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 Other reportable segment, do not meet the quantitative thresholds that require presentation as separate operating segments.



	Years Ended December 31,
	2015			2014			2013
	(In thousands)
Revenue:
Match Group	$	1,020,431		$	888,268		$	803,089
HomeAdvisor	361,201			283,541			239,471
Publishing	691,686			791,549			803,141
Applications	760,748			776,707			834,636
Video	213,317			182,454			161,457
Other	184,095			187,834			182,615
Inter-segment elimination	(545		)	(806		)	(1,422		)
Total	$	3,230,933		$	3,109,547		$	3,022,987



	Years Ended December 31,
	2015			2014			2013
	(In thousands)
Operating Income (Loss):
Match Group	$	193,556		$	228,567		$	221,333
HomeAdvisor	6,452			1,061			284
Publishing	(26,692		)	110,523			119,484
Applications	175,145			178,960			214,916
Video	(38,756		)	(43,346		)	(24,144		)
Other	(9,186		)	8,108			(344		)
Corporate	(120,931		)	(105,146		)	(105,326		)
Total	$	179,588		$	378,727		$	426,203



	Years Ended December 31,
	2015			2014			2013
	(In thousands)
Adjusted EBITDA:^(a)
Match Group	$	278,667		$	273,448		$	271,231
HomeAdvisor	18,529			17,701			15,373
Publishing	87,788			150,960			161,950
Applications	184,258			186,192			219,263
Video	(38,384		)	(39,916		)	(21,397		)
Other	10,621			13,134			7,520
Corporate	(55,689		)	(57,443		)	(55,637		)
Total	$	485,790		$	544,076		$	598,303



	December 31,
	2015		2014
	(In thousands)
Segment Assets:^(b)
Match Group	$	345,879	$	292,307
HomeAdvisor	32,112		28,975
Publishing	390,951		201,405
Applications	108,997		117,358
Video	90,671		83,233
Other	64,550		53,355
Corporate	1,490,598		1,233,390
Total	$	2,523,758	$	2,010,023



	Years Ended December 31,
	2015		2014		2013
	(In thousands)
Capital expenditures:
Match Group	$	29,156	$	21,793	$	19,807
HomeAdvisor	10,170		6,775		6,940
Publishing	6,283		13,481		8,285
Applications	4,681		4,220		13,930
Video	2,466		1,878		1,386
Other	3,175		2,845		1,981
Corporate	6,118		6,241		27,982
Total	$	62,049	$	57,233	$	80,311

_______________________________________________________________________________

(a)

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.


(b)	Consistent with the Company's primary metric (described in (a) above), the Company excludes, if applicable, goodwill and intangible assets from the measure of segment assets presented above.

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



	Years Ended December 31,
	2015		2014		2013
	(In thousands)
Revenue
United States	$	2,376,035	$	2,146,189	$	2,081,485
All other countries	854,898		963,358		941,502
Total	$	3,230,933	$	3,109,547	$	3,022,987



	December 31,
	2015		2014
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	279,913	$	281,879
All other countries	22,904		20,580
Total	$	302,817	$	302,459

The following tables reconcile Adjusted EBITDA to operating income (loss) for the Company's reportable segments and to net earnings attributable to IAC shareholders:



	Year Ended December 31, 2015
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments		Goodwill Impairment			Operating Income (Loss)
	(In thousands)
Match Group	$	278,667		$	(50,083	)	$	(25,983	)	$	(20,101	)	$	11,056	$	—		$	193,556
HomeAdvisor	18,529			(1,649		)	(6,593		)	(3,835		)	—		—			6,452
Publishing	87,788			—			(9,577		)	(104,903		)	—		—			(26,692		)
Applications	184,258			—			(4,617		)	(6,264		)	1,768		—			175,145
Video	(38,384		)	(360		)	(1,091		)	(1,558		)	2,637		—			(38,756		)
Other	10,621			—			(2,460		)	(3,291		)	—		(14,056		)	(9,186		)
Corporate	(55,689		)	(53,358		)	(11,884		)	—			—		—			(120,931		)
Total	$	485,790		$	(105,450	)	$	(62,205	)	$	(139,952	)	$	15,461	$	(14,056	)	179,588
Equity in earnings of unconsolidated affiliates																		772
Interest expense																		(73,636		)
Other income, net																		36,149
Earnings from continuing operations before income taxes																		142,873
Income tax provision																		(29,516		)
Earnings from continuing operations																		113,357
Earnings from discontinued operations, net of tax																		17
Net earnings																		113,374
Net loss attributable to noncontrolling interests																		6,098
Net earnings attributable to IAC shareholders																		$	119,472



	Year Ended December 31, 2014
	Adjusted EBITDA			Stock-Based Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments			Operating Income (Loss)
	(In thousands)
Match Group	$	273,448		$	(20,851	)	$	(25,547	)	$	(11,395	)	$	12,912		$	228,567
HomeAdvisor	17,701			(558		)	(6,520		)	(9,562		)	—			1,061
Publishing	150,960			—			(11,856		)	(28,581		)	—			110,523
Applications	186,192			—			(4,385		)	(2,521		)	(326		)	178,960
Video	(39,916		)	(647		)	(899		)	(2,099		)	215			(43,346		)
Other	13,134			—			(1,824		)	(3,768		)	566			8,108
Corporate	(57,443		)	(37,578		)	(10,125		)	—			—			(105,146		)
Total	$	544,076		$	(59,634	)	$	(61,156	)	$	(57,926	)	$	13,367		378,727
Equity in losses of unconsolidated affiliates																(9,697		)
Interest expense																(56,314		)
Other expense, net																(42,787		)
Earnings from continuing operations before income taxes																269,929
Income tax provision																(35,372		)
Earnings from continuing operations																234,557
Earnings from discontinued operations, net of tax																174,673
Net earnings																409,230
Net loss attributable to noncontrolling interests																5,643
Net earnings attributable to IAC shareholders																$	414,873



	Year Ended December 31, 2013
	Adjusted EBITDA			Non-Cash Compensation Expense			Depreciation			Amortization of Intangibles			Acquisition-related Contingent Consideration Fair Value Adjustments			Operating Income (Loss)
	(In thousands)
Match Group	$	271,231		$	(12,228	)	$	(20,202	)	$	(17,125	)	$	(343	)	$	221,333
HomeAdvisor	15,373			—			(5,174		)	(9,915		)	—			284
Publishing	161,950			(1		)	(14,822		)	(27,643		)	—			119,484
Applications	219,263			(1		)	(4,346		)	—			—			214,916
Video	(21,397		)	(633		)	(1,133		)	(981		)	—			(24,144		)
Other	7,520			29			(3,714		)	(4,179		)	—			(344		)
Corporate	(55,637		)	(40,171		)	(9,518		)	—			—			(105,326		)
Total	$	598,303		$	(53,005	)	$	(58,909	)	$	(59,843	)	$	(343	)	426,203
Equity in losses of unconsolidated affiliates																(6,615		)
Interest expense																(33,596		)
Other income, net																30,309
Earnings from continuing operations before income taxes																416,301
Income tax provision																(134,502		)
Earnings from continuing operations																281,799
Earnings from discontinued operations, net of tax																1,926
Net earnings																283,725
Net loss attributable to noncontrolling interests																2,059
Net earnings attributable to IAC shareholders																$	285,784

The following tables reconcile segment assets to total assets:



	December 31, 2015
	Segment Assets		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets		Total Assets
	(In thousands)
Match Group	$	345,879	$	1,293,109	$	243,697	$	32,711	$	1,915,396
HomeAdvisor	32,112		150,251		600		5,727		188,690
Publishing	390,951		277,192		59,805		7,849		735,797
Applications	108,997		447,242		60,600		7,964		624,803
Video	90,671		15,590		1,800		3,343		111,404
Other	64,550		61,980		13,635		3,097		143,262
Corporate^(c)	1,490,598		—		—		—		1,490,598
Total	$	2,523,758	$	2,245,364	$	380,137	$	60,691	$	5,209,950



	December 31, 2014
	Segment Assets		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets		Total Assets
	(In thousands)
Search & Applications^(d)	$	—	$	774,822	$	—	$	—	$	774,822

Match Group	292,307		791,474		180,558		27,055		1,291,394
HomeAdvisor	28,975		151,321		600		9,693		190,589
Publishing	201,405		—		148,095		25,936		375,436
Applications	117,358		—		60,600		13,079		191,037
Video	83,233		15,590		1,800		4,900		105,523
Other	53,355		21,719		13,581		6,039		94,694
Corporate^(c)	1,233,390		—		—		—		1,233,390
Total	$	2,010,023	$	1,754,926	$	405,234	$	86,702	$	4,256,885

_____________________________________


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

(d)

Prior to the fourth quarter of 2015, Search & Applications was a reportable segment consisting of one operating segment and one reporting unit. In the fourth quarter of 2015, Search &Applications was split into three new operating segments and reportable units: Publishing, Applications and PriceRunner (included in the Other segment). The goodwill of Search & Applications was allocated to these three reporting units based upon their relative fair values as of October 1, 2015. It is not possible to reflect this allocation on a retrospective basis because of acquisitions and dispositions during the three years in the period ended December 31, 2015. See Note 1 for additional information on the realignment of IAC's reportable segments and Note 4 for additional information on goodwill.