,223	155,262
Other current assets	97,670	91,105
Intercompany receivables	1,635,189	1,688,403
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	228,061	232,819
Goodwill	1,250,801	1,249,807
Intangible assets, net	313,275	325,771
Investment in subsidiaries	932,210	930,443
Other non-current assets	20,715	20,682
TOTAL ASSETS	4,614,265	4,695,313
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt	80,000
Accounts payable, trade	57,265	55,320
Other current liabilities	320,261	328,920
Long-term debt, net of current portion	0	80,000
Income taxes payable	4,829	4,771
Intercompany liabilities	0	0
Other long-term liabilities	100,370	104,219
Redeemable noncontrolling interests	0	0
IAC shareholders' equity	4,051,540	4,122,083
Noncontrolling interests		0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,614,265	4,695,313
Non-Guarantor Subsidiaries
ASSETS
Cash and cash equivalents	220,557	223,308	$ 254,534	$ 318,422
Marketable securities	606	1,451
Accounts receivable, net	90,879	80,811
Other current assets	69,692	57,487
Intercompany receivables	942,583	970,810
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	64,230	64,690
Goodwill	528,029	505,119
Intangible assets, net	158,807	166,165
Investment in subsidiaries	0	0
Other non-current assets	115,405	109,372
TOTAL ASSETS	2,190,788	2,179,213
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt	0
Accounts payable, trade	19,091	22,784
Other current liabilities	203,239	191,197
Long-term debt, net of current portion	0	0
Income taxes payable	19,047	25,624
Intercompany liabilities	0	0
Other long-term liabilities	69,242	54,328
Redeemable noncontrolling interests	28,177	40,427
IAC shareholders' equity	1,851,992	1,843,664
Noncontrolling interests		1,189
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,190,788	$ 2,179,213

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ 11,968	$ (29,889)	$ 5,788	$ (51,274)
Effective tax rate (as a percent)		251.00%		76.00%
Federal statutory rate (as a percent)	35.00%	35.00%		35.00%
Interest on income tax benefit (provision)	$ 100		200
Accrued interest on unrecognized tax benefits	2,200		2,200		$ 2,800
Accrued penalties on unrecognized tax benefits	2,300		2,300		2,900
Total unrecognized tax benefits including interest	25,900		25,900		$ 33,200
Unrecognized tax benefit, if recognized would reduce income tax expense for continuing operations	23,900		23,900
Change in unrecognized tax benefit	$ 3,400		$ 3,400

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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 25, 2015	Jun. 30, 2015 USD ($) country	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) segment country	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Revenue from major customers
Number of operating segments | segment				4
Number of countries where brands and products reach users (more than) | country		200		200
Revenue		$ 771,132	$ 756,315	$ 1,543,644	$ 1,496,562
Accounts receivable, net		223,106		223,106		$ 236,086
Google Inc.
Revenue from major customers
Revenue		308,200	$ 349,500	647,800	$ 704,600
Accounts receivable, net		$ 108,300		$ 108,300		$ 118,700
IPO | The Match Group
Revenue from major customers
Percentage of common stock (less than)	20.00%

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Financial Statements, Captions [Line Items]
Revenue	$ 771,132	$ 756,315	$ 1,543,644	$ 1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	183,276	210,730	374,829	419,964
Selling and marketing expense	319,397	272,490	677,063	571,089
General and administrative expense	129,349	109,897	244,143	204,986
Product development expense	46,430	38,845	91,687	77,661
Depreciation	15,500	15,257	31,068	30,075
Amortization of intangibles	14,411	13,406	26,966	25,385
Total operating costs and expenses	708,363	660,625	1,445,756	1,329,160
Operating income	62,769	95,690	97,888	167,402
Equity in earnings of unconsolidated affiliates			(477)	(8,785)
Interest expense	(15,214)	(14,046)	(29,278)	(28,110)
Other (expense) income, net	(1,638)	(69,750)	5,350	(71,708)
Earnings from continuing operations before income taxes	45,917	11,894	73,960	67,584
Income tax benefit (provision)	11,968	(29,889)	5,788	(51,274)
Earnings (loss) from continuing operations	57,885	(17,995)	79,748	16,310
Loss from discontinued operations, net of tax	(153)	(868)	(28)	(1,682)
Net earnings (loss)	57,732	(18,863)	79,720	14,628
Net loss attributable to noncontrolling interests	1,573	867	5,990	3,261
Net earnings (loss) attributable to IAC shareholders	59,305	(17,996)	85,710	17,889
Comprehensive (loss) income attributable to IAC shareholders	72,283	(20,205)	43,115	21,029
Total Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenue	(3,395)	(3,344)	(6,044)	(6,330)
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	(193)	(687)	(390)	(1,647)
Selling and marketing expense	(3,209)	(2,439)	(5,619)	(4,137)
General and administrative expense	7	13	(35)	26
Product development expense	0	(231)	0	(572)
Depreciation	0	0	0	0
Amortization of intangibles	0	0	0	0
Total operating costs and expenses	(3,395)	(3,344)	(6,044)	(6,330)
Operating income	0	0	0	0
Equity in earnings of unconsolidated affiliates	(83,876)	(13,561)	(141,696)	(68,102)
Interest expense	0	0	0	0
Other (expense) income, net	0	0	0	0
Earnings from continuing operations before income taxes	(83,876)	(13,561)	(141,696)	(68,102)
Income tax benefit (provision)	0	0	0	0
Earnings (loss) from continuing operations	(83,876)	(13,561)	(141,696)	(68,102)
Loss from discontinued operations, net of tax	(3)	27	(3)	40
Net earnings (loss)	(83,879)	(13,534)	(141,699)	(68,062)
Net loss attributable to noncontrolling interests	0	0	0	0
Net earnings (loss) attributable to IAC shareholders	(83,879)	(13,534)	(141,699)	(68,062)
Comprehensive (loss) income attributable to IAC shareholders	(94,235)	(10,284)	(89,526)	(68,865)
IAC Consolidated
Condensed Financial Statements, Captions [Line Items]
Revenue	771,132	756,315	1,543,644	1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	183,276	210,730	374,829	419,964
Selling and marketing expense	319,397	272,490	677,063	571,089
General and administrative expense	129,349	109,897	244,143	204,986
Product development expense	46,430	38,845	91,687	77,661
Depreciation	15,500	15,257	31,068	30,075
Amortization of intangibles	14,411	13,406	26,966	25,385
Total operating costs and expenses	708,363	660,625	1,445,756	1,329,160
Operating income	62,769	95,690	97,888	167,402
Equity in earnings of unconsolidated affiliates	0	0	0	0
Interest expense	(15,214)	(14,046)	(29,278)	(28,110)
Other (expense) income, net	(1,638)	(69,750)	5,350	(71,708)
Earnings from continuing operations before income taxes	45,917	11,894	73,960	67,584
Income tax benefit (provision)	11,968	(29,889)	5,788	(51,274)
Earnings (loss) from continuing operations	57,885	(17,995)	79,748	16,310
Loss from discontinued operations, net of tax	(153)	(868)	(28)	(1,682)
Net earnings (loss)	57,732	(18,863)	79,720	14,628
Net loss attributable to noncontrolling interests	1,573	867	5,990	3,261
Net earnings (loss) attributable to IAC shareholders	59,305	(17,996)	85,710	17,889
Comprehensive (loss) income attributable to IAC shareholders	72,283	(20,205)	43,115	21,029
IAC
Condensed Financial Statements, Captions [Line Items]
Revenue	0	0	0	0
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	294	383	539	355
Selling and marketing expense	1,010	619	2,065	811
General and administrative expense	33,942	26,609	58,006	49,055
Product development expense	2,330	1,705	4,507	3,176
Depreciation	426	312	827	641
Amortization of intangibles	0	0	0	0
Total operating costs and expenses	38,002	29,628	65,944	54,038
Operating income	(38,002)	(29,628)	(65,944)	(54,038)
Equity in earnings of unconsolidated affiliates	70,523	8,264	124,647	62,561
Interest expense	(12,992)	(12,985)	(25,982)	(25,970)
Other (expense) income, net	(7,506)	6,537	(16,859)	16,222
Earnings from continuing operations before income taxes	12,023	(27,812)	15,862	(1,225)
Income tax benefit (provision)	47,435	10,684	69,876	20,796
Earnings (loss) from continuing operations	59,458	(17,128)	85,738	19,571
Loss from discontinued operations, net of tax	(153)	(868)	(28)	(1,682)
Net earnings (loss)	59,305	(17,996)	85,710	17,889
Net loss attributable to noncontrolling interests	0	0	0	0
Net earnings (loss) attributable to IAC shareholders	59,305	(17,996)	85,710	17,889
Comprehensive (loss) income attributable to IAC shareholders	72,283	(20,205)	43,115	21,029
Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Revenue	586,067	556,162	1,180,868	1,102,488
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	117,383	126,162	237,124	255,463
Selling and marketing expense	264,647	220,152	553,272	456,493
General and administrative expense	66,336	48,459	132,089	94,134
Product development expense	30,996	26,305	62,130	53,401
Depreciation	11,110	9,224	22,690	18,785
Amortization of intangibles	6,226	9,659	12,496	18,660
Total operating costs and expenses	496,698	439,961	1,019,801	896,936
Operating income	89,369	116,201	161,067	205,552
Equity in earnings of unconsolidated affiliates	13,353	5,297	17,049	5,541
Interest expense	(2,211)	(1,052)	(3,257)	(2,094)
Other (expense) income, net	17,787	(13,834)	29,179	(24,361)
Earnings from continuing operations before income taxes	118,298	106,612	204,038	184,638
Income tax benefit (provision)	(40,470)	(39,785)	(72,266)	(69,729)
Earnings (loss) from continuing operations	77,828	66,827	131,772	114,909
Loss from discontinued operations, net of tax	0	0	0	0
Net earnings (loss)	77,828	66,827	131,772	114,909
Net loss attributable to noncontrolling interests	0	0	0	0
Net earnings (loss) attributable to IAC shareholders	77,828	66,827	131,772	114,909
Comprehensive (loss) income attributable to IAC shareholders	79,129	66,163	127,288	114,629
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Revenue	188,460	203,497	368,820	400,404
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	65,792	84,872	137,556	165,793
Selling and marketing expense	56,949	54,158	127,345	117,922
General and administrative expense	29,064	34,816	54,083	61,771
Product development expense	13,104	11,066	25,050	21,656
Depreciation	3,964	5,721	7,551	10,649
Amortization of intangibles	8,185	3,747	14,470	6,725
Total operating costs and expenses	177,058	194,380	366,055	384,516
Operating income	11,402	9,117	2,765	15,888
Equity in earnings of unconsolidated affiliates	0	0	0	0
Interest expense	(11)	(9)	(39)	(46)
Other (expense) income, net	(11,919)	(62,453)	(6,970)	(63,569)
Earnings from continuing operations before income taxes	(528)	(53,345)	(4,244)	(47,727)
Income tax benefit (provision)	5,003	(788)	8,178	(2,341)
Earnings (loss) from continuing operations	4,475	(54,133)	3,934	(50,068)
Loss from discontinued operations, net of tax	3	(27)	3	(40)
Net earnings (loss)	4,478	(54,160)	3,937	(50,108)
Net loss attributable to noncontrolling interests	1,573	867	5,990	3,261
Net earnings (loss) attributable to IAC shareholders	6,051	(53,293)	9,927	(46,847)
Comprehensive (loss) income attributable to IAC shareholders	$ 15,106	$ (55,879)	$ (37,762)	$ (45,764)

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MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Corporate debt securities
Amortized Cost	$ 232,766	$ 159,418
Gross Unrealized Gains	151	34
Gross Unrealized Losses	0	(255)
Fair Value	232,917	159,197
Equity security
Amortized Cost	97	98
Gross Unrealized Gains	509	1,353
Gross Unrealized Losses	0	0
Fair Value	606	1,451
Total marketable securities
Amortized Cost	232,863	159,516
Gross Unrealized Gains	660	1,387
Gross Unrealized Losses	0	(255)
Fair Value	$ 233,523	$ 160,648

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MARKETABLE SECURITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Contractual maturities of debt securities classified as available-for-sale
Due in one year or less, amortized cost	$ 95,946
Due after one year through five years, amortized cost	136,820
Amortized Cost	232,766	$ 159,418
Due in one year or less, fair value	95,979
Due after one year through five years, fair value	136,938
Total, Estimated Fair Value	$ 232,917	$ 159,197

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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities attributable to continuing operations:
Net earnings (loss)	$ 79,720	$ 14,628
Loss from discontinued operations, net of tax	(28)	(1,682)
Earnings (loss) from continuing operations	79,748	16,310
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities attributable to continuing operations:
Stock-based compensation expense	44,860	26,165
Depreciation	31,068	30,075
Amortization of intangibles	26,966	25,385
Excess tax benefits from stock-based awards	(36,465)	(32,889)
Deferred income taxes	7,260	5,849
Impairment of long-term investments	500	64,281
Equity in losses of unconsolidated affiliates	477	8,785
Acquisition-related contingent consideration fair value adjustments	(16,946)	500
Other changes in assets and liabilities, net	8,369	5,362
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	2,710	(5,718)
Other assets	(6,458)	(19,238)
Accounts payable and other current liabilities	(33,231)	(31,242)
Income taxes payable	(63,304)	29,299
Deferred revenue	40,407	25,851
Other changes in assets and liabilities, net	(182)	(4)
Net cash provided by operating activities attributable to continuing operations	85,779	148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286)	(103,380)
Capital expenditures	(26,816)	(26,557)
Proceeds from maturities and sales of marketable debt securities	14,613	998
Purchases of marketable debt securities	(93,134)	(78,380)
Purchases of long-term investments	(12,840)	(14,701)
Other, net	8,599	2,187
Net cash used in investing activities attributable to continuing operations	(152,864)	(219,833)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)	0
Dividends	(56,729)	(40,086)
Issuance of common stock, net of withholding taxes	(20,656)	(13,823)
Excess tax benefits from stock-based awards	36,465	32,889
Purchase of noncontrolling interests	(15,338)	(30,000)
Funds returned from escrow for Meetic tender offer	0	12,354
Acquisition-related contingent consideration payments	(5,705)	(7,630)
Other, net	430	(141)
Net cash used in financing activities attributable to continuing operations	(261,533)	(46,437)
Total cash used in continuing operations	(328,618)	(117,499)
Total cash used in discontinued operations	(243)	(157)
Effect of exchange rate changes on cash and cash equivalents	(5,135)	4,538
Net decrease in cash and cash equivalents	(333,996)	(113,118)
Cash and cash equivalents at beginning of period	990,405	1,100,444
Cash and cash equivalents at end of period	$ 656,409	$ 987,326

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MARKETABLE SECURITIES (Details 3) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jul. 14, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Proceeds from maturities and sales of current and non-current available-for-sale marketable securities and related gross realized gains and losses
Proceeds from maturities and sales of available-for-sale marketable securities		$ 8,563	$ 3,462	$ 14,613	$ 3,462
Gross realized gains		5	$ 2,299	5	2,299
Impairment of available-for-sale marketable securities				$ 500	$ 64,281
Subsequent Event | PlentyOfFish
Proceeds from maturities and sales of current and non-current available-for-sale marketable securities and related gross realized gains and losses
Purchase price	$ 575,000
Corporate debt securities
Proceeds from maturities and sales of current and non-current available-for-sale marketable securities and related gross realized gains and losses
Impairment of available-for-sale marketable securities		$ 300

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SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment reporting information
Revenue	$ 771,132	$ 756,315	$ 1,543,644	$ 1,496,562
Operating income	62,769	95,690	97,888	167,402
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	108,679	141,432	183,836	249,527
Stock-Based Compensation Expense	(25,949)	(16,552)	(44,860)	(26,165)
Depreciation	(15,500)	(15,257)	(31,068)	(30,075)
Amortization of Intangibles	(14,411)	(13,406)	(26,966)	(25,385)
Acquisition-related contingent consideration fair value adjustments	9,950	(527)	16,946	(500)
Operating income	62,769	95,690	97,888	167,402
Operating segments | Search & Applications
Segment reporting information
Revenue	351,366	395,716	734,264	793,751
Operating income	68,592	77,771	132,892	148,108
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	72,910	91,258	151,811	173,329
Stock-Based Compensation Expense	0	0	0	0
Depreciation	(3,685)	(5,082)	(7,301)	(9,547)
Amortization of Intangibles	(6,930)	(8,405)	(13,895)	(15,674)
Acquisition-related contingent consideration fair value adjustments	6,297	0	2,277	0
Operating income	68,592	77,771	132,892	148,108
Operating segments | The Match Group
Segment reporting information
Revenue	254,690	214,314	493,901	425,501
Operating income	51,441	61,198	76,753	101,001
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	64,822	69,368	90,678	116,798
Stock-Based Compensation Expense	(2,056)	(170)	(2,669)	(187)
Depreciation	(6,647)	(5,589)	(13,712)	(11,389)
Amortization of Intangibles	(5,901)	(1,684)	(9,778)	(3,521)
Acquisition-related contingent consideration fair value adjustments	1,223	(727)	12,234	(700)
Operating income	51,441	61,198	76,753	101,001
Operating segments | Media
Segment reporting information
Revenue	36,210	36,656	79,822	73,011
Operating income	(13,775)	(9,794)	(29,127)	(18,360)
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	(15,452)	(8,911)	(30,035)	(16,775)
Stock-Based Compensation Expense	(147)	(161)	(294)	(325)
Depreciation	(228)	(224)	(432)	(506)
Amortization of Intangibles	(378)	(698)	(801)	(954)
Acquisition-related contingent consideration fair value adjustments	2,430	200	2,435	200
Operating income	(13,775)	(9,794)	(29,127)	(18,360)
Operating segments | eCommerce
Segment reporting information
Revenue	128,986	109,949	235,996	204,791
Operating income	(1,004)	8	(7,858)	(1,553)
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	2,681	4,523	(456)	7,327
Stock-Based Compensation Expense	(420)	0	(840)	0
Depreciation	(2,063)	(1,896)	(4,070)	(3,644)
Amortization of Intangibles	(1,202)	(2,619)	(2,492)	(5,236)
Acquisition-related contingent consideration fair value adjustments	0	0	0	0
Operating income	(1,004)	8	(7,858)	(1,553)
Intersegment eliminations
Segment reporting information
Revenue	(120)	(320)	(339)	(492)
Corporate
Segment reporting information
Operating income	(42,485)	(33,493)	(74,772)	(61,794)
Reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments
Adjusted EBITDA	(16,282)	(14,806)	(28,162)	(31,152)
Stock-Based Compensation Expense	(23,326)	(16,221)	(41,057)	(25,653)
Depreciation	(2,877)	(2,466)	(5,553)	(4,989)
Amortization of Intangibles	0	0	0	0
Acquisition-related contingent consideration fair value adjustments	0	0	0	0
Operating income	$ (42,485)	$ (33,493)	$ (74,772)	$ (61,794)

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CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 656,409	$ 990,405
Marketable securities	233,523	160,648
Accounts receivable, net of allowance of $15,730 and $12,437, respectively	223,106	236,086
Other current assets	209,724	166,742
Total current assets	1,322,762	1,553,881
Property and equipment, net of accumulated depreciation and amortization of $294,400 and $279,534, respectively	297,158	302,459
Goodwill	1,778,830	1,754,926
Intangible assets, net of accumulated amortization of $116,626 and $98,937, respectively	472,082	491,936
Long-term investments	131,385	114,983
Other non-current assets	72,841	56,693
TOTAL ASSETS	4,075,058	4,274,878
LIABILITIES:
Current portion of long-term debt	80,000	0
Accounts payable, trade	79,434	81,163
Deferred revenue	232,673	194,988
Accrued expenses and other current liabilities	322,750	397,803
Total current liabilities	714,857	673,954
Long-term debt, net of current portion	1,000,000	1,080,000
Income taxes payable	24,768	32,635
Deferred income taxes	432,688	409,529
Other long-term liabilities	59,182	45,191
Redeemable noncontrolling interests	$ 28,177	$ 40,427
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Additional paid-in capital	$ 11,452,662	$ 11,415,617
Retained earnings	354,099	325,118
Accumulated other comprehensive loss	(130,295)	(87,700)
Treasury stock 187,137,267 and 184,182,001 shares, respectively	(9,861,350)	(9,661,350)
Total IAC shareholders' equity	1,815,386	1,991,953
Noncontrolling interests	0	1,189
Total shareholders' equity	1,815,386	1,993,142
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4,075,058	4,274,878
Common Stock
SHAREHOLDERS' EQUITY:
Common stock	254	252
Class B Convertible Common Stock
SHAREHOLDERS' EQUITY:
Common stock	$ 16	$ 16

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Details3) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	$ 85,779	$ 148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286)	(103,380)
Capital expenditures	(26,816)	(26,557)
Proceeds from maturities and sales of marketable debt securities	14,613	998
Purchases of marketable debt securities	(93,134)	(78,380)
Purchases of long-term investments	(12,840)	(14,701)
Other, net	8,599	2,187
Net cash used in investing activities attributable to continuing operations	(152,864)	(219,833)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)	0
Dividends	(56,729)	(40,086)
Issuance of common stock, net of withholding taxes	(20,656)	(13,823)
Excess tax benefits from stock-based awards	36,465	32,889
Purchase of noncontrolling interests	(15,338)	(30,000)
Funds returned from escrow for Meetic tender offer	0	12,354
Acquisition-related contingent consideration payments	(5,705)	(7,630)
Other, net	430	(141)
Net cash used in financing activities attributable to continuing operations	(261,533)	(46,437)
Total cash used in continuing operations	(328,618)	(117,499)
Total cash used in discontinued operations	(243)	(157)
Effect of exchange rate changes on cash and cash equivalents	(5,135)	4,538
Net decrease in cash and cash equivalents	(333,996)	(113,118)
Cash and cash equivalents at beginning of period	990,405	1,100,444
Cash and cash equivalents at end of period	656,409	987,326
IAC Consolidated
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	85,779	148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(43,286)	(103,380)
Capital expenditures	(26,816)	(26,557)
Proceeds from maturities and sales of marketable debt securities	14,613	998
Purchases of marketable debt securities	(93,134)	(78,380)
Purchases of long-term investments	(12,840)	(14,701)
Other, net	8,599	2,187
Net cash used in investing activities attributable to continuing operations	(152,864)	(219,833)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)
Dividends	(56,729)	(40,086)
Issuance of common stock, net of withholding taxes	(20,656)	(13,823)
Excess tax benefits from stock-based awards	36,465	32,889
Purchase of noncontrolling interests	(15,338)	(30,000)
Funds returned from escrow for Meetic tender offer		12,354
Acquisition-related contingent consideration payments	(5,705)	(7,630)
Intercompany	0	0
Other, net	430	(141)
Net cash used in financing activities attributable to continuing operations	(261,533)	(46,437)
Total cash used in continuing operations	(328,618)	(117,499)
Total cash used in discontinued operations	(243)	(157)
Effect of exchange rate changes on cash and cash equivalents	(5,135)	4,538
Net decrease in cash and cash equivalents	(333,996)	(113,118)
Cash and cash equivalents at beginning of period	990,405	1,100,444
Cash and cash equivalents at end of period	656,409	987,326
IAC
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	(124,420)	(38,576)
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	0	0
Capital expenditures	(988)	(2,390)
Proceeds from maturities and sales of marketable debt securities	14,613	998
Purchases of marketable debt securities	(93,134)	(78,380)
Purchases of long-term investments	0	(3,000)
Other, net	3,613	0
Net cash used in investing activities attributable to continuing operations	(75,896)	(82,772)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000)
Dividends	(56,729)	(40,086)
Issuance of common stock, net of withholding taxes	(20,656)	(13,823)
Excess tax benefits from stock-based awards	36,334	22,116
Purchase of noncontrolling interests	0	0
Acquisition-related contingent consideration payments	0	0
Intercompany	107,102	104,410
Other, net	166	(383)
Net cash used in financing activities attributable to continuing operations	(133,783)	72,234
Total cash used in continuing operations	(334,099)	(49,114)
Total cash used in discontinued operations	(246)	(116)
Effect of exchange rate changes on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	(334,345)	(49,230)
Cash and cash equivalents at beginning of period	766,076	782,022
Cash and cash equivalents at end of period	431,731	732,792
Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	232,853	193,388
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(3,675)	(88,205)
Capital expenditures	(18,242)	(16,477)
Proceeds from maturities and sales of marketable debt securities	0	0
Purchases of marketable debt securities	0	0
Purchases of long-term investments	0	(6,761)
Other, net	(1,086)	11
Net cash used in investing activities attributable to continuing operations	(23,003)	(111,432)
Cash flows from financing activities attributable to continuing operations:
Purchase of noncontrolling interests	0	(30,000)
Acquisition-related contingent consideration payments	(195)	(257)
Intercompany	(206,557)	(51,723)
Net cash used in financing activities attributable to continuing operations	(206,752)	(81,980)
Total cash used in continuing operations	3,098	(24)
Total cash used in discontinued operations	0	0
Effect of exchange rate changes on cash and cash equivalents	2	24
Net decrease in cash and cash equivalents	3,100	0
Cash and cash equivalents at beginning of period	1,021	0
Cash and cash equivalents at end of period	4,121	0
Non-Guarantor Subsidiaries
Condensed Cash Flow Statements, Captions [Line Items]
Net cash (used in) provided by operating activities attributable to continuing operations	(22,654)	(6,041)
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	(39,611)	(15,175)
Capital expenditures	(7,586)	(7,690)
Proceeds from maturities and sales of marketable debt securities	0	0
Purchases of marketable debt securities	0	0
Purchases of long-term investments	(12,840)	(4,940)
Other, net	6,072	2,176
Net cash used in investing activities attributable to continuing operations	(53,965)	(25,629)
Cash flows from financing activities attributable to continuing operations:
Excess tax benefits from stock-based awards	131	10,773
Purchase of noncontrolling interests	(15,338)	0
Funds returned from escrow for Meetic tender offer		12,354
Acquisition-related contingent consideration payments	(5,510)	(7,373)
Intercompany	99,455	(52,687)
Other, net	264	242
Net cash used in financing activities attributable to continuing operations	79,002	(36,691)
Total cash used in continuing operations	2,383	(68,361)
Total cash used in discontinued operations	3	(41)
Effect of exchange rate changes on cash and cash equivalents	(5,137)	4,514
Net decrease in cash and cash equivalents	(2,751)	(63,888)
Cash and cash equivalents at beginning of period	223,308	318,422
Cash and cash equivalents at end of period	$ 220,557	$ 254,534

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Tax benefit of change in unrealized gains and losses of available-for-sale securities	$ 126	$ 865	$ 182	$ 1,438

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current maturities of long-term debt debt	$ (80,000)	$ 0
Long-term debt, net of current maturities	(1,000,000)	(1,080,000)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current maturities of long-term debt debt	(80,000)	0
Long-term debt, net of current maturities	$ (1,025,345)	$ (1,099,813)

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of assets measured at fair value on a recurring basis

The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:

	June 30, 2015
	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	$	207,014	$	—	$	—		$	207,014
Commercial paper	—		76,789		—			76,789
Time deposits	—		32,457		—			32,457
Marketable securities:
Corporate debt securities	—		232,917		—			232,917
Equity security	606		—		—			606
Long-term investments:
Auction rate security	—		—		6,630			6,630
Marketable equity security	11,388		—		—			11,388
Total	$	219,008	$	342,163	$	6,630		$	567,801
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(31,858	)	$	(31,858	)

	December 31, 2014
	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	$	174,720	$	—	$	—		$	174,720
Commercial paper	—		388,801		—			388,801
Time deposits	—		42,914		—			42,914
Marketable securities:
Corporate debt securities	—		159,197		—			159,197
Equity security	1,451		—		—			1,451
Long-term investments:
Auction rate security	—		—		6,070			6,070
Marketable equity security	7,410		—		—			7,410
Total	$	183,581	$	590,912	$	6,070		$	780,563
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(30,140	)	$	(30,140	)

Schedule of changes in assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at April 1	$	6,190	$	(20,964	)	$	9,150	$	(48,758	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		9,950			—		(527		)
Foreign currency exchange losses	—		(4		)	—		—
Included in other comprehensive income (loss)	440		384			100		499
Fair value at date of acquisition	—		(26,749		)	—		—
Settlements	—		5,525			—		7,389
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

	Six Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070	$	(30,140	)	$	8,920	$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		16,946			—		(500		)
Foreign currency exchange gains	—		626			—		—
Included in other comprehensive income (loss)	560		2,117			330		136
Fair value at date of acquisition	—		(27,112		)	—		(2,835		)
Settlements	—		5,705			—		7,630
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

Schedule of changes in liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at April 1	$	6,190	$	(20,964	)	$	9,150	$	(48,758	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		9,950			—		(527		)
Foreign currency exchange losses	—		(4		)	—		—
Included in other comprehensive income (loss)	440		384			100		499
Fair value at date of acquisition	—		(26,749		)	—		—
Settlements	—		5,525			—		7,389
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

	Six Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070	$	(30,140	)	$	8,920	$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		16,946			—		(500		)
Foreign currency exchange gains	—		626			—		—
Included in other comprehensive income (loss)	560		2,117			330		136
Fair value at date of acquisition	—		(27,112		)	—		(2,835		)
Settlements	—		5,705			—		7,630
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

Carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes

The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes:

	June 30, 2015						December 31, 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Current portion of long-term debt	$	(80,000	)	$	(80,000	)	$	—		$	—
Long-term debt, net of current portion	(1,000,000		)	(1,025,345		)	(1,080,000		)	(1,099,813		)

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LONG-TERM DEBT (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 21, 2012 USD ($)
Debt Instrument [Line Items]
Long-term debt	$ 1,000,000,000	$ 1,080,000,000
Current portion of long-term debt	80,000,000	0
Senior Notes | 4.875% Senior Notes due November 30, 2018
Debt Instrument [Line Items]
Long-term debt	$ 500,000,000	$ 500,000,000
Stated rate	4.875%	4.875%
Line of Credit Facility [Abstract]
Maximum leverage ratio	3.0
Senior Notes | 4.75% Senior Notes Due December 2022
Debt Instrument [Line Items]
Long-term debt	$ 500,000,000	$ 500,000,000
Stated rate	4.75%	4.75%
Line of Credit Facility [Abstract]
Maximum leverage ratio			3.0
Bonds | 5% New York City Industrial Development Agency Bonds due September 2035
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 80,000,000
Current portion of long-term debt	$ 80,000,000
Stated rate	5.00%	5.00%
Revolving Credit Facility
Line of Credit Facility [Abstract]
Line of credit, maximum borrowing capacity			$ 300,000,000
Line of credit, amount outstanding	$ 0	$ 0
Line of credit, commitment fee percentage	0.30%	0.30%
Maximum leverage ratio	3.0

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Schedule of accumulated other comprehensive loss

The following tables present the components of accumulated other comprehensive (loss) income.

	Three Months Ended June 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of April 1	$	(143,182	)	$	(91	)	$	(143,273	)
Other comprehensive income, net of tax benefit of $0.2 million related to unrealized losses on available-for-sale securities	9,287			3,528			12,815
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of a tax benefit of $0.1 million	—			163			163
Net current period other comprehensive income	9,287			3,691			12,978
Balance as of June 30	$	(133,895	)	$	3,600		$	(130,295	)

	Three Months Ended June 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains (Losses)On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of April 1	$	(15,132	)	$	7,435		$	(7,697	)
Other comprehensive loss before reclassifications, net of tax benefit of $0.1 million related to unrealized gains on available-for-sale securities	(150		)	(799		)	(949		)
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of tax benefit of $0.8 million	—			(1,260		)	(1,260		)
Net current period other comprehensive loss	(150		)	(2,059		)	(2,209		)
Balance as of June 30	$	(15,282	)	$	5,376		$	(9,906	)

	Six Months Ended June 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31	$	(86,848	)	$	(852	)	$	(87,700	)
Other comprehensive (loss) income, net of tax benefit of $0.3 million related to unrealized losses on available-for-sale securities	(47,047		)	4,289			(42,758		)
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of a tax benefit of $0.1 million	—			163			163
Net current period other comprehensive (loss) income	(47,047		)	4,452			(42,595		)
Balance as of June 30	$	(133,895	)	$	3,600		$	(130,295	)

	Six Months Ended June 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains (Losses)On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31	$	(20,352	)	$	7,306		$	(13,046	)
Other comprehensive income (loss) before reclassifications, net of tax benefit of $0.7 million related to unrealized gains on available-for-sale securities	5,070			(670		)	4,400
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of tax benefit of $0.8 million	—			(1,260		)	(1,260		)
Net current period other comprehensive income (loss)	5,070			(1,930		)	3,140
Balance as of June 30	$	(15,282	)	$	5,376		$	(9,906	)

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CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	IAC	Common Stock Common Stock $.001 Par Value	Common Stock Class B Convertible Common Stock $.001 Par Value	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Noncontrolling Interests
Beginning balance at Dec. 31, 2014	$ 1,993,142	$ 1,991,953	$ 252	$ 16	$ 11,415,617	$ 325,118	$ (87,700)	$ (9,661,350)	$ 1,189
Beginning balance, common stock (in shares) at Dec. 31, 2014			252,170	16,157
Increase (Decrease) in Shareholders' Equity
Net (loss) earnings for the six months ended June 30, 2015	85,710	85,710				85,710
Other comprehensive loss, net of tax	(42,595)	(42,595)					(42,595)
Stock-based compensation expense	38,189	38,189			38,189
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes	(20,666)	(20,666)	$ 2		(20,668)
Issuance of common stock upon exercise of stock options, vesting of restricted stock units and other, net of withholding taxes, shares			1,471
Income tax benefit related to the exercise of stock options, vesting of restricted stock units and other	24,636	24,636			24,636
Dividends	(56,729)	(56,729)			0	(56,729)
Purchase of treasury stock	(200,000)	(200,000)						(200,000)
Adjustment of redeemable noncontrolling interests to fair value	(5,320)	(5,320)			(5,320)
Transfer from noncontrolling interests to redeemable noncontrolling interests	(1,189)								(1,189)
Other	208	208			208
Ending balance at Jun. 30, 2015	1,815,386	$ 1,815,386	$ 254	$ 16	$ 11,452,662	$ 354,099	$ (130,295)	$ (9,861,350)	$ 0
Ending balance, common stock (in shares) at Jun. 30, 2015			253,641	16,157
Beginning balance at Dec. 31, 2014	40,427
Increase (Decrease) in Redeemable Noncontrolling Interests
Net (loss) earnings	(5,990)
Other comprehensive loss, net of tax	(1,157)
Stock-based compensation expense	3,509
Purchase of redeemable noncontrolling interests	(15,338)
Adjustment of redeemable noncontrolling interests to fair value	5,320
Transfer from noncontrolling interests to redeemable noncontrolling interests	1,189
Other	217
Ending balance at Jun. 30, 2015	$ 28,177

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CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts receivable, allowance (in dollars)	$ 15,730	$ 12,437
Accumulated depreciation and amortization, property and equipment (in dollars)	294,400	279,534
Accumulated amortization (in dollars)	$ 116,626	$ 98,937
Treasury stock, shares	187,137,267	184,182,001
Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	1,600,000,000	1,600,000,000
Common stock, issued shares	253,641,102	252,170,058
Common stock, outstanding shares	76,871,835	78,356,057
Class B Convertible Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	400,000,000	400,000,000
Common stock, issued shares	16,157,499	16,157,499
Common stock, outstanding shares	5,789,499	5,789,499

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CONTINGENCIES

6 Months Ended

Jun. 30, 2015

Loss Contingency [Abstract]

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-income 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 2 for additional information related to income tax contingencies.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 24, 2015
Entity Registrant Name	IAC/INTERACTIVECORP
Entity Central Index Key	0000891103
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Entity Common Stock, Shares Outstanding		77,130,396
Class B Convertible Common Stock
Entity Common Stock, Shares Outstanding		5,789,499

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

6 Months Ended

Jun. 30, 2015

Guarantor and Nonguarantor Financial Statements [Abstract]

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The 2013 and 2012 Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries that are 100% owned by the Company. The following tables present condensed consolidating financial information at June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014 for: IAC, on a stand-alone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.

Balance sheet at June 30, 2015:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	431,731	$	4,121	$	220,557	$	—		$	656,409
Marketable securities	232,917		—		606		—			233,523
Accounts receivable, net	4		132,223		90,879		—			223,106
Other current assets	47,233		97,670		69,692		(4,871		)	209,724
Intercompany receivables	—		1,635,189		942,583		(2,577,772		)	—
Property and equipment, net	4,867		228,061		64,230		—			297,158
Goodwill	—		1,250,801		528,029		—			1,778,830
Intangible assets, net	—		313,275		158,807		—			472,082
Investment in subsidiaries	4,971,322		932,210		—		(5,903,532		)	—
Other non-current assets	69,644		20,715		115,405		(1,538		)	204,226
Total assets	$	5,757,718	$	4,614,265	$	2,190,788	$	(8,487,713	)	$	4,075,058
Current portion of long-term debt	$	—	$	80,000	$	—	$	—		$	80,000
Accounts payable, trade	3,078		57,265		19,091		—			79,434
Other current liabilities	32,661		320,261		203,239		(738		)	555,423
Long-term debt, net of current portion	1,000,000		—		—		—			1,000,000
Income taxes payable	892		4,829		19,047		—			24,768
Intercompany liabilities	2,577,772		—		—		(2,577,772		)	—
Other long-term liabilities	327,929		100,370		69,242		(5,671		)	491,870
Redeemable noncontrolling interests	—		—		28,177		—			28,177
IAC shareholders' equity	1,815,386		4,051,540		1,851,992		(5,903,532		)	1,815,386
Total liabilities and shareholders' equity	$	5,757,718	$	4,614,265	$	2,190,788	$	(8,487,713	)	$	4,075,058

Balance sheet at December 31, 2014:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	766,076	$	1,021	$	223,308	$	—		$	990,405
Marketable securities	159,197		—		1,451		—			160,648
Accounts receivable, net	13		155,262		80,811		—			236,086
Other current assets	23,923		91,105		57,487		(5,773		)	166,742
Intercompany receivables	—		1,688,403		970,810		(2,659,213		)	—
Property and equipment, net	4,950		232,819		64,690		—			302,459
Goodwill	—		1,249,807		505,119		—			1,754,926
Intangible assets, net	—		325,771		166,165		—			491,936
Investment in subsidiaries	5,035,304		930,443		—		(5,965,747		)	—
Other non-current assets	44,610		20,682		109,372		(2,988		)	171,676
Total assets	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878
Accounts payable, trade	$	3,059	$	55,320	$	22,784	$	—		$	81,163
Other current liabilities	73,491		328,920		191,197		(817		)	592,791
Long-term debt	1,000,000		80,000		—		—			1,080,000
Income taxes payable	2,240		4,771		25,624		—			32,635
Intercompany liabilities	2,659,213		—		—		(2,659,213		)	—
Other long-term liabilities	304,117		104,219		54,328		(7,944		)	454,720
Redeemable noncontrolling interests	—		—		40,427		—			40,427
IAC shareholders' equity	1,991,953		4,122,083		1,843,664		(5,965,747		)	1,991,953
Noncontrolling interests	—		—		1,189		—			1,189
Total liabilities and shareholders' equity	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878

Statement of operations for the three months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	586,067		$	188,460		$	(3,395	)	$	771,132
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	294			117,383			65,792			(193		)	183,276
Selling and marketing expense	1,010			264,647			56,949			(3,209		)	319,397
General and administrative expense	33,942			66,336			29,064			7			129,349
Product development expense	2,330			30,996			13,104			—			46,430
Depreciation	426			11,110			3,964			—			15,500
Amortization of intangibles	—			6,226			8,185			—			14,411
Total operating costs and expenses	38,002			496,698			177,058			(3,395		)	708,363
Operating (loss) income	(38,002		)	89,369			11,402			—			62,769
Equity in earnings of unconsolidated affiliates	70,523			13,353			—			(83,876		)	—
Interest expense	(12,992		)	(2,211		)	(11		)	—			(15,214		)
Other (expense) income, net	(7,506		)	17,787			(11,919		)	—			(1,638		)
Earnings (loss) from continuing operations before income taxes	12,023			118,298			(528		)	(83,876		)	45,917
Income tax benefit (provision)	47,435			(40,470		)	5,003			—			11,968
Earnings from continuing operations	59,458			77,828			4,475			(83,876		)	57,885
(Loss) earnings from discontinued operations, net of tax	(153		)	—			3			(3		)	(153		)
Net earnings	59,305			77,828			4,478			(83,879		)	57,732
Net loss attributable to noncontrolling interests	—			—			1,573			—			1,573
Net earnings attributable to IAC shareholders	$	59,305		$	77,828		$	6,051		$	(83,879	)	$	59,305
Comprehensive income attributable to IAC shareholders	$	72,283		$	79,129		$	15,106		$	(94,235	)	$	72,283

Statement of operations for the three months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	556,162		$	203,497		$	(3,344	)	$	756,315
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	383			126,162			84,872			(687		)	210,730
Selling and marketing expense	619			220,152			54,158			(2,439		)	272,490
General and administrative expense	26,609			48,459			34,816			13			109,897
Product development expense	1,705			26,305			11,066			(231		)	38,845
Depreciation	312			9,224			5,721			—			15,257
Amortization of intangibles	—			9,659			3,747			—			13,406
Total operating costs and expenses	29,628			439,961			194,380			(3,344		)	660,625
Operating (loss) income	(29,628		)	116,201			9,117			—			95,690
Equity in earnings of unconsolidated affiliates	8,264			5,297			—			(13,561		)	—
Interest expense	(12,985		)	(1,052		)	(9		)	—			(14,046		)
Other income (expense), net	6,537			(13,834		)	(62,453		)	—			(69,750		)
(Loss) earnings from continuing operations before income taxes	(27,812		)	106,612			(53,345		)	(13,561		)	11,894
Income tax benefit (provision)	10,684			(39,785		)	(788		)	—			(29,889		)
(Loss) earnings from continuing operations	(17,128		)	66,827			(54,133		)	(13,561		)	(17,995		)
Loss from discontinued operations, net of tax	(868		)	—			(27		)	27			(868		)
Net (loss) earnings	(17,996		)	66,827			(54,160		)	(13,534		)	(18,863		)
Net loss attributable to noncontrolling interests	—			—			867			—			867
Net (loss) earnings attributable to IAC shareholders	$	(17,996	)	$	66,827		$	(53,293	)	$	(13,534	)	$	(17,996	)
Comprehensive (loss) income attributable to IAC shareholders	$	(20,205	)	$	66,163		$	(55,879	)	$	(10,284	)	$	(20,205	)

Statement of operations for the six months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,180,868		$	368,820		$	(6,044	)	$	1,543,644
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	539			237,124			137,556			(390		)	374,829
Selling and marketing expense	2,065			553,272			127,345			(5,619		)	677,063
General and administrative expense	58,006			132,089			54,083			(35		)	244,143
Product development expense	4,507			62,130			25,050			—			91,687
Depreciation	827			22,690			7,551			—			31,068
Amortization of intangibles	—			12,496			14,470			—			26,966
Total operating costs and expenses	65,944			1,019,801			366,055			(6,044		)	1,445,756
Operating (loss) income	(65,944		)	161,067			2,765			—			97,888
Equity in earnings of unconsolidated affiliates	124,647			17,049			—			(141,696		)	—
Interest expense	(25,982		)	(3,257		)	(39		)	—			(29,278		)
Other (expense) income, net	(16,859		)	29,179			(6,970		)	—			5,350
Earnings (loss) from continuing operations before income taxes	15,862			204,038			(4,244		)	(141,696		)	73,960
Income tax benefit (provision)	69,876			(72,266		)	8,178			—			5,788
Earnings from continuing operations	85,738			131,772			3,934			(141,696		)	79,748
(Loss) earnings from discontinued operations, net of tax	(28		)	—			3			(3		)	(28		)
Net earnings	85,710			131,772			3,937			(141,699		)	79,720
Net loss attributable to noncontrolling interests	—			—			5,990			—			5,990
Net earnings attributable to IAC shareholders	$	85,710		$	131,772		$	9,927		$	(141,699	)	$	85,710
Comprehensive income (loss) attributable to IAC shareholders	$	43,115		$	127,288		$	(37,762	)	$	(89,526	)	$	43,115

Statement of operations for the six months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,102,488		$	400,404		$	(6,330	)	$	1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	355			255,463			165,793			(1,647		)	419,964
Selling and marketing expense	811			456,493			117,922			(4,137		)	571,089
General and administrative expense	49,055			94,134			61,771			26			204,986
Product development expense	3,176			53,401			21,656			(572		)	77,661
Depreciation	641			18,785			10,649			—			30,075
Amortization of intangibles	—			18,660			6,725			—			25,385
Total operating costs and expenses	54,038			896,936			384,516			(6,330		)	1,329,160
Operating (loss) income	(54,038		)	205,552			15,888			—			167,402
Equity in earnings of unconsolidated affiliates	62,561			5,541			—			(68,102		)	—
Interest expense	(25,970		)	(2,094		)	(46		)	—			(28,110		)
Other income (expense), net	16,222			(24,361		)	(63,569		)	—			(71,708		)
(Loss) earnings from continuing operations before income taxes	(1,225		)	184,638			(47,727		)	(68,102		)	67,584
Income tax benefit (provision)	20,796			(69,729		)	(2,341		)	—			(51,274		)
Earnings (loss) from continuing operations	19,571			114,909			(50,068		)	(68,102		)	16,310
Loss from discontinued operations, net of tax	(1,682		)	—			(40		)	40			(1,682		)
Net earnings (loss)	17,889			114,909			(50,108		)	(68,062		)	14,628
Net loss attributable to noncontrolling interests	—			—			3,261			—			3,261
Net earnings (loss) attributable to IAC shareholders	$	17,889		$	114,909		$	(46,847	)	$	(68,062	)	$	17,889
Comprehensive income (loss) attributable to IAC shareholders	$	21,029		$	114,629		$	(45,764	)	$	(68,865	)	$	21,029

Statement of cash flows for the six months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(124,420	)	$	232,853		$	(22,654	)	$	85,779
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(3,675		)	(39,611		)	(43,286		)
Capital expenditures	(988		)	(18,242		)	(7,586		)	(26,816		)
Proceeds from maturities and sales of marketable debt securities	14,613			—			—			14,613
Purchases of marketable debt securities	(93,134		)	—			—			(93,134		)
Purchases of long-term investments	—			—			(12,840		)	(12,840		)
Other, net	3,613			(1,086		)	6,072			8,599
Net cash used in investing activities attributable to continuing operations	(75,896		)	(23,003		)	(53,965		)	(152,864		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—			—			(200,000		)
Dividends	(56,729		)	—			—			(56,729		)
Issuance of common stock, net of withholding taxes	(20,656		)	—			—			(20,656		)
Excess tax benefits from stock-based awards	36,334			—			131			36,465
Purchase of noncontrolling interests	—			—			(15,338		)	(15,338		)
Acquisition-related contingent consideration payments	—			(195		)	(5,510		)	(5,705		)
Intercompany	107,102			(206,557		)	99,455			—
Other, net	166			—			264			430
Net cash (used in) provided by financing activities attributable to continuing operations	(133,783		)	(206,752		)	79,002			(261,533		)
Total cash (used in) provided by continuing operations	(334,099		)	3,098			2,383			(328,618		)
Total cash (used in) provided by discontinued operations	(246		)	—			3			(243		)
Effect of exchange rate changes on cash and cash equivalents	—			2			(5,137		)	(5,135		)
Net (decrease) increase in cash and cash equivalents	(334,345		)	3,100			(2,751		)	(333,996		)
Cash and cash equivalents at beginning of period	766,076			1,021			223,308			990,405
Cash and cash equivalents at end of period	$	431,731		$	4,121		$	220,557		$	656,409

Statement of cash flows for the six months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(38,576	)	$	193,388		$	(6,041	)	$	148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(88,205		)	(15,175		)	(103,380		)
Capital expenditures	(2,390		)	(16,477		)	(7,690		)	(26,557		)
Proceeds from maturities and sales of marketable debt securities	998			—			—			998
Purchases of marketable debt securities	(78,380		)	—			—			(78,380		)
Purchases of long-term investments	(3,000		)	(6,761		)	(4,940		)	(14,701		)
Other, net	—			11			2,176			2,187
Net cash used in investing activities attributable to continuing operations	(82,772		)	(111,432		)	(25,629		)	(219,833		)
Cash flows from financing activities attributable to continuing operations:
Dividends	(40,086		)	—			—			(40,086		)
Issuance of common stock, net of withholding taxes	(13,823		)	—			—			(13,823		)
Excess tax benefits from stock-based awards	22,116			—			10,773			32,889
Purchase of noncontrolling interests	—			(30,000		)	—			(30,000		)
Funds returned from escrow for Meetic tender offer	—			—			12,354			12,354
Acquisition-related contingent consideration payments	—			(257		)	(7,373		)	(7,630		)
Intercompany	104,410			(51,723		)	(52,687		)	—
Other, net	(383		)	—			242			(141		)
Net cash provided by (used in) financing activities attributable to continuing operations	72,234			(81,980		)	(36,691		)	(46,437		)
Total cash used in continuing operations	(49,114		)	(24		)	(68,361		)	(117,499		)
Total cash used in discontinued operations	(116		)	—			(41		)	(157		)
Effect of exchange rate changes on cash and cash equivalents	—			24			4,514			4,538
Net decrease in cash and cash equivalents	(49,230		)	—			(63,888		)	(113,118		)
Cash and cash equivalents at beginning of period	782,022			—			318,422			1,100,444
Cash and cash equivalents at end of period	$	732,792		$	—		$	254,534		$	987,326

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CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue	$ 771,132	$ 756,315	$ 1,543,644	$ 1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	183,276	210,730	374,829	419,964
Selling and marketing expense	319,397	272,490	677,063	571,089
General and administrative expense	129,349	109,897	244,143	204,986
Product development expense	46,430	38,845	91,687	77,661
Depreciation	15,500	15,257	31,068	30,075
Amortization of intangibles	14,411	13,406	26,966	25,385
Total operating costs and expenses	708,363	660,625	1,445,756	1,329,160
Operating income	62,769	95,690	97,888	167,402
Interest expense	(15,214)	(14,046)	(29,278)	(28,110)
Other (expense) income, net	(1,638)	(69,750)	5,350	(71,708)
Earnings from continuing operations before income taxes	45,917	11,894	73,960	67,584
Income tax benefit (provision)	11,968	(29,889)	5,788	(51,274)
Earnings (loss) from continuing operations	57,885	(17,995)	79,748	16,310
Loss from discontinued operations, net of tax	(153)	(868)	(28)	(1,682)
Net earnings (loss)	57,732	(18,863)	79,720	14,628
Net loss attributable to noncontrolling interests	1,573	867	5,990	3,261
Net earnings (loss) attributable to IAC shareholders	$ 59,305	$ (17,996)	$ 85,710	$ 17,889
Per share information attributable to IAC shareholders:
Basic earnings (loss) per share from continuing operations (in dollars per share)	$ 0.72	$ (0.21)	$ 1.03	$ 0.24
Diluted earnings (loss) per share from continuing operations (in dollars per share)	0.68	(0.21)	0.98	0.22
Basic earnings (loss) per share (in dollars per share)	0.72	(0.22)	1.03	0.22
Diluted earnings (loss) per share (in dollars per share)	0.68	(0.22)	0.97	0.20
Dividends declared per share (in dollars per share)	$ 0.34	$ 0.24	$ 0.68	$ 0.48
Stock-based compensation expense by function:
Stock-based compensation expense	$ 25,949	$ 16,552	$ 44,860	$ 26,165
Cost of revenue
Stock-based compensation expense by function:
Stock-based compensation expense	294	459	539	451
Selling and marketing expense
Stock-based compensation expense by function:
Stock-based compensation expense	3,119	657	4,842	853
General and administrative expense
Stock-based compensation expense by function:
Stock-based compensation expense	20,039	13,707	34,637	21,659
Product development expense
Stock-based compensation expense by function:
Stock-based compensation expense	$ 2,497	$ 1,729	$ 4,842	$ 3,202

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements and Financial Instruments

FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are:

• Level 1: Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which 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 values 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 below for a discussion of fair value measurements made using Level 3 inputs.

The following tables present the Company's financial instruments that are measured at fair value on a recurring basis:

	June 30, 2015
	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	$	207,014	$	—	$	—		$	207,014
Commercial paper	—		76,789		—			76,789
Time deposits	—		32,457		—			32,457
Marketable securities:
Corporate debt securities	—		232,917		—			232,917
Equity security	606		—		—			606
Long-term investments:
Auction rate security	—		—		6,630			6,630
Marketable equity security	11,388		—		—			11,388
Total	$	219,008	$	342,163	$	6,630		$	567,801
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(31,858	)	$	(31,858	)

	December 31, 2014
	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	$	174,720	$	—	$	—		$	174,720
Commercial paper	—		388,801		—			388,801
Time deposits	—		42,914		—			42,914
Marketable securities:
Corporate debt securities	—		159,197		—			159,197
Equity security	1,451		—		—			1,451
Long-term investments:
Auction rate security	—		—		6,070			6,070
Marketable equity security	7,410		—		—			7,410
Total	$	183,581	$	590,912	$	6,070		$	780,563
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(30,140	)	$	(30,140	)

The following tables present the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at April 1	$	6,190	$	(20,964	)	$	9,150	$	(48,758	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		9,950			—		(527		)
Foreign currency exchange losses	—		(4		)	—		—
Included in other comprehensive income (loss)	440		384			100		499
Fair value at date of acquisition	—		(26,749		)	—		—
Settlements	—		5,525			—		7,389
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

	Six Months Ended June 30,
	2015					2014
	Auction Rate Security		Contingent Consideration Arrangements			Auction Rate Security		Contingent Consideration Arrangements
	(In thousands)
Balance at January 1	$	6,070	$	(30,140	)	$	8,920	$	(45,828	)
Total net gains (losses):
Included in earnings:
Fair value adjustments	—		16,946			—		(500		)
Foreign currency exchange gains	—		626			—		—
Included in other comprehensive income (loss)	560		2,117			330		136
Fair value at date of acquisition	—		(27,112		)	—		(2,835		)
Settlements	—		5,705			—		7,630
Balance at June 30	$	6,630	$	(31,858	)	$	9,250	$	(41,397	)

Auction rate security

The Company's auction rate security is valued by discounting the estimated future cash flow streams of the security over the life of the security. Credit spreads and other risk factors are also considered in establishing fair value. The cost basis of the auction rate security is $10.0 million, with gross unrealized losses of $3.4 million and $3.9 million at June 30, 2015 and December 31, 2014, respectively. The unrealized losses are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet. At June 30, 2015, the auction rate security is rated BBB- and matures in 2035. The Company does not consider the auction rate security to be other-than-temporarily impaired at June 30, 2015, due to its credit rating and because the Company does not intend to sell this security, and it is not more likely than not that the Company will be required to sell this security, before the recovery of its amortized cost basis, which may be maturity.

Contingent Consideration Arrangements

As of June 30, 2015, there are nine contingent consideration arrangements related to business acquisitions. Eight of the contingent consideration arrangements have limits as to the maximum amount that can be paid; the maximum contingent payments related to these arrangements is $240.7 million and the fair value of these arrangements at June 30, 2015 is $31.4 million. The fair value of the one contingent consideration arrangement without a limit on the maximum amount is $0.5 million at June 30, 2015. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics such as monthly active users. The Company typically determines the fair value of the contingent consideration arrangements by using a probability-weighted analysis to determine the amount of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that captures the risks associated with the obligation. The number of scenarios in the probability-weighted analyses can vary; generally, more scenarios are prepared for longer duration and more complex arrangements. The contingent consideration arrangements fair values at June 30, 2015 reflect discount rates ranging from 12-25%.

The fair values of the contingent consideration arrangements are sensitive to changes in the forecasts of earnings and/or the relevant operating metrics and changes in discount rates. The Company remeasures the fair value of the contingent consideration arrangements each reporting period, and changes are recognized in “General and administrative expense” in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at June 30, 2015 includes a current portion of $2.8 million and non-current portion of $29.1 million, which are included in “Accrued expenses and other current liabilities” and “Other long-term liabilities,” respectively, in the accompanying consolidated balance sheet.

Assets measured at fair value on a nonrecurring basis

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment, as well as equity and cost method investments, are adjusted to fair value only when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

Cost method investments

At June 30, 2015 and December 31, 2014, the carrying values of the Company's investments accounted for under the cost method totaled $103.3 million and $90.9 million, respectively, and are included in "Long-term investments" in the accompanying consolidated balance sheet. The Company evaluates each cost method investment for impairment on a quarterly basis and recognizes an impairment loss if a decline in value is determined to be other-than-temporary. If the Company has not identified events or changes in circumstances that may have a significant adverse effect on the fair value of a cost method investment, then the fair value of such cost method investment is not estimated, as it is impracticable to do so.

In the second quarter of 2014, the Company recorded $64.2 million of other-than-temporary impairment charges for certain cost method investments as a result of our assessment of the near-term prospects and financial condition of the investees. This charge is included in "Other (expense) income, net" in the accompanying consolidated statement of operations.

Equity method investments

In the second quarter of 2014, the Company recorded a $4.2 million other-than-temporary impairment charge on an equity method investment following the sale of a majority of the investee's assets. This charge is included in "Other (expense) income, net" in the accompanying consolidated statement of operations.

Long-term marketable equity securities

The cost basis of the Company's long-term marketable equity security at June 30, 2015 and December 31, 2014 is $8.7 million, with a gross unrealized gain of $2.7 million and loss of $1.2 million at June 30, 2015 and December 31, 2014, respectively. The gross unrealized gain at June 30, 2015 and gross unrealized loss at December 31, 2014 are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet.

Financial instruments measured at fair value only for disclosure purposes

The following table presents the carrying value and the fair value of financial instruments measured at fair value only for disclosure purposes:

	June 30, 2015						December 31, 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Current portion of long-term debt	$	(80,000	)	$	(80,000	)	$	—		$	—
Long-term debt, net of current portion	(1,000,000		)	(1,025,345		)	(1,080,000		)	(1,099,813		)

The fair value of long-term debt is estimated using market prices or indices for similar liabilities and taking into consideration other factors such as credit quality and maturity, which are Level 3 inputs.

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MARKETABLE SECURITIES

6 Months Ended

Jun. 30, 2015

Marketable Securities [Abstract]

MARKETABLE SECURITIES

MARKETABLE SECURITIES

At June 30, 2015, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Corporate debt securities	$	232,766	$	151	$	—	$	232,917
Equity security	97		509		—		606
Total marketable securities	$	232,863	$	660	$	—	$	233,523

At December 31, 2014, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	159,418	$	34	$	(255	)	$	159,197
Equity security	98		1,353		—			1,451
Total marketable securities	$	159,516	$	1,387	$	(255	)	$	160,648

The unrealized gains and losses in the tables above are included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet.

The contractual maturities of debt securities classified as current available-for-sale at June 30, 2015 are as follows:

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	95,946	$	95,979
Due after one year through five years	136,820		136,938
Total	$	232,766	$	232,917

The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities	$	8,563	$	3,462	$	14,613	$	3,462
Gross realized gains	5		2,299		5		2,299

There were no gross realized losses from the maturities and sales of available-for-sale marketable securities for the three and six months ended June 30, 2015 and 2014. However, during the second quarter of 2015, the Company recognized $0.3 million in losses that were deemed to be other-than-temporary related to various corporate debt securities that are expected to be sold by the Company in the third quarter of 2015, in part, to fund its cash needs related to The Match Group's acquisition of PlentyOfFish for $575 million.

Gross realized gains from the maturities and sales of available-for-sale marketable securities and losses that were deemed to be other-than-temporary are included in "Other (expense) income, net" in the accompanying consolidated statement of operations.

The specific-identification method is used to determine the cost of securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income into earnings.

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LONG-TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of:

	June 30, 2015		December 31, 2014
	(In thousands)
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014	$	500,000	$	500,000
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013	500,000		500,000
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006(a)	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

_________________________________________

^(a)$80.0 million reflected as short-term debt at June 30, 2015 as the Liberty Bonds are scheduled to be redeemed on September 1, 2015.

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SUBSEQUENT EVENT

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

SUBSEQUENT EVENT

On July 14, 2015, the Company announced that The Match Group had entered into a definitive agreement to purchase PlentyOfFish for $575 million in cash. The acquisition is expected to close in the fourth quarter of 2015.

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EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

The following tables set forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders.

	Three Months Ended June 30,
	2015						2014
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings (loss) from continuing operations	$	57,885		$	57,885		$	(17,995	)	$	(17,995	)
Net loss attributable to noncontrolling interests	1,573			1,573			867			867
Earnings (loss) from continuing operations attributable to IAC shareholders	59,458			59,458			(17,128		)	(17,128		)
Loss from discontinued operations attributable to IAC shareholders	(153		)	(153		)	(868		)	(868		)
Net earnings (loss) attributable to IAC shareholders	$	59,305		$	59,305		$	(17,996	)	$	(17,996	)
Denominator:
Weighted average basic shares outstanding	82,416			82,416			83,178			83,178
Dilutive securities including stock options and RSUs(a)(b)	—			4,674			—			—
Denominator for earnings per share—weighted average shares(a)(b)	82,416			87,090			83,178			83,178
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share from continuing operations	$	0.72		$	0.68		$	(0.21	)	$	(0.21	)
Discontinued operations	—			—			(0.01		)	(0.01		)
Earnings (loss) per share	$	0.72		$	0.68		$	(0.22	)	$	(0.22	)

	Six Months Ended June 30,
	2015						2014
	Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Earnings from continuing operations	$	79,748		$	79,748		$	16,310		$	16,310
Net loss attributable to noncontrolling interests	5,990			5,990			3,261			3,261
Earnings from continuing operations attributable to IAC shareholders	85,738			85,738			19,571			19,571
Loss from discontinued operations attributable to IAC shareholders	(28		)	(28		)	(1,682		)	(1,682		)
Net earnings attributable to IAC shareholders	$	85,710		$	85,710		$	17,889		$	17,889
Denominator:
Weighted average basic shares outstanding	82,932			82,932			82,833			82,833
Dilutive securities including stock options and RSUs(a)	—			4,989			—			5,150
Denominator for earnings per share—weighted average shares(a)	82,932			87,921			82,833			87,983
Earnings (loss) per share attributable to IAC shareholders:
Earnings per share from continuing operations	$	1.03		$	0.98		$	0.24		$	0.22
Discontinued operations	—			(0.01		)	(0.02		)	(0.02		)
Earnings per share	$	1.03		$	0.97		$	0.22		$	0.20

_________________________________________

^(a)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 vesting of restricted stock units ("RSUs"). For the three and six months ended June 30, 2015 approximately 1.0 million and 1.2 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the six months ended June 30, 2014, there are no securities that are excluded from the calculation of diluted earnings per share.

^(b)For the three months ended June 30, 2014, the Company had a loss from continuing operations and as a result, approximately 11.5 million potentially dilutive securities were excluded for computing dilutive earnings per share because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute all earnings per share amounts.

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LONG-TERM DEBT

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

Long-term debt consists of:

	June 30, 2015		December 31, 2014
	(In thousands)
4.875% Senior Notes due November 30, 2018 (the "2013 Senior Notes"); interest payable each May 30 and November 30, which commenced May 30, 2014	$	500,000	$	500,000
4.75% Senior Notes due December 15, 2022 (the "2012 Senior Notes"); interest payable each June 15 and December 15, which commenced June 15, 2013	500,000		500,000
5% New York City Industrial Development Agency Liberty Bonds due September 1, 2035 (the "Liberty Bonds"); interest payable each March 1 and September 1, which commenced March 1, 2006(a)	—		80,000
Total long-term debt	$	1,000,000	$	1,080,000

_________________________________________

^(a)$80.0 million reflected as short-term debt at June 30, 2015 as the Liberty Bonds are scheduled to be redeemed on September 1, 2015.

The 2013 and 2012 Senior Notes were issued on November 15, 2013 and December 21, 2012, respectively. On December 21, 2012, the Company entered into a $300 million revolving credit facility, which expires on December 21, 2017. The annual fee to maintain the revolving credit facility is 30 basis points. At June 30, 2015 and December 31, 2014, there are no outstanding borrowings under the revolving credit facility.

The 2013 and 2012 Senior Notes are unconditionally guaranteed by certain domestic subsidiaries, which are designated as guarantor subsidiaries. The guarantor subsidiaries are the same for the 2013 and 2012 Senior Notes and the revolving credit facility; any borrowings under the revolving credit facility would also be secured by the stock of certain of our domestic and foreign subsidiaries. See Note 10 for guarantor and non-guarantor financial information.

The indentures governing the 2013 and 2012 Senior Notes restrict our ability to incur additional indebtedness in the event we are not in compliance with the maximum leverage ratio of 3.0 to 1.0. In addition, the terms of the revolving credit facility require that we maintain a leverage ratio of not more than 3.0 to 1.0 and restrict our ability to incur additional indebtedness. As of June 30, 2015, the Company was in compliance with all of these covenants.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of accumulated other comprehensive (loss) income.

	Three Months Ended June 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of April 1	$	(143,182	)	$	(91	)	$	(143,273	)
Other comprehensive income, net of tax benefit of $0.2 million related to unrealized losses on available-for-sale securities	9,287			3,528			12,815
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of a tax benefit of $0.1 million	—			163			163
Net current period other comprehensive income	9,287			3,691			12,978
Balance as of June 30	$	(133,895	)	$	3,600		$	(130,295	)

	Three Months Ended June 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains (Losses)On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of April 1	$	(15,132	)	$	7,435		$	(7,697	)
Other comprehensive loss before reclassifications, net of tax benefit of $0.1 million related to unrealized gains on available-for-sale securities	(150		)	(799		)	(949		)
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of tax benefit of $0.8 million	—			(1,260		)	(1,260		)
Net current period other comprehensive loss	(150		)	(2,059		)	(2,209		)
Balance as of June 30	$	(15,282	)	$	5,376		$	(9,906	)

	Six Months Ended June 30, 2015
	Foreign Currency Translation Adjustment			Unrealized (Losses) Gains On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31	$	(86,848	)	$	(852	)	$	(87,700	)
Other comprehensive (loss) income, net of tax benefit of $0.3 million related to unrealized losses on available-for-sale securities	(47,047		)	4,289			(42,758		)
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of a tax benefit of $0.1 million	—			163			163
Net current period other comprehensive (loss) income	(47,047		)	4,452			(42,595		)
Balance as of June 30	$	(133,895	)	$	3,600		$	(130,295	)

	Six Months Ended June 30, 2014
	Foreign Currency Translation Adjustment			Unrealized Gains (Losses)On Available-For-Sale Securities			Accumulated Other Comprehensive Loss
	(In thousands)
Balance as of December 31	$	(20,352	)	$	7,306		$	(13,046	)
Other comprehensive income (loss) before reclassifications, net of tax benefit of $0.7 million related to unrealized gains on available-for-sale securities	5,070			(670		)	4,400
Amounts reclassified to earnings related to unrealized losses on available-for-sale securities, net of tax benefit of $0.8 million	—			(1,260		)	(1,260		)
Net current period other comprehensive income (loss)	5,070			(1,930		)	3,140
Balance as of June 30	$	(15,282	)	$	5,376		$	(9,906	)

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2015

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,
	2015			2014			2015			2014
	(In thousands)
Revenue:
Search & Applications	$	351,366		$	395,716		$	734,264		$	793,751
The Match Group	254,690			214,314			493,901			425,501
Media	36,210			36,656			79,822			73,011
eCommerce	128,986			109,949			235,996			204,791
Inter-segment eliminations	(120		)	(320		)	(339		)	(492		)
Total	$	771,132		$	756,315		$	1,543,644		$	1,496,562

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Operating Income (Loss):
Search & Applications	$	68,592		$	77,771		$	132,892		$	148,108
The Match Group	51,441			61,198			76,753			101,001
Media	(13,775		)	(9,794		)	(29,127		)	(18,360		)
eCommerce	(1,004		)	8			(7,858		)	(1,553		)
Corporate	(42,485		)	(33,493		)	(74,772		)	(61,794		)
Total	$	62,769		$	95,690		$	97,888		$	167,402

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	72,910		$	91,258		$	151,811		$	173,329
The Match Group	64,822			69,368			90,678			116,798
Media	(15,452		)	(8,911		)	(30,035		)	(16,775		)
eCommerce	2,681			4,523			(456		)	7,327
Corporate	(16,282		)	(14,806		)	(28,162		)	(31,152		)
Total	$	108,679		$	141,432		$	183,836		$	249,527

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,
	2015		2014		2015		2014
	(In thousands)
Revenue:
United States	$	566,224	$	511,862	$	1,136,237	$	1,016,265
All other countries	204,908		244,453		407,407		480,297
Total	$	771,132	$	756,315	$	1,543,644	$	1,496,562

	June 30, 2015		December 31, 2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	278,004	$	281,879
All other countries	19,154		20,580
Total	$	297,158	$	302,459

The Company's primary financial measure is Adjusted EBITDA, which is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets 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.

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

	Three Months Ended June 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	72,910		$	—		$	(3,685	)	$	(6,930	)	$	6,297	$	68,592
The Match Group	64,822			(2,056		)	(6,647		)	(5,901		)	1,223		51,441
Media	(15,452		)	(147		)	(228		)	(378		)	2,430		(13,775		)
eCommerce	2,681			(420		)	(2,063		)	(1,202		)	—		(1,004		)
Corporate	(16,282		)	(23,326		)	(2,877		)	—			—		(42,485		)
Total	$	108,679		$	(25,949	)	$	(15,500	)	$	(14,411	)	$	9,950	$	62,769

	Three Months Ended June 30, 2014
	Adjusted EBITDA			Stock-Based 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

	Six Months Ended June 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	151,811		$	—		$	(7,301	)	$	(13,895	)	$	2,277	$	132,892
The Match Group	90,678			(2,669		)	(13,712		)	(9,778		)	12,234		76,753
Media	(30,035		)	(294		)	(432		)	(801		)	2,435		(29,127		)
eCommerce	(456		)	(840		)	(4,070		)	(2,492		)	—		(7,858		)
Corporate	(28,162		)	(41,057		)	(5,553		)	—			—		(74,772		)
Total	$	183,836		$	(44,860	)	$	(31,068	)	$	(26,966	)	$	16,946	$	97,888

	Six Months Ended June 30, 2014
	Adjusted EBITDA			Stock-Based 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

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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Details 1) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) arrangement	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) arrangement	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Auction rate securities
Cost basis	$ 232,766		$ 232,766		$ 159,418
Gross unrealized losses	$ 0		$ 0		255
Contingent Consideration Arrangements
Number of contingent consideration arrangements related to business acquisitions | arrangement	9		9
Number of contingent consideration arrangements with payment limit | arrangement	8		8
Contingent consideration, maximum amount at balance sheet date	$ 240,700		$ 240,700
Contingent consideration, fair value at balance sheet date with a maximum limit	$ 31,400		$ 31,400
Number of contingent consideration arrangements without payment limit | arrangement	1		1
Contingent consideration, fair value at balance sheet date without a limit	$ 500		$ 500
Contingent consideration, at fair value, current	2,800		2,800
Contingent consideration, at fair value, noncurrent	29,100		29,100
Assets measured at fair value on a nonrecurring basis
Cost method investments	103,300		103,300		90,900
Cost method investments, other than temporary impairment		$ 64,200
Equity method investment, other than temporary impairment		4,200
Long-term marketable equity security
Cost basis	97		97		98
Gross unrealized gain	509		509		1,353
Gross unrealized loss	0		0		0
Auction rate security
Changes in assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period, assets	6,190	9,150	6,070	$ 8,920
Total net gains (losses) included in other comprehensive income (loss), Asset	440	100	560	330
Balance at the end of the period, assets	6,630	9,250	6,630	9,250
Auction rate securities
Cost basis	10,000		10,000		10,000
Gross unrealized losses	3,400		3,400		3,900
Contingent Consideration Arrangement
Changes in liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	(20,964)	(48,758)	(30,140)	(45,828)
Total net gains (losses) included in earnings, fair value adjustments	9,950	(527)	16,946	(500)
Total net gains (losses) included in earnings, foreign currency exchange gains	(4)	0	626	0
Total net gains (losses) included in other comprehensive income (loss), Liability	384	499	2,117	136
Fair value at date of acquisition	(26,749)	0	(27,112)	(2,835)
Settlements	5,525	7,389	5,705	7,630
Balance at the end of the period	(31,858)	$ (41,397)	$ (31,858)	$ (41,397)
Contingent Consideration Arrangement | Minimum [Member]
Contingent Consideration Arrangements
Contingent consideration, discount rates			12.00%
Contingent Consideration Arrangement | Maximum [Member]
Contingent Consideration Arrangements
Contingent consideration, discount rates			25.00%
Equity security
Long-term marketable equity security
Cost basis	8,700		$ 8,700		8,700
Gross unrealized gain	$ 2,700		$ 2,700
Gross unrealized loss					$ 1,200

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MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2015

Marketable Securities [Abstract]

Schedule of current available-for-sale marketable securities

At June 30, 2015, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Corporate debt securities	$	232,766	$	151	$	—	$	232,917
Equity security	97		509		—		606
Total marketable securities	$	232,863	$	660	$	—	$	233,523

At December 31, 2014, current available-for-sale marketable securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Corporate debt securities	$	159,418	$	34	$	(255	)	$	159,197
Equity security	98		1,353		—			1,451
Total marketable securities	$	159,516	$	1,387	$	(255	)	$	160,648

Schedule of contractual maturities of debt securities classified as available-for-sale

The contractual maturities of debt securities classified as current available-for-sale at June 30, 2015 are as follows:

	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	95,946	$	95,979
Due after one year through five years	136,820		136,938
Total	$	232,766	$	232,917

Schedule of proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains and losses

The following table presents the proceeds from maturities and sales of current and non-current available-for-sale marketable securities and the related gross realized gains:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable securities	$	8,563	$	3,462	$	14,613	$	3,462
Gross realized gains	5		2,299		5		2,299

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of reconciliation of revenues from segments to consolidated

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Revenue:
Search & Applications	$	351,366		$	395,716		$	734,264		$	793,751
The Match Group	254,690			214,314			493,901			425,501
Media	36,210			36,656			79,822			73,011
eCommerce	128,986			109,949			235,996			204,791
Inter-segment eliminations	(120		)	(320		)	(339		)	(492		)
Total	$	771,132		$	756,315		$	1,543,644		$	1,496,562

Schedule of reconciliation of operating income (loss) from segments to consolidated

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Operating Income (Loss):
Search & Applications	$	68,592		$	77,771		$	132,892		$	148,108
The Match Group	51,441			61,198			76,753			101,001
Media	(13,775		)	(9,794		)	(29,127		)	(18,360		)
eCommerce	(1,004		)	8			(7,858		)	(1,553		)
Corporate	(42,485		)	(33,493		)	(74,772		)	(61,794		)
Total	$	62,769		$	95,690		$	97,888		$	167,402

Schedule of reconciliation of Adjusted EBITDA from segments to consolidated

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(In thousands)
Adjusted EBITDA:
Search & Applications	$	72,910		$	91,258		$	151,811		$	173,329
The Match Group	64,822			69,368			90,678			116,798
Media	(15,452		)	(8,911		)	(30,035		)	(16,775		)
eCommerce	2,681			4,523			(456		)	7,327
Corporate	(16,282		)	(14,806		)	(28,162		)	(31,152		)
Total	$	108,679		$	141,432		$	183,836		$	249,527

Schedule of revenue and long-lived assets, excluding goodwill and intangible assets, by geography

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,
	2015		2014		2015		2014
	(In thousands)
Revenue:
United States	$	566,224	$	511,862	$	1,136,237	$	1,016,265
All other countries	204,908		244,453		407,407		480,297
Total	$	771,132	$	756,315	$	1,543,644	$	1,496,562

	June 30, 2015		December 31, 2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	278,004	$	281,879
All other countries	19,154		20,580
Total	$	297,158	$	302,459

Schedule of reconciliation of Adjusted EBITDA to operating income (loss) for the entity's reportable segments

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

	Three Months Ended June 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	72,910		$	—		$	(3,685	)	$	(6,930	)	$	6,297	$	68,592
The Match Group	64,822			(2,056		)	(6,647		)	(5,901		)	1,223		51,441
Media	(15,452		)	(147		)	(228		)	(378		)	2,430		(13,775		)
eCommerce	2,681			(420		)	(2,063		)	(1,202		)	—		(1,004		)
Corporate	(16,282		)	(23,326		)	(2,877		)	—			—		(42,485		)
Total	$	108,679		$	(25,949	)	$	(15,500	)	$	(14,411	)	$	9,950	$	62,769

	Three Months Ended June 30, 2014
	Adjusted EBITDA			Stock-Based 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

	Six Months Ended June 30, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Operating Income (Loss)
	(In thousands)
Search & Applications	$	151,811		$	—		$	(7,301	)	$	(13,895	)	$	2,277	$	132,892
The Match Group	90,678			(2,669		)	(13,712		)	(9,778		)	12,234		76,753
Media	(30,035		)	(294		)	(432		)	(801		)	2,435		(29,127		)
eCommerce	(456		)	(840		)	(4,070		)	(2,492		)	—		(7,858		)
Corporate	(28,162		)	(41,057		)	(5,553		)	—			—		(74,772		)
Total	$	183,836		$	(44,860	)	$	(31,068	)	$	(26,966	)	$	16,946	$	97,888

	Six Months Ended June 30, 2014
	Adjusted EBITDA			Stock-Based 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

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SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Revenue and long-lived assets by geography
Revenue	$ 771,132	$ 756,315	$ 1,543,644	$ 1,496,562
Long-lived assets (excluding goodwill and intangible assets)	297,158		297,158		$ 302,459
Reportable Geographical Components | United States
Revenue and long-lived assets by geography
Revenue	566,224	511,862	1,136,237	1,016,265
Long-lived assets (excluding goodwill and intangible assets)	278,004		278,004		281,879
Reportable Geographical Components | All Other Countries
Revenue and long-lived assets by geography
Revenue	204,908	$ 244,453	407,407	$ 480,297
Long-lived assets (excluding goodwill and intangible assets)	$ 19,154		$ 19,154		$ 20,580

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	$ 57,732	$ (18,863)	$ 79,720	$ 14,628
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustment	8,613	(187)	(48,001)	5,190
Change in unrealized gains and losses of available-for-sale securities (net of tax benefits of $126 and $182 for the three and six months ended June 30, 2015, respectively, and net of tax benefits of $865 and $1,438 for the three and six months ended June 30, 2014, respectively)	3,615	(2,139)	4,249	(2,250)
Total other comprehensive income (loss), net of tax	12,228	(2,326)	(43,752)	2,940
Comprehensive income (loss)	69,960	(21,189)	35,968	17,568
Comprehensive loss attributable to noncontrolling interests	2,323	984	7,147	3,461
Comprehensive income (loss) attributable to IAC shareholders	$ 72,283	$ (20,205)	$ 43,115	$ 21,029

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INCOME TAXES

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which they occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or the liabilities for uncertain tax positions is recognized in the interim period in which the change occurs.

The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the expected annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in income tax provision in the quarter in which the change occurs.

For the three and six months ended June 30, 2015, the Company recorded an income tax benefit for continuing operations of $12.0 million and $5.8 million, respectively. The income tax benefit for the three and six months ended June 30, 2015 are due primarily to the realization of certain deferred tax assets, a reduction in tax reserves and related interest due to the expiration of statutes of limitations, and the non-taxable gain on contingent consideration fair value adjustments in the current year period, partially offset by state taxes. For the three and six months ended June 30, 2014, the Company recorded an income tax provision for continuing operations of $29.9 million and $51.3 million, respectively, which represents effective income tax rates of 251% and 76%, respectively. The effective rates for the three and six months ended June 30, 2014 are higher than the statutory rate of 35% due primarily to the largely unbenefited loss associated with the write-downs of certain of the Company's investments, interest on reserves for income tax contingencies, and state taxes, partially offset by foreign income taxed at lower rates.

The Company recognizes interest and, if applicable, penalties related to unrecognized tax benefits in the income tax provision. Included in the income tax provision for continuing operations for the three and six months ended June 30, 2015, is a $0.1 million benefit and a $0.2 million benefit, respectively, net of related deferred taxes, for interest on unrecognized tax benefits. At June 30, 2015 and December 31, 2014, the Company has accrued $2.2 million and $2.8 million, respectively, for the payment of interest. At June 30, 2015 and December 31, 2014, the Company has accrued $2.3 million and $2.9 million, respectively, for penalties.

The Company is routinely under audit by federal, state, local and foreign authorities in the area of income tax. These audits include questioning the timing and the amount of income and deductions and the allocation of income and deductions among various tax jurisdictions. The Internal Revenue Service is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2012. Various other jurisdictions are open to examination for various tax years beginning with 2009. Income taxes payable include reserves considered sufficient to pay assessments that may result from examination of prior year tax returns. Changes to reserves from period to period and differences between amounts paid, if any, upon resolution of audits and amounts previously provided may be material. Differences between the reserves for uncertain tax positions and the amounts owed by the Company are recorded in the period they become known.

At June 30, 2015 and December 31, 2014, unrecognized tax benefits, including interest and penalties, are $25.9 million and $33.2 million, respectively. If unrecognized tax benefits at June 30, 2015 are subsequently recognized, $23.9 million, net of related deferred tax assets and interest, would reduce income tax provision for continuing operations. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $3.4 million within twelve months of June 30, 2015 primarily due to settlements and expiration of statutes of limitations.

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2015

Guarantor and Nonguarantor Financial Statements [Abstract]

Schedule of condensed balance sheet

Balance sheet at June 30, 2015:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	431,731	$	4,121	$	220,557	$	—		$	656,409
Marketable securities	232,917		—		606		—			233,523
Accounts receivable, net	4		132,223		90,879		—			223,106
Other current assets	47,233		97,670		69,692		(4,871		)	209,724
Intercompany receivables	—		1,635,189		942,583		(2,577,772		)	—
Property and equipment, net	4,867		228,061		64,230		—			297,158
Goodwill	—		1,250,801		528,029		—			1,778,830
Intangible assets, net	—		313,275		158,807		—			472,082
Investment in subsidiaries	4,971,322		932,210		—		(5,903,532		)	—
Other non-current assets	69,644		20,715		115,405		(1,538		)	204,226
Total assets	$	5,757,718	$	4,614,265	$	2,190,788	$	(8,487,713	)	$	4,075,058
Current portion of long-term debt	$	—	$	80,000	$	—	$	—		$	80,000
Accounts payable, trade	3,078		57,265		19,091		—			79,434
Other current liabilities	32,661		320,261		203,239		(738		)	555,423
Long-term debt, net of current portion	1,000,000		—		—		—			1,000,000
Income taxes payable	892		4,829		19,047		—			24,768
Intercompany liabilities	2,577,772		—		—		(2,577,772		)	—
Other long-term liabilities	327,929		100,370		69,242		(5,671		)	491,870
Redeemable noncontrolling interests	—		—		28,177		—			28,177
IAC shareholders' equity	1,815,386		4,051,540		1,851,992		(5,903,532		)	1,815,386
Total liabilities and shareholders' equity	$	5,757,718	$	4,614,265	$	2,190,788	$	(8,487,713	)	$	4,075,058

Balance sheet at December 31, 2014:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Total Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	766,076	$	1,021	$	223,308	$	—		$	990,405
Marketable securities	159,197		—		1,451		—			160,648
Accounts receivable, net	13		155,262		80,811		—			236,086
Other current assets	23,923		91,105		57,487		(5,773		)	166,742
Intercompany receivables	—		1,688,403		970,810		(2,659,213		)	—
Property and equipment, net	4,950		232,819		64,690		—			302,459
Goodwill	—		1,249,807		505,119		—			1,754,926
Intangible assets, net	—		325,771		166,165		—			491,936
Investment in subsidiaries	5,035,304		930,443		—		(5,965,747		)	—
Other non-current assets	44,610		20,682		109,372		(2,988		)	171,676
Total assets	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878
Accounts payable, trade	$	3,059	$	55,320	$	22,784	$	—		$	81,163
Other current liabilities	73,491		328,920		191,197		(817		)	592,791
Long-term debt	1,000,000		80,000		—		—			1,080,000
Income taxes payable	2,240		4,771		25,624		—			32,635
Intercompany liabilities	2,659,213		—		—		(2,659,213		)	—
Other long-term liabilities	304,117		104,219		54,328		(7,944		)	454,720
Redeemable noncontrolling interests	—		—		40,427		—			40,427
IAC shareholders' equity	1,991,953		4,122,083		1,843,664		(5,965,747		)	1,991,953
Noncontrolling interests	—		—		1,189		—			1,189
Total liabilities and shareholders' equity	$	6,034,073	$	4,695,313	$	2,179,213	$	(8,633,721	)	$	4,274,878

Schedule of condensed income statement

Statement of operations for the three months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	586,067		$	188,460		$	(3,395	)	$	771,132
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	294			117,383			65,792			(193		)	183,276
Selling and marketing expense	1,010			264,647			56,949			(3,209		)	319,397
General and administrative expense	33,942			66,336			29,064			7			129,349
Product development expense	2,330			30,996			13,104			—			46,430
Depreciation	426			11,110			3,964			—			15,500
Amortization of intangibles	—			6,226			8,185			—			14,411
Total operating costs and expenses	38,002			496,698			177,058			(3,395		)	708,363
Operating (loss) income	(38,002		)	89,369			11,402			—			62,769
Equity in earnings of unconsolidated affiliates	70,523			13,353			—			(83,876		)	—
Interest expense	(12,992		)	(2,211		)	(11		)	—			(15,214		)
Other (expense) income, net	(7,506		)	17,787			(11,919		)	—			(1,638		)
Earnings (loss) from continuing operations before income taxes	12,023			118,298			(528		)	(83,876		)	45,917
Income tax benefit (provision)	47,435			(40,470		)	5,003			—			11,968
Earnings from continuing operations	59,458			77,828			4,475			(83,876		)	57,885
(Loss) earnings from discontinued operations, net of tax	(153		)	—			3			(3		)	(153		)
Net earnings	59,305			77,828			4,478			(83,879		)	57,732
Net loss attributable to noncontrolling interests	—			—			1,573			—			1,573
Net earnings attributable to IAC shareholders	$	59,305		$	77,828		$	6,051		$	(83,879	)	$	59,305
Comprehensive income attributable to IAC shareholders	$	72,283		$	79,129		$	15,106		$	(94,235	)	$	72,283

Statement of operations for the three months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	556,162		$	203,497		$	(3,344	)	$	756,315
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	383			126,162			84,872			(687		)	210,730
Selling and marketing expense	619			220,152			54,158			(2,439		)	272,490
General and administrative expense	26,609			48,459			34,816			13			109,897
Product development expense	1,705			26,305			11,066			(231		)	38,845
Depreciation	312			9,224			5,721			—			15,257
Amortization of intangibles	—			9,659			3,747			—			13,406
Total operating costs and expenses	29,628			439,961			194,380			(3,344		)	660,625
Operating (loss) income	(29,628		)	116,201			9,117			—			95,690
Equity in earnings of unconsolidated affiliates	8,264			5,297			—			(13,561		)	—
Interest expense	(12,985		)	(1,052		)	(9		)	—			(14,046		)
Other income (expense), net	6,537			(13,834		)	(62,453		)	—			(69,750		)
(Loss) earnings from continuing operations before income taxes	(27,812		)	106,612			(53,345		)	(13,561		)	11,894
Income tax benefit (provision)	10,684			(39,785		)	(788		)	—			(29,889		)
(Loss) earnings from continuing operations	(17,128		)	66,827			(54,133		)	(13,561		)	(17,995		)
Loss from discontinued operations, net of tax	(868		)	—			(27		)	27			(868		)
Net (loss) earnings	(17,996		)	66,827			(54,160		)	(13,534		)	(18,863		)
Net loss attributable to noncontrolling interests	—			—			867			—			867
Net (loss) earnings attributable to IAC shareholders	$	(17,996	)	$	66,827		$	(53,293	)	$	(13,534	)	$	(17,996	)
Comprehensive (loss) income attributable to IAC shareholders	$	(20,205	)	$	66,163		$	(55,879	)	$	(10,284	)	$	(20,205	)

Statement of operations for the six months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,180,868		$	368,820		$	(6,044	)	$	1,543,644
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	539			237,124			137,556			(390		)	374,829
Selling and marketing expense	2,065			553,272			127,345			(5,619		)	677,063
General and administrative expense	58,006			132,089			54,083			(35		)	244,143
Product development expense	4,507			62,130			25,050			—			91,687
Depreciation	827			22,690			7,551			—			31,068
Amortization of intangibles	—			12,496			14,470			—			26,966
Total operating costs and expenses	65,944			1,019,801			366,055			(6,044		)	1,445,756
Operating (loss) income	(65,944		)	161,067			2,765			—			97,888
Equity in earnings of unconsolidated affiliates	124,647			17,049			—			(141,696		)	—
Interest expense	(25,982		)	(3,257		)	(39		)	—			(29,278		)
Other (expense) income, net	(16,859		)	29,179			(6,970		)	—			5,350
Earnings (loss) from continuing operations before income taxes	15,862			204,038			(4,244		)	(141,696		)	73,960
Income tax benefit (provision)	69,876			(72,266		)	8,178			—			5,788
Earnings from continuing operations	85,738			131,772			3,934			(141,696		)	79,748
(Loss) earnings from discontinued operations, net of tax	(28		)	—			3			(3		)	(28		)
Net earnings	85,710			131,772			3,937			(141,699		)	79,720
Net loss attributable to noncontrolling interests	—			—			5,990			—			5,990
Net earnings attributable to IAC shareholders	$	85,710		$	131,772		$	9,927		$	(141,699	)	$	85,710
Comprehensive income (loss) attributable to IAC shareholders	$	43,115		$	127,288		$	(37,762	)	$	(89,526	)	$	43,115

Statement of operations for the six months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Total Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	1,102,488		$	400,404		$	(6,330	)	$	1,496,562
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	355			255,463			165,793			(1,647		)	419,964
Selling and marketing expense	811			456,493			117,922			(4,137		)	571,089
General and administrative expense	49,055			94,134			61,771			26			204,986
Product development expense	3,176			53,401			21,656			(572		)	77,661
Depreciation	641			18,785			10,649			—			30,075
Amortization of intangibles	—			18,660			6,725			—			25,385
Total operating costs and expenses	54,038			896,936			384,516			(6,330		)	1,329,160
Operating (loss) income	(54,038		)	205,552			15,888			—			167,402
Equity in earnings of unconsolidated affiliates	62,561			5,541			—			(68,102		)	—
Interest expense	(25,970		)	(2,094		)	(46		)	—			(28,110		)
Other income (expense), net	16,222			(24,361		)	(63,569		)	—			(71,708		)
(Loss) earnings from continuing operations before income taxes	(1,225		)	184,638			(47,727		)	(68,102		)	67,584
Income tax benefit (provision)	20,796			(69,729		)	(2,341		)	—			(51,274		)
Earnings (loss) from continuing operations	19,571			114,909			(50,068		)	(68,102		)	16,310
Loss from discontinued operations, net of tax	(1,682		)	—			(40		)	40			(1,682		)
Net earnings (loss)	17,889			114,909			(50,108		)	(68,062		)	14,628
Net loss attributable to noncontrolling interests	—			—			3,261			—			3,261
Net earnings (loss) attributable to IAC shareholders	$	17,889		$	114,909		$	(46,847	)	$	(68,062	)	$	17,889
Comprehensive income (loss) attributable to IAC shareholders	$	21,029		$	114,629		$	(45,764	)	$	(68,865	)	$	21,029

Schedule of condensed cash flow statement

Statement of cash flows for the six months ended June 30, 2015:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(124,420	)	$	232,853		$	(22,654	)	$	85,779
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(3,675		)	(39,611		)	(43,286		)
Capital expenditures	(988		)	(18,242		)	(7,586		)	(26,816		)
Proceeds from maturities and sales of marketable debt securities	14,613			—			—			14,613
Purchases of marketable debt securities	(93,134		)	—			—			(93,134		)
Purchases of long-term investments	—			—			(12,840		)	(12,840		)
Other, net	3,613			(1,086		)	6,072			8,599
Net cash used in investing activities attributable to continuing operations	(75,896		)	(23,003		)	(53,965		)	(152,864		)
Cash flows from financing activities attributable to continuing operations:
Purchase of treasury stock	(200,000		)	—			—			(200,000		)
Dividends	(56,729		)	—			—			(56,729		)
Issuance of common stock, net of withholding taxes	(20,656		)	—			—			(20,656		)
Excess tax benefits from stock-based awards	36,334			—			131			36,465
Purchase of noncontrolling interests	—			—			(15,338		)	(15,338		)
Acquisition-related contingent consideration payments	—			(195		)	(5,510		)	(5,705		)
Intercompany	107,102			(206,557		)	99,455			—
Other, net	166			—			264			430
Net cash (used in) provided by financing activities attributable to continuing operations	(133,783		)	(206,752		)	79,002			(261,533		)
Total cash (used in) provided by continuing operations	(334,099		)	3,098			2,383			(328,618		)
Total cash (used in) provided by discontinued operations	(246		)	—			3			(243		)
Effect of exchange rate changes on cash and cash equivalents	—			2			(5,137		)	(5,135		)
Net (decrease) increase in cash and cash equivalents	(334,345		)	3,100			(2,751		)	(333,996		)
Cash and cash equivalents at beginning of period	766,076			1,021			223,308			990,405
Cash and cash equivalents at end of period	$	431,731		$	4,121		$	220,557		$	656,409

Statement of cash flows for the six months ended June 30, 2014:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities attributable to continuing operations	$	(38,576	)	$	193,388		$	(6,041	)	$	148,771
Cash flows from investing activities attributable to continuing operations:
Acquisitions, net of cash acquired	—			(88,205		)	(15,175		)	(103,380		)
Capital expenditures	(2,390		)	(16,477		)	(7,690		)	(26,557		)
Proceeds from maturities and sales of marketable debt securities	998			—			—			998
Purchases of marketable debt securities	(78,380		)	—			—			(78,380		)
Purchases of long-term investments	(3,000		)	(6,761		)	(4,940		)	(14,701		)
Other, net	—			11			2,176			2,187
Net cash used in investing activities attributable to continuing operations	(82,772		)	(111,432		)	(25,629		)	(219,833		)
Cash flows from financing activities attributable to continuing operations:
Dividends	(40,086		)	—			—			(40,086		)
Issuance of common stock, net of withholding taxes	(13,823		)	—			—			(13,823		)
Excess tax benefits from stock-based awards	22,116			—			10,773			32,889
Purchase of noncontrolling interests	—			(30,000		)	—			(30,000		)
Funds returned from escrow for Meetic tender offer	—			—			12,354			12,354
Acquisition-related contingent consideration payments	—			(257		)	(7,373		)	(7,630		)
Intercompany	104,410			(51,723		)	(52,687		)	—
Other, net	(383		)	—			242			(141		)
Net cash provided by (used in) financing activities attributable to continuing operations	72,234			(81,980		)	(36,691		)	(46,437		)
Total cash used in continuing operations	(49,114		)	(24		)	(68,361		)	(117,499		)
Total cash used in discontinued operations	(116		)	—			(41		)	(157		)
Effect of exchange rate changes on cash and cash equivalents	—			24			4,514			4,538
Net decrease in cash and cash equivalents	(49,230		)	—			(63,888		)	(113,118		)
Cash and cash equivalents at beginning of period	782,022			—			318,422			1,100,444
Cash and cash equivalents at end of period	$	732,792		$	—		$	254,534		$	987,326

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator: Basic
Earnings (loss) from continuing operations	$ 57,885	$ (17,995)	$ 79,748	$ 16,310
Net loss attributable to noncontrolling interests	1,573	867	5,990	3,261
Earnings (loss) from continuing operations attributable to IAC shareholders	59,458	(17,128)	85,738	19,571
Earnings (loss) from discontinued operations attributable to IAC shareholders	(153)	(868)	(28)	(1,682)
Net earnings (loss) attributable to IAC shareholders	59,305	(17,996)	85,710	17,889
Numerator: Diluted
Earnings (loss) from continuing operations	57,885	(17,995)	79,748	16,310
Net loss attributable to noncontrolling interests	1,573	867	5,990	3,261
Earnings (loss) from continuing operations attributable to IAC shareholders	59,458	(17,128)	85,738	19,571
Earnings (loss) from discontinued operations attributable to IAC shareholders	(153)	(868)	(28)	(1,682)
Net earnings (loss) attributable to IAC shareholders	$ 59,305	$ (17,996)	$ 85,710	$ 17,889
Denominator: Basic
Weighted average basic shares outstanding	82,416	83,178	82,932	82,833
Denominator: Diluted
Weighted average basic shares outstanding	82,416	83,178	82,932	82,833
Dilutive securities including stock options and RSUs (in shares)	4,674	0	4,989	5,150
Denominator for earnings per share-weighted average shares (in shares)	87,090	83,178	87,921	87,983
Earnings (loss) per share attributable to IAC shareholders: Basic
Earnings per share from continuing operations (in dollars per share)	$ 0.72	$ (0.21)	$ 1.03	$ 0.24
Discontinued operations (in dollars per share)	0.00	(0.01)	0.00	(0.02)
Earnings per share (in dollars per share)	0.72	(0.22)	1.03	0.22
Earnings (loss) per share attributable to IAC shareholders: Diluted
Earnings per share from continuing operations (in dollars per share)	0.68	(0.21)	0.98	0.22
Discontinued operations (in dollars per share)	0.00	(0.01)	(0.01)	(0.02)
Earnings per share (in dollars per share)	$ 0.68	$ (0.22)	$ 0.97	$ 0.20

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THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP").

Basis of Consolidation and Accounting for Investments

Basis of Consolidation and Accounting for Investments

The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated.

Investments in the common stock or in-substance common stock of entities in which the Company has the ability to exercise significant influence over the operating and financial matters of the investee, but does not have a controlling financial interest, are accounted for using the equity method and are included in "Long-term investments" in the accompanying consolidated balance sheet.

The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.

Accounting Estimates

Accounting Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make certain estimates, judgments and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.

On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of marketable securities and other investments; the recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recovery of definite-lived intangible assets and property and equipment; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts and revenue reserves; the fair value of acquisition-related contingent consideration; the liabilities for uncertain tax positions; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets and other factors that the Company considers relevant.

Certain Risks and Concentrations

Certain Risks and Concentrations

A substantial portion of the Company's revenue is derived from online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or changes in advertising spending behavior or in customer buying behavior could adversely affect our operating results. Most of the Company's online advertising revenue is attributable to a services agreement with Google Inc. ("Google"), which expires on March 31, 2016. Our services agreement requires that we comply with certain guidelines promulgated by Google. Subject to certain limitations, Google may unilaterally update its policies and guidelines, which could require modifications to, or prohibit and/or render obsolete certain of our products, services and/or business practices, which could be costly to address or otherwise have an adverse effect on our business, financial condition and results of operations.

Recent Accounting Pronouncement

Recent Accounting Pronouncement

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common standard for all industries. In July 2015, the FASB decided to defer the effective date for annual reporting periods beginning after December 15, 2017. Early adoption is permitted beginning on the original effective date of December 15, 2016. Upon adoption, ASU No. 2014-09 may either be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method and timing of adoption

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.