SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In thousands)
Revenue:
Match Group	$	421,196		$	309,572		$	828,563		$	608,336
ANGI Homeservices	294,822			180,711			550,133			331,456
Video	62,757			55,182			128,919			105,759
Applications	143,074			143,969			275,061			302,866
Publishing	137,355			78,124			271,677			156,204
Other(a)	—			—			—			23,980
Inter-segment eliminations	(82		)	(171		)	(156		)	(381		)
Total	$	1,059,122		$	767,387		$	2,054,197		$	1,528,220

___________________

^(a)  The 2017 results at the Other segment consists of the results of The Princeton Review prior to its sale on March 31, 2017.

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In thousands)
Operating Income (Loss):
Match Group	$	150,165		$	82,975		$	262,398		$	141,846
ANGI Homeservices	23,262			(4,141		)	12,506			(2,753		)
Video	(14,982		)	(7,829		)	(30,857		)	(23,418		)
Applications	33,077			39,134			58,538			71,902
Publishing	12,807			(2,857		)	28,618			(8,645		)
Other	—			—			—			(5,621		)
Corporate	(35,892		)	(31,647		)	(72,816		)	(60,616		)
Total	$	168,437		$	75,635		$	258,387		$	112,695

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In thousands)
Adjusted EBITDA:(b)
Match Group	$	175,561		$	109,910		$	313,302		$	196,141
ANGI Homeservices	$	66,979		$	13,666		$	103,619		$	23,878
Video	$	(11,102	)	$	(6,832	)	$	(24,042	)	$	(21,564	)
Applications	$	35,404		$	40,546		$	62,156		$	75,479
Publishing	$	13,755		$	2,740		$	30,968		$	3,919
Other	$	—		$	—		$	—		$	(1,532	)
Corporate	$	(15,552	)	$	(15,523	)	$	(32,560	)	$	(29,838	)

________________________

^(b)  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, if applicable, 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 businesses, and this measure is one of the primary metrics on which our internal budgets are based and by which management is compensated. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature. 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 table presents the revenue of the Company's segments disaggregated by type of service:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In thousands)
Match Group
Direct revenue:
North America	$	222,163	$	178,505	$	433,520	$	353,833
International	185,564		120,918		366,944		233,342
Direct revenue	407,727		299,423		800,464		587,175
Indirect revenue (principally advertising revenue)	13,469		10,149		28,099		21,161
Total Match Group revenue	$	421,196	$	309,572	$	828,563	$	608,336
ANGI Homeservices
Marketplace:
Consumer connection revenue	$	187,172	$	141,163	$	336,232	$	257,163
Membership subscription revenue	16,565		13,704		32,192		26,456
Other revenue	998		888		1,919		1,780
Marketplace revenue	204,735		155,755		370,343		285,399
Advertising & Other revenue	72,770		9,736		143,188		18,164
North America	277,505		165,491		513,531		303,563
Consumer connection revenue	12,496		11,170		26,863		19,635
Membership subscription revenue	4,517		3,872		9,188		7,878
Other revenue	304		178		551		380
Europe	17,317		15,220		36,602		27,893
Total ANGI Homeservices revenue	$	294,822	$	180,711	$	550,133	$	331,456

Video
Subscription revenue	$	32,724	$	26,782	$	67,067	$	51,599
Media production and distribution revenue	16,267		23,744		36,315		44,677
Advertising and other revenue	13,766		4,656		25,537		9,483
Total Video revenue	$	62,757	$	55,182	$	128,919	$	105,759
Applications
Advertising revenue:
Google advertising revenue	$	88,821	$	94,130	$	176,252	$	199,228
Other	6,482		8,678		12,836		14,991
Advertising revenue	95,303		102,808		189,088		214,219
Subscription and other revenue	28,262		15,075		44,551		33,996
Consumer	123,565		117,883		233,639		248,215
Advertising revenue:
Google advertising revenue	18,746		25,329		39,892		53,038
Other	741		695		1,472		1,478
Advertising revenue	19,487		26,024		41,364		54,516
Other revenue	22		62		58		135
Partnerships	19,509		26,086		41,422		54,651
Total Applications revenue	$	143,074	$	143,969	$	275,061	$	302,866
Publishing
Advertising revenue:
Google advertising revenue	$	12,353	$	10,808	$	25,991	$	20,597
Other	26,223		17,234		50,170		33,100
Advertising revenue	38,576		28,042		76,161		53,697
Other revenue	1,183		304		2,406		649
Premium Brands	39,759		28,346		78,567		54,346
Advertising revenue:
Google advertising revenue	84,563		43,794		173,255		88,481
Other	9,662		5,786		16,275		12,991
Advertising revenue	94,225		49,580		189,530		101,472
Other revenue	3,371		198		3,580		386
Ask & Other	97,596		49,778		193,110		101,858
Total Publishing revenue	$	137,355	$	78,124	$	271,677	$	156,204

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,
	2018		2017		2018		2017
	(In thousands)
Revenue:
United States	$	708,571	$	545,020	$	1,366,151	$	1,093,618
All other countries	350,551		222,367		688,046		434,602
Total	$	1,059,122	$	767,387	$	2,054,197	$	1,528,220

	June 30, 2018		December 31, 2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	277,566	$	286,541
All other countries	29,036		28,629
Total	$	306,602	$	315,170

Schedule of Reconciliation of Operating Income to Adjusted EBITDA

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

	Three Months Ended June 30, 2018
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	150,165		$	16,706	$	8,399	$	237	$	54	$	175,561
ANGI Homeservices	23,262			$	22,053	$	5,886	$	15,778	$	—	$	66,979
Video	(14,982		)	$	1,293	$	447	$	2,140	$	—	$	(11,102	)
Applications	33,077			$	—	$	773	$	1,554	$	—	$	35,404
Publishing	12,807			$	—	$	469	$	479	$	—	$	13,755
Other	—			$	—	$	—	$	—	$	—	$	—
Corporate	(35,892		)	$	17,509	$	2,831	$	—	$	—	$	(15,552	)
Operating income	168,437
Interest expense	(27,356		)
Other income, net	171,141
Earnings before income taxes	312,222
Income tax provision	(31,368		)
Net earnings	280,854
Net earnings attributable to noncontrolling interests	(62,501		)
Net earnings attributable to IAC shareholders	$	218,353

	Three Months Ended June 30, 2017
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	82,975		$	15,654	$	7,883	$	404	$	2,994	$	109,910
ANGI Homeservices	(4,141		)	$	11,839	$	3,218	$	2,750	$	—	$	13,666
Video	(7,829		)	$	133	$	552	$	312	$	—	$	(6,832	)
Applications	39,134			$	—	$	921	$	491	$	—	$	40,546
Publishing	(2,857		)	$	—	$	930	$	4,667	$	—	$	2,740
Other	—			$	—	$	—	$	—	$	—	$	—
Corporate	(31,647		)	$	11,289	$	4,835	$	—	$	—	$	(15,523	)
Operating income	75,635
Interest expense	(24,728		)
Other income, net	10,230
Earnings before income taxes	61,137
Income tax benefit	19,420
Net earnings	80,557
Net earnings attributable to noncontrolling interests	(14,289		)
Net earnings attributable to IAC shareholders	$	66,268

	Six Months Ended June 30, 2018
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	262,398		$	33,669	$	16,546	$	479	$	210	$	313,302
ANGI Homeservices	12,506			$	46,959	$	12,070	$	32,084	$	—	$	103,619
Video	(30,857		)	$	1,424	$	1,122	$	4,269	$	—	$	(24,042	)
Applications	58,538			$	—	$	1,528	$	2,090	$	—	$	62,156
Publishing	28,618			$	—	$	1,131	$	1,219	$	—	$	30,968
Other	—			$	—	$	—	$	—	$	—	$	—
Corporate	(72,816		)	$	34,591	$	5,665	$	—	$	—	$	(32,560	)
Operating income	258,387
Interest expense	(53,861		)
Other income, net	166,522
Earnings before income taxes	371,048
Income tax provision	(2,355		)
Net earnings	368,693
Net earnings attributable to noncontrolling interests	(79,258		)
Net earnings attributable to IAC shareholders	$	289,435

	Six Months Ended June 30, 2017
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments		Adjusted EBITDA
	(In thousands)
Match Group	$	141,846		$	33,678	$	15,472	$	807	$	4,338	$	196,141
ANGI Homeservices	(2,753		)	$	16,300	$	6,214	$	4,117	$	—	$	23,878
Video	(23,418		)	$	133	$	1,096	$	625	$	—	$	(21,564	)
Applications	71,902			$	—	$	1,932	$	1,097	$	548	$	75,479
Publishing	(8,645		)	$	—	$	2,949	$	9,615	$	—	$	3,919
Other	(5,621		)	$	1,729	$	836	$	1,524	$	—	$	(1,532	)
Corporate	(60,616		)	$	21,050	$	9,728	$	—	$	—	$	(29,838	)
Operating income	112,695
Interest expense	(49,520		)
Other income, net	2,516
Earnings before income taxes	65,691
Income tax benefit	43,329
Net earnings	109,020
Net earnings attributable to noncontrolling interests	(16,543		)
Net earnings attributable to IAC shareholders	$	92,477