GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2018

Guarantor and Nonguarantor Financial Statements [Abstract]

Schedule of Condensed Balance Sheet

Balance sheet at September 30, 2018:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	739,157	$	—	$	931,827		$	—		$	1,670,984
Marketable securities	173,140		—		35,415			—			208,555
Accounts receivable, net of allowance	—		100,837		246,321			—			347,158
Other current assets	43,501		32,036		170,660			—			246,197
Intercompany receivables	—		1,225,467		—			(1,225,467		)	—
Property and equipment, net of accumulated depreciation and amortization	5,707		166,151		136,607			—			308,465
Goodwill	—		412,009		2,160,212			—			2,572,221
Intangible assets, net of accumulated amortization	—		73,524		550,578			—			624,102
Investment in subsidiaries	1,888,607		198,380		—			(2,086,987		)	—
Other non-current assets	220,674		83,101		223,597			(132,707		)	394,665
Total assets	$	3,070,786	$	2,291,505	$	4,455,217		$	(3,445,161	)	$	6,372,347
Current portion of long-term debt	$	—	$	—	$	13,750		$	—		$	13,750
Accounts payable, trade	884		38,487		36,822			—			76,193
Other current liabilities	39,385		91,104		673,073			—			803,562
Long-term debt, net	34,248		—		1,949,745			—			1,983,993
Income taxes payable	—		1,649		23,592			—			25,241
Intercompany liabilities	395,463		—		830,004			(1,225,467		)	—
Other long-term liabilities	324		18,059		185,810			(132,707		)	71,486
Redeemable noncontrolling interests	—		—		69,530			—			69,530
Shareholders' equity (deficit)	2,600,482		2,142,206		(55,219		)	(2,086,987		)	2,600,482
Noncontrolling interests	—		—		728,110			—			728,110
Total liabilities and shareholders' equity	$	3,070,786	$	2,291,505	$	4,455,217		$	(3,445,161	)	$	6,372,347

Balance sheet at December 31, 2017:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	585,639	$	—	$	1,045,170	$	—		$	1,630,809
Marketable securities	4,995		—		—		—			4,995
Accounts receivable, net of allowance	31		109,289		194,707		—			304,027
Other current assets	49,159		33,387		102,828		—			185,374
Intercompany receivables	—		668,703		—		(668,703		)	—
Property and equipment, net of accumulated depreciation and amortization	2,811		174,323		138,036		—			315,170
Goodwill	—		412,010		2,147,056		—			2,559,066
Intangible assets, net of accumulated amortization	—		74,852		588,885		—			663,737
Investment in subsidiaries	2,077,898		554,998		—		(2,632,896		)	—
Other non-current assets	170,073		87,306		79,688		(132,435		)	204,632
Total assets	$	2,890,606	$	2,114,868	$	4,296,370	$	(3,434,034	)	$	5,867,810
Current portion of long-term debt	$	—	$	—	$	13,750	$	—		$	13,750
Accounts payable, trade	5,163		30,469		40,939		—			76,571
Other current liabilities	29,489		88,050		591,868		—			709,407
Long-term debt, net	34,572		—		1,944,897		—			1,979,469
Income taxes payable	16		1,605		24,003		—			25,624
Intercompany liabilities	390,827		—		277,876		(668,703		)	—
Other long-term liabilities	511		18,613		186,610		(132,435		)	73,299
Redeemable noncontrolling interests	—		—		42,867		—			42,867
Shareholders' equity	2,430,028		1,976,131		656,765		(2,632,896		)	2,430,028
Noncontrolling interests	—		—		516,795		—			516,795
Total liabilities and shareholders' equity	$	2,890,606	$	2,114,868	$	4,296,370	$	(3,434,034	)	$	5,867,810

Schedule of Condensed Income Statement

Statement of operations for the three months ended September 30, 2018:

	IAC			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	212,892	$	891,771		$	(71	)	$	1,104,592
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	19			68,748		168,524			(53		)	237,238
Selling and marketing expense	225			79,865		306,747			(35		)	386,802
General and administrative expense	37,021			7,238		146,627			17			190,903
Product development expense	155			14,395		63,190			—			77,740
Depreciation	271			3,009		15,645			—			18,925
Amortization of intangibles	—			409		19,743			—			20,152
Total operating costs and expenses	37,691			173,664		720,476			(71		)	931,760
Operating (loss) income	(37,691		)	39,228		171,295			—			172,832
Equity in earnings of unconsolidated affiliates	162,497			14,555		—			(177,052		)	—
Interest expense	(424		)	—		(27,186		)	—			(27,610		)
Other (expense) income, net (a)	(3,812		)	29,367		3,826			(21,268		)	8,113
Earnings before income taxes	120,570			83,150		147,935			(198,320		)	153,335
Income tax benefit (provision)	25,204			310		(7,272		)	—			18,242
Net earnings	145,774			83,460		140,663			(198,320		)	171,577
Net earnings attributable to noncontrolling interests	—			—		(25,803		)	—			(25,803		)
Net earnings attributable to IAC shareholders	$	145,774		$	83,460	$	114,860		$	(198,320	)	$	145,774
Comprehensive income attributable to IAC shareholders	$	145,245		$	92,277	$	122,765		$	(215,042	)	$	145,245

____________________

^(a)  During the three months ended September 30, 2018, foreign cash of $20 million was repatriated to the U.S.

Statement of operations for the three months ended September 30, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	185,386		$	643,175		$	(127	)	$	828,434
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	—			41,741			124,676			(127		)	166,290
Selling and marketing expense	311			84,416			268,182			(30		)	352,879
General and administrative expense	32,060			15,404			188,086			30			235,580
Product development expense	592			13,145			56,908			—			70,645
Depreciation	407			4,338			12,518			—			17,263
Amortization of intangibles	—			350			4,016			—			4,366
Total operating costs and expenses	33,370			159,394			654,386			(127		)	847,023
Operating (loss) income	(33,370		)	25,992			(11,211		)	—			(18,589		)
Equity in earnings of unconsolidated affiliates	203,817			489			—			(204,306		)	—
Interest expense	(5,484		)	—			(19,552		)	—			(25,036		)
Other (expense) income, net	(8,157		)	8,309			(10,368		)	—			(10,216		)
Earnings (loss) before income taxes	156,806			34,790			(41,131		)	(204,306		)	(53,841		)
Income tax benefit (provision)	22,837			(11,616		)	268,259			—			279,480
Net earnings	179,643			23,174			227,128			(204,306		)	225,639
Net earnings attributable to noncontrolling interests	—			—			(45,996		)	—			(45,996		)
Net earnings attributable to IAC shareholders	$	179,643		$	23,174		$	181,132		$	(204,306	)	$	179,643
Comprehensive income attributable to IAC shareholders	$	216,868		$	3,682		$	225,089		$	(228,771	)	$	216,868

Statement of operations for the nine months ended September 30, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	633,745		$	2,525,271		$	(227	)	$	3,158,789
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	170			186,187			471,227			(160		)	657,424
Selling and marketing expense	627			250,305			908,478			(116		)	1,159,294
General and administrative expense	100,082			36,878			426,441			49			563,450
Product development expense	1,371			42,815			185,936			—			230,122
Depreciation	803			9,475			46,709			—			56,987
Amortization of intangibles	—			1,328			58,965			—			60,293
Total operating costs and expenses	103,053			526,988			2,097,756			(227		)	2,727,570
Operating (loss) income	(103,053		)	106,757			427,515			—			431,219
Equity in earnings of unconsolidated affiliates	517,349			19,282			—			(536,631		)	—
Interest expense	(1,276		)	—			(80,195		)	—			(81,471		)
Other (expense) income, net (b)	(14,223		)	378,454			159,786			(349,382		)	174,635
Earnings before income taxes	398,797			504,493			507,106			(886,013		)	524,383
Income tax benefit (provision)	36,412			(22,815		)	2,290			—			15,887
Net earnings	435,209			481,678			509,396			(886,013		)	540,270
Net earnings attributable to noncontrolling interests	—			—			(105,061		)	—			(105,061		)
Net earnings attributable to IAC shareholders	$	435,209		$	481,678		$	404,335		$	(886,013	)	$	435,209
Comprehensive income attributable to IAC shareholders	$	425,593		$	490,542		$	401,429		$	(891,971	)	$	425,593

________________________

^(b)  During the nine months ended September 30, 2018, foreign cash of $346 million was repatriated to the U.S.

Statement of operations for the nine months ended September 30, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	536,789		$	1,820,373		$	(508	)	$	2,356,654
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	160			104,580			346,975			(434		)	451,281
Selling and marketing expense	1,250			258,634			763,640			(130		)	1,023,394
General and administrative expense	93,974			45,779			389,588			56			529,397
Product development expense	2,098			42,324			136,413			—			180,835
Depreciation	1,290			17,355			36,845			—			55,490
Amortization of intangibles	—			10,102			12,049			—			22,151
Total operating costs and expenses	98,772			478,774			1,685,510			(508		)	2,262,548
Operating (loss) income	(98,772		)	58,015			134,863			—			94,106
Equity in earnings of unconsolidated affiliates	346,655			2,512			—			(349,167		)	—
Interest expense	(16,960		)	—			(57,596		)	—			(74,556		)
Other (expense) income, net	(20,783		)	21,207			(8,124		)	—			(7,700		)
Earnings before income taxes	210,140			81,734			69,143			(349,167		)	11,850
Income tax benefit (provision)	61,980			(22,444		)	283,273			—			322,809
Net earnings	272,120			59,290			352,416			(349,167		)	334,659
Net earnings attributable to noncontrolling interests	—			—			(62,539		)	—			(62,539		)
Net earnings attributable to IAC shareholders	$	272,120		$	59,290		$	289,877		$	(349,167	)	$	272,120
Comprehensive income attributable to IAC shareholders	$	338,730		$	46,025		$	373,997		$	(420,022	)	$	338,730

Schedule of Condensed Cash Flow Statement

Statement of cash flows for the nine months ended September 30, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(30,873	)	$	502,225		$	548,884		$	(348,536	)	$	671,700
Cash flows from investing activities:
Acquisitions, net of cash acquired	(4,142		)	—			(13,493		)	—			(17,635		)
Capital expenditures	(3,960		)	(1,288		)	(54,865		)	—			(60,113		)
Proceeds from maturities and sales of marketable debt securities	125,000			—			—			—			125,000
Purchases of marketable debt securities	(292,090		)	—			(34,816		)	—			(326,906		)
Purchases of investments	(19,180		)	—			(13,000		)	—			(32,180		)
Net proceeds from the sale of investments and businesses	408			—			28,222			—			28,630
Other, net	(5,000		)	3,908			10,738			—			9,646
Net cash (used in) provided by investing activities	(198,964		)	2,620			(77,214		)	—			(273,558		)
Cash flows from financing activities:
Repurchases of IAC debt	(363		)	—			—			—			(363		)
Principal payments on ANGI Homeservices debt	—			—			(10,313		)	—			(10,313		)
Purchase of IAC treasury stock	(82,891		)	—			—			—			(82,891		)
Purchase of Match Group treasury stock	—			—			(86,239		)	—			(86,239		)
Proceeds from the exercise of IAC stock options	38,903			—			—			—			38,903
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			2,876			—			2,876
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(3,011		)	—			—			—			(3,011		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(208,962		)	—			(208,962		)
Purchase of noncontrolling interests	—			—			(4,798		)	—			(4,798		)
Acquisition-related contingent consideration payments	—			—			(185		)	—			(185		)
Intercompany	427,698			(504,845		)	(271,389		)	348,536			—
Other, net	2,674			—			(7,547		)	—			(4,873		)
Net cash provided by (used in) financing activities	383,010			(504,845		)	(586,557		)	348,536			(359,856		)
Total cash provided (used)	153,173			—			(114,887		)	—			38,286
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	345			—			(552		)	—			(207		)
Net increase (decrease) in cash, cash equivalents, and restricted cash	153,518			—			(115,439		)	—			38,079
Cash, cash equivalents, and restricted cash at beginning of period	585,639			—			1,048,043			—			1,633,682
Cash, cash equivalents, and restricted cash at end of period	$	739,157		$	—		$	932,604		$	—		$	1,671,761

Statement of cash flows for the nine months ended September 30, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(35,286	)	$	75,892		$	257,195		$	—		$	297,801
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(2,200		)	(66,913		)	—			(69,113		)
Capital expenditures	(337		)	(903		)	(55,279		)	—			(56,519		)
Proceeds from maturities and sales of marketable debt securities	114,350			—			—			—			114,350
Purchases of marketable debt securities	(24,909		)	—			—			—			(24,909		)
Purchases of investments	—			—			(9,105		)	—			(9,105		)
Net proceeds from the sale of businesses and investments	911			—			124,309			—			125,220
Intercompany	(123,893		)	—			—			123,893			—
Other, net	—			307			1,012			—			1,319
Net cash (used in) provided by investing activities	(33,878		)	(2,796		)	(5,976		)	123,893			81,243
Cash flows from financing activities:
Repurchases of IAC debt	(31,590		)	—			—			—			(31,590		)
Proceeds from the issuance of Match Group debt	—			—			75,000			—			75,000
Purchase of IAC treasury stock	(56,424		)	—			—			—			(56,424		)
Proceeds from the exercise of IAC stock options	69,065			—			—			—			69,065
Proceeds from the exercise of Match Group stock options	—			—			57,705			—			57,705
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(57,180		)	—			—			—			(57,180		)
Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards	—			—			(228,978		)	—			(228,978		)
Purchase of Match Group stock-based awards	—			—			(272,459		)	—			(272,459		)
Purchase of noncontrolling interests	—			—			(13,011		)	—			(13,011		)
Acquisition-related contingent consideration payments	—			—			(27,289		)	—			(27,289		)
Debt issuance costs	—			—			(2,637		)	—			(2,637		)
Intercompany	73,095			(73,096		)	123,894			(123,893		)	—
Other, net	251			—			(5,253		)	—			(5,002		)
Net cash used in financing activities	(2,783		)	(73,096		)	(293,028		)	(123,893		)	(492,800		)
Total cash used	(71,947		)	—			(41,809		)	—			(113,756		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	81			—			9,320			—			9,401
Net decrease in cash, cash equivalents, and restricted cash	(71,866		)	—			(32,489		)	—			(104,355		)
Cash, cash equivalents, and restricted cash at beginning of period	573,784			—			786,415			—			1,360,199
Cash, cash equivalents, and restricted cash at end of period	$	501,918		$	—		$	753,926		$	—		$	1,255,844