SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Segment Reporting Information

The following table presents revenue by reportable segment:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Revenue:
Match Group	$	443,943		$	343,418		$	1,272,506		$	951,754
ANGI Homeservices	303,116			181,717			853,249			513,173
Video	64,193			78,338			193,112			184,097
Applications	153,973			136,333			429,034			439,199
Publishing	139,439			88,755			411,116			244,959
Other^(a)	—			—			—			23,980
Inter-segment eliminations	(72		)	(127		)	(228		)	(508		)
Total	$	1,104,592		$	828,434		$	3,158,789		$	2,356,654

___________________


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

The following table presents the revenue of the Company's reportable segments disaggregated by type of service:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Match Group
Direct revenue:
North America	$	233,643	$	186,868	$	667,163	$	540,701
International	197,902		143,230		564,846		376,572
Direct revenue	431,545		330,098		1,232,009		917,273
Indirect revenue (principally advertising revenue)	12,398		13,320		40,497		34,481
Total Match Group revenue	$	443,943	$	343,418	$	1,272,506	$	951,754

ANGI Homeservices
Marketplace:
Consumer connection revenue	$	195,065	$	141,055	$	531,297	$	398,218
Membership subscription revenue	17,034		14,486		49,226		40,942
Other revenue	950		1,060		2,869		2,840
Marketplace revenue	213,049		156,601		583,392		442,000
Advertising & Other revenue	73,545		10,503		216,733		28,667
North America	286,594		167,104		800,125		470,667
Consumer connection revenue	12,022		10,001		38,885		29,636
Membership subscription revenue	4,217		4,320		13,405		12,198
Other revenue	283		292		834		672
Europe	16,522		14,613		53,124		42,506
Total ANGI Homeservices revenue	$	303,116	$	181,717	$	853,249	$	513,173

Video
Subscription revenue	$	33,964	$	28,348	$	101,031	$	79,947
Media production and distribution revenue	15,966		45,926		52,281		90,603



Advertising and other revenue	14,263		4,064		39,800		13,547
Total Video revenue	$	64,193	$	78,338	$	193,112	$	184,097

Applications
Desktop
Advertising revenue:
Google advertising revenue	$	110,855	$	112,356	$	326,982	$	364,622
Other	3,410		1,574		7,223		4,795
Advertising revenue	114,265		113,930		334,205		369,417
Subscription and other revenue	4,277		8,692		16,355		25,889
Total Desktop	118,542		122,622		350,560		395,306
Mobile
Subscription and other revenue	31,157		6,216		63,687		23,150
Advertising revenue	4,274		7,495		14,787		20,743
Total Mobile	35,431		13,711		78,474		43,893
Total Applications revenue	$	153,973	$	136,333	$	429,034	$	439,199

Publishing
Premium Brands
Advertising revenue:
Google advertising revenue	$	11,526	$	11,956	$	37,517	$	32,553
Other	26,231		17,909		76,401		51,009
Advertising revenue	37,757		29,865		113,918		83,562
Other revenue	1,340		756		3,746		1,405
Total Premium Brands	39,097		30,621		117,664		84,967
Ask & Other
Advertising revenue:
Google advertising revenue	81,507		51,995		254,762		140,476
Other	12,407		5,928		28,682		18,919
Advertising revenue	93,914		57,923		283,444		159,395
Other revenue	6,428		211		10,008		597
Total Ask & Other	100,342		58,134		293,452		159,992
Total Publishing revenue	$	139,439	$	88,755	$	411,116	$	244,959

The following tables present operating income (loss) and Adjusted EBTIDA by reportable segment:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Operating Income (Loss):
Match Group	$	139,895		$	91,008		$	402,293		$	232,854
ANGI Homeservices	33,515			(112,505		)	46,021			(115,258		)
Video	(10,250		)	(1,809		)	(41,107		)	(25,227		)
Applications	33,041			29,386			91,579			101,288
Publishing	17,398			5,677			46,016			(2,968		)
Other^(a)	—			—			—			(5,621		)
Corporate	(40,767		)	(30,346		)	(113,583		)	(90,962		)
Total	$	172,832		$	(18,589	)	$	431,219		$	94,106



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In thousands)
Adjusted EBITDA:^(b)
Match Group	$	165,039		$	119,564		$	478,341		$	315,705
ANGI Homeservices	$	77,700		$	(2,266	)	$	181,319		$	21,612
Video	$	(7,390	)	$	(822	)	$	(31,432	)	$	(22,386	)
Applications	$	34,989		$	31,077		$	97,145		$	106,556
Publishing	$	18,467		$	7,088		$	49,435		$	11,007
Other^(a)	$	—		$	—		$	—		$	(1,532	)
Corporate	$	(21,478	)	$	(17,070	)	$	(54,038	)	$	(46,908	)

________________________

^(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.

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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Revenue:
United States	$	738,599	$	577,362	$	2,104,750	$	1,670,980
All other countries	365,993		251,072		1,054,039		685,674
Total	$	1,104,592	$	828,434	$	3,158,789	$	2,356,654



	September 30, 2018		December 31, 2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
United States	$	279,690	$	286,541
All other countries	28,775		28,629
Total	$	308,465	$	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 September 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	$	139,895		$	16,141	$	8,513	$	435	$	55	$	165,039
ANGI Homeservices	33,515			$	22,474	$	6,100	$	15,611	$	—	$	77,700
Video	(10,250		)	$	323	$	396	$	2,141	$	—	$	(7,390	)
Applications	33,041			$	—	$	617	$	1,331	$	—	$	34,989
Publishing	17,398			$	—	$	435	$	634	$	—	$	18,467
Corporate	(40,767		)	$	16,425	$	2,864	$	—	$	—	$	(21,478	)
Operating income	172,832
Interest expense	(27,610		)
Other income, net	8,113
Earnings before income taxes	153,335
Income tax benefit	18,242
Net earnings	171,577
Net earnings attributable to noncontrolling interests	(25,803		)
Net earnings attributable to IAC shareholders	$	145,774



	Three Months Ended September 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	$	91,008		$	19,949	$	8,147	$	401	$	59	$	119,564
ANGI Homeservices	(112,505		)	$	103,980	$	3,491	$	2,768	$	—	$	(2,266	)
Video	(1,809		)	$	134	$	541	$	312	$	—	$	(822	)
Applications	29,386			$	—	$	1,155	$	536	$	—	$	31,077
Publishing	5,677			$	—	$	1,062	$	349	$	—	$	7,088
Corporate	(30,346		)	$	10,409	$	2,867	$	—	$	—	$	(17,070	)
Operating loss	(18,589		)
Interest expense	(25,036		)
Other expense, net	(10,216		)
Loss before income taxes	(53,841		)
Income tax benefit	279,480
Net earnings	225,639
Net earnings attributable to noncontrolling interests	(45,996		)
Net earnings attributable to IAC shareholders	$	179,643



	Nine Months Ended September 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	$	402,293		$	49,810	$	25,059	$	914	$	265	$	478,341
ANGI Homeservices	46,021			$	69,433	$	18,170	$	47,695	$	—	$	181,319
Video	(41,107		)	$	1,747	$	1,518	$	6,410	$	—	$	(31,432	)
Applications	91,579			$	—	$	2,145	$	3,421	$	—	$	97,145
Publishing	46,016			$	—	$	1,566	$	1,853	$	—	$	49,435
Corporate	(113,583		)	$	51,016	$	8,529	$	—	$	—	$	(54,038	)
Operating income	431,219
Interest expense	(81,471		)
Other income, net	174,635
Earnings before income taxes	524,383
Income tax benefit	15,887
Net earnings	540,270
Net earnings attributable to noncontrolling interests	(105,061		)
Net earnings attributable to IAC shareholders	$	435,209



	Nine Months Ended September 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	$	232,854		$	53,627	$	23,619	$	1,208	$	4,397	$	315,705
ANGI Homeservices	(115,258		)	$	120,280	$	9,705	$	6,885	$	—	$	21,612
Video	(25,227		)	$	267	$	1,637	$	937	$	—	$	(22,386	)
Applications	101,288			$	—	$	3,087	$	1,633	$	548	$	106,556
Publishing	(2,968		)	$	—	$	4,011	$	9,964	$	—	$	11,007
Other	(5,621		)	$	1,729	$	836	$	1,524	$	—	$	(1,532	)
Corporate	(90,962		)	$	31,459	$	12,595	$	—	$	—	$	(46,908	)
Operating income	94,106
Interest expense	(74,556		)
Other expense, net	(7,700		)
Earnings before income taxes	11,850
Income tax benefit	322,809
Net earnings	334,659
Net earnings attributable to noncontrolling interests	(62,539		)
Net earnings attributable to IAC shareholders	$	272,120