10-K

As filed with the Securities and Exchange Commission on March 1, 2019

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2018

Commission File No. 000-20570

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  (Address of Registrant's principal executive offices)	10011  (Zip Code)

(212) 314-7300

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of exchange on which registered
Common Stock, par value $0.001	The Nasdaq Stock Market LLC (Nasdaq Global Select Market)

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x   No o

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o    No x

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 x    No o

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes x  No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   x

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

Large accelerated filer ý Accelerated filer o Non-accelerated filer o Smaller reporting  company o Emerging growth company o

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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 x

As of February 1, 2019, the following shares of the Registrant's Common Stock were outstanding:

Common Stock	77,986,305
Class B Common Stock	5,789,499
Total	83,775,804

The aggregate market value of the voting common stock held by non-affiliates of the Registrant as of June 30, 2018 was $11,833,394,558. For the purpose of the foregoing calculation only, all directors and executive officers of the Registrant are assumed to be affiliates of the Registrant.

Documents Incorporated By Reference:

Portions of the Registrant's proxy statement for its 2019 Annual Meeting of Stockholders are incorporated by reference into Part III herein.

TABLE OF CONTENTS

		Page Number
PART I
Item 1.	Business	2
Item 1A.	Risk Factors	15
Item 1B.	Unresolved Staff Comments	28
Item 2.	Properties	28
Item 3.	Legal Proceedings	28
Item 4.	Mine Safety Disclosures	30
PART II
Item 5.	Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	31
Item 6.	Selected Financial Data	32
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	66
Item 8.	Consolidated Financial Statements and Supplementary Data	67
	Note 1—Organization	74
	Note 2—Summary of Significant Accounting Policies	76
	Note 3—Income Taxes	91
	Note 4—Business Combination	95
	Note 5—Goodwill and Intangible Assets	97
	Note 6—Financial Instruments	100
	Note 7—Long-Term Debt	105
	Note 8—Shareholders' Equity	110
	Note 9—Accumulated Other Comprehensive Loss	111
	Note 10—Earnings (Loss) Per Share	112
	Note 11—Stock-Based Compensation	112
	Note 12—Segment Information	117
	Note 13—Commitments and Contingencies	124
	Note 14—Supplemental Cash Flow Information	126
	Note 15—Related Party Transactions	126
	Note 16—Benefit Plans	128
	Note 17—Consolidated Financial Statement Details	129
	Note 18—Transaction and Integration Related Costs in Connection with the Combination	130
	Note 19—Guarantor and Non-Guarantor Financial Information	132
	Note 20—Quarterly Results (Unaudited)	140
	Note 21—Subsequent Events (Unaudited)	141
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	142
Item 9A.	Controls and Procedures	142
Item 9B.	Other Information	144
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	145
Item 11.	Executive Compensation	145
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	145
Item 13.	Certain Relationships and Related Transactions, and Director Independence	145
Item 14.	Principal Accounting Fees and Services	145
PART IV
Item 15.	Exhibits and Financial Statement Schedules	146

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PART I

Item 1.    Business

OVERVIEW

Who We Are

IAC has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish and OkCupid, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy, and also operates Vimeo, Dotdash and The Daily Beast, among many other online businesses.

As used herein, "IAC," the "Company," "we," "our," "us" and similar terms refer to IAC/InterActiveCorp and its subsidiaries (unless the context requires otherwise).

Our History

IAC, initially a hybrid media/electronic retailing company, was incorporated in 1986 in Delaware under the name Silver King Broadcasting Company, Inc. After several name changes (first to HSN, Inc., then to USA Networks, Inc., USA Interactive and InterActiveCorp, and finally, to IAC/InterActiveCorp) and the completion of a number of significant corporate transactions over the years, the Company transformed itself into a leading media and Internet company.

From 1997 to 2005, we acquired a number of e-commerce companies, including Ticketmaster Group, Hotel Reservations Network (later renamed Hotels.com), Expedia.com, Match.com, LendingTree, Hotwire, TripAdvisor and AskJeeves.

In 2005, we completed the separation of our travel and travel‑related businesses and investments into an independent public company called Expedia, Inc. (now known as Expedia Group, Inc.). In 2008, we separated into five independent, publicly traded companies: IAC, HSN, Inc. (now part of Qurate Retail, Inc.), Interval Leisure Group, Inc. (now part of Marriott Vacations Worldwide Corporation), Ticketmaster (now part of Live Nation, Inc.) and Tree.com, Inc.

From 2008 to 2014, we continued to invest in and acquire e-commerce companies, including Meetic, About.com (now known as Dotdash), Dictionary.com and Investopedia. In 2015, we acquired Plentyoffish Media Inc. and completed the initial public offering of Match Group, Inc.

In 2016 and 2017, we completed the combination of the businesses in our former HomeAdvisor segment with those of Angie’s List, Inc. under a new publicly traded holding company that we control, ANGI Homeservices Inc. ("ANGI Homeservices"), as well as acquired controlling interests in MyHammer Holding AG, HomeStars Inc. and MyBuilder Limited, leading home services platforms in Germany, the United Kingdom and Canada, respectively. Through Vimeo, we acquired VHX, a platform for premium over-the-top (OTT) subscription video channels, and Livestream Inc., a leading live video solution.

In 2018, through ANGI Homeservices, we acquired Handy Technologies, Inc., a leading platform in the United States for connecting consumers looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals. We also acquired a controlling interest in BlueCrew, an on-demand staffing platform that connects temporary workers with traditional blue-collar jobs in areas like warehouse, delivery and moving, data entry and customer service. Lastly, we sold our Dictionary.com business, the television business of Electus (including Notional) and our Felix and CityGrid businesses.

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EQUITY OWNERSHIP AND VOTE

IAC has outstanding shares of common stock, with one vote per share, and shares of Class B common stock, with ten votes per share and which are convertible into common stock on a share for share basis. As of the date of this report, Barry Diller, IAC’s Chairman and Senior Executive, his spouse (Diane von Furstenberg) and his stepson (Alexander von Furstenberg), collectively beneficially own 5,789,499 shares of Class B common stock representing 100% of the outstanding shares of Class B common stock. Together with shares of common stock held as of the date of this report by Mr. von Furstenberg (61,685), a trust for the benefit of certain members of Mr. Diller’s family (136,711) and a family foundation (1,711), these holdings represent approximately 42.8% of the total outstanding voting power of IAC (based on the number of shares of common and Class B common stock outstanding on February 1, 2019). As of the date of this report, Mr. Diller also holds 1,050,000 vested options and 250,000 unvested options to purchase shares of common stock.

In addition, pursuant to an amended and restated governance agreement between IAC and Mr. Diller, for so long as Mr. Diller serves as IAC’s Chairman and Senior Executive and he beneficially owns (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended) at least 5,000,000 shares of Class B common stock and/or common stock in which he has a pecuniary interest (including IAC securities beneficially owned by him directly and indirectly through trusts for the benefit of certain members of his family), he generally has the right to consent to limited matters in the event that IAC’s ratio of total debt to EBITDA (as defined in the governance agreement) equals or exceeds four to one over a continuous twelve-month period.

As a result of IAC securities beneficially owned by Mr. Diller and certain members of his family, Mr. Diller and these family members are, collectively, currently in a position to influence, subject to our organizational documents and Delaware law, the composition of IAC’s Board of Directors and the outcome of corporate actions requiring shareholder approval, such as mergers, business combinations and dispositions of assets, among other corporate transactions.

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DESCRIPTION OF IAC BUSINESSES

Match Group

Overview

Our Match Group segment consists of the businesses and operations of Match Group, Inc. ("Match Group"). Through Match Group, we operate a portfolio of dating brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs and Hinge, as well as a number of other brands, each designed to increase user likelihood of finding a meaningful connection. As of December 31, 2018, IAC’s ownership and voting interests in Match Group were 81.1% and 97.6%, respectively.

Services

Through Match Group, we are a leading provider of dating products all over the world through applications and websites that we own and operate. As of December 31, 2018, there were approximately 7.9 million Average Subscribers to our dating products (calculated by summing the total number of users who purchased one of our subscription-based dating products at the end of each day in the year ended December 31, 2018, divided by the number of calendar days in such year).

Dating is a highly personal endeavor and consumers have a wide variety of preferences that determine what type of dating product they choose. As a result, our strategy focuses on a portfolio approach of various brands in order to reach a broad range of users. Our brands are collectively available in 40 languages to users all over the world. The following is a list of our key brands: 

Tinder. Tinder was launched in 2012, and has since risen to scale and popularity faster than any other product in the online dating category with limited marketing spend, growing to over 4.3 million subscribers today. Tinder’s distinctive "right swipe" feature has led to significant adoption among the millennial generation, previously underserved by the online dating category. Tinder employs a freemium model, through which users can enjoy many of the core features of Tinder for free, including limited use of the "swipe right" feature with unlimited communication with other users. However, to enjoy premium features, such as unlimited use of the "swipe right" feature, a Tinder user must subscribe to either Tinder Plus, launched in early 2015, or Tinder Gold, which was launched in late summer 2017. Tinder users and subscribers may also pay for certain premium features, such as Super Likes and Boosts, on a pay-per-use basis.

Match. Match was launched in 1995 and helped create the online dating category. Among its distinguishing features are the ability to search profiles, receive algorithmic matches and attend live events (promoted by Match) with other subscribers. Additionally, new features, such as Missed Connections, which uses location-based technology to enable users to connect with other users with whom they have crossed paths in the past, engage users into more meaningful connections. Match is a brand that focuses on users with a high level of intent to enter into a relationship and its product and marketing are designed to reinforce that approach. Match relies heavily on word-of-mouth traffic, repeat usage and paid marketing.

PlentyOfFish. PlentyOfFish was launched in 2003 and acquired in October 2015. Similar to Match, among its distinguishing features is the ability to both search profiles and receive algorithmic matches. Similar to Tinder, PlentyOfFish has grown to popularity over the years with very limited marketing spend and also relies on a freemium model. PlentyOfFish has broad appeal in the central United States, Canada, the United Kingdom and a number of other international markets.

Meetic. Meetic, a leading European online dating brand based in France, was launched in 2001. Similar to Match, among its distinguishing features are the ability to search profiles, receive algorithmic matches and attend live events (promoted by Meetic) with other subscribers and non-subscribers from time to time. Also, similar to Match, Meetic is a brand that focuses on users with a high level of intent to enter into a relationship and its product and marketing are designed to reinforce that approach. Meetic relies heavily on word-of-mouth traffic, repeat usage and paid marketing.

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OkCupid. OkCupid was launched in 2004, and has attracted users through a mathematical and Q&A approach to the online dating category. Similar to Tinder and PlentyOfFish, OkCupid has grown in popularity over the years without significant marketing spend and also relies on a freemium model. OkCupid has a loyal and highly educated user base predominately located in major cities in the United States and the United Kingdom.

OurTime. OurTime is the largest brand within our affinity-oriented brands. OurTime is the largest community of singles over age 50 of any dating product.

Pairs. Pairs was launched in 2012 and acquired in May 2015. Pairs is a leading provider of dating products in Japan, with a strong presence in Taiwan and a growing presence in certain other Asian countries. Pairs is a dating app that was specifically designed to address social barriers generally associated with the use of dating products in Asian countries, particularly Japan.

Hinge. Hinge was launched in 2012 and, following a series of investments, Match took a controlling stake in Hinge in June 2018 and purchased all of the remaining outstanding equity in December 2018. Hinge is a mobile-only experience and employs a freemium model. Hinge focuses on users with a high level of intent to enter into a relationship and its product is designed to reinforce that approach.

All of our dating products enable users to establish a profile and review the profiles of other users without charge. Each product also offers additional features, some of which are free and some of which are paid, depending on the particular product. In general, access to premium features requires a subscription, which is typically offered in packages (primarily ranging from one month to six months), depending on the product and circumstance. Prices differ meaningfully within a given brand by the duration of subscription purchased, the bundle of paid features that a user chooses to access and whether or not a subscriber is taking advantage of any special offers. In addition to subscriptions, many of our dating products offer users certain features, such as the ability to promote themselves for a given period of time or to review certain profiles without any signaling to other users, and these features are offered on a pay‑per‑use basis. The precise mix of paid and premium features is established over time on a brand‑by‑brand basis and is constantly subject to iteration and evolution.

Revenue

Match Group revenue is primarily derived directly from users in the form of recurring subscriptions. Revenue is also earned from online advertising, the purchase of à la carte features and offline events.

Marketing

Certain of our brands attract the majority of their users through word-of-mouth and other free channels. Our other brands rely on paid user acquisition efforts for a significant percentage of their users. Our online marketing activities generally consist of social media advertising, banner and other display advertising, search engine marketing, e-mail campaigns, video advertising, business development or partnership deals and hiring influencers to promote our dating products. Our offline marketing activities generally consist of television advertising and related public relations efforts, as well as events.

Competition

The dating industry is competitive and has no single, dominant brand globally. We compete with a number of other companies that provide similar dating and matchmaking products.

In addition to other online dating brands, we compete with social media platforms and offline dating services, such as in‑person matchmakers. Arguably, our biggest competition comes from the traditional ways that people meet each other and the choices some people make to not utilize dating products or services.

We believe that our ability to compete successfully in the case of our dating business will depend primarily upon the following factors:

• our ability to continue to increase consumer acceptance and adoption of online dating products, particularly in emerging markets and other parts of the world where the stigma is only beginning to erode;

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• continued growth in Internet access and smart phone adoption in certain regions of the world, particularly emerging markets;

• the continued strength of Match Group brands;

• the breadth and depth of Match Group active user communities relative to those of its competitors;

• our ability to evolve our dating products in response to competitor offerings, user requirements, social trends, the ever-evolving technological landscape and the ever-changing regulatory landscape (in particular, as it relates to the regulation of online platforms);

• our ability to efficiently acquire new users for our dating products;

• our ability to continue to optimize our monetization strategies; and

• the design and functionality of our dating products.

Lastly, since a large portion of online dating customers use multiple dating products over a given period of time, either concurrently or sequentially, we believe our broad portfolio of dating brands is a competitive advantage.

ANGI Homeservices

Overview

Through the ANGI Homeservices portfolio of digital home services brands, including HomeAdvisor®, Angie’s List® and Handy, we connect millions of homeowners to home service professionals, collect reviews and allow homeowners to research, match and connect on-demand to the largest network of service professionals online, through our mobile apps or by voice assistants. 

In addition to its market-leading U.S. operations, ANGI owns leading home services online marketplaces in France (Travaux), Germany (MyHammer), Netherlands (Werkspot), United Kingdom (MyBuilder), Canada (HomeStars) and Italy (Instapro), as well as operations in Austria (MyHammer). As of December 31, 2018, IAC’s economic and voting interests in ANGI Homeservices were 83.9% and 98.1%, respectively.

Our ANGI Homeservices segment consists of the North American (United States and Canada) and European businesses and operations of ANGI Homeservices, a publicly traded holding company that was formed to facilitate the combination of the businesses within our former HomeAdvisor segment with Angie’s List, Inc. ("Angie's List"), which transaction was completed on September 29, 2017 (the "Combination"). ANGI Homeservices acquired Handy Technologies, Inc. ("Handy"), a leading platform in the United States for connecting individuals looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals, in October 2018.

Services

Overview. The HomeAdvisor digital marketplace service (formerly known as our HomeAdvisor domestic business ("HomeAdvisor")) connects consumers with service professionals nationwide for home repair, maintenance and improvement projects. HomeAdvisor provides consumers with tools and resources to help them find local, pre-screened and customer-rated service professionals, as well as instantly book appointments online. HomeAdvisor also connects consumers with service professionals instantly by telephone, as well as offers several home services-related resources, such as cost guides for different types of home services projects. Handy connects consumers looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals.

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Together, we refer to the HomeAdvisor and Handy businesses in the United States as the "Marketplace." We provide all Marketplace matching services, related tools and directories to consumers free of charge.

As of December 31, 2018, the Marketplace had a network of approximately 214,000 service professionals, each of whom had an active network membership and/or paid for consumer matches (in the case of HomeAdvisor service professionals) or completed a job sourced through the Handy platform (in the case of Handy service professionals) in December 2018. Collectively, these service professionals provided services in more than 500 categories and 400 discrete markets in the United States, ranging from cleaning and installation services to simple home repairs and larger home remodeling projects. The Marketplace generated approximately 23.5 million service requests from over 13 million households during the year ended December 31, 2018. Service requests consisted of fully completed customer service requests submitted to HomeAdvisor and completed jobs sourced through the Handy platform.

Angie’s List connects consumers with service professionals for local services through a nationwide online directory of service professionals in over 700 service categories, as well as provides consumers with valuable tools, services and content (including verified reviews), to help them research, shop and hire for local services. We provide consumers with access to the Angie's List nationwide directory and related basic tools and services free of charge.

Marketplace Consumer Services. Consumers can submit a service request for a service professional directly through HomeAdvisor platforms, as well as indirectly through certain paths on some of our other branded platforms and various third-party affiliate platforms. In the case of service requests submitted through HomeAdvisor and third-party affiliate platforms, consumers are generally matched (through our proprietary algorithms) with up to four service professionals from the HomeAdvisor network of service professionals based on several factors, including the type of services desired, location and the number of service professionals available to fulfill the request. In the case of service requests submitted through our other branded platforms, consumers are generally matched (through our proprietary algorithms) with a combination of HomeAdvisor service professionals and service professionals from the relevant branded platform (as and if available for the given service request).

Service professionals may contact consumers with whom they have been matched directly and consumers can review profiles, ratings and reviews of presented service professionals and select the service professional whom they believe best meets their specific needs. Consumers are under no obligation to work with any service professional(s) referred by or found through any of our branded platforms or third-party affiliate platforms.

HomeAdvisor also provides several on-demand services, including Instant Booking and Instant Connect (patent-pending). Through Instant Booking, consumers can schedule appointments for select home services with a HomeAdvisor service professional instantly across certain HomeAdvisor platforms. Through Instant Connect, consumers can connect with a HomeAdvisor service professional instantly by phone, as well as through digital voice assistant platforms. In certain markets, HomeAdvisor also provides Same Day Service and Next Day Service for certain home services. In addition to matching and on-demand services, consumers can access the online HomeAdvisor True Cost Guide, which provides project cost information for more than 400 project types nationwide, as well as a library of home services-related content.

Through the Handy platform, consumers can select the service they need and specify when (date and time) they want the service to be provided; this information is then used to match consumers with Handy service professionals. In certain markets, consumers can also submit a request to book a specific Handy service professional for a given job. In both cases, the service is then scheduled and paid for directly through the Handy platform. In addition, consumers who purchase furniture, electronics, appliances and other home-related items from select third-party retail partners online (and in certain markets, in store) can simultaneously purchase assembly, installation and other related services to be fulfilled by Handy service professionals. The service is then paid for directly through the applicable third-party retail partner platform and scheduled through the Handy platform. Consumers can also search for service professionals by zip code on the Handy platform and contact them through the Handy platform.

Marketplace Service Professional Services. We primarily offer and sell HomeAdvisor memberships and related products and services to service professionals through our sales force (described below). The basic HomeAdvisor annual membership package includes membership in the HomeAdvisor network of service professionals, as well as access to consumer matches through HomeAdvisor platforms and a listing in the HomeAdvisor online directory and certain other affiliate directories, among other benefits. In addition to the membership subscription fee, HomeAdvisor service professionals pay fees for consumer matches. In the case of Handy, we provide service professionals who self-register on the Handy platform with access to a pool of consumers seeking service professionals. When a service is scheduled through the Handy platform, the related payment is processed and we charge the service professional a

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booking fee. We also offer certain other subscription products, primarily to HomeAdvisor service professionals, through mHelpDesk, a provider of cloud-based field service software for small to mid-size businesses, as well as custom website development and hosting services.

Angie's List Consumer Services. Through most Angie’s List platforms, consumers can currently register and search for a service professional in the Angie’s List nationwide online directory and/or be matched with a service professional. Consumers who register can access ratings and reviews and search for service professionals, as well as access certain promotions. For a fee, we offer two premium membership packages, which include varying degrees of online and phone support, access to exclusive promotions and features and the award-winning Angie’s Listprint magazine.

Angie's List Service Professional Services. Angie’s List provides service professionals with a variety of services and tools, including certification. Generally, service professionals with an overall member grade below a "B" are not eligible for certification. Service professionals must satisfy certain criteria for certification, including retaining the requisite member grade, passing certain criminal background checks and attesting to proper licensure requirements. Once eligibility criteria are satisfied, service professionals must purchase term-based advertising from us to obtain certification. As of December 31, 2018, we had approximately 36,000 certified service professionals under contract for advertising.

Certified service professionals rotate among the first service professionals listed in directory search results for an applicable category, with non-certified service professionals appearing below certified service professionals in directory search results. Certified service professionals can also provide exclusive promotions to members. When consumers choose to be matched with a service professional, our proprietary algorithms will determine where a given service professional appears within related results.

Revenue

ANGI Homeservices revenue is primarily derived from: (i) consumer connection revenue, which consists of fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and booking fees from completed jobs sourced through the Handy platform, and (ii) membership subscription fees paid by HomeAdvisor service professionals. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service.

Revenue is also derived from: (i) sales of time-based website, mobile and call center advertising to service professionals and (ii) membership subscription fees from consumers.

Marketing

ANGI Homeservices products and services are marketed to consumers primarily through digital marketing (primarily paid search engine marketing, display advertising and third-party affiliate agreements) and traditional offline marketing (national television and radio campaigns), as well as through e-mail. Pursuant to third-party affiliate agreements, third parties agree to advertise and promote HomeAdvisor products and services (and those of HomeAdvisor service professionals) on their platforms. In exchange for these efforts, these third parties are paid a fixed fee when visitors from their platforms click through and submit a valid service request through HomeAdvisor, or when visitors submit a valid service request on the affiliate platform and the affiliate transmits the service request to HomeAdvisor. ANGI Homeservices products and services are also marketed to consumers through relationships with select third-party retail partners and, to a lesser extent, through partnerships with other contextually related websites and direct mail.

We market subscription packages and related products and services to service professionals primarily through our Golden, Colorado based sales force, as well as through sales forces in Denver and Colorado Springs, Colorado, Lenexa, Kansas, New York, New York, Indianapolis, Indiana and Chicago, Illinois. We also market these products and services, together with our various directories, through paid search engine marketing, digital media advertising and direct relationships with trade associations and manufacturers. We market term-based advertising and related products to service professionals primarily through our Indianapolis based sales force.

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Competition

The home services industry is highly competitive and fragmented, and in many important respects, local in nature. ANGI Homeservices competes with, among others: (i) search engines and online directories, (ii) home and/or local services-related platforms, (iii) providers of consumer ratings, reviews and referrals and (iv) various forms of traditional offline advertising (primarily local in nature), including radio, direct marketing campaigns, yellow pages, newspapers and other offline directories. We also compete with local and national retailers of home improvement products that offer or promote installation services. We believe our biggest competition comes from the traditional methods most people currently use to find service professionals, which is by word-of-mouth and through referrals.

We believe that our ability to compete successfully will depend primarily upon the following factors:

• the size, quality, diversity and stability of our network of service professionals and the breadth of our online directory listings;

• the functionality of our websites and mobile applications and the attractiveness of their features and our products and services generally to consumers and service professionals, as well as our continued ability to introduce new products and services that resonate with consumers and service professionals generally;

• our ability to continue to build and maintain awareness of, and trust in and loyalty to, our various brands, particularly our Angie’s List, HomeAdvisor and Handy brands;

• our ability to consistently generate service requests and jobs through the Marketplace and leads through our online directories that convert into revenue for our service professionals in a cost-effective manner; and

• the quality and consistency of our service professional pre-screening processes and ongoing quality control efforts, as well as the reliability, depth and timeliness of customer ratings and reviews.

Vimeo

Overview

Vimeo operates a global video platform for creative professionals, marketers and enterprises to connect with their audiences, customers and employees. Vimeo provides cloud-based software products to stream, host, distribute and monetize videos online and across devices, as well as premium video tools on a subscription basis. Vimeo also sells live streaming accessories.

Platform

Through Vimeo’s Platform business, we provide basic video hosting and sharing capabilities free of charge. We also provide various packages of premium video tools via a Software-as-a-Service ("SaaS") model on a subscription basis (monthly or annual). Package capabilities may include additional video storage and high quality live streaming capabilities, robust video privacy controls, video player customization options, team collaboration and management tools, review and workflow tools, detailed analytics, lead generation and marketing tools, priority support and the ability to sell videos directly to consumers in a customized viewing experience, with the precise mix of capabilities dependent upon the tier of package purchased. As of December 31, 2018, there were approximately 952,000 subscribers to Vimeo’s SaaS offering.

Vimeo also operates two marketplaces for buying and selling videos, the Vimeo on Demand store and the Vimeo Stock store. Through the Vimeo on Demand store, subscribers may offer their videos for sale to their audiences. Through the Vimeo Stock store, Vimeo offers stock video footage from certain licensors. In both cases, Vimeo earns fees from the sale of video content.

Hardware

Through Livestream, we sell a number of live streaming accessories, including hardware devices for capturing, broadcasting and editing live video and the Mevo® camera, a pocket-sized device that allows broadcasters to professionally stream and edit live video. We also sell hardware equipment for customers with more sophisticated live

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streaming needs, such as 4K encoding, multi-camera switching and on-screen graphics. Our hardware devices enable customers to stream video of their events through Vimeo software, as well as to multiple third-party platforms simultaneously. Subscribers to our SaaS offering can host, distribute and monetize live video edited with these hardware devices through Vimeo platforms.

Marketing and Sales

We market Vimeo services primarily through online marketing efforts, including paid search engine marketing, social media, e-mail campaigns, display advertising and affiliate marketing. We also market these products and services through offline marketing efforts, including outdoor advertising, offline events and product integrations, as well as directly through our self-serve websites and apps. Vimeo services and products can be purchased directly through our self-serve websites and apps, the Apple App Store and Google Play Store and our sales force, and in the case of livestreaming accessories only, through a network of retailers and distributors.

Revenue

Vimeo revenue is derived primarily from annual and monthly SaaS subscription fees paid by creators for premium capabilities and, to a lesser extent, sales of live streaming hardware, software and professional services.

Competition

Vimeo competes with a variety of online video platforms, from free, ad-based video sharing services directed at consumers to niche workflow and distribution solutions directed at professionals and enterprises. We believe that Vimeo differentiates itself from its competitors by providing an ad-free, high quality user experience and one-stop professional solution that is easy to use and affordable.

We believe that our ability to compete successfully will depend primarily upon the following factors:

• the quality of our technology platform, video tools and user experience;

• whether our SaaS subscription offering and live streaming accessories resonate with consumers;

• the continued ability of users to distribute Vimeo-hosted content across third-party platforms and the prominence and visibility of such content within search engine results and social media platforms;

• the recognition and strength of the Vimeo brand relative to competitor brands;

• our ability to host and stream high-bandwidth video on a scalable platform;

• our ability to retain existing subscribers by continuing to provide a compelling value proposition and convert non-paying users into subscribers; and

• our ability to drive visitors to our platform through various forms of direct marketing.

    Dotdash

Overview

Built upon more than 20 years of data and expert-written content, Dotdash is a portfolio of digital brands providing expert information and inspiration in select vertical content categories to over 90 million users each month.

Content

As of the date of this report, our Dotdash business consist of the following brands:

• the Verywell family of brands, a leading online health publisher and resource where users can explore a full spectrum of health and wellness topics, from comprehensive information on medical conditions to advice on fitness, nutrition, mental health, pregnancy and more;

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• the Spruce family of brands, a leading online lifestyle property covering home decor, home repair, recipes, cooking techniques, pets and crafts where users can find practical, real-life tips and inspiration to help them create their best home;

• the Balance family of brands, a leading online property covering personal finance, career and small business topics that makes personal finance easy to understand and where users can find clear, practical and straightforward personal financial advice;

• Investopedia, an online resource for investment and personal finance education and information;

• Lifewire, a leading online technology information property that provides expert-created, real-world technology content with informative visuals and straightforward instruction that helps users fix tech gadgets, learn how to perform specific tech tasks and find the best tech products;

• TripSavvy, a travel website written by real experts (not anonymous reviewers) where users can find useful travel advice and inspiration from destinations around the world;

• ThoughtCo, a leading online information and reference site with a focus on expert-created education content where users can find answers to questions and information regarding a broad range of disciplines, including science, technology and math, the humanities and the arts, music and recreation; and

• two recently acquired websites, Byrdie, a leading beauty website covering beauty tips, style, product reviews and makeup trends, and MyDomaine, a lifestyle website where users can find fresh recipes, smart career tips and insider travel guides that awaken a life well lived.

Through these brands, we provide original and engaging digital content in a variety of formats, including articles, illustrations, videos and images. We work with hundreds of experts in their respective fields to create the content that we publish, including doctors, chefs, certified financial advisors and others.

Revenue

Dotdash revenue consists principally of digital advertising revenue and affiliate commerce commission revenue. Digital advertising revenue is generated primarily through digital display advertisements sold directly and through programmatic advertising networks. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction.

Marketing

We market our content through a variety of digital distribution channels, including search engines, social media platforms and direct navigation programs. Users who engage with Dotdash brands are invited to share Dotdash content and sign up for our e-mail newsletters.

Competition

Dotdash competes with a wide variety of parties in connection with our efforts to attract and retain users and advertisers. Competitors primarily include other online publishers and destination websites with brands in similar vertical content categories and social channels.

Some of our current competitors have longer operating histories, greater brand recognition, larger user bases and/or greater financial, technical or marketing resources than we do. As a result, they have the ability to devote comparatively greater resources to the development and promotion of their content, which could result in greater market acceptance of their content relative to our content.

We believe that the ability of Dotdash to compete successfully will depend primarily upon the following factors:

• the quality of the content and features on our websites, relative to those of our competitors;

• our ability to successfully create or acquire content (or the rights thereto) in a cost-effective manner;

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• the relevance and authority of the content featured on our websites; and

• our ability to successfully drive visitors to our portfolio of digital brands in a cost-effective manner.

Applications    

Overview

Our Applications segment consists of our Desktop business and Mosaic Group, our mobile business. Through these businesses, we are a leading provider of global, advertising-driven desktop and subscription-based mobile applications.

Desktop

Through our Desktop business, we own and operate a portfolio of desktop browser applications that provide users with access to a wide variety of online content, tools and services. Aligned around the common theme of making the lives of our users easier in just a few clicks, these products span a myriad of categories, including: FromDocToPDF, through which users can convert documents from one format into various others; MapsGalaxy, through which users can access accurate street maps, local traffic conditions and aerial and satellite street views; and GetFormsOnline, through which users can access essential forms (tax, healthcare, travel and more) online. We provide users who download our desktop browser applications with new tab search services, as well as the option of default browser search services. We distribute our desktop browser applications to consumers free of charge on an opt-in basis directly through direct to consumer (primarily the Chrome Web Store) and partnership distribution channels.

We also develop, distribute and provide a suite of Slimware-branded desktop-support software and services, including: DriverUpdate®, which scans, identifies and completes required updates to device-to-PC communicating drivers; SlimCleaner® software, which cleans, updates, secures and optimizes computer operating systems; and Slimware® Premium Support, a subscription service that provides subscribers with 24/7 access to remote tech support for their computers, mobile phones and other digital devices.

Mosaic Group

Through Mosaic Group, we are a leading provider of global subscription mobile applications. Mosaic Group consists of the following businesses that we own and operate: Apalon, iTranslate (acquired in March 2018), TelTech (acquired in October 2018) and Daily Burn.

Apalon is a leading mobile development company with one of the largest and most popular application portfolios worldwide. iTranslate develops and distributes applications that enable users to read, write, speak and learn foreign languages anywhere in the world. TelTech develops and distributes unique and innovative mobile communications applications that help protect consumer privacy. Daily Burn is a health and fitness property that provides streaming fitness and workout videos across a variety of platforms (including iOS, Android, Roku and other Internet-enabled television platforms). 

Through Mosaic Group, collectively, we operated 39 branded mobile applications in 28 languages across 173 countries as of the date of this report. Our branded mobile applications consist of applications spanning a variety of categories, each designed to meet the varying and unique needs of our subscribers and enhance their daily lives, including: iTranslate, through which subscribers can connect and communicate across over 100 languages; Robokiller, which thwarts telemarketing spam phones calls; and NOAA Radar, which provides up-to-date weather information and storm tracking worldwide. We distribute our branded mobile applications to our subscribers primarily through the Apple App and Google Play stores.

Revenue

Desktop revenue largely consists of advertising revenue generated principally through the display of paid listings in response to search queries. Paid listings are advertisements displayed on search results pages that generally contain a link to advertiser websites. The substantial majority of the paid listings displayed by our Desktop business is supplied to us by Google Inc. ("Google") pursuant to our services agreement with Google.

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Pursuant to this agreement, those of our Desktop businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through one of our Desktop businesses and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing and shares a portion of the fee charged to the advertiser with us. See "Item 1A-Risk Factors-We depend upon arrangements with Google."

To a lesser extent, Desktop revenue also includes fees related to subscription downloadable desktop applications, as well as display advertisements.

Mosaic Group revenue consists primarily of fees related to subscription downloadable mobile applications distributed through the Apple App and Google Play stores, as well as display advertisements.

Marketing

We market our Desktop applications to users primarily through digital display advertisements and paid search engine marketing efforts, as well as through a number of affiliate advertisers who engage in these efforts on our behalf. We market our mobile applications to users primarily through digital storefronts (primarily Apple App and Google Play stores) and digital display advertisements on social media, messaging and media platforms, as well as in-app and cross-app advertising.

Competition

The Applications industry is competitive and has no single, dominant desktop or mobile application brand globally. In the case of our Desktop business, we compete with a number of other companies that develop and market similar desktop browser application products and distribute them through direct to consumer and third-party agreements. We also compete with search engines to provide users with new tab, homepage and/or default search services. We believe that the ability of our Desktop business to compete successfully will depend primarily upon the following factors:

• our ability to maintain industry-leading monetization solutions for our desktop browser applications in response to technological changes and platform demands;

• the size and stability of our global base of installed desktop application products and our ability to grow this base;

• the continued creation of desktop browser applications that resonate with consumers, which depends upon our continued ability to bundle attractive features, content and services (some of which may be owned by third parties);

• our ability to differentiate our desktop browser applications from those of our competitors; and

• our ability to market and distribute our desktop browser applications through direct to consumer (primarily the Chrome Web Store) and third-party channels in a cost-effective manner.

In the case of Mosaic Group, we compete with many mobile application companies that provide similar free and paid mobile application products. Our competition also comes from services provided by non-mobile, analog and disparate sources, along with certain digital companies whose competitive products are ancillary or immaterial to their primary sources of revenue. We believe that the ability of Mosaic Group to compete successfully will depend primarily upon the following factors:

• the continued growth of consumer adoption of free and paid mobile applications generally and related engagement levels;

• our ability to operate our mobile applications as a scalable platform;

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• our ability to retain existing subscribers and acquire new subscribers in a cost-effective manner;

• our ability to continue to optimize our marketing and monetization strategies;

• the continued growth of smartphone adoption in certain regions of the world, particularly emerging markets;

• the continued strength of Mosaic Group brands; and 

• our ability to introduce new and enhanced mobile applications in response to competitor offerings, consumer preferences, platform demands, social trends and evolving technological landscape.

Emerging & Other

Overview

Our Emerging & Other segment primarily includes:

• Ask Media Group, a collection of websites providing general search services and information;

• BlueCrew, an on-demand staffing platform that connects temporary workers with traditional blue-collar jobs in areas like warehouse, delivery and moving, data entry and customer service; 

• The Daily Beast, a website dedicated to news, commentary, culture and entertainment that publishes original reporting and opinion from its roster of full-time journalists and contributors;

• College Humor Media, a provider of digital content, including its recently launched subscription only property, Dropout.tv; and

• IAC Films, a provider of production and producer services for feature films, primarily for initial sale and distribution through theatrical releases and video-on-demand services in the United States and internationally.

For information regarding businesses that were included in this segment prior to their respective sales, see "Item 8-Consolidated Financial Statements and Supplementary Data-Note 1-Organization."

Revenue

Revenue of Ask Media Group consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries and display advertisements (sold directly and through programmatic ad sales). The majority of the paid listings displayed are supplied to us by Google in the manner, and pursuant to the services agreement with Google, described above under "-Applications-Revenue."

The Daily Beast revenue consists of advertising revenue, which is generated primarily through display advertisements (sold directly and through programmatic ad sales).

BlueCrew revenue consists of service revenue, which is generated through staffing temporary workers.

Revenue of College Humor Media and IAC Films is generated primarily through media production and distribution and advertising.

Employees

As of December 31, 2018, IAC had approximately 7,800 employees worldwide, the substantial majority of which provided services to our brands and business located in the United States. We believe that we generally have good relationships with our employees.

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Additional Information

Company Website and Public Filings

The Company maintains a website at www.iac.com. Neither the information on the Company’s website, nor the information on the website of any IAC business, is incorporated by reference into this annual report, or into any other filings with, or into any other information furnished or submitted to, the SEC.

The Company makes available, free of charge through its website, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (including related amendments) as soon as reasonably practicable after they have been electronically filed with (or furnished to) the SEC.

Code of Ethics

The Company’s code of ethics applies to all employees (including IAC’s principal executive officers, principal financial officer and principal accounting officer) and directors and is posted on the Investor Relations section of the Company's website at www.iac.com/Investors under the "Code of Ethics" tab. This code of ethics complies with Item 406 of SEC Regulation S-K and the rules of The Nasdaq Stock Market LLC. Any changes to the code of ethics that affect the provisions required by Item 406 of Regulation S-K (and any waivers of such provisions of the code of ethics for IAC’s executive officers, senior financial officers or directors) will also be disclosed on IAC’s website.

Item 1A.    Risk Factors

Cautionary Statement Regarding Forward-Looking Information

This annual report on Form 10-K 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," "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 expectations and assumptions about future events as of the date of this annual report, 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, the risk factors set forth below. Other unknown or unpredictable factors that could also adversely affect IAC’s business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, the forward‑looking statements discussed in this annual 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 annual report. IAC does not undertake to update these forward‑looking statements.

Risk Factors

Our success depends, in substantial part, on our continued ability to market, distribute and monetize our products and services through search engines, social media platforms and digital app stores.

The marketing, distribution and monetization of our products and services depends on our ability to cultivate and maintain cost-effective and otherwise satisfactory relationships with search engines, social media platforms and digital app stores, in particular, those operated by Google, Facebook and Apple. These platforms could decide not to market and distribute some or all of our products and services, change their terms and conditions of use at any time (and without notice), favor their own products and services over ours and/or significantly increase their fees. While we expect to maintain cost-effective and otherwise satisfactory relationships with these platforms, no assurances can be provided that we will be able to do so and our inability to do so in the case of one or more of these platforms could have a material adverse effect on our business, financial condition and results of operations.

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In particular, as consumers increasingly access our products and services through mobile applications, we (primarily in the case of our dating and Mosaic Group businesses) increasingly depend upon the Apple App Store and the Google Play Store to distribute our mobile applications. Both Apple and Google have broad discretion to change their respective terms and conditions applicable to the distribution of our mobile applications, including those relating to the amount of (and requirement to pay) certain fees associated with purchases facilitated by Apple and Google through our mobile applications, to interpret their respective terms and conditions in ways that may limit, eliminate or otherwise interfere with our ability to distribute mobile applications through their stores, the features we provide and the manner in which we market in-app products. We cannot assure you that Apple or Google will not limit, eliminate or otherwise interfere with the distribution of our mobile applications, the features we provide and the manner in which we market our in-app products. To the extent either or both of them do so, our business, financial condition and results of operations could be adversely affected.

In addition, the use of certain of our products and services also depends, in part, on social media platforms. For example, many users of Match Group’s Tinder, Hinge and certain other dating products historically registered for (and logged into) these dating products exclusively through their Facebook profiles. While Match Group launched an alternate authentication method that allows users to register for (and log into) Tinder, Hinge and other affected products using their mobile phone number, no assurances can be provided that users will no longer register for (and log into) Tinder, Hinge and other affected products through their Facebook profiles. Facebook has broad discretion to change its terms and conditions applicable to the data collected by its platform (and the use of such data) and to interpret its terms and conditions in ways that could limit, eliminate or otherwise interfere with our ability to use Facebook as an authentication method or to allow Facebook to use such data to gain a competitive advantage. If any such event were to occur, our, business, financial condition and results of operations could be adversely affected.

Our success depends, in part, upon the continued migration of certain markets and industries online and the continued growth and acceptance of online products and services as effective alternatives to traditional offline products and services.

Through our various businesses, we provide a variety of online products and services that continue to compete with their traditional offline counterparts. We believe that the continued growth and acceptance of online products and services generally will depend, to a large extent, on the continued growth in commercial use of the Internet (particularly abroad) and the continued migration of traditional offline markets and industries online.

For example, the success of the businesses within our Match Group segment depends, in substantial part, on the continued migration of the dating market online, our ability to continue to provide dating products that users find more efficient, effective, comfortable and convenient relative to traditional means of meeting people and the continued erosion of stigma surrounding online dating (particularly in emerging markets and other parts of the world). If for any reason the dating market does not continue to migrate online as quickly as (or at lower levels than) we expect and/or a meaningful number of users do not embrace our dating products (and/or return to offline dating products and services), our business, financial condition and results of operations could be adversely affected.

Similarly, the success of the businesses within our ANGI Homeservices segment depends, in substantial part, on the continued migration of the home services market online. If for any reason the home services market does not migrate online as quickly as (or at lower levels than) we expect and consumers and service professionals continue, in large part, to rely on traditional offline efforts to connect with one another, our business, financial condition and results of operations could be adversely affected.

Lastly, as it relates to our advertising-supported businesses, our success also depends, in part, on our ability to compete for a share of available advertising expenditures as more traditional offline and emerging media companies continue to enter the online advertising market, as well as on the continued growth and acceptance of online advertising generally. If for any reason online advertising is not perceived as effective (relative to traditional advertising) and related mobile and other advertising models are not accepted, web browsers, software programs and/or other applications that limit or prevent advertising from being displayed become commonplace and/or the industry fails to effectively manage click fraud, the market for online advertising will be negatively impacted. Any lack of growth in the market for online advertising (particularly for paid listings) could adversely affect our business, financial condition and results of operations.

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Marketing efforts designed to drive visitors to our various brands and businesses may not be successful or cost-effective.

Traffic building and conversion initiatives involve considerable expenditures for online and offline advertising and marketing. We have made, and expect to continue to make, significant expenditures for search engine marketing (primarily in the form of the purchase of keywords, which we purchase primarily through Google and, to a lesser extent, Microsoft and Yahoo!), online display advertising and traditional offline advertising (including television and radio campaigns) in connection with these initiatives, which may not be successful or cost-effective. Historically, we have had to increase advertising and marketing expenditures over time in order to attract and convert consumers, retain users and sustain our growth.

Our ability to market our brands on any given property or channel is subject to the policies of the relevant third-party seller, publisher of advertising (including search engines and social media platforms with extraordinarily high levels of traffic and numbers of users) or marketing affiliate. As a result, we cannot assure you that these parties will not limit or prohibit us from purchasing certain types of advertising, advertising certain of our products and services and/or using one or more current or prospective marketing channels in the future. If a significant marketing channel took such an action generally, for a significant period of time and/or on a recurring basis, our business, financial condition and results of operations could be adversely affected. In addition, if we fail to comply with the policies of third-party sellers, publishers of advertising and/or marketing affiliates, our advertisements could be removed without notice and/or our accounts could be suspended or terminated, any of which could adversely affect our business, financial condition and results of operations.

In addition, our failure to respond successfully to rapid and frequent changes in the pricing and operating dynamics of search engines, as well as changing policies and guidelines applicable to keyword advertising (which may be unilaterally updated by search engines without advance notice), could adversely affect both our paid search engine marketing efforts and free search engine traffic. Such changes could adversely affect paid listings (both their placement and pricing), as well as the ranking of our brands and businesses within search results, any or all of which could increase our costs (particularly if free traffic is replaced with paid traffic) and adversely affect the effectiveness of our marketing efforts overall. Certain of our businesses engage in efforts similar to search engine optimization through Facebook and other social media platforms (for example, developing content designed to appear higher in a given Facebook News Feed and generate "likes") that involve challenges and risks similar to those we face in connection with our search engine marketing efforts.

Evolving consumer behavior (specifically, increased consumption of media through digital means) can also affect the availability of cost-effective marketing opportunities. To continue to reach consumers, engage with users and continue to grow in this environment, we will need to identify and devote more of our overall marketing expenditures to newer digital advertising channels (such as online video and other digital platforms), as well as target consumers and users via these channels. Since newer advertising channels are undeveloped and unproven relative to traditional channels (such as television), it could be difficult to assess returns on our related marketing investments, which could adversely affect our business, financial condition and results of operations.

Lastly, we also enter into various arrangements with third parties to drive visitors to our various brands and businesses, which arrangements are generally more cost-effective than traditional marketing efforts. If we are unable to renew existing (and enter into new) arrangements of this nature, sales and marketing costs as a percentage of revenue would increase over the long-term, which could adversely affect our business, financial condition and results of operations. In addition, the quality and convertibility of leads generated through third-party arrangements are dependent on many factors, most of which are outside our control. If the quality and/or convertibility of leads do not meet the expectations of the users of our various products and services, our business, financial condition and results of operations could be adversely affected.

Our brands and businesses operate in especially competitive industries.

The industries in which our brands and businesses operate are competitive, with a consistent and growing stream of new products and entrants. Some of our competitors may enjoy better competitive positions in certain geographical areas, user demographics and/or other key areas that we currently serve or may serve in the future. Generally (and particularly in the case of our dating business), we compete with social media platforms with access to large existing pools of potential users and their personal information, which means these platforms can drive visitors to their products and services, as well as use better tailor products and service to individual users, at little to no cost relative to our efforts. For example, our dating business competes with Facebook, which introduced a dating feature on its

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platform that it is testing in certain markets and intends to roll out globally in the near future. We also compete generally with search engine providers and online marketplaces that can market their products and services online in a more prominent and cost-effective manner than we can. Any of these advantages could enable our competitors to offer products and services that are more appealing to consumers than our products and services, respond more quickly and/or cost effectively than we do to evolving market opportunities and trends and/or display their own integrated or related products and services in a more prominent manner than our products and services in search results, which could adversely affect our business, financial condition and results of operations.

In addition, costs to switch among products and services are low or non-existent and consumers generally have a propensity to try new products and services (and use multiple products and services simultaneously). As a result, we expect the continued emergence of new products and services, entrants and business models in the various industries in which our brands and businesses operate. Our inability to compete effectively against new products, services and competitors could result in decreases in the size and levels of engagement of our various user, subscriber and membership bases, which could adversely affect our business, financial condition and results of operations.

Our success depends, in part, on our ability to build, maintain and/or enhance our various brands.

Through our various businesses, we own and operate a number of widely known consumer brands with strong brand appeal and recognition within their respective markets and industries, as well as a number of emerging brands that we are in the process of building. We believe that our success depends, in large part, on our continued ability to maintain and enhance our established brands, as well as build awareness of (and loyalty to) our emerging brands. Events that could adversely impact our brands and brand-building efforts include (among others): product and service quality concerns, consumer complaints, actions brought by consumers, ineffective advertising, inappropriate and/or unlawful actions taken by users, actions taken by governmental or regulatory authorities, data protection and security breaches and related bad publicity. The occurrence or any of these events could, in turn, adversely affect our business, financial condition and results of operations.

Our success depends, in part, on our ability to develop and monetize versions of our products and services for mobile and other digital devices.

As consumers increasingly access our products and services through mobile and other digital devices (including through digital voice assistants), we will need to devote significant time and resources to ensure that our products and services are accessible across these platforms (and multiple platforms generally). If we do not keep pace with evolving online, market and industry trends (including changes in the preferences and needs of our users and consumers generally), offer new and/or enhanced products and services in response to such trends that resonate with consumers, monetize products and services for mobile and other digital devices as effectively as our traditional products and services and/or maintain related systems, technology and infrastructure in an efficient and cost-effective manner, our business, financial condition and results of operations could be adversely affected.

In addition, the success of our mobile and other digital products and services depends on their interoperability with various third-party operating systems, technology, infrastructure and standards, over which we have no control. Any changes to any of these things that compromise the quality or functionality of our mobile and digital products and services could adversely affect their usage levels and/or our ability to attract consumers and advertisers, which could adversely affect our business, financial condition and results of operations.

Our brands and businesses are sensitive to general economic events or trends, particularly those that adversely impact advertising spending levels and consumer confidence and spending behavior.

A significant portion of our consolidated revenue (and a substantial portion of our net cash from operations that we can freely access), is attributable to online advertising, primarily revenue from our Dotdash and Applications segments and our Ask Media Group business. Accordingly, events and trends that result in decreased advertising expenditures and/or levels of consumer confidence and discretionary spending could adversely affect our business, financial condition and results of operations.

Similarly, the businesses within our ANGI Homeservices segment are particularly sensitive to events and trends that could result in consumers delaying or foregoing home services projects and/or service professionals being less likely to pay for Marketplace subscriptions and consumer matches. could result in decreases in Marketplace service requests and directory searches. Any such decreases could result in turnover at the Marketplace and/or any of our directories, adversely impact the number and quality of service professionals at the Marketplace and our directories

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and/or adversely impact the reach of (and breath of services offered through) the Marketplace and our directories, any or all of which could adversely affect our business, financial condition and results of operations

Lastly, we have historically been, and will continue to be, sensitive to events and trends that could result in decreased marketing and advertising expenditures by service professionals. Adverse economic conditions and trends could result in service professionals decreasing and/or delaying membership subscriptions, fees paid for consumer matches and/or time-based advertising spend, any or all of which would result in decreased revenue and could adversely affect our business, financial condition and results of operations.

Our ability to communicate with our users and consumers via e-mail (or other sufficient means) is critical to our success.

As consumers increasingly communicate via mobile and other digital devices and messaging and social media apps, usage of e-mail (particularly among younger consumers) has declined and we expect this trend to continue. In addition, deliverability and other restrictions could limit or prevent our ability to send e-mails to users and consumers. A continued and significant erosion in our ability to communicate with consumers and users via e-mail could adversely impact the user experience, engagement levels and conversion rates, which could adversely affect our business, financial condition and results of operations. We cannot assure you that any means of communication (for example, push notifications) will be as effective as e-mail has been historically.

We may need to offset increasing digital app store fees by decreasing traditional marketing expenditures, increasing user volume or monetization per user or by engaging in other efforts to increase revenue or decrease costs generally.

We increasingly rely upon the Apple App Store and the Google Play Store to distribute the mobile applications of our various businesses. While some of our mobile applications are generally free to download from these stores, many of our mobile applications (primarily our dating and Mosaic Group applications) are subscription-based and/or offer in-app à la carte features for a fee. We determine the prices at which these subscriptions and à la carte features are sold; however, related purchases must be processed through the in-app payment systems provided by Apple and, to a lesser extent, Google. As a result, we pay Apple and Google, as applicable, a meaningful share (generally 30%) of the revenue we receive from these transactions. While we are constantly innovating on and creating our own payment systems and methods, given the increasing distribution of our mobile applications through digital app stores and strict in-app payment system requirements, we may need to offset these increased digital app store fees by decreasing traditional marketing expenditures as a percentage of revenue, increasing user volume or monetization per user or engaging in other efforts to increase revenue or decrease costs generally, or our business, financial condition and results of operations could be adversely affected. Additionally, to the extent Google changes its terms and conditions or practices to require us to process purchases of subscriptions and à la carte features through its in-app payment system, our business, financial condition and results of operations could be adversely affected.

Our success depends, in part, of the ability of ANGI Homeservices to establish and maintain relationships with quality service professionals.

We will need to continue to attract, retain and grow the number of skilled and reliable service professionals who can provide home services across ANGI Homeservices platforms. If we do not offer innovative products and services that resonate with consumers and service professionals generally, as well provide service professionals with an attractive return on their marketing and advertising investments (quality matches and leads that convert into jobs), the number of service professionals affiliated with ANGI Homeservices platforms would decrease. Any such decrease would result in smaller and less diverse networks and directories of service professionals, and in turn, decreases in service requests and directory searches, which could adversely impact our business, financial condition and results of operations.

We depend upon arrangements with Google.

A meaningful portion of our consolidated revenue (and a substantial portion of our net cash from operations that we can freely access) is attributable to a services agreement with Google. Pursuant to this agreement, we display and syndicate paid listings provided by Google in response to search queries generated by users of our Applications and certain Emerging & Other properties. In exchange for making our search traffic available to Google, we receive a share of the revenue generated by the paid listings supplied to us, as well as certain other search‑related services. Our current agreement with Google expires on March 31, 2020. In February 2019, we amended this agreement, effective as

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of April 1, 2020, to extend the expiration date of our agreement to March 31, 2023; provided, however, that beginning September 2020 and each September thereafter, we or Google may, after discussion with the other party, terminate the services agreement, effective on September 30 of the year following the year such notice is given. We believe that the amended agreement, taken as a whole, is comparable to our current agreement with Google.

The amount of revenue we receive from Google depends on a number of factors outside of our control, including the amount Google charges for advertisements, the efficiency of Google’s system in attracting advertisers and serving up paid listings in response to search queries and parameters established by Google regarding the number and placement of paid listings displayed in response to search queries. In addition, Google makes judgments about the relative attractiveness (to advertisers) of clicks on paid listings from searches performed on our properties and these judgments factor into the amount of revenue we receive. Google also makes judgments about the relative attractiveness (to users) of paid listings from searches performed on our properties and these judgments factor into the number of advertisements we can purchase. Changes to the amount Google charges advertisers, the efficiency of Google’s paid listings network, Google's judgment about the relative attractiveness to advertisers of clicks on paid listings from our properties or to the parameters applicable to the display of paid listings generally could result in a decrease in the amount of revenue we receive from Google and could adversely affect our business, financial condition and results of operations. Such changes could come about for a number of reasons, including general market conditions, competition or policy and operating decisions made by Google.

Our services agreement with Google also requires that we comply with certain guidelines for the use of Google brands and services, including the Chrome browser and Chrome Web Store. These guidelines govern which of our products and applications may access Google services or be distributed through its Chrome Web Store, and the manner in which Google’s paid listings are displayed within search results across various third-party platforms and products (including our properties). Our services agreement also requires that we establish guidelines to govern certain activities of third parties to whom we syndicate paid listings, including the manner in which these parties drive search traffic to their websites and display paid listings. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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 adversely affect our business, financial condition and results of operations. Noncompliance with Google’s guidelines by us or the third parties to whom we are permitted to syndicate paid listings or through which we secure distribution arrangements for certain of our Applications properties could, if not cured, result in the suspension of some or all Google services to our properties (or the websites of our third-party partners) and/or the termination of the services agreement by Google.

The termination of the services agreement by Google, the curtailment of our rights under the agreement (whether pursuant to the terms thereof or otherwise) and/or the failure of Google to perform its obligations under the agreement would have an adverse effect on our business, financial condition and results of operations. If any of these events were to occur, we may not be able to find another suitable alternate provider of paid listings (or if an alternate provider were found, the economic and other terms of the agreement and the quality of paid listings may be inferior relative to our arrangements with, and the paid listings supplied by, Google) or otherwise replace the lost revenues.

Foreign currency exchange rate fluctuations could adversely affect us.

We operate in various foreign markets, primarily in various jurisdictions within the European Union, and as a result, are exposed to foreign exchange risk for both the Euro and British Pound ("GBP"). During the fiscal years ended December 31, 2018 and 2017, approximately 34% and 30% of our total revenues, respectively, were international revenues. We translate international revenues into U.S. Dollar-denominated results. As a result, as foreign currency exchange rates fluctuate, the translation of the statement of operations of our international businesses into U.S. Dollars affects the period-over-period comparability of operating results. We are also exposed to foreign currency exchange gains and losses to the extent we or our subsidiaries conduct transactions in, and/or have assets and/or liabilities that are denominated in, a currency other than the relevant entity's functional currency. For details regarding exchange rates and foreign currency exchange gains and losses for the fiscal years ended December 31, 2018 and 2017, see "Item 7A-Quantitative and Qualitative Disclosures About Market Risk-Foreign Currency Exchange Risk."

Brexit may continue to cause disruptions to capital and currency markets worldwide, and the full impact of the Brexit decision remains uncertain. Ongoing negotiations between the United Kingdom and the European Union will determine the terms of their relationship following Brexit. During this period of negotiation and following the completion of Brexit, our operating results could be adversely affected by exchange rate and other market and economic volatility.

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We have not hedged foreign currency exposures historically given that related gains or losses were not material to the Company. As we continue to grow and expand our international operations, our exposure to foreign exchange rate fluctuations will increase and if significant, could adversely affect our business, financial condition and results of operations.

We may not be able to protect our systems, technology and infrastructure from cyberattacks and cyberattacks experienced by third parties may adversely affect us.

We are regularly under attack by perpetrators of malicious technology-related events, such as the use of botnets, malware or other destructive or disruptive software, distributed denial of service attacks, phishing, attempts to misappropriate user information and account login credentials and other similar malicious activities. The incidence of events of this nature (or any combination thereof) is on the rise worldwide. While we continuously develop and maintain systems designed to detect and prevent events of this nature from impacting our systems, technology, infrastructure, products, services and users, have invested (and continue to invest) heavily in these efforts and related personnel and training and deploy data minimization strategies (where appropriate), these efforts are costly and require ongoing monitoring and updating as technologies change and efforts to overcome preventative security measures become more sophisticated. Despite these efforts, some of our systems have experienced past security incidents, none of which had a material adverse effect on our business, financial condition and results of operations, and we could experience significant events of this nature in the future.

Any event of this nature that we experience could damage our systems, technology and infrastructure and/or those of our users, prevent us from providing our products and services, compromise the integrity of our products and services, damage our reputation, erode our brands and/or be costly to remedy, as well as subject us to investigations by regulatory authorities, fines and/or litigation that could result in liability to third parties. Even if we do not experience such events firsthand, the impact of any such events experienced by third parties could have a similar effect. We may not have adequate insurance coverage to compensate for losses resulting from any of these events. If we (or any third-party with whom we do business or otherwise rely upon) experience(s) an event of this nature, our business, financial condition and results of operations could be adversely affected.

If personal, confidential or sensitive user information that we maintain and store is breached or otherwise accessed by unauthorized persons, it may be costly to mitigate and our reputation could be harmed.

We receive, process, store and transmit a significant amount of personal, confidential or sensitive user information and, in the case of certain of our products and services, enable users to share their personal information with each other. While we continuously develop and maintain systems designed to protect the security, integrity and confidentiality of this information, we cannot guarantee that inadvertent or unauthorized use or disclosure will not occur or that third parties will not gain unauthorized access to this information. When such events occur, we may not be able to remedy them and it may be costly to mitigate and to develop and implement protections to prevent future events of this nature from occurring. When breaches of security (ours or that of any third-party we engage to store information) occurs, the reputation of our brands and business could be harmed, which could adversely affect our business, financial condition and results of operations.

Credit card data security breaches or fraud that we or third parties experience could adversely affect us.

Certain of our businesses accept payment (including recurring payments) via credit and debit cards and certain online payment service providers. The ability of these businesses to access payment information on a real time‑basis without having to proactively reach out to users to process payments is critical to our success.

When we or a third-party experience(s) a data security breach involving credit card information, affected cardholders will often cancel their cards. In the case of a breach experienced by a third-party, the more sizable the third-party’s customer base, the greater the number of accounts impacted and the more likely it is that our users would be impacted by such a breach. If our users were affected, we would need to contact affected users to obtain new payment information. It is likely that we would not be able to reach all affected users, and even if we could, new payment information for some individuals may not be obtained and pending transactions may not be processed, which could adversely affect our business, financial condition and results of operations.

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Even if our users are not directly impacted by a given data security breach, they may lose confidence in the ability of providers of online products and services to protect their personal information generally, which could cause them to stop using their credit cards online and choose alternative payment methods that are not as convenient for us or restrict our ability to process payments without significant effort.

If we fail to prevent credit card data security breaches and fraudulent credit card transactions, we could face litigation, governmental enforcement action, fines, civil liability, diminished public perception of our security measures, higher credit card-related costs and substantial remediation costs, or credit card processors could cease doing business with us, any of which could adversely affect our business, financial condition and results of operations

The processing, storage, use and disclosure of personal data could give rise to liabilities and increased costs.

We receive, transmit and store a large volume of personal information and other user data (including personal credit card data, as well as private content (such as videos and correspondence)) in connection with the processing of search queries, the provision of online products and services, payment transactions and advertising on our various properties. The manner in which we share, store, use, disclose and protect this information is determined by the respective privacy and data security policies of our various businesses, as well as federal, state and foreign laws and regulations and evolving industry standards and practices, which are changing, and in some cases, inconsistent and conflicting and subject to differing interpretations. In addition, new laws, regulations, standards and practices of this nature are proposed and adopted from time to time.

For example, a comprehensive European Union privacy and data protection reform, the General Data Protection Regulation (the "GDPR"), became effective in May 2018. The GDPR, which applies to companies that are organized in the European Union or otherwise provide services to (or monitor) consumers who reside in the European Union, imposes significant penalties (monetary and otherwise) for non-compliance. The GDPR will continue to be interpreted by European Union data protection regulators, which may require that we make changes to our business practices, and could generate additional risks and liabilities. The European Union is also considering an update to its Privacy and Electronic Communications Directive to impose stricter rules regarding the use of cookies. In addition, the potential exit from the European Union by the United Kingdom could result in the application of new and conflicting data privacy and protection laws and standards to our operations in the United Kingdom and our handling of personal data of users located in the United Kingdom. In addition, there are a number of privacy and data protection laws and regulations recently passed or under consideration by the U.S. Congress, as well as in various U.S. states and foreign jurisdictions in which we do business, including the California Consumer Privacy Act of 2018, which becomes effective January 1, 2020.

While we believe that we comply with applicable privacy and data protection policies, laws and regulations and industry standards and practices in all material respects, we could still be subject to claims of non-compliance that we may not be able to successfully defend and/or significant fines and penalties. Moreover, any non-compliance or perceived non-compliance by us (or any third-party we engage to store or process information) or any compromise of security that results in unauthorized access to (or use or transmission of) personal information could result in a variety of claims against us, including governmental enforcement actions, significant fines, litigation, claims of breach of contract and indemnity by third parties and adverse publicity. When such events occur, our reputation could be harmed and the competitive positions of our various brands and businesses could be diminished, which could adversely affect our business, financial condition and results of operations.

Lastly, ongoing compliance with existing (and compliance with future) privacy and data protection laws worldwide could be costly. The devotion of significant costs to compliance (versus to product development) could result in delays in the development of new products and services, us ceasing to provide problematic products and services in existing jurisdictions and us being prevented from introducing products and services in new and existing jurisdictions, which could adversely affect our business, financial condition and results of operations.

Our success depends, in part, on the integrity, quality, efficiency and scalability of our systems, technology and infrastructure, and those of third parties.

We rely on our systems, technology and infrastructure to perform well on a consistent basis. From time to time in the past we have experienced (and in the future we may experience) occasional interruptions that make some or all of this framework and related information unavailable or that prevent us from providing products and services; any such interruption could arise for any number of reasons. We also rely on third-party data center service providers and cloud-based, hosted web service providers, as well as third-party computer systems and a variety of communications systems

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and service providers in connection with the provision of our products and services generally, as well as to facilitate and process certain payment and other transactions with users. We have no control over any of these third parties or their operations.

The framework described could be damaged or interrupted at any time due to fire, power loss, telecommunications failure, natural disasters, acts of war or terrorism, acts of God and other similar events or disruptions. Any event of this nature could prevent us from providing our products and services at all (or result in the provision of our products on a delayed or interrupted basis) and/or result in the loss of critical data. While we and the third parties upon whom we rely have certain backup systems in place for certain aspects of our respective frameworks, none of our frameworks are fully redundant and disaster recovery planning is not sufficient for all eventualities. In addition, we may not have adequate insurance coverage to compensate for losses from a major interruption. When such damages, interruptions or outages occur, our reputation could be harmed and the competitive positions of our various brands and businesses could be diminished, any or all of which could adversely affect our business, financial condition and results of operations.

We also continually work to expand and enhance the efficiency and scalability of our framework to improve the consumer experience, accommodate substantial increases in the number of visitors to our various platforms, ensure acceptable load times for our various products and services and keep up with changes in technology user preferences. If we do not do so in a timely and cost-effective manner, the user experience and demand across our brands and businesses could be adversely affected, which could adversely affect our business, financial condition and results of operations.

Mr. Diller and certain members of his family are able to exercise significant influence over the composition of our Board of Directors, matters subject to stockholder approval and our operations.

As of the date of this report, Mr. Diller, his spouse, Diane von Furstenberg, and his stepson, Alexander von Furstenberg, collectively beneficially owned shares of Class B common stock and common stock that represented approximately 42.8% of the total outstanding voting power of IAC (based on the number of shares of IAC common stock outstanding on February 1, 2019). For details regarding the IAC securities beneficially owned by Mr. Diller, Ms. Von Furstenberg and Mr. Von Furstenberg, see "Item 1-Business-Equity Ownership and Vote."

As a result of IAC securities beneficially owned by these individuals, they are, collectively, currently in a position to influence, subject to our organizational documents and Delaware law, the composition of IAC’s Board of Directors and the outcome of corporate actions requiring shareholder approval, such as mergers, business combinations and dispositions of assets, among other corporate transactions. In addition, this concentration of investment and voting power could discourage others from initiating a potential merger, takeover or other change of control transaction that may otherwise be beneficial to IAC, which could adversely affect the market price of IAC securities.

We depend on our key personnel.

Our future success will depend upon our continued ability to identify, hire, develop, motivate and retain highly skilled individuals, particularly in the case of senior management. Competition for well-qualified employees across IAC and its various businesses is intense and we must attract new (and retain existing) employees to compete effectively. While we have established programs to attract new (and retain existing) employees, we may not be able to attract new (or retain existing) key and other employees in the future. In addition, if we do not ensure the effective transfer of knowledge to successors and smooth transitions (particularly in the case of senior management) across our various businesses, our business, financial condition and results of operations generally, could be adversely affected.

Our current and future indebtedness could affect our ability to operate our business, which could have a material adverse effect on our financial condition and results of operations.

As of December 31, 2018, we had total debt outstanding of approximately $2.3 billion, of which $552 million, $1.5 billion and $261.3 million was owed by IAC, Match Group and ANGI Homeservices, respectively. As of that date, we, Match Group and ANGI Homeservices had borrowing availability of $250 million, $240 million and $250 million, respectively, under our revolving credit facilities. Neither Match Group, ANGI Homeservices nor any of their respective subsidiaries guarantee any indebtedness of IAC or are currently subject to any of the covenants related to such indebtedness. Similarly, neither IAC nor any of its subsidiaries (other than Match Group and its subsidiaries in the case of Match Group indebtedness and ANGI Homeservices and its subsidiaries in the case of ANGI Homeservices

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indebtedness) guarantee any indebtedness of Match Group or ANGI Homeservices nor are subject to any of the covenants related to such indebtedness.

The terms of the indebtedness of IAC, Match Group and ANGI Homeservices could:

• limit our respective abilities to obtain additional financing to fund working capital needs, acquisitions, capital expenditures or other debt service requirements or for other purposes;

• limit our respective abilities to use operating cash flow in other areas of our respective businesses because we must dedicate a substantial portion of these funds to service indebtedness;

• limit our respective abilities to compete with other companies who are not as highly leveraged;

• restrict any one or more of us from making strategic acquisitions, developing properties or exploiting business opportunities;

• restrict the way in which one or more of us conducts business;

• expose one or more of us to potential events of default, which if not cured or waived, could have a material adverse effect on our business, financial condition and operating results;

• increase our respective vulnerabilities to a downturn in general economic conditions or in pricing of our various products and services; and

• limit our respective abilities to react to changing market conditions in the various industries in which we do business.

Subject to certain restrictions, we and our subsidiaries may incur additional unsecured and secured indebtedness. If additional indebtedness incurred in compliance with these restrictions is significant, the risks described above could increase.

Lastly, if an event a default has occurred or our leverage ratio exceeds specified thresholds, our ability to pay dividends, make distributions and repurchase or redeem our capital stock would be limited. Match Group and ANGI Homeservices are subject to similar restrictions. See "Item 7-Management's Discussion and Analysis of Financial Condition and Results of Operations-Financial Position, Liquidity and Capital Resources and Financial Position."

We may not be able to generate sufficient cash to service all of our indebtedness.

The ability of IAC, Match Group and ANGI Homeservices to satisfy our respective debt obligations will depend upon, among other things:

• our respective future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory and other factors, many of which are beyond our control; and

• the future ability of IAC, Match Group and ANGI Homeservices to borrow under our respective revolving credit facilities, which will depend on, among other things, compliance with the covenants governing our indebtedness.

Neither we, nor Match Group nor ANGI Homeservices may be able to generate sufficient cash flow from our respective operations and/or borrow under our respective revolving credit facilities in amounts sufficient to meet our scheduled debt obligations. See also "-We may not freely access the cash of Match Group, ANGI Homeservices and their respective subsidiaries" below. If so, we could be forced to reduce or delay capital expenditures, sell assets or seek additional capital in a manner that complies with the terms (including certain restrictions and limitations) of our current indebtedness. If these efforts do not generate sufficient funds to meet our scheduled debt obligations, we would need to seek additional financing and/or negotiate with our lenders to restructure or refinance our indebtedness. Our ability to do so would depend on the condition of the capital markets and our financial condition at such time. Any such financing, restructuring or refinancing could be on less favorable terms than those governing our current indebtedness and would need to comply with the terms (including certain restrictions and limitations) of our existing indebtedness.

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We may not freely access the cash of Match Group, ANGI Homeservices and their respective subsidiaries.

Potential sources of cash for IAC include our available cash balances, net cash from the operating activities of certain of our subsidiaries, availability under our revolving credit facility and proceeds from asset sales, including marketable securities. While the ability of our operating subsidiaries to pay dividends or make other payments or advances to us depends on their individual operating results and applicable statutory, regulatory or contractual restrictions generally, in the case of Match Group and ANGI Homeservices, the terms of their indebtedness limit their ability to pay dividends or make distributions, loans or advances to stockholders, including IAC. In addition, because Match Group and ANGI Homeservices are separate and distinct legal entities with public shareholders, they have no obligation to provide us with funds.

Our variable rate indebtedness subjects us to interest rate risk.

As of December 31, 2018, Match Group had $260 million and $425 million outstanding under its revolving credit facility and term loan, respectively, and ANGI Homeservices has $263.1 million outstanding under its term loan. Borrowings under these loans are, and any borrowings under the revolving credit facilities of IAC or ANGI Homeservices will be, at variable interest rates, which exposes us to interest rate risk. For details regarding interest rates applicable to the variable rate indebtedness of Match Group and ANGI Homeservices described above as of December 31, 2018 and how certain increases and decreases in LIBOR rate would affect related interest expense, see "Item 7A-Quantitative and Qualitative Disclosures About Market Risk."

You may experience dilution with respect to your investment in IAC, and IAC may experience dilution with respect to its investments in Match Group and ANGI Homeservices, as a result of compensatory equity awards.

We have issued various compensatory equity awards, including stock options, stock appreciation rights and restricted stock unit awards denominated in shares of our common stock, as well as in equity of our various consolidated subsidiaries, including Match Group and ANGI Homeservices. For more information regarding these awards and their impact on our diluted earnings per share calculation, see "Note 11-Stock-Based Compensation" and "Note 10-Earnings Per Share," respectively, to the consolidated financial statements included in "Item 8-Consolidated Financial Statements and Supplementary Data."

The issuance of shares of IAC common stock in settlement of these equity awards could dilute your ownership interest in IAC. Awards denominated in shares of Match Group or ANGI Homeservices common stock that are settled in shares of those subsidiaries could dilute IAC’s ownership interest in Match Group and ANGI Homeservices, respectively. The dilution of our ownership stake(s) in Match Group and/or ANGI Homeservices could impact our ability, among other things, to maintain Match Group and/or ANGI Homeservices as part of our consolidated tax group for U.S. federal income tax purposes, to effect a tax-free distribution of our Match Group and/or ANGI Homeservices stake(s) to our stockholders or to maintain control of Match Group and/or ANGI Homeservices. As we generally have the right to maintain our levels of ownership in Match Group and ANGI Homeservices to the extent Match Group or ANGI Homeservices issues additional shares of their respective capital stock in the future pursuant to investor rights agreements, we do not intend to allow any of the foregoing to occur.

With respect to awards denominated in shares of our non-publicly traded subsidiaries, we estimate the dilutive impact of those awards based on our estimated fair value of those subsidiaries. Those estimates may change from time to time, and the fair value determined in connection with vesting and liquidity events could lead to more or less dilution than reflected in our diluted earnings per share calculation.

We may experience risks related to acquisitions.

We have made numerous acquisitions in the past and we continue to seek to identify potential acquisition candidates that will allow us to apply our expertise to expand their capabilities, as well as maximize our existing assets. If we do not identify suitable acquisition candidates or complete acquisitions on satisfactory pricing or other terms, our growth could be adversely affected.

Even if we complete what we believe to be suitable acquisitions, we may experience related operational and financial risks. So, to the extent that we continue to grow through acquisitions, we will need to:

• properly value prospective acquisitions, especially those with limited operating histories;

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• successfully integrate the operations, as well as the various functions and systems, of acquired businesses with our existing operations, functions and systems;

• successfully identify and realize potential synergies among acquired and existing businesses;

• retain or hire senior management and other key personnel at acquired businesses; and

• successfully manage acquisition‑related strain on management, operations and financial resources.

We may not be successful in addressing these or any other acquisition-related challenges. In addition, acquisition-related cost savings, growth opportunities, synergies or other benefits may not be realized. Also, future acquisitions could result in increased operating losses, dilutive issuances of equity securities and the assumption of contingent liabilities. Lastly, the value of goodwill and other intangible assets acquired could be impacted by unfavorable events and/or trends, which could result in significant impairment charges. The occurrence of any of these events could adversely affect our business, financial condition and results of operations.

We face additional risks in connection with our international operations.

We currently operate in various jurisdictions abroad and may continue to expand our international presence. Operating abroad, particularly in jurisdictions where we have limited experience, exposes us to additional risks, including:

• operational and compliance challenges caused by distance, language barriers and cultural differences;

• difficulties in staffing and managing international operations;

• differing levels (or lack) of social and technological acceptance of our products and services;

• slow or lagging growth in the commercial use and acceptance of the Internet (particularly via mobile devices);

• foreign currency fluctuations;

• restrictions on the transfer of funds among countries and back to the United States and related repatriation costs;

• differing and potentially adverse tax laws;

• compliance challenges;

• competitive environments that favor local businesses;

• limitations on the level of intellectual property protection; and

• trade sanctions, political unrest, terrorism, war and epidemics or the threat of any of these events.

The occurrence of any or all of these events could adversely affect our international operations, and in turn, our business, financial condition and results of operations. Our success in international markets will also depend, in large part, on our ability to successfully complete international acquisitions, joint ventures or other transactions and integrate these businesses and operations with our own.

A variety of new laws, or new interpretations of existing laws, could subject us to claims or otherwise harm our business.

We are subject to a variety of laws and regulations in the U.S. and abroad that involve matters that are important to or may otherwise impact our business, including, among others, broadband internet access, online commerce, advertising, privacy and data protection, intermediary liability, consumer protection, protection of minors, taxation and securities compliance. These domestic and foreign laws, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and can be subject to significant change. As a result, the

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application, interpretation and enforcement of these laws and regulations are often uncertain, particularly in the Internet industry, and may be interpreted and applied inconsistently from jurisdiction to jurisdiction, as well as in a manner that could conflict with our current policies and practices. We face the same issues in the case of amended, proposed or new laws and regulations.

Compliance with applicable laws and regulations, as well as responding to any related inquiries, investigations or other government action, could be costly, delay or impede the development of new products and services, require modifications to existing products and services and/or require significant management time and attention. Non-compliance could subject us to remedies that could harm our business, such as fines, demands or orders that require us to modify or cease then current products and services, as well as result in negative publicity. Consequences of compliance and non-compliance with applicable laws and regulations, if significant, could adversely affect our business, financial condition and results of operations.

We are particularly sensitive to laws and regulations that adversely impact the popularity or growth in use of the Internet and/or online products and services generally, restrict or otherwise unfavorably impact the ability or manner in which we provide our products and services, regulate the practices of third parties upon which we rely to provide our products and services and undermine open and neutrally administered Internet access. For example, in February 2019, the Secretary of State for Digital, Culture, Media and Sport of the United Kingdom, indicated in public comments that his office intends to inquire as to the measures utilized by online dating platforms (including Tinder) to prevent access by underage users. To the extent our dating business is required to implement new measures to prevent such access, our business, financial condition and results of operations could be adversely affected. In addition, in December 2017, the U.S. Federal Communications Commission (the "FCC") adopted an order reversing net neutrality protections in the United States, including the repeal of specific rules against blocking, throttling or "paid prioritization" of content or services by Internet service providers. To the extent Internet service providers take such actions, our business, financial condition and results of operations could be adversely affected.

We are also sensitive to the adoption of any law or regulation affecting the ability of our businesses to periodically charge for recurring membership or subscription payments, which could adversely affect our business, financial condition and results of operations. For example, the European Union Payment Services directive, which became effective in 2018, could impact the ability of our businesses to process auto-renewal payments for, as well offer promotional or differentiated pricing to, users who reside in the European Union. Similar new legislation or regulations, or changes to existing legislation or regulations governing subscription payments, are being considered in many U.S. states.

We are also sensitive to the adoption of new tax laws. The European Commission and several European countries have issued proposals that would change various aspects of the current tax framework under which we are taxed, including proposals to change or impose new types of non-income taxes (including taxes based on a percentage of revenue).  For example, the United Kingdom has proposed a Digital Services Tax applicable to revenues of social media platforms, online marketplaces and search engines linked to users residing in the United Kingdom, which would likely apply to certain of our business. If enacted, one or more of these or similar proposed tax laws could adversely affect our business, financial condition and results of operations.

We may fail to adequately protect our intellectual property rights or may be accused of infringing the intellectual property rights of third parties.

We rely heavily upon our trademarks and related domain names and logos to market our brands and to build and maintain brand loyalty and recognition, as well as upon trade secrets. We also rely, to a lesser extent, upon patented and patent-pending proprietary technologies with expiration dates ranging from 2019 to 2037.

We rely on a combination of laws and contractual restrictions with employees, customers, suppliers, affiliates and others to establish and protect our various intellectual property rights. For example, we have generally registered and continue to apply to register and renew, or secure by contract where appropriate, trademarks and service marks as they are developed and used, and reserve, register and renew domain names as we deem appropriate. We also generally seek to apply for patents or for other similar statutory protections as and if we deem appropriate, based on then current facts and circumstances, and will continue to do so in the future. No assurances can be given that these efforts will result in adequate trademark and service mark protection, adequate domain name rights and protections, the issuance of a patent or adequate patent protection against competitors and similar technologies. Third parties could also create new products or methods that achieve similar results without infringing upon patents we own.

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Despite these measures, challenges to our intellectual property rights could still arise, third parties could copy or otherwise obtain and use our intellectual property without authorization and/or laws regarding the enforceability of existing intellectual property rights could change in an adverse manner. The occurrence of any of these events could result in the erosion of our brands and limitations on our ability to control marketing online using our various domain names, as well as impede our ability to effectively compete against competitors with similar technologies, any of which could adversely affect our business, financial condition and results of operations.

From time to time, we have been subject to legal proceedings and claims in the ordinary course of business related to alleged claims of infringement of the intellectual property of others and may need to institute legal proceedings in the future to enforce, protect or refine the scope of our intellectual property rights. For example, on March 17, 2018, our Match Group business filed a lawsuit against Bumble Trading Inc., which operates and markets the online dating application Bumble in the United States, for patent and trademark infringement, as well as trade secret misappropriation. Bumble’s counterclaims request that our trademark registration for Tinder’s SWIPE trademark be canceled and that a number of our pending applications for trademark registration be denied. This case is currently pending in Federal Court in the Western District of Texas. Any legal proceedings related to intellectual property, regardless of outcome or merit, could be costly and result in diversion of and technical resources, which could adversely affect our business, financial condition and results of operations.

Item 1B.    Unresolved Staff Comments

Not applicable.

Item 2.    Properties

IAC believes that the facilities for its management and operations are generally adequate for its current and near-term future needs. IAC's facilities, most of which are leased by IAC's businesses in various cities and locations in the United States and various jurisdictions abroad, generally consist of executive and administrative offices, operations centers, data centers and sales offices.

IAC believes that its principal properties, whether owned or leased, are currently adequate for the purposes for which they are used and are suitably maintained for these purposes. IAC does not anticipate any future problems renewing or obtaining suitable leases on commercially reasonable terms for any of its principal businesses. IAC's approximately 202,500 square foot corporate headquarters in New York, New York houses offices for IAC corporate and various IAC businesses within the following segments: Match Group, Vimeo, Applications and Emerging & Other.

Item 3.    Legal Proceedings

In the ordinary course of business, the Company and its subsidiaries are (or may become) parties to litigation involving property, personal injury, contract, intellectual property and other claims, as well as stockholder derivative actions, class action lawsuits and other matters. The amounts that may be recovered in such matters may be subject to insurance coverage. The litigation matters described below involve issues or claims that may be of particular interest to our stockholders, regardless of whether any of these matters may be material to our financial position or operations based upon the standard set forth in the rules of the Securities and Exchange Commission.

Consumer Class Action Challenging Tinder’s Age‑Tiered Pricing

On May 28, 2015, a putative state‑wide class action was filed against Tinder, Inc. ("Tinder") in state court in California. See Allan Candelore v. Tinder, Inc., No. BC583162 (Superior Court of California, County of Los Angeles). The complaint principally alleged that Tinder violated California’s Unruh Civil Rights Act (the "Unruh Act") by offering and charging users age 30 and over a higher price than younger users for subscriptions to its premium Tinder Plus service. The complaint sought certification of a class of California Tinder Plus subscribers age 30 and over and

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damages in an unspecified amount. On September 21, 2015, Tinder filed a demurrer seeking dismissal of the complaint. On October 26, 2015, the court issued an opinion sustaining Tinder’s demurrer to the complaint without leave to amend, ruling that the age‑based pricing differential for Tinder Plus subscriptions did not violate California law in essence because offering a discount to users under age 30 was neither invidious nor unreasonable in light of that age group’s generally more limited financial means. On December 29, 2015, in accordance with its ruling, the court entered judgment dismissing the action. On February 1, 2016, the plaintiff filed a notice of appeal from the judgment, and the parties thereafter briefed the appeal. On January 29, 2018, the California Court of Appeal (Second Appellate District, Division Three) issued an opinion reversing the judgment of dismissal, ruling that the lower court had erred in sustaining Tinder’s demurrer because the complaint, as pleaded, stated a cognizable claim for violation of the Unruh Act. Because we believe that the appellate court’s reasoning was flawed as a matter of law and runs afoul of binding California precedent, on March 12, 2018, Tinder filed a petition with the California Supreme Court seeking interlocutory review of the Court of Appeal’s decision. On May 9, 2018, the California Supreme Court denied the petition. The case has been returned to the trial court for further proceedings and is currently in discovery. We and Match Group believe that the allegations in this lawsuit are without merit and will continue to defend vigorously against it.

Bumble Claims against Match Group, LLC

On March 28, 2018, Bumble and its parent company filed a lawsuit against Match Group, LLC ("Match") in state court in Texas. SeeBumble Trading, Inc. and Bumble Holding, Ltd. v. Match Group, LLC, No. DC‑18‑04140 (160th Judicial District Court, County of Dallas). The petition alleged that Match wrongfully obtained confidential information from the plaintiffs in connection with a potential Bumble sale process and filed an intellectual property lawsuit against Bumble in bad faith to undermine that process. The petition asserts claims for tortious interference with business relationships, fraud, misappropriation of trade secrets, unfair competition, promissory estoppel and disparagement. The petition seeks damages in excess of $400 million and an injunction against interference with the plaintiffs’ prospective business relationships or use of their confidential information. On September 26, 2018, Match filed its answer and counterclaims, a notice of removal of the case to the U.S. District Court for the Northern District of Texas, and a motion to transfer the case to the U.S. District Court for the Western District of Texas, where Match’s intellectual property lawsuit against Bumble is pending. See Bumble Trading, Inc. and Bumble Trading, Ltd. v. Match Group, LLC,No. 3:18-cv-2578 (U.S. District Court, Northern District of Texas). On October 18, 2018, Bumble filed a motion to dismiss its own petition without prejudice. On November 1, 2018, Match opposed the motion as an attempt to circumvent the federal court’s jurisdiction and also amended its counterclaims to seek declaratory judgments of non-liability on the claims asserted in Bumble’s petition. On November 15, 2018, Bumble filed a motion to dismiss those counterclaims, which motion Match has opposed. On November 29, 2018, the court granted Match’s motion to transfer the case to the Western District of Texas. See Bumble Trading, Inc. and Bumble Trading, Ltd. v. Match Group, LLC,No. 6:18-cv-350 (U.S. District Court, Western District of Texas). On January 15, 2019, Bumble filed a motion for leave to file another petition, this one against Match and IAC, in state court in Dallas County. Bumble’s proposed claims are for fraud, negligent misrepresentation, unfair competition, promissory estoppel and interference with prospective business relations and are based upon the allegation that Match and IAC misled Bumble in its sale process by falsely representing they would make a higher offer to purchase Bumble. On January 22, 2019, Match filed its opposition to Bumble’s motion for leave. We and Match Group believe that the plaintiffs’ allegations in both the pending and the proposed lawsuits are without merit and will continue to defend vigorously against them.

Tinder Optionholder Litigation against IAC and Match Group

On August 14, 2018, ten then-current and former employees of Match or Tinder, an operating business of Match Group, filed a lawsuit in New York state court against IAC and Match Group. See Sean Rad et al. v. IAC/InterActiveCorp and Match Group, Inc., No. 654038/2018 (Supreme Court, New York County). The complaint alleges that in 2017, the defendants: (i) wrongfully interfered with a contractually established process for the independent valuation of Tinder by certain investment banks, resulting in a substantial undervaluation of Tinder and a consequent underpayment to the plaintiffs upon exercise of their Tinder stock options, and (ii) then wrongfully merged Tinder into Match Group, thereby depriving one of the plaintiffs (Mr. Rad) of his contractual right to later valuations of Tinder on a stand‑alone basis. The complaint asserts claims for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, interference with contractual relations (as against Match Group only), and interference with prospective economic advantage, and seeks compensatory damages in the amount of at least $2 billion, as well as punitive damages. On August 31, 2018, four plaintiffs who were still employed by Match Group filed a notice of discontinuance of their claims without prejudice, leaving the six former employees as the remaining plaintiffs. On October 9, 2018, the defendants filed a motion to dismiss the complaint on various grounds, including that the 2017 valuation of Tinder by the investment banks was an expert determination any challenge to which is both

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time‑barred under applicable law and available only on narrow substantive grounds that the plaintiffs have not pleaded in their complaint. On December 17, 2018, plaintiffs filed their opposition to the motion to dismiss. On January 15, 2019, the defendants filed their reply brief. A hearing on the motion is scheduled for March 6, 2019, and discovery in the case is proceeding. IAC and Match Group believe that the allegations in this lawsuit are without merit and will continue to defend vigorously against it.

FTC Investigation of Certain Match.com Business Practices

In March 2017, the Federal Trade Commission (the "FTC") requested information and documents in connection with a civil investigation regarding certain business practices of Match.com. In November 2018, the FTC offered to resolve its potential claims relating to Match.com’s marketing, chargeback and online cancellation practices via a consent judgment mandating certain changes in Match.com’s business practices, as well as a payment in the amount of $60 million. We and Match Group believe that the FTC’s legal challenges to Match.com’s practices, policies and procedures are without merit and are prepared to defend vigorously against them.

Item 4.    Mine Safety Disclosures

Not applicable.

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PART II

Item 5.    Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market for Registrant's Common Equity and Related Stockholder Matters

IAC common stock is quoted on the Nasdaq Global Select Market ("NASDAQ") under the ticker symbol "IAC." There is no established public trading market for IAC Class B common stock.

As of February 1, 2019, there were approximately 1,200 holders of record of the Company's common stock and six holders of record (Mr. Diller and five trusts, all for the benefit of Mr. Diller and/or certain members of his family) of the Company's Class B common stock. As of the date of this report, there were four holders of record (Mr. Diller and three trusts for the benefit of certain members of Mr. Diller's family) of the Company's Class B common stock. Because the substantial majority of the outstanding shares of IAC common stock are held by brokers and other institutions on behalf of shareholders, IAC is not able to estimate the total number of beneficial holders represented by these record holders.

Dividends

We do not currently expect that any cash or other dividends will be paid to holders of our common or Class B common stock in the near future. Any future cash dividend or other dividend declarations are subject to the determination of IAC's Board of Directors.

Unregistered Sales of Equity Securities

During the quarter ended December 31, 2018, the Company did not issue or sell any shares of its common stock or other equity securities pursuant to unregistered transactions.

Issuer Purchases of Equity Securities

The Company did not purchase any shares of its common stock during the quarter ended December 31, 2018. As of that date, 8,036,226 shares of IAC common stock remained available for repurchase under the Company's previously announced May 2016 repurchase authorization. On IAC may purchase shares pursuant to this repurchase authorization over an indefinite period of time in 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.

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Item 6.    Selected Financial Data

The following selected financial data for the five years ended December 31, 2018 should be read in conjunction with the consolidated financial statements and accompanying notes included herein.

	Year Ended December 31,
	2018			2017			2016			2015		2014
	(In thousands, except per share data)
Statement of Operations Data:(a)
Revenue	$	4,262,892		$	3,307,239		$	3,139,882		$	3,230,933	$	3,109,547
Earnings (loss) from continuing operations	757,747			358,008			(16,151		)	113,374		234,557
Earnings from discontinued operations (b)	—			—			—			—		174,673
Net (earnings) loss attributable to noncontrolling interests	(130,786		)	(53,084		)	(25,129		)	6,098		5,643
Net earnings (loss) attributable to IAC shareholders	626,961			304,924			(41,280		)	119,472		414,873
Earnings (loss) per share from continuing operations attributable to IAC shareholders:
Basic	$	7.52		$	3.81		$	(0.52	)	$	1.44	$	2.88
Diluted	$	6.59		$	3.18		$	(0.52	)	$	1.33	$	2.71
Dividends declared per share	$	—		$	—		$	—		$	1.36	$	1.16
	December 31,
	2018			2017			2016			2015		2014
	(In thousands)
Balance Sheet Data:
Total assets	$	6,874,585		$	5,867,810		$	4,645,873		$	5,188,691	$	4,241,421
Long-term debt:
Current portion of long-term debt	13,750			13,750			20,000			40,000		—
Long-term debt, net	2,245,548			1,979,469			1,582,484			1,726,954		1,064,536

_________________________________________________________________________

(a) We recognized items that affected the comparability of results for the years 2018, 2017 and 2016, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations."

(b) There were no discontinued operations for the four years ended December 31, 2018. For the year ended December 31, 2014, earnings from discontinued operations were due to the release of tax reserves related to the expiration of the statutes of limitations for federal income taxes for the years 2001 through 2009.

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Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

Key Terms:

When the following terms appear in this report, they have the meanings indicated below:

Reportable Segments (for additional information see "Note 12—Segment Information" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data":

• Match Group ("MTCH") - is a leading provider of subscription dating products, operating a portfolio of dating brands, including Tinder, Match, PlentyOfFish and OkCupid. At December 31, 2018, IAC’s economic and voting interest in MTCH were 81.1% and 97.6%, respectively.

• ANGI Homeservices ("ANGI") - connects millions of homeowners to home service professionals through its portfolio of digital home service brands, including HomeAdvisor, Angie's List and Handy. At December 31, 2018, IAC’s economic and voting interest in ANGI were 83.9% and 98.1%, respectively.

• Vimeo - operates a global video platform for creative professionals, marketers and enterprises to connect with their audiences, customers and employees.

• Dotdash - is a portfolio of digital brands providing expert information and inspiration in select vertical content categories.

• Applications - consists of Desktop, which includes our direct-to-consumer downloadable desktop applications and the business-to-business partnership operations, and Mosaic Group (previously referred to as Mobile), which is a leading provider of global subscription mobile applications comprised of the following businesses that we own and operate: Apalon, iTranslate, TelTech and Daily Burn, transferred from the Emerging & Other segment effective April 1, 2018.

• Emerging & Other - consists of Ask Media Group, BlueCrew, The Daily Beast, College Humor Media, IAC Films and, for periods prior to its transfer to the Applications segment effective April 1, 2018, Daily Burn. It also includes CityGrid, Dictionary.com, Electus, The Princeton Review, ShoeBuy, ASKfm and PriceRunner for periods prior to the sales of these businesses (described below).

Operating Metrics:

In connection with the management of our businesses, we identify, measure and assess a variety of operating metrics. The principal metrics we use in managing our businesses are set forth below:

Match Group

• North America - consists of the financial results and metrics associated with users located in the United States and Canada.

• International - consists of the financial results and metrics associated with users located outside of the United States and Canada.

• Direct Revenue - is revenue that is received directly from end users of its products and includes both subscription and à la carte revenue.

• Subscribers - are users who purchase a subscription to one of MTCH's products. Users who purchase only à la carte features are not included in Subscribers.

• Average Subscribers - is the number of Subscribers at the end of each day in the relevant measurement period divided by the number of calendar days in that period.

• Average Revenue per Subscriber ("ARPU") - is Direct Revenue from Subscribers in the relevant measurement period (whether in the form of subscription or àla carte revenue from Subscribers) divided by the Average Subscribers in such period and further divided by the number of calendar days in such period. Direct Revenue from users who are not Subscribers and have purchased only à la carte features is not included in ARPU.

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ANGI Homeservices

• Marketplace Revenue - includes revenue from the HomeAdvisor and Handy domestic marketplace services, including consumer connection revenue for consumer matches, membership subscription revenue from HomeAdvisor service professionals and revenue from completed jobs sourced through the Handy platform. It excludes revenue from Angie's List, mHelpDesk, HomeStars and Felix.

• Marketplace Service Requests - are fully completed and submitted domestic customer service requests to HomeAdvisor and completed jobs sourced through the Handy platform.

• Marketplace Paying Service Professionals ("Marketplace Paying SPs") - are the number of HomeAdvisor and Handy domestic service professionals that had an active subscription and/or paid for consumer matches or completed a job sourced through the Handy platform in the last month of the period. An active HomeAdvisor subscription is a subscription for which HomeAdvisor was recognizing revenue on the last day of the relevant period.

Vimeo

• Platform Revenue - primarily includes revenue from Software-as-a-Service ("SaaS") subscription fees and other related revenue from Vimeo subscribers.

• Hardware Revenue - includes sales of our live streaming accessories.

• Vimeo Ending Subscribers - is the number of subscribers to Vimeo's SaaS video tools at the end of the period.

Operating Costs and Expenses:

• Cost of revenue - consists primarily of traffic acquisition costs and includes (i) the amortization of fees paid to Apple and Google related to the distribution and the facilitation of in-app purchases and (ii) payments made to partners who distribute our business-to-business customized browser-based applications and who integrate our paid listings into their websites. These payments include amounts based on revenue share and other arrangements. Cost of revenue also includes hosting fees, compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in data center operations and MTCH customer service functions, credit card processing fees, production costs related to IAC Films, College Humor Media and, prior to its sale, Electus, content costs, expenses associated with the operation of the Company's data centers and costs associated with publishing and distributing the Angie's List Magazine. For periods prior to the sale of The Princeton Review, cost of revenue also includes rent and cost for teachers and tutors.

• Selling and marketing expense - consists primarily of advertising expenditures, which include online marketing, including fees paid to search engines, social media sites and third parties that distribute our direct-to-consumer downloadable desktop applications, offline marketing, which is primarily television advertising, and partner-related payments to those who direct traffic to the brands within our MTCH and ANGI segments, and compensation expense (including stock-based compensation expense) and other employee-related costs for ANGI's sales force and marketing personnel.

• General and administrative expense - consists primarily of compensation expense (including stock-based compensation expense) and other employee-related costs for personnel engaged in executive management, finance, legal, tax, human resources and customer service functions (except for MTCH which includes customer service costs within cost of revenue), fees for professional services (including transaction-related costs related to acquisitions and the Combination), facilities costs, bad debt expense, software license and maintenance costs and acquisition-related contingent consideration fair value adjustments (described below). The customer service function at ANGI includes personnel who provide support to its service professionals and consumers.

• Product development expense -consists primarily of compensation expense (including stock-based compensation expense) 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 and software license and maintenance costs.

• Acquisition-related contingent consideration fair value adjustments - relate to the portion of the purchase price of certain acquisitions that is contingent upon the future earnings performance and/or operating metrics of the acquired company. The fair value of the liability is estimated at the date of acquisition and adjusted each reporting period until

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the liability is settled. Significant changes in forecasted earnings and/or operating metrics will result in a significantly higher or lower fair value measurement. The changes in the estimated fair value of the contingent consideration arrangements during each reporting period, including the accretion of the discount if the arrangement is longer than one year, are recognized in "General and administrative expense" in the accompanying consolidated statement of operations.

Long-term debt (for additional information see "Note 7—Long-term Debt" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data":

• MTCH Term Loan - due November 16, 2022. The outstanding balance of the MTCH Term Loan as of December 31, 2018 is $425.0 million. The MTCH Term Loan bears interest at LIBOR plus 2.50% and was 5.09% and 3.85% at December 31, 2018 and 2017, respectively.

• MTCH Credit Facility - On December 7, 2018, the MTCH $500 million revolving credit facility was amended and restated, and is due on December 7, 2023. The outstanding borrowings under the MTCH Credit Facility as of December 31, 2018 are $260.0 million and bear interest at LIBOR plus 1.50%, or approximately 4.00%. At December 31, 2017, there were no outstanding borrowings under the MTCH Credit Facility.

• 6.375% MTCH Senior Notes - MTCH's 6.375% Senior Notes due June 1, 2024, with interest payable each June 1 and December 1. The outstanding balance of the 6.375% MTCH Senior Notes as of December 31, 2018 is $400.0 million.

• 5.00% MTCH Senior Notes - MTCH's 5.00% Senior Notes due December 15, 2027, with interest payable each June 15 and December 15. The proceeds, along with cash on hand, were used to redeem the outstanding balance of the 6.75% MTCH Senior Notes. The outstanding balance of the 5.00% MTCH Senior Notes as of December 31, 2018 is $450.0 million.

• 5.625% MTCH Senior Notes - On February 15, 2019, MTCH completed a private offering of $350 million aggregate principal amount of its 5.625% Senior Notes due 2029. The proceeds were used to repay outstanding borrowings under the MTCH Credit Facility, to pay expenses associated with the offering, and for general corporate purposes.

• 6.75% MTCH Senior Notes - MTCH's 6.75% Senior Notes with an outstanding balance of $445.2 million were redeemed on December 17, 2017 with the proceeds from the 5.00% MTCH Senior Notes and cash on hand.

• ANGI Term Loan - On November 5, 2018, the ANGI Term Loan was amended and restated, and is now due on November 5, 2023. The outstanding balance of the ANGI Term Loan as of December 31, 2018 is $261.3 million. The ANGI Term Loan bears interest, payable quarterly, at LIBOR plus 1.50%, or approximately 4.00% at December 31, 2018, and has quarterly principal payments. The ANGI Term Loan bore interest at LIBOR plus 2.00%, or 3.38%, at December 31, 2017.

• ANGI Credit Facility - On November 5, 2018, ANGI entered into a five-year $250 million revolving credit facility. At December 31, 2018, there were no outstanding borrowings under the ANGI Credit Facility.

• Exchangeable Notes - On October 2, 2017, a finance subsidiary of the Company issued $517.5 million aggregate principal of 0.875% Exchangeable Senior Notes due October 1, 2022, which notes are guaranteed by the Company and are exchangeable into shares of the Company's common stock. Interest is payable each April 1 and October 1. The outstanding balance of the Exchangeable Notes as of December 31, 2018 is $517.5 million. Each $1,000 of principal of the Exchangeable Notes is exchangeable for 6.5713 shares of the Company's common stock, which is equivalent to an exchange price of approximately $152.18 per share, subject to adjustment upon the occurrence of specified events. A portion of the proceeds were used to repay the outstanding balance of the 4.875% Senior Notes (described below).

• 4.75% Senior Notes - IAC's 4.75% Senior Notes due December 15, 2022, with interest payable each June 15 and December 15. The outstanding balance of the 4.75% Senior Notes as of December 31, 2018 is $34.5 million.

• 4.875% Senior Notes - IAC's 4.875% Senior Notes with an outstanding balance of $361.9 million were redeemed on November 30, 2017 with a portion of the proceeds from the Exchangeable Notes.

• IAC Credit Facility - On November 5, 2018, the IAC Credit Facility, under which IAC Group, LLC, a subsidiary of the Company is the borrower, was amended and restated, reducing the facility size from $300 million to $250 million,

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and now expires on November 5, 2023. At December 31, 2018 and 2017, there were no outstanding borrowings under the IAC Credit Facility.

Non-GAAP financial measure:

• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") - is a non-GAAP financial measure. See "Principles of Financial Reporting" for the definition of Adjusted EBITDA and a reconciliation of net earnings (loss) attributable to IAC shareholders to operating income (loss) to consolidated Adjusted EBITDA for the years ended December 31, 2018, 2017, and 2016.

MANAGEMENT OVERVIEW

IAC has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish and OkCupid, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy, and also operates Vimeo, Dotdash and The Daily Beast, among many other online businesses.

Sources of Revenue

MTCH's revenue is primarily derived directly from users in the form of recurring subscription fees, which typically provide unlimited access to a bundle of features for a specific period of time. Revenue is also derived from à la carte features, where users pay a non-recurring fee for a specific action or event, and from online advertisers who pay to reach our large audiences.

ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and booking fees from completed jobs sourced through the Handy platform, and (ii) membership subscription fees paid by HomeAdvisor service professionals. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service. Effective with the Combination (described below), revenue is also derived from Angie's List (i) sales of time-based website, mobile and call center advertising to service professionals and (ii) membership subscription fees from consumers.

Vimeo revenue is derived primarily from annual and monthly Software-as-a-Service ("SaaS") subscription fees paid by creators for premium capabilities and, to a lesser extent, sales of live streaming hardware, software and professional services.

Dotdash revenue consists principally of digital advertising revenue and affiliate commerce commission revenue. Digital advertising revenue is generated primarily through digital display advertisements sold directly and through programmatic advertising networks. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction.

A meaningful portion of the revenue of the Desktop business within the Applications segment and the Ask Media Group within the Emerging & Other segment is attributable to a services agreement with Google Inc. ("Google"). The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020. On February 11, 2019, the Company and Google amended the services agreement, effective as of April 1, 2020. The amendment extends the expiration date of the agreement to March 31, 2023; provided that beginning September 2020 and each September thereafter, either party may, after discussion with the other party, terminate the services agreement, effective on September 30 of the year following the year such notice is given. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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. Google’s policy changes related to its Chrome browser became effective on September 12, 2018 and negatively impacted the distribution of our business-to-consumer ("B2C") desktop products. The impact of these changes on revenue and profits in 2018 were modest as the Company optimized marketing spend in anticipation of the changes. However, we expect these changes to reduce revenue and profits of the Desktop business in the future, which among other reasons led to a $27.7 million impairment of the related indefinite-lived intangible asset in the fourth quarter of 2018. For the years ended December 31, 2018, 2017and2016, consolidated revenue earned from Google was $825.2 million, $740.7 million and $824.4 million, respectively. For the years ended December 31, 2018, 2017 and 2016, revenue earned from Google represents 73%, 83% and 87% of Applications revenue and 94%, 96% and 96% of Ask Media Group revenue (and 68%, 48% and 35% of Emerging & Other revenue), respectively.

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Revenue for the other businesses within the Emerging & Other segment is generated primarily through media production and distribution, advertising and subscriptions. For periods prior to their sales: Dictionary.com and PriceRunner's revenue was derived principally from advertising. Electus revenue was primarily generated through media production and distribution. The Princeton Review's revenue was primarily earned from fees received directly from students for in-person and online test preparation classes, access to online test preparation materials and individual tutoring services. ShoeBuy's revenue was derived principally from merchandise sales.

Strategic Partnerships, Advertiser Relationships and Online Advertising

Most of the Company's online advertising revenue is attributable to a services agreement with Google described above. For the years endedDecember 31, 2018,2017and2016, revenue earned from Google represents 19%, 22% and 26%, respectively, of our consolidated revenue.

We pay traffic acquisition costs, which consist of fees paid to Apple and Google related to the distribution and the facilitation of in-app purchases of product features and payments made to partners who distribute our business-to-business customized browser-based applications and who integrate our paid listings into their websites. We also pay to market and distribute our services on third-party distribution channels, such as search engines and social media websites such as Facebook. In addition, some of our businesses manage affiliate programs, pursuant to which we pay commissions and fees to third parties based on revenue earned. These distribution channels might also offer their own services and products, as well as those of other third parties, which compete with those we offer.

We market and offer our services and products to consumers through branded websites, allowing consumers to transact directly with us in a convenient manner. We have made, and expect to continue to make, substantial investments in online and offline advertising to build our brands and drive traffic to our websites and consumers and advertisers to our businesses.

2018 Developments

Acquisitions

On October 22, 2018, IAC acquired TelTech Systems, Inc. ("TelTech"), a developer of mobile applications, including RoboKiller and TapeACall, within its Applications segment.

On October 19, 2018, ANGI acquired Handy Technologies, Inc. ("Handy"), a leading platform in the United States for connecting people looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals.

Dispositions

On December 31, 2018, the Company sold CityGrid Media, LLC ("CityGrid"), an advertising network that integrated local content and advertising for distribution to affiliated and third-party publishers across web and mobile platforms.

On December 31, 2018, ANGI sold its pay-per-call advertising service business, Felix Calls, LLC ("Felix").

On November 13, 2018, IAC sold Dictionary LLC ("Dictionary.com"), an online and mobile dictionary and thesaurus service.

On October 29, 2018, IAC sold Electus, a production and producer service for both unscripted and scripted television and digit content, primarily for initial sale and distribution in the United States.

The combined pre-tax gains for these businesses sold in 2018 is $120.6 million and is included in "Other income (expense), net" in the accompanying consolidated statement of operations.

Financing Transactions

On December 7, 2018, the MTCH Credit Facility of $500 million was amended and restated, and is now due on December 7, 2023.

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On November 5, 2018,

• IAC's revolving credit facility was amended and restated, reducing the facility size from $300 million to $250 million, and now expires November 5, 2023.

• ANGI entered into a five-year $250 million revolving credit facility and the ANGI Term Loan was amended and restated, and is now due on November 5, 2023.

Other Developments

During the fourth quarter of 2018, IAC realigned its reportable segments. See "Note 1—Organization" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data." The Company's financial information for prior periods have been recast to conform to the current period presentation.

On November 6, 2018, MTCH declared a special dividend of $2.00 per share on MTCH common stock and Class B common stock, payable on December 19, 2018 to shareholders of record on December 5, 2018. The total amount of this dividend was $556.4 million, of which $451.2 million was paid to IAC and $105.1 million was paid to MTCH noncontrolling interests. MTCH funded the special dividend with cash on hand and borrowings under the MTCH Credit Facility.

2018 Consolidated Results

• Revenue increased $955.7 million, or 29%, to $4.3 billion due primarily to growth from MTCH of $399.2 million, an increase from ANGI of $395.9 million due, in part, to the Combination (defined below), and increases of $59.7 million from Emerging & Other, $56.3 million from Vimeo and $40.1 million from Dotdash.

• Operating income increased $376.7 million, or 200%, to $565.1 million due primarily to an increase in Adjusted EBITDA of $413.5 million, a decrease of $26.2 million in stock-based compensation expense, and a change of $4.3 million in acquisition-related contingent consideration fair value adjustments, partially offset by increases of $66.3 million in amortization of intangibles and $1.1 million in depreciation. The decrease in stock-based compensation expense was due primarily to a decrease of $51.4 million in modification and acceleration charges related to the Combination ($70.6 million in 2018 compared to $122.1 million in 2017), partially offset by the modification of certain awards in 2018, due in part, to the sale of businesses during the fourth quarter of 2018 and the issuance of new equity awards since 2017. The increase in amortization of intangibles was due primarily to the Combination and the inclusion in 2018 of an impairment charge of $27.7 million at Applications related to a trade name at the Desktop business.

• Adjusted EBITDA increased $413.5 million, or 72%, to $988.8 million due primarily to growth of $209.6 million from ANGI, $185.0 million from MTCH, $24.1 million from Dotdash and $10.3 million from Emerging & Other, partially offset by a decrease of $4.9 million from Applications and increased losses of $6.3 million and $4.4 million from Corporate and Vimeo, respectively.

Events affecting year-over-year comparability include:

(i) the combination on September 29, 2017 of the businesses comprising the Company's former HomeAdvisor segment and Angie's List, Inc. ("Angie's List") under a new publicly traded company called ANGI Homeservices Inc. (the "Combination"), which comprises the Company's ANGI segment. Stock-based compensation expense related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, is expected to be approximately $35 million in 2019 and $20 million in 2020;

(ii) the adoption of the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, on January 1, 2018. For the year ended December 31, 2018, the adoption of ASU No. 2014-09 increased consolidated operating income by $2.6 million, due primarily to a reduction in sales commissions expense of $4.9 million at ANGI due to the capitalization and amortization of certain sales commissions. For the year ended December 31, 2018, the effect of ASU No. 2014-09 decreased consolidated revenue by $0.5 million;

(iii) the adoption of FASB ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018. For the year ended December 31, 2018, the adoption of ASU No. 2016-01

38

increased other income (expense), net by $124.2 million, which includes gross unrealized gains related to the remeasurement of Company's remaining investments in an investee following the sale of a portion of the Company's investment during the second quarter of 2018; and

(iv) in addition to those listed under "2018 Developments" above, the acquisitions and dispositions of the following businesses:

Acquisitions:	Reportable Segment:	Acquisition Date:
BlueCrew - controlling interest	Emerging & Other	February 26, 2018
Hinge - controlling interest *	MTCH	Second quarter of 2018
iTranslate	Applications	March 15, 2018
HomeStars Inc. ("HomeStars") - controlling interest	ANGI	February 8, 2017
MyBuilder Limited ("MyBuilder") - controlling interest	ANGI	March 24, 2017
Livestream	Vimeo	October 18, 2017
My Hammer Holding AG ("MyHammer) - controlling interest	ANGI	November 3, 2016

_______________________

^* In the fourth quarter of 2018, MTCH acquired the remaining noncontrolling interests in Hinge.

Dispositions:	Reportable Segment:	Sale Date:
The Princeton Review	Emerging & Other	March 31, 2017
PriceRunner	Emerging & Other	March 18, 2016
ASKfm	Emerging & Other	June 30, 2016
ShoeBuy	Emerging & Other	December 30, 2016

(v) the transfer of Daily Burn from the Emerging & Other segment to the Applications segment effective April 1, 2018.

(vi) restructuring charges in 2016 of $14.5 million, $2.6 million and $1.1 million at Ask Media Group, Applications and Dotdash, respectively, to reduce costs in light of significant declines in revenue from the Google contract, which was effective April 1, 2016, as well as declines from certain other legacy businesses.

39

Results of Operations for the Years Ended December 31, 2018, 2017 and 2016

Revenue

	Years Ended December 31,
	2018			$ Change		% Change	2017			$ Change			% Change	2016
	(Dollars in thousands)
Match Group	$	1,729,850		$	399,189	30%	$	1,330,661		$	212,551		19%	$	1,118,110
ANGI Homeservices	1,132,241			395,855		54%	736,386			237,496			48%	498,890
Vimeo	159,641			56,309		54%	103,332			24,527			31%	78,805
Dotdash	130,991			40,101		44%	90,890			12,977			17%	77,913
Applications	582,287			4,289		1%	577,998			(26,142		)	(4)%	604,140
Emerging & Other	528,250			59,661		13%	468,589			(294,020		)	(39)%	762,609
Inter-segment elimination	(368		)	249		40%	(617		)	(32		)	(6)%	(585		)
Total	$	4,262,892		$	955,653	29%	$	3,307,239		$	167,357		5%	$	3,139,882

For the year ended December 31, 2018 compared to the year ended December 31, 2017

MTCH revenue increased 30% to $1.7 billion driven by International Direct Revenue growth of $234.8 million, or 43%, and North America Direct Revenue growth of $161.1 million, or 22%. Both International and North America Direct Revenue growth were driven by higher Average Subscribers, up 31% to 3.7 million and 17% to 4.2 million, respectively, due primarily to continued growth in Subscribers at Tinder. Total ARPU increased 6% due to Tinder, as Subscribers purchased premium subscriptions, such as Tinder Gold, as well as additional à la carte features.

ANGI revenue increased 54% to $1.1 billion driven by the Marketplace growth of $193.1 million, or 33%, the contribution from Angie's List and growth of $12.6 million, or 22%, at the European businesses. Marketplace Revenue growth was driven by a 30% increase in Marketplace Service Requests to 23.5 million and a 18% increase in Marketplace Paying SPs to 214,000. Angie's List revenue reflects the write-off of deferred revenue due to the Combination of $5.5 million in 2018 compared to $7.8 million in 2017. Revenue growth at the European businesses was driven by the acquisition of a controlling interest in MyBuilder on March 24, 2017, as well as growth across other regions. European revenue also benefited from the weakening of the U.S. dollar relative to the Euro.

Vimeo revenue grew 54% to $159.6 million due to Platform revenue growth of $47.0 million, or 47%, and Hardware revenue growth of $9.3 million, both due in part, to the contribution of Livestream. Platform revenue growth was further impacted by a 9% increase in Vimeo Ending Subscribers to 952,000 and average revenue per user growth of 31%.

Dotdash revenue grew 44% to $131.0 million due to strong advertising growth across several verticals, particularly Verywell and The Spruce, as well as growth in affiliate commerce commission revenue.

Applications revenue increased 1% to $582.3 million due to an increase of $67.7 million, or 121%, in Mosaic Group, partially offset by a decline of $63.4 million, or 12%, in Desktop. The increase in Mosaic Group revenue was driven primarily by growth of 55% related to the ongoing transition to subscription products as well as higher marketing expense and new products, contributions from iTranslate and TelTech, and the transfer of Daily Burn from the Emerging & Other segment effective April 1, 2018. The decline at Desktop was driven by the business-to-business partnership operations' loss of certain partners and a decrease in the direct-to-consumer desktop applications business due primarily to lower revenue per query. The adoption of ASU No. 2014-09 resulted in a net increase in revenue of $0.8 million (an increase of $7.3 million in Mosaic Group, partially offset by a decrease of $6.5 million in Desktop).

Emerging & Other revenue increased 13% to $528.3 million due primarily to higher revenue at Ask Media Group due to growth in paid traffic, primarily in international markets, and the contribution from BlueCrew, partially offset by the sales of Electus and Dictionary.com in the fourth quarter of 2018, the sale of The Princeton Review in 2017, lower revenue from IAC Films due to the sale of a film in the third quarter of 2017 and the transfer of Daily Burn.

40

For the year ended December 31, 2017 compared to the year ended December 31, 2016

MTCH revenue increased 19% to $1.3 billion driven by International Direct Revenue growth of $146.5 million, or 37%, and North America Direct Revenue growth of $67.4 million, or 10%. Both International and North America Direct Revenue growth were driven by higher Average Subscribers, up 33% to 2.8 million and 9% to 3.6 million, respectively, due primarily to continued growth in Subscribers at Tinder. Total ARPU increased 1%.

ANGI revenue increased 48% to $736.4 million driven by Marketplace growth of $152.5 million, or 36%, and growth of $20.4 million, or 55%, at the European businesses. Marketplace Revenue growth was driven by a 37% increase in Marketplace Service Requests to 18.1 million and a 26% increase in Marketplace Paying SPs to 181,000. Revenue in 2017 includes the contribution from Angie's List since the date of Combination, which reflects the write-off of deferred revenue of $7.8 million. Revenue growth at the European businesses was driven by the acquisitions of controlling interests in MyHammer on November 3, 2016 and MyBuilder, as well as by organic growth across other regions.

Vimeo revenue grew 31% to $103.3 million due to Platform revenue growth of $20.8 million, or 26%, and Hardware revenue of $3.7 million both due in part, to the contribution of Livestream. Platform revenue growth was further impacted by a 14% increase in Vimeo Ending Subscribers to 873,000 and average revenue per user growth of 11%.

Dotdash revenue grew 17% to $90.9 million due to an increase in organic traffic and advertising revenue.

Applications revenue decreased 4% due to a decline of $41.2 million, or 7%, in Desktop, partially offset by an increase of $15.0 million, or 37%, in Mosaic Group. The decline at Desktop were driven by the business-to-business partnership operations' loss of certain partners, and a decrease in the direct-to-consumer desktop applications business due primarily to lower revenue per query, partially offset by higher subscription revenue. The increase in Mosaic Group revenue was driven by higher advertising and subscription revenue.

Emerging & Other revenue decreased 39% to $468.6 million due primarily to the sales of ShoeBuy, The Princeton Review and PriceRunner, declines in paid traffic primarily as a result of the Google contract at Ask Media Group and a decline at College Humor Media, partially offset by the sales of TheMeyerowitz Stories (New and Selected) and The Legacy of a Whitetail Deer Hunter and the release of Lady Bird at IAC Films, and an increase at Electus.

Cost of revenue

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
Cost of revenue (exclusive of depreciation shown separately below)	$911,146	$260,138	40%	$651,008	$(104,722)	(14)%	$755,730
As a percentage of revenue	21%			20%			24%

For the year ended December 31, 2018 compared to the year ended December 31, 2017

Cost of revenue in 2018 increased from 2017 due to increases of $130.5 million from MTCH, $79.0 million from Emerging & Other, $21.7 million from ANGI and $19.0 million from Vimeo.

• The MTCH increase was due primarily to an increase of $123.8 million in in-app purchase fees as MTCH's revenues are increasingly sourced through mobile app stores.

• The Emerging & Other increase was due primarily to an increase of $143.2 million in traffic acquisition costs principally driven by higher revenue at Ask Media Group, primarily in international markets, and the expense from the inclusion of BlueCrew, which was acquired on February 26, 2018, partially offset by a decrease of $71.1 million in production costs, driven primarily by the sale of Electus in 2018 and lower revenue from IAC Films, the sale of The Princeton Review in 2017 and the transfer of Daily Burn to Applications.

• The ANGI increase was due primarily to increases of $7.2 million in traffic acquisition costs, $7.0 million in credit card processing fees, including $3.5 million from the inclusion of Angie's List, and higher Marketplace Revenue, $3.7

41

million in costs associated with publishing and distributing the Angie's List Magazine and $2.5 million in hosting fees, principally from the inclusion of Angie's List.

• The Vimeo increase was due primarily to the expense from the inclusion of Livestream.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

Cost of revenue in 2017 decreased from 2016 due to decreases of $180.1 million from Emerging & Other and $20.9 million from Applications, partially offset by increases of $83.9 million from MTCH, $8.2 million from ANGI and $6.9 million from Vimeo.

• The Emerging & Other decrease was due primarily to the sales of ShoeBuy and The Princeton Review, a reduction of $13.2 million in traffic acquisition costs and $8.4 million in rent expense due to vacating a data center in the fourth quarter of 2016 at Ask Media Group and lower production costs at College Humor Media, partially offset by an increase in production costs at IAC Films related to the sales of TheMeyerowitz Stories (New and Selected) and The Legacy of a Whitetail Deer Hunter and the release of Lady Bird in 2017.

• The Applications decrease was due primarily to a reduction of $16.6 million in traffic acquisition costs driven by a decline in revenue at Desktop and a decrease of $2.9 million in compensation expense due, in part, to the reductions in workforce in 2016.

• The MTCH increase was due primarily to increases of $75.4 million in in-app purchase fees and $5.9 million in hosting fees. The increases were due primarily to the growth at Tinder.

• The ANGI increase was due primarily to the inclusion of expense of $3.7 million from Angie's List resulting from the Combination, an increase of $2.8 million in credit card processing fees due to higher revenue and an increase of $1.6 million in hosting fees, partially offset by a reduction in traffic acquisition costs of $0.4 million.

• The Vimeo increase was due primarily to the expense from the inclusion of Livestream and an increase of $2.6 million in hosting fees due to subscription growth.

Selling and marketing expense

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
Selling and marketing expense	$1,519,440	$138,219	10%	$1,381,221	$134,124	11%	$1,247,097
As a percentage of revenue	36%			42%			40%

For the year ended December 31, 2018 compared to the year ended December 31, 2017

Selling and marketing expense in 2018 increased from 2017 due to increases of $77.4 million from ANGI, $44.3 million from MTCH and $26.1 million from Vimeo, partially offset by a decrease of $13.2 million from Emerging & Other.

• The ANGI increase was due primarily to increases in advertising expense of $53.7 million, reflecting the impact from the inclusion of Angie's List, compensation expense of $12.9 million and facilities costs of $5.1 million. The increase in advertising expense was due primarily to increased investments in online marketing and television spend. Compensation expense increased due primarily to growth in the sales force, partially offset by a decrease in stock-based compensation expense of $22.4 million and the inclusion of $7.4 million in severance and retention costs in 2017 related to the Combination. The decrease in stock-based compensation expense reflects decreases of $13.3 million in expense due to the modification of previously issued HomeAdvisor equity awards, which were converted into ANGI Homeservices' equity awards ($1.6 million in 2018 compared to $14.8 million in 2017), and $9.0 million in expense related to previously issued Angie's List equity awards, including the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination ($0.6 million in 2018 compared to $9.6 million in 2017). Compensation expense in 2018 also reflects a reduction in sales commissions expense of $4.9 million due to the adoption of ASU No. 2014-09. As a percentage of revenue, selling

42

and marketing expense declined due, in part, to accelerated revenue growth driven by capacity expansion efforts combined with marketing optimization efforts at HomeAdvisor.

• The MTCH increase was due primarily to higher advertising expense of $45.6 million due primarily to increased marketing expense as a result of marketing initiatives at Tinder, Pairs, PlentyOfFish, OkCupid and Meetic, and the inclusion of Hinge, acquired in 2018, partially offset by lower offline marketing spend at Match and Match Affinity brands. As a percentage of revenue, selling and marketing expense decreased due primarily to the ongoing shift towards brands with lower marketing spend.

• The Vimeo increase was due primarily to increased investment in marketing of $13.2 million, $8.8 million of expense from the inclusion of Livestream and an increase in compensation expense of $3.2 million, due, in part, to an increase in the sales force.

• The Emerging & Other decrease was due primarily to the transfer of Daily Burn to the Applications segment, the sale of The Princeton Review and a decrease in online marketing of $9.0 million at Ask Media Group, partially offset by higher compensation expense of $6.8 million at Electus and the expense from the inclusion of BlueCrew. Selling and marketing expense was further impacted by an increase of $2.2 million in compensation expense at The Daily Beast due, in part, to an increase in the sales force.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

Selling and marketing expense in 2017 increased from 2016 due to increases of $157.3 million from ANGI, $26.5 million from MTCH and $11.7 million from Vimeo, partially offset by decreases of $53.0 million from Emerging & Other and $6.7 million from Applications.

• The ANGI increase was due primarily to higher advertising expense of $78.2 million, of which $5.3 million was from the inclusion of Angie's List, an increase of $64.9 million in compensation expense, of which $24.4 million was from the inclusion of Angie's List, and $9.5 million of expense from acquisitions made prior to the Combination. The increase in advertising expense was due primarily to increased investments in online marketing and television spend. Compensation increased due primarily to an increase of $24.9 million in stock-based compensation expense, of which $9.8 million was from the inclusion of Angie's List, an increase in the sales force and the inclusion of $7.4 million in severance and retention costs related to the Combination. The increase in stock-based compensation expense reflects $14.8 million of expense in 2017 due to the modification of previously issued HomeAdvisor equity awards, which were converted into ANGI Homeservices' equity awards and $9.6 million of expense in 2017 related to previously issued Angie's List equity awards, including the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination.

• The MTCH increase was due primarily to higher advertising expense of $15.3 million and an increase in compensation expense of $9.1 million. The increase in advertising expense was due primarily to an increase in strategic investments in certain international markets at Tinder and increased marketing related to the launch of a new brand by Meetic in Europe, partially offset by a reduction in marketing spend at MTCH's affinity brands. The increase in compensation expense was primarily related to an increase in headcount at Tinder and the employer portion of payroll taxes paid in connection with the exercise of MTCH options. As a percentage of revenue, selling and marketing expense decreased due primarily to a continued shift towards brands with lower marketing spend and reductions in marketing spend at the affinity brands.

• The Vimeo increase was due primarily to increases in marketing expense of $10.6 million and $2.3 million of compensation expense.

• The Emerging & Other decrease was due primarily to the sales of ShoeBuy and The Princeton Review, decreases of $21.1 million and $4.5 million in online marketing and compensation expense, respectively, at Ask Media Group and a decrease of $3.5 million in offline marketing at Daily Burn, partially offset by increases in marketing expense at IAC Films of $6.5 million and compensation expense at Electus of $1.7 million. Online marketing and compensation expense at Ask Media Group decreased principally related to lower revenue resulting from changes in the Google contract and reductions in workforce that occurred in 2016, including $3.1 million in restructuring costs in 2016.

• The Applications decrease was due primarily to lower online marketing expense of $10.0 million at Desktop, partially offset by higher online marketing expense of $6.5 million at Mosaic Group.

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General and administrative expense

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
General and administrative expense	$774,079	$54,822	8%	$719,257	$188,811	36%	$530,446
As a percentage of revenue	18%			22%			17%

For the year ended December 31, 2018 compared to the year ended December 31, 2017

General and administrative expense in 2018 increased from 2017 due to increases of $36.8 million from Corporate, $21.7 million from ANGI and $5.9 million from Vimeo, partially offset by a decrease of $14.8 million from Emerging & Other.

• The Corporate increase was due primarily to higher compensation costs, including an increase in stock-based compensation expense related to a mark-to-market adjustment.

• The ANGI increase was due primarily to an increase of $19.7 million in bad debt expense due, in part, to higher Marketplace Revenue, increases of $8.8 million in software license and maintenance costs and $2.9 million in facilities costs, both reflecting the impact from the inclusion of Angie's List, $2.4 million in compensation expense and an increase in customer service expense of $3.4 million, partially offset by a reduction in transaction and integration-related costs principally related to the Combination of $21.9 million. The increase in compensation expense was due primarily to an increase in headcount following the Combination and existing business growth as well as $3.8 million of expense from the inclusion of Handy, almost entirely offset by a decrease of $25.6 million in stock-based compensation expense and a decrease of $9.2 million in severance and retention costs related to the Combination ($2.7 million in 2018 compared to $11.8 million in 2017). The decrease in stock-based compensation expense reflects decreases of $12.9 million in expense due to the modification of previously issued HomeAdvisor equity awards, which were converted into ANGI Homeservices' equity awards ($52.9 million in 2018 compared to $65.7 million in 2017) and $9.6 million in expense related to previously issued Angie's List equity awards, including the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination ($8.1 million in 2018 compared to $17.7 million in 2017), and the inclusion in 2017 of a modification charge related to a HomeAdvisor equity award, partially offset by acceleration of expense related to certain equity awards in the fourth quarter of 2018 in connection with the chief executive officer transition and the issuance of new equity awards since 2017.

• The Vimeo increase was due primarily to $4.9 million of expense from the inclusion of Livestream and an increase in legal costs in 2018.

• The Emerging & Other decrease was due primarily to the sale of The Princeton Review, the transfer of Daily Burn to the Applications segment, a favorable legal settlement of $4.8 million in 2018, partially offset by $3.2 million of expense from the inclusion of BlueCrew.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

General and administrative expense in 2017 increased from 2016 due to increases of $192.9 million from ANGI, $44.8 million from MTCH and $20.0 million from Corporate, partially offset by decreases of $64.8 million from Emerging & Other and $10.2 million from Applications.

• The ANGI increase was due primarily to higher compensation expense of $130.7 million, of which $38.4 million was from the inclusion of Angie's List, and $24.3 million in costs related to the Combination including transaction related costs of $14.3 million and integration related costs of $10.0 million. The increase in compensation expense was due primarily to an increase of $100.5 million in stock-based compensation expense, of which $18.0 million was from the inclusion of Angie's List, an increase in headcount from business growth and the inclusion of $11.8 million in severance and retention costs in 2017 related to the Combination. The increase in stock-based compensation expense reflects $65.7 million of expense in 2017 due to the modification of previously issued HomeAdvisor equity awards, which were converted into ANGI Homeservices' equity awards, and $17.7 million of expense in 2017 related to previously issued Angie's List equity awards, including the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination as well as a modification charge

44

related to a HomeAdvisor equity award in 2017. General and administrative expense also includes increases of $9.2 million in bad debt expense due, in part, to higher Marketplace Revenue, $3.9 million in customer service expense and $3.2 million in software license and maintenance costs, as well as $9.8 million of expense from acquisitions made prior to the Combination.

• The MTCH increase was due primarily to an increase of $20.6 million in compensation expense, a change of $14.5 million in acquisition-related contingent consideration fair value adjustments (expense of $5.3 million in 2017 compared to income of $9.2 million in 2016) and an increase of $6.8 million in professional fees. The increase in compensation expense was due to an increase of $9.1 million in stock-based compensation expense due primarily to an increase in expense related to a subsidiary denominated equity award held by a non-employee, which award was settled in the third quarter of 2017, the employer portion of payroll taxes paid in connection with the exercise of MTCH options and an increase in headcount from business growth. The increase in professional fees was due primarily to the settlement of the Tinder equity plan.

• The Corporate increase was due primarily to higher compensation costs in 2017, including an increase in stock-based compensation expense due primarily to the issuance of new equity awards since 2016, and higher professional fees.

• The Emerging & Other decrease was due primarily to the sales of The Princeton Review, ShoeBuy and ASKfm, and the effect of the reductions in workforce in 2016, including $2.3 million in restructuring costs included in 2016 at Ask Media Group.

• The Applications decrease was due primarily to the inclusion in 2016 of $12.0 million in expense related to an acquisition-related contingent consideration fair value adjustment and a $2.9 million favorable legal settlement in 2017.

Product development expense

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
Product development expense	$309,329	$58,450	23%	$250,879	$38,114	18%	$212,765
As a percentage of revenue	7%			8%			7%

For the year ended December 31, 2018 compared to the year ended December 31, 2017

Product development expense in 2018 increased from 2017 due to increases of $30.9 million from MTCH, $13.2 million from ANGI, $9.8 million from Vimeo and $6.0 million from Dotdash.

• The MTCH increase was due primarily to an increase of $28.8 million in compensation expense, due primarily to higher headcount at Tinder.

• The ANGI increase was due primarily to increases of $4.9 million in compensation expense and $4.5 million in software license and maintenance costs, reflecting the impact from the inclusion of Angie's List. The increase in compensation expense was due primarily to increased headcount, partially offset by a decrease of $6.1 million in stock-based compensation expense resulting from a lower modification charge related to the Combination.

• The Vimeo increase was due primarily to $8.7 million of expense from the inclusion of Livestream.

• The Dotdash increase was due primarily to an increase of $5.7 million in compensation expense, due primarily to higher headcount.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

Product development expense in 2017 increased from 2016 due to increases of $27.3 million from ANGI, $23.0 million from MTCH and $3.6 million from Vimeo, partially offset by decreases of $10.9 million from Emerging & Other and $4.4 million from Applications.

45

• The ANGI increase was due primarily to an increase of $23.0 million in compensation expense, of which $6.8 million was from the inclusion of Angie's List, and $2.9 million of expense from acquisitions made prior to the Combination. The increase in compensation expense was due to an increase of $14.5 million in stock-based compensation expense principally due to the modification charge related to the Combination and increased headcount.

• The MTCH increase was due primarily to an increase of $20.7 million in compensation expense driven by an increase of $14.4 million related to increased headcount and the employer portion of payroll taxes paid in connection with the exercise of MTCH options, and an increase of $6.3 million in stock-based compensation expense due primarily to new grants issued since 2016.

• The Vimeo increase was due primarily to $2.2 million of expense from the inclusion of Livestream.

• The Emerging & Other decrease was due primarily to the sales of The Princeton Review and ASKfm and a decrease of $4.3 million in compensation expense due, in part, to reductions in workforce in 2016, including $1.2 million in restructuring costs in 2016 at Ask Media Group.

• The Applications decrease was due primarily to a decrease of $3.6 million in compensation expense due, in part, to a decrease in headcount related to reductions in workforce in 2016.

Depreciation

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
Depreciation	$75,360	$1,095	1%	$74,265	$2,589	4%	$71,676
As a percentage of revenue	2%			2%			2%

For the year ended December 31, 2018 compared to the year ended December 31, 2017

Depreciation in 2018 increased from 2017 due primarily to continued corporate growth at ANGI, partially offset by certain fixed assets becoming fully depreciated and the sale of The Princeton Review.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

Depreciation in 2017 increased from 2016 due primarily to the increased depreciation at ANGI and MTCH related to continued corporate growth, partially offset by the sales of The Princeton Review and ShoeBuy.

Operating income (loss)

	Years Ended December 31,
	2018			$ Change			% Change		2017			$ Change			% Change		2016
	(Dollars in thousands)
Match Group	$	553,294		$	192,777		53	%	$	360,517		$	44,968		14	%	$	315,549
ANGI Homeservices	63,906			213,082			NM		(149,176		)	(174,539		)	NM		25,363
Vimeo	(35,594		)	(8,266		)	(30	)%	(27,328		)	(1,978		)	(8	)%	(25,350		)
Dotdash	18,778			34,472			NM		(15,694		)	233,011			94	%	(248,705		)
Applications	94,834			(35,342		)	(27	)%	130,176			20,513			19	%	109,663
Emerging & Other	29,964			12,552			72	%	17,412			117,108			NM		(99,696		)
Corporate	(160,043		)	(32,602		)	(26	)%	(127,441		)	(17,992		)	(16	)%	(109,449		)
Total	$	565,139		$	376,673		200	%	$	188,466		$	221,091		NM		$	(32,625	)
As a percentage of revenue	13%								6%								(1)%

________________________

NM = Not meaningful.

46

For the year ended December 31, 2018 compared to the year ended December 31, 2017

Operating income in 2018 increased from 2017 due primarily to an increase in Adjusted EBITDA of $413.5 million described below, a decrease of $26.2 million in stock-based compensation expense and a change of $4.3 million in acquisition-related contingent consideration fair value adjustments, partially offset by increases of $66.3 million in amortization of intangibles and $1.1 million in depreciation. The decrease in stock-based compensation expense was due primarily to a decrease of $51.4 million in modification and acceleration charges related to the Combination ($70.6 million in 2018 compared to $122.1 million in 2017) and the inclusion in 2017 of a modification charge related to a HomeAdvisor equity award, partially offset by the modification of certain awards in 2018, due in part, to the sale of businesses during the fourth quarter of 2018, and the issuance of new equity awards since 2017. The increase in amortization of intangibles reflects an increase in amortization expense of $39.4 million related to the Combination, the inclusion in 2018 of an indefinite-lived intangible asset impairment charge of $27.7 million at Applications related to a trade name at the Desktop business and an increase in amortization expense of $4.0 million related to the acquisition of Livestream, partially offset by a Dotdash definite-lived trade name that became fully amortized in 2017. The indefinite-lived intangible asset impairment charge at Desktop was due to Google’s policy changes related to its Chrome browser which became effective on September 12, 2018 and have negatively impacted the distribution of our business to consumer desktop products.

At December 31, 2018, there was $326.0 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 2.3 years.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

Operating income in 2017 increased from a loss in 2016 due primarily to the inclusion in 2016 of a goodwill impairment charge of $275.4 million at IAC Publishing (which in connection with the Company's realignment of its reportable segments in the fourth quarter of 2018 was allocated to the Dotdash and the Emerging & Other reportable segments based upon their relative fair values as of October 1, 2018), an increase of $74.1 million in Adjusted EBITDA described below, and a decrease of $37.3 million in amortization of intangibles, partially offset by an increase of $159.8 million in stock-based compensation expense, a change of $3.2 million in acquisition-related contingent consideration fair value adjustments and an increase of $2.6 million in depreciation expense. The goodwill impairment charge at IAC Publishing in 2016 was driven by the impact from the Google contract, traffic trends and monetization challenges. The decrease in amortization of intangibles was due primarily to lower expense in 2017 as a result of a Dotdash trade name and certain intangible assets from the PlentyOfFish acquisition becoming fully amortized and impairment charges in 2016 of $9.0 million and $2.6 million related to certain Dictionary.com and Dotdash indefinite-lived trade names, respectively, partially offset by expense in 2017 related to the Combination. The increase in stock-based compensation expense was due primarily to an increase of $140.3 million at ANGI due primarily to the modification and acceleration charges related to the Combination, as well as an increase in expense related to a subsidiary denominated equity award held by a non-employee, which award was settled during the third quarter of 2017, and the issuance of new equity awards since 2016.

Adjusted EBITDA

	Years Ended December 31,
	2018			$ Change			% Change		2017			$ Change			% Change		2016
	(Dollars in thousands)
Match Group	$	653,931		$	184,990		39	%	$	468,941		$	65,561		16	%	$	403,380
ANGI Homeservices	247,506			209,648			554	%	37,858			(7,993		)	(17	)%	45,851
Vimeo	(28,045		)	(4,438		)	(19	)%	(23,607		)	(3,326		)	(16	)%	(20,281		)
Dotdash	21,384			24,147			NM		(2,763		)	14,083			84	%	(16,846		)
Applications	131,837			(4,920		)	(4	)%	136,757			4,481			3	%	132,276
Emerging & Other	36,178			10,316			40	%	25,862			15,751			156	%	10,111
Corporate	(74,017		)	(6,262		)	(9	)%	(67,755		)	(14,483		)	(27	)%	(53,272		)
Total	$	988,774		$	413,481		72	%	$	575,293		$	74,074		15	%	$	501,219
As a percentage of revenue	23%								17%								16%

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For a reconciliation of net earnings (loss) attributable to IAC shareholders to operating income (loss) to consolidated Adjusted EBITDA, see "Principles of Financial Reporting." For a reconciliation of operating income (loss) to Adjusted EBITDA for the Company's reportable segments, see "Note 12—Segment Information" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

For the year ended December 31, 2018 compared to the year ended December 31, 2017

MTCH Adjusted EBITDA increased 39% to $653.9 million due primarily to the increase of $399.2 million in revenue due to growth at Tinder, and lower selling and marketing expense as a percentage of revenue due primarily to the ongoing shift towards brands with lower marketing spend, partially offset by higher in-app purchase fees as revenues are increasingly sourced through mobile app stores and higher litigation costs.

ANGI Adjusted EBITDA increased 554% to $247.5 million due primarily to the increase of $395.9 million in revenue, a reduction in transaction and integration-related costs principally related to the Combination of $39.1 million and lower selling and marketing expense as a percentage of revenue, partially offset by higher compensation expense due, in part, to increased headcount following the Combination, and increases of $21.7 million in cost of revenue, $19.7 million in bad debt expense, $15.2 million in software license and maintenance cost and $9.4 million in facilities costs. Additionally, Adjusted EBITDA in 2018 benefited from a reduction in sales commissions expense of $4.9 million due to the adoption of ASU No. 2014-09.

Vimeo Adjusted EBITDA loss increased 19% to a loss of $28.0 million, despite higher revenue, driven by investments in marketing and product development expense to continue to grow the business and an increase in legal costs.

Dotdash Adjusted EBITDA improved to a profit of $21.4 million in 2018 from a loss of $2.8 million in 2017, due primarily to higher revenue and lower operating expenses as a percentage of revenue.

Applications Adjusted EBITDA decreased 4% to $131.8 million, despite higher revenue, due primarily to higher marketing expense at Mosaic Group and losses at Daily Burn.

Emerging & Other Adjusted EBITDA increased 40% to $36.2 million due primarily to higher revenue, a favorable legal settlement of $4.8 million in the third quarter of 2018 and profits at IAC Films, partially offset by increased investments in College Humor Media and BlueCrew, and reduced profits at Electus.

Corporate Adjusted EBITDA loss increased 9% to $74.0 million due primarily to higher compensation costs.

For the year ended December 31, 2017 compared to the year ended December 31, 2016

MTCH Adjusted EBITDA increased 16% to $468.9 million due primarily to an increase of $212.6 million in revenue and lower selling and marketing expense as a percentage of revenue due to the ongoing product mix towards brands with lower marketing spend and a reduction in marketing spend at MTCH's Affinity brands, partially offset by an increase in cost of revenue, general and administrative expense and product development expense. General and administrative expense and product development expense increased due, in part, to expense of $12.7 million associated with the employer portion of payroll taxes and professional fees resulting from the settlement of the Tinder equity plan.

ANGI Adjusted EBITDA decreased 17% to $37.9 million, despite an increase of $237.5 million in revenue, due primarily to an increase in selling and marketing expense, higher compensation expense due, in part, to increase headcount, the inclusion in 2017 of $44.1 million in costs related to the Combination (including severance, retention, transaction and integration related costs) and increases in bad debt expense due, in part, to higher Marketplace Revenue, outsourced customer service expense, software license and maintenance costs, and higher losses at the European businesses driven primarily by its expansion strategy. Adjusted EBITDA in 2017 was further impacted by write-offs of deferred revenue related to the Combination of $7.8 million.

Vimeo Adjusted EBITDA loss increased 16% to a loss of $23.6 million, despite higher revenue (including the impact of deferred revenue write-offs of $2.1 million related to acquisition of Livestream), reflecting our investments in marketing and product development to grow the business.

Dotdash Adjusted EBITDA loss improved 84% to a loss of $2.8 million due primarily to higher revenue and lower operating expenses as a percentage of revenue.

Applications Adjusted EBITDA increased 3% to 136.8 million, despite a 4% decrease in revenue, due primarily to lower operating costs. Adjusted EBITDA in 2016 includes $2.6 million in restructuring costs.

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Emerging & Other Adjusted EBITDA increased 156% to $25.9 million, despite lower revenue, due primarily to the inclusion in 2016 of $14.5 million in restructuring charges at Ask Media Group related to vacating a data center and severance costs in an effort to reduce costs in light of significant declines in revenue from the Google contract, increased profits at Dictionary.com and the contribution from IAC Films, partially offset by increased losses at College Humor Media and reduced profits at Electus.

Corporate Adjusted EBITDA loss increased 27% to $67.8 million due primarily to higher compensation costs and professional fees.

Interest expense

	Years Ended December 31,
	2018	$ Change	% Change	2017		$ Change	% Change	2016
	(Dollars in thousands)
Interest expense	$109,327	$4,032	4%	$	105,295	$(3,815)	(3)%	109,110

Interest expense in 2018 increased from 2017 due primarily to increases in the average outstanding long-term debt balance and interest rates on variable rate debt compared to the prior year.

Interest expense in 2017 decreased from 2016 due primarily to lower interest expense of $16.0 million related to the 2016 prepayment and 2017 repricing of the MTCH Term Loan and $6.6 million related to the repayment of the outstanding balances of the 4.875% Senior Notes and 6.75% MTCH Senior Notes in the fourth quarter of 2017. Partially offsetting these decreases are increases of $10.9 million of interest expense associated with the 6.375% MTCH Senior Notes, $5.2 million from the issuance of the Exchangeable Notes, $1.8 million related to the 5.00% MTCH Senior Notes and $1.7 million from the ANGI Term Loan.

Other income (expense), net

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
Other income (expense), net	$305,746	$321,959	NM	$(16,213)	$(76,863)	NM	$60,650

Other income, net in 2018 includes: $124.2 million of net unrealized gains related to certain equity investments that were adjusted to fair value in accordance with ASU No. 2016-01, which was adopted on January 1, 2018; $120.6 million in gains related to the sales of Dictionary.com, Electus, Felix and CityGrid; $30.4 million of interest income; $27.9 million in realized gains related to the sale of certain investments; and $5.3 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound.

Other expense, net in 2017 includes: $16.8 million in net foreign currency exchange losses due primarily to the weakening of the dollar relative to the British Pound; $15.4 million expense related to the extinguishment of the 6.75% MTCH Senior Notes and repricing of the MTCH Term Loan; $13.0 million mark-to-market charge principally pertaining to a subsidiary denominated equity award held by a non-employee; $12.2 million in other-than-temporary impairment charges related to certain investments; $1.2 million expense related to the write-off of deferred financing costs associated with the repayment of the 4.875% Senior Notes; $34.9 million in realized gains related to the sale of certain investments; and $11.4 million of interest income.

Other income, net in 2016 includes: $37.5 million and $12.0 million in realized gains related to the sales of ShoeBuy and PriceRunner, respectively; $34.4 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound and Euro; $5.1 million of interest income; $3.6 million gain related to the sale of certain equity investments; $12.1 million non-cash charge related to the write-off of a proportionate share of original issue discount and deferred financing costs associated with the repayment of $440 million of the MTCH Term Loan; $10.7 million in other-than-temporary impairment charges related to certain investments; $3.8 million loss related to the sale of ASKfm; $3.6 million loss on the 4.75% and 4.875% Senior Note redemptions and repurchases; and $2.5 million mark-to-market charge principally pertaining to a subsidiary denominated equity award held by a non-employee.

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Income tax (provision) benefit

	Years Ended December 31,
	2018	$ Change	% Change	2017	$ Change	% Change	2016
	(Dollars in thousands)
Income tax (provision) benefit	$(3,811)	NM	NM	$291,050	$226,116	348%	$64,934
Effective income tax rate	1%			NM			80%

In 2018, the Company recorded an income tax provision of $3.8 million, which represented an effective tax rate of 1%. The effective income tax rate was lower than the statutory rate of 21% due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards and the finalized Transition Tax.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act subjected to U.S. taxation certain previously deferred earnings of foreign subsidiaries as of December 31, 2017 ("Transition Tax") and implemented a number of changes that took effect on January 1, 2018, including but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21% and a new minimum tax on global intangible low-taxed income ("GILTI") earned by foreign subsidiaries. The Company was able to make a reasonable estimate of the Transition Tax and recorded a provisional tax expense in the fourth quarter of 2017. In the third quarter of 2018, the Company finalized this calculation, which resulted in a $9.2 million reduction in the Transition Tax. The net reduction in the Transition Tax was due primarily to the utilization of additional foreign tax credits and a reduction in state taxes, partially offset by additional taxable earnings and profits of our foreign subsidiaries based on recently issued Internal Revenue Service guidance. The adjustment of the Company’s provisional tax expense was recorded as a change in estimate in accordance with Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which was also included in ASU No. 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB 118"), whichwasadopted by the Company upon issuance in March 2018. Despite the completion of the Company’s accounting for the Tax Act under SAB 118, many aspects of the law remain unclear and we expect ongoing guidance to be issued at both the federal and state levels. We will continue to monitor and assess the impact of any new developments.

In 2017, the Company recorded an income tax benefit of $291.1 million, which was due primarily to the effect of adopting the provisions of ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, on January 1, 2017 and foreign income taxed at lower rates, partially offset by the effect of the Tax Act. Under ASU No. 2016-09, excess tax benefits generated by the exercise, purchase or settlement of stock-based awards of $361.8 million in 2017 are recognized as a reduction to the income tax provision rather than as an increase to additional paid-in capital.

In 2016, the Company recorded an income tax benefit of $64.9 million, which represented an effective income tax rate of 80%. The effective income tax rate was higher than the statutory rate of 35% due primarily to foreign income taxed at lower rates and the non-taxable gain on the sale of ShoeBuy, partially offset by the non-deductible portion of the goodwill impairment charge at the Dotdash and Emerging & Other segments.

For further details of income tax matters, see "Note 3—Income Taxes" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

Net earnings attributable to noncontrolling interests

Noncontrolling interests represent the noncontrolling holders’ percentage share of earnings or losses from the subsidiaries in which the Company holds a majority, but less than 100%, ownership interest and the results of which are included in our consolidated financial statements.

	Years Ended December 31,
	2018		$ Change	% Change	2017		$ Change	% Change	2016
	(Dollars in thousands)
Net earnings attributable to noncontrolling interests	$	130,786	$77,702	146%	$	53,084	$27,955	111%	$	25,129

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Net earnings attributable to noncontrolling interests in 2018 primarily represents the publicly-held interest in MTCH's and ANGI's earnings as well as the net earnings attributable to the noncontrolling interests in a subsidiary that holds the unrealized gains related to certain equity investments that were adjusted during the second quarter of 2018 to fair value in accordance with ASU No. 2016-01, partially offset by net losses attributable to the noncontrolling interests in certain subsidiaries within the Emerging & Other and Vimeo segments.

Net earnings attributable to noncontrolling interests in 2017 primarily represents the publicly-held interest in MTCH's earnings, partially offset by the publicly-held interest in ANGI's losses.

Net earnings attributable to noncontrolling interests in 2016 primarily represented the proportionate share of the noncontrolling holders' ownership in MTCH.

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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 Non-GAAP Measure

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("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, if applicable, 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. 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 our consolidated statement of operations of certain expenses.

The following table reconciles net earnings (loss) attributable to IAC shareholders to operating income (loss) to consolidated Adjusted EBITDA:

	Years Ended December 31,
	2018			2017				2016
	(In thousands)
Net earnings (loss) attributable to IAC shareholders	$	626,961		$	304,924			$	(41,280	)
Add back:
Net earnings attributable to noncontrolling interests	130,786			53,084				25,129
Income tax provision (benefit)	3,811			(291,050		)		(64,934		)
Other (income) expense, net	(305,746		)	16,213				(60,650		)
Interest expense	109,327			105,295				109,110
Operating income (loss)	565,139			188,466				(32,625		)
Stock-based compensation expense	238,420			264,618				104,820
Depreciation	75,360			74,265				71,676
Amortization of intangibles	108,399			42,143				79,426
Acquisition-related contingent consideration fair value adjustments	1,456			5,801				2,555
Goodwill impairment	—			—			—	275,367
Adjusted EBITDA	$	988,774		$	575,293			$	501,219

For a reconciliation of operating income (loss) to Adjusted EBITDA for the Company's reportable segments, see "Note 12—Segment Information" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

Non-Cash Expenses That Are Excluded From Our Non-GAAP Measure

Stock-based compensationexpense consists principally of expense associated with the grants, including unvested grants assumed in acquisitions (including the Combination), of stock options, restricted stock units ("RSUs"), performance-based RSUs and market-based awards. These expenses are not paid in cash, and we include the related shares in our fully diluted shares outstanding using the treasury stock method. Performance-based RSUs and market-based awards are included only to the extent the applicable performance or market condition(s) have been met (assuming the end of the reporting period is the end of the contingency period). To the extent that stock-based awards are settled on a net basis, the Company remits the required tax-withholding amounts from its current funds.

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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, or, in the case of leasehold improvements, the lease term, if shorter.

Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses related primarily to acquisitions (including the Combination). At the time of an acquisition, the identifiable definite-lived intangible assets of the acquired company, such as technology, service professional and contractor relationships, customer lists and user base, memberships, trade names and content, 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. 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 intangible assets or goodwill, 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 the ongoing cost of doing business.

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FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

Financial Position

	December 31,
	2018		2017
	(In thousands)
Cash and cash equivalents:
United States	$	1,971,282	$	1,178,616
All other countries(a)	160,350		452,193
Total cash and cash equivalents	2,131,632		1,630,809
Marketable securities (United States)	123,665		4,995
Total cash and cash equivalents and marketable securities(b)(c)	$	2,255,297	$	1,635,804
MTCH Debt:
MTCH Term Loan	$	425,000	$	425,000
MTCH Credit Facility	260,000		—
6.375% MTCH Senior Notes	400,000		400,000
5.00% MTCH Senior Notes	450,000		450,000
Total MTCH long-term debt	1,535,000		1,275,000
Less: unamortized original issue discount	7,352		8,668
Less: unamortized debt issuance costs	11,737		13,636
Total MTCH debt, net	1,515,911		1,252,696
ANGI Debt:
ANGI Term Loan	261,250		275,000
Less: current portion of ANGI Term Loan	13,750		13,750
Less: unamortized debt issuance costs	2,529		2,938
Total ANGI debt, net	244,971		258,312
IAC Debt:
Exchangeable Notes	517,500		517,500
4.75% Senior Notes	34,489		34,859
Total IAC long-term debt	551,989		552,359
Less: unamortized original issue discount	54,025		67,158
Less: unamortized debt issuance costs	13,298		16,740
Total IAC debt, net	484,666		468,461
Total long-term debt, net	$	2,245,548	$	1,979,469

_________________________________________________________________________

^(a)  At December 31, 2018, all of the Company’s international cash can be repatriated without significant tax consequences. During the year ended December 31, 2018, international cash totaling $396.2 million was repatriated to the U.S.

^(b)  Cash and cash equivalents at December 31, 2018 and December 31, 2017 includes MTCH's domestic and international cash and cash equivalents of $83.9 million and $103.1 million; and $203.5 million and $69.2 million, respectively. MTCH is a separate and distinct legal entity with its own public shareholders and board of directors and has no obligation to provide the Company with funds. As a result, the Company cannot freely access the cash of MTCH and its subsidiaries.

^(c)  Cash and cash equivalents at December 31, 2018 and December 31, 2017 includes ANGI's domestic and international cash and cash equivalents of $328.8 million and $8.2 million; and $214.8 million and $6.7 million, respectively. Marketable securities at December 31, 2018 include $24.9 million at ANGI. ANGI held no marketable securities at December 31, 2017. ANGI is a separate and distinct legal entity with its own public shareholders and board of directors and has no obligation to provide the Company with funds. As a result, the Company cannot freely access the cash of ANGI and its subsidiaries.

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IAC, MTCH and ANGI Long-term Debt

For a detailed description of IAC, MTCH and ANGI long-term debt, see "Note 7—Long-term Debt" to the consolidated financial statements included in "Item 8. Consolidated Financial Statements and Supplementary Data."

Cash Flow Information

In summary, the Company's cash flows are as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Net cash provided by (used in):
Operating activities	$	988,128		$	416,699		$	344,238
Investing activities	(173,440		)	42,049			12,862
Financing activities	(312,798		)	(196,869		)	(492,140		)

Net cash provided by operating activities consists of earnings adjusted for non-cash items, the effect of changes in working capital and acquisition-related contingent consideration payments (to the extent greater than the liability initially recognized at the time of acquisition). Non-cash adjustments include goodwill impairments, stock-based compensation expense, net gains from the sale of businesses and investments, unrealized gains and losses on equity securities, amortization of intangibles, depreciation, bad debt expense, and deferred income taxes.

2018

Adjustments to earnings consist primarily of $238.4 million of stock-based compensation expense, $108.4 million of amortization of intangibles, $75.4 million of depreciation, $48.4 million of bad debt expense, partially offset by $147.8 million of net gains from the sale of businesses and investments, $124.2 million of net unrealized gains on certain equity securities, and $34.7 million of deferred income taxes. The deferred income tax benefit primarily relates to amortization of intangibles, a decrease in the valuation allowance, and an increase in credit carryforwards, partially offset by the deferred income tax provision on the net unrealized gains on certain equity securities. The increase from changes in working capital primarily consists of an increase in accounts payable and other liabilities of $53.6 million, an increase in deferred revenue of $49.5 million, and an increase in income taxes payable and receivable of $27.0 million, partially offset by an increase in other assets of $44.6 million and an increase in accounts receivable of $34.8 million. The increase in accounts payable and other liabilities is primarily due to increases in (i) accrued employee compensation due, in part, to the timing of payments of cash bonuses, (ii) payables and accruals at Ask Media Group due to growth in paid traffic, primarily in international markets, (iii) accrued advertising at MTCH and (iv) payables at Vimeo due to timing of payments. The increase in deferred revenue is due primarily to growth in subscription sales at Vimeo, MTCH and Applications. The increase in income taxes payable and receivable is due to 2018 income tax accruals in excess of 2018 income tax payments. The increase in other assets is primarily due to increases in (i) capitalized mobile app store fees at MTCH and Applications, (ii) capitalized production costs of various production deals at College Humor Media, Electus, and IAC Films, and (iii) capitalized sales commissions at ANGI. The increase in accounts receivable is primarily due to revenue growth at ANGI, Ask Media Group, and Dotdash, partially offset by decreases at MTCH and Applications due to an accelerated cash receipt from a mobile app store provider.

Net cash used in investing activities includes cash used for acquisitions and investments of $117.5 million, which includes the TelTech, iTranslate, BlueCrew, and Handy acquisitions, purchases (net of maturities and sales) of marketable debt securities of $116.1 million, capital expenditures of $85.6 million, primarily related to investments in the development of capitalized software at ANGI and MTCH to support their products and services and computer hardware, partially offset by net proceeds from the sale of businesses and investments of $136.7 million, which includes the sales of Dictionary.com and Electus, and $10.4 million in net proceeds from the sale of Angie's List's campus located in Indianapolis.

Net cash used in financing activities includes $207.7 million and $29.8 million for withholding taxes paid on behalf of

MTCH and ANGI employees, respectively, for stock-based awards that were net settled, $133.5 million for the repurchase of 3.1 million shares, on a settlement date basis, of MTCH common stock at an average price of $43.72 per share, $105.1 million for dividends paid to MTCH's noncontrolling interest holders, $82.9 million for the repurchase of 0.5 million shares, on a settlement date basis, of IAC common stock at an average price of $152.23 per share, $19.0 million for withholding taxes paid on behalf of IAC employees for stock-based awards that were net settled, $16.1 million for the purchase of noncontrolling

55

interests, and $13.8 million in principal payments on ANGI debt, partially offset by $260.0 million in borrowings under the MTCH Credit Facility and $41.7 million in proceeds from the exercise of IAC stock options.

2017

Adjustments to earnings consist primarily of $264.6 million of stock-based compensation expense, $74.3 million of

depreciation, $42.1 million of amortization of intangibles, $28.9 million of bad debt expense, and $61.6 million of other adjustments, which primarily consist of losses on bond redemptions and net foreign currency exchange losses, partially offset by $285.3 million of deferred income taxes and $32.7 million of net gains from the sale of businesses and investments. The deferred income tax benefit primarily relates to the net operating loss created primarily by excess tax benefits of $361.8 million related to stock-based awards and the modification charge for the conversion and acceleration of stock-based awards in connection with the Combination, partially offset by the provisional Transition Tax. The decrease from changes in working capital consists primarily of an increase in accounts receivable of $115.2 million and a decrease in accounts payable and other liabilities of $25.3 million, partially offset by an increase in deferred revenue of $39.2 million. The increase in accounts receivable is primarily due to (i) the timing of cash receipts and the increasing proportion of revenue sourced through mobile app stores at MTCH, which is settled more slowly than traditional credit cards; and (ii) revenue growth at ANGI. The decrease in accounts payable and other liabilities is due to: (i) a decrease at MTCH due to the cash settlement of former subsidiary denominated equity awards held by a non-employee, (ii) a contingent consideration payment related to a business acquisition, (iii) a decrease in accrued employee compensation mainly related to the timing of payments of cash bonuses, partially offset by (iv) an increase in accrued advertising at MTCH. The increase in deferred revenue is due mainly to growth in subscription sales at MTCH and Vimeo, as well as growth in subscription sales and time-based advertising to service professionals at ANGI, partially offset by decreases at Electus and Notional mainly due to the delivery of programming related to various production deals.

Net cash provided by investing activities includes net proceeds from the sale of businesses and investments of $185.8 million, which is primarily related to the sales of The Princeton Review and a MTCH cost method investment, and proceeds from maturities and sales (net of purchases) of marketable debt securities of $84.5 million, partially offset by acquisitions and purchases of investments of $155.7 million, which includes the Livestream, MyBuilder, Angie's List and HomeStars acquisitions, and capital expenditures of $75.5 million, primarily related to investments in development of capitalized software at MTCH and ANGI to support their products and services, computer hardware and the Company's purchase of a 50% ownership interest in an aircraft as a replacement for a then existing 50% interest in a previously owned aircraft, which was sold on February 13, 2018.

Net cash used in financing activities includes principal payments made on MTCH and IAC debt of $445.2 million and $393.5 million, respectively, the payment of $272.5 million for the purchase of certain fully vested stock-based awards, the payment of $254.2 million, $93.8 million and $10.1 million for withholding taxes paid on behalf of MTCH, IAC and ANGI employees, respectively, for stock-based awards that were net settled, $74.4 million for the Exchangeable Notes hedge, $56.4 million for the repurchase of 0.8 million shares, on a settlement date basis, of IAC common stock at an average price of $69.24 per share, $33.7 million of debt issuance costs primarily related to the Exchangeable Notes and the 5.00% MTCH Senior Notes, $27.3 million in acquisition-related contingent consideration payments (included in operating activities is $11.1 million for an acquisition-related contingent consideration payment made in excess of the amount initially recognized at the time of acquisition) and $15.4 million for the purchase of noncontrolling interests, partially offset by $525.0 million in proceeds from the issuance of MTCH debt, $517.5 million in proceeds from the issuance of the Exchangeable Notes, $275.0 million in proceeds from the ANGI Term Loan, $82.4 million, $59.4 million and $1.7 million in proceeds from the exercise of IAC, MTCH and ANGI stock options, respectively, and $23.7 million in proceeds from the issuance of warrants.

2016

Adjustments to earnings consist primarily of $198.3 million and $77.0 million of goodwill impairment at the Dotdash and the Emerging & Other segments, respectively, $104.8 million of stock-based compensation expense, $79.4 million of amortization of intangibles, $71.7 million of depreciation, and $17.7 million of bad debt expense, partially offset by $119.2 million of deferred income taxes and $51.0 million of net gains from the sale of businesses and investments. The deferred income tax benefit primarily relates to the Dotdash and Emerging & Other goodwill impairments. The decrease from changes in working capital consists primarily of a decrease in accounts payable and other liabilities of $52.4 million, an increase in other assets of $12.8 million, partially offset by an increase in deferred revenue of $35.8 million and an increase in income taxes payable and receivable of $9.0 million. The decrease in accounts payable and other liabilities is due to (i) a decrease in accrued advertising and revenue share expense at Ask Media Group, Dotdash and Applications mainly due to the effect of the new Google contract, which became effective April 1, 2016, (ii) a decrease in VAT payables related mainly to decreases in international revenue at Ask Media Group, and (iii) decreases in payables at MTCH due to the timing of payments. The

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increase in other assets is primarily related to an increase in production costs at IAC Films. The increase in deferred revenue is mainly due to growth in subscription sales at MTCH, ANGI and Vimeo. The increase in income taxes payable and receivable is primarily due to receipt of 2015 capital loss refund in 2016 and 2016 income tax accruals in excess of 2016 income tax payments, partially offset by payment of 2015 tax liabilities in 2016.

Net cash provided by investing activities includes net proceeds from the sale of businesses, investments and assets of $172.2 million, which mainly relate to the sales of PriceRunner and ShoeBuy, partially offset by capital expenditures of $78.0 million, primarily related to investments in development of capitalized software at MTCH and ANGI to support their products and services, as well as leasehold improvements and computer hardware, purchases (net of sales and maturities) of marketable debt securities of $61.6 million, and cash used in acquisitions and purchases of investments of $31.0 million.

Net cash used in financing activities includes $450.0 million in principal payments on MTCH debt, $308.9 million for the repurchase of 6.2 million shares, on a settlement date basis, of IAC common stock at an average price of $49.74 per share, $126.4 million in principal payments on IAC debt and $29.8 million and $26.7 million for the payment of withholding taxes paid on behalf of MTCH and IAC employees, respectively, for stock-based awards that were net settled, partially offset by $400.0 million in proceeds from the issuance of MTCH debt and $39.4 million and $25.8 million in proceeds from the exercise of MTCH and IAC stock options, respectively.

Liquidity and Capital Resources

The Company's principal sources of liquidity are its cash and cash equivalents and marketable securities, cash flows generated from operations and available borrowings under the IAC Credit Facility. IAC's consolidated cash and cash equivalents and marketable securities at December 31, 2018 were $2.3 billion, of which $186.9 million was held by MTCH and $361.9 million was held by ANGI. The Company generated $988.1 million of operating cash flows for the year ended December 31, 2018, of which $603.5 million was generated by MTCH and $223.7 million was generated by ANGI. Each of MTCH and ANGI is a separate and distinct legal entity with its own public shareholders and board of directors and has no obligation to provide the Company with funds. As a result, the Company cannot freely access the cash of MTCH and ANGI and their respective subsidiaries. In addition, agreements governing MTCH and ANGI indebtedness limit the payment of dividends or distributions and loans or advances to stockholders, including the Company, in the event a default has occurred or in the case of MTCH, its secured net leverage ratio (as defined in the MTCH Term Loan) exceeds 2.0 to 1.0 or its consolidated leverage ratio (as defined in the MTCH indentures) exceeds 5.0 to 1.0, and in the case of ANGI, its consolidated net leverage ratio (as defined in the ANGI Term Loan) exceeds 4.5 to 1.0. There were no such limitations at December 31, 2018.

On December 7, 2018, the MTCH $500 million revolving credit facility was amended and restated, and now expires on December 7, 2023. At December 31, 2018, the outstanding borrowings under the MTCH Credit Facility were $260.0 million which bear interest at LIBOR plus 1.50%, or approximately 4.00%. Borrowings under the MTCH Credit Facility were repaid with a portion of the net proceeds from the 5.625% MTCH Senior Notes issued on February 15, 2019. On November 5, 2018, ANGI entered into a five-year $250 million revolving credit facility. The annual commitment fee on undrawn funds is currently 25 basis points and is based on the consolidated net leverage ratio most recently reported. Borrowings under the ANGI Credit Facility bear interest, at ANGI's option, at either a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on ANGI's consolidated net leverage ratio. At December 31, 2018, there were no outstanding borrowings under the ANGI Credit Facility. On November 5, 2018, the ANGI Term Loan was amended and restated, and is now due on November 5, 2023. On November 5, 2018, the IAC Credit Facility was amended and restated, reducing the facility size from $300 million to $250 million, and now expires on November 5, 2023. There were no outstanding borrowings under the IAC Credit Facility at December 31, 2018.

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's 2019 capital expenditures are expected to be higher than 2018 by approximately 25% to 30%, driven, in part, by higher capital expenditures for ANGI related to the development of capitalized software to support its products and services, and leasehold improvements related to the expansion of office space at MTCH's Tinder business.

During the year ended December 31, 2018, IAC repurchased 0.5 million shares, on a trade date basis, of its common stock at an average price of $152.23 per share, or $82.9 million in aggregate. IAC has 8.0 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.

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During the year ended December 31, 2018, MTCH repurchased 3.1 million shares, on a trade date basis, of its common stock at an average price of $43.72 per share, or $133.5 million in aggregate. MTCH has 2.9 million shares remaining in its share repurchase authorization.

On February 6, 2019, the Board of Directors of ANGI authorized ANGI to repurchase up to 15 million shares of its common stock.

The Company has granted stock settled stock appreciation rights denominated in the equity of certain non-publicly traded subsidiaries to employees and management of those subsidiaries. These equity awards are settled on a net basis, with the award holder entitled to receive a payment in IAC shares equal to the intrinsic value of the award at exercise less an amount equal to the required cash tax withholding payment. The number of IAC common shares that would be required to settle these vested and unvested interests, other than for MTCH, ANGI and their subsidiaries, at current estimated fair values, at February 1, 2019, is 0.1 million shares. Withholding taxes, which will be paid by the Company on behalf of the employees upon exercise, would have been $16.0 million at February 1, 2019, assuming a 50% withholding rate. The number of IAC common shares ultimately needed to settle these awards may vary significantly as a result of both movements in the Company's stock price and the determination of fair value of the relevant subsidiary that is different than the Company's estimate. The Company's RSUs are awards in the form of phantom shares or units denominated in a hypothetical equivalent number of shares of IAC common stock. These equity awards are settled on a net basis. The number of IAC common shares that would be required to settle these awards at February 1, 2019 is 0.2 million shares. Withholding taxes, which will be paid by the Company on behalf of the employees upon vest, would have been $43.1 million at February 1, 2019, assuming a 50% withholding rate.

The Company has historically settled its stock options on a gross basis. Assuming all stock options outstanding on February 1, 2019 were net settled on that date, the Company would have remitted $428.9 million (of which $270.3 million is related to vested stock options and $158.6 million is related to unvested stock options) in cash for withholding taxes (assuming a 50% withholding rate).

The Company's publicly traded subsidiaries have also granted equity awards denominated in the shares of those subsidiaries, some of which may be settled using IAC shares.

MTCH currently settles substantially all equity awards on a net basis. Assuming all MTCH equity awards outstanding on February 1, 2019 were net settled on that date, MTCH would have issued 10.2 million common shares (of which 2.0 million is related to vested shares and 8.1 million is related to unvested shares) and would have remitted $556.2 million (of which $110.7 million is related to vested shares and $445.4 million is related to unvested shares) in cash for withholding taxes (assuming a 50% withholding rate). If MTCH decided to issue a sufficient number of shares to cover the $556.2 million employee withholding tax obligation, 10.2 million additional shares would be issued by MTCH. Certain MTCH stock options ("Tandem Awards") can be settled in MTCH or IAC common stock at the Company's election. Assuming all vested and unvested Tandem Awards outstanding on February 1, 2019 were exercised on that date and settled using IAC stock, 0.4 million IAC common shares would have been issued in settlement and MTCH would have issued 1.5 million shares, which is included in the amount above, to IAC as reimbursement.

In connection with the Combination, previously issued stock appreciation rights related to the common stock of HomeAdvisor (US) were converted into ANGI stock appreciation rights that are settleable, at ANGI's option, on a net basis with ANGI remitting withholding taxes on behalf of the employee or on a gross basis with ANGI issuing a sufficient number of Class A shares to cover the withholding taxes. In addition, at IAC's option, these awards can be settled in either Class A shares of ANGI or shares of IAC common stock. If settled in IAC common stock, ANGI reimburses IAC in either cash or through the issuance of Class A shares to IAC. Assuming all of the stock appreciation rights outstanding on February 1, 2019 were net settled on that date using IAC stock, 1.0 million IAC common shares would have been issued in settlement and IAC would have been issued 13.0 million shares of ANGI Class A stock and ANGI would have remitted $219.6 million in cash for withholding taxes (assuming a 50% withholding rate). If ANGI decided to issue a sufficient number of shares to cover the $219.6 million employee withholding tax obligation, 13.0 million additional Class A shares would be issued by ANGI. ANGI's cash withholding obligation on all other ANGI net settled awards outstanding on February 1, 2019 is $38.5 million (assuming a 50% withholding rate), which is the equivalent of 2.3 million shares.

Prior to the Combination in 2017, the Company issued a number of IAC denominated PSUs to certain ANGI employees. Vesting of the PSUs is contingent upon ANGI's performance. Assuming all of the PSUs outstanding on February 1, 2019 were net settled on that date using IAC stock, 0.1 million IAC common shares would have been issued in settlement, IAC would have been issued 0.7 million shares of ANGI Class A stock and ANGI would have remitted $12.0 million in cash for withholding taxes (assuming a 50% withholding rate).

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As of December 31, 2018, IAC's economic and voting interest in MTCH is 81.1% and 97.6%, respectively, and in ANGI is 83.9% and 98.1%, respectively. As described above, certain MTCH and ANGI equity awards can be settled either in IAC common shares or the common shares of these subsidiaries at IAC's election. The Company currently expects to settle a sufficient number of awards in IAC shares to maintain an economic interest in both MTCH and ANGI of at least 80% and to otherwise take such other steps as necessary to maintain an economic interest in each of MTCH and ANGI of at least 80%.

The Company does not expect to be a full U.S. federal cash income tax payer until 2022. The ultimate timing is dependent primarily on the performance of the Company and the amount and timing of tax deductions related to stock-based awards.

At December 31, 2018, all of the Company’s international cash can be repatriated without significant tax consequences. During the year ended December 31, 2018, international cash totaling $396.2 million was repatriated to the U.S.

The Company believes its existing cash, cash equivalents, marketable securities, available borrowings under the IAC Credit Facility and expected positive cash flows generated from operations will be sufficient to fund its normal operating requirements, including capital expenditures, debt service, the payment of withholding taxes paid on behalf of employees for net-settled stock-based awards, and investing and other commitments for the foreseeable future. The Company's liquidity could be negatively affected by a decrease in demand for its products and services. The Company’s indebtedness could limit its ability to: (i) obtain additional financing to fund working capital needs, acquisitions, capital expenditures, debt service or other requirements; and (ii) use operating cash flow to make acquisitions or capital expenditures, or invest in other areas, such as developing business opportunities. The Company may need to raise additional capital through future debt or equity financing to make additional acquisitions and investments or to provide for greater financial flexibility. Additional financing may not be available on terms favorable to the Company or at all.

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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) (c)	$	109,608	$	224,974	$	1,622,736	$	952,750	$	2,910,068
Operating leases(d)	38,770		87,438		64,633		255,563		446,404
Purchase obligations(e)	40,428		23,897		—		—		64,325
Total contractual obligations	$	188,806	$	336,309	$	1,687,369	$	1,208,313	$	3,420,797

_______________________________________________________________________________

^(a)  The Company has excluded $49.1 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 3—Income Taxes" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

^(b)  Represents contractual amounts due including interest on both fixed and variable rate instruments. Long-term debt at December 31, 2018 consists of $1.4 billion bearing interest at fixed rates and $0.9 billion bearing interest at variable rates. The variable rate instruments consist of a $425.0 million MTCH Term Loan, a $261.3 million ANGI Term Loan and $260.0 million of outstanding borrowings under the MTCH Credit Facility. The MTCH Term Loan bears interest at LIBOR plus 2.50%, or 5.09%, at December 31, 2018. The ANGI Term Loan bears interest at LIBOR plus 1.50%, or approximately 4.00% at December 31, 2018. The outstanding borrowings under the MTCH Credit Facility bear interest at LIBOR plus 1.50%, or approximately 4.00% at December 31, 2018. The amount of interest ultimately paid on the MTCH and ANGI term loans, and the MTCH Credit Facility may differ based on changes in interest rates. For additional information on long-term debt arrangements, see "Note 7—Long-term Debt" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

^(c)  Subsequent to December 31, 2018, the outstanding borrowings under the MTCH Credit Facility were repaid in full with a portion of the net proceeds from the 5.625% MTCH Senior Notes issued on February 15, 2019. The principal and interest related to the 5.625% MTCH Senior Notes are not included in the table above.

^(d)  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 certain lease agreements. These operating expenses are not included in the table above. For additional information on operating leases, see "Note 13—Commitments and Contingencies" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

^(e)  The purchase obligations principally include web hosting commitments.

	Amount of Commitment Expiration Per Period
Other Commercial Commitments(f)	Less Than 1 Year		1–3 Years		3–5 Years		More Than 5 Years		Total
	(In thousands)
Letters of credit and surety bonds	$	449	$	—	$	—	$	2,272	$	2,721

_______________________________________________________________________________

(f) Commercial commitments are funding commitments that could potentially require the Company to perform in the event of demands by third parties or contingent events.

Off-Balance Sheet Arrangements

Other than the items described above, the Company does not have any off-balance sheet arrangements as of December 31, 2018.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The following disclosure is provided to supplement the descriptions of IAC's accounting policies contained in "Note 2—Summary of Significant Accounting Policies" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data" in regard to significant areas of judgment. Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with U.S. generally accepted accounting principles. These estimates, judgments and assumptions impact the reported amount of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Because of the size of the financial statement elements to which they relate, some of our accounting policies and estimates have a more significant impact on our consolidated financial statements than others. What follows is a discussion of some of our more significant accounting policies and estimates.

Business Combinations and Contingent Consideration Arrangements

Acquisitions are an important part of the Company's growth strategy. The Company invested $243.3 million (including the value of ANGI Homeservices Class A common stock issued in connection with the acquisition of Handy), $912.1 million (including the value of ANGI Class A common stock issued in connection with the Combination) and $36.1 million in acquisitions in the years ended December 31, 2018, 2017 and 2016, respectively. The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. The fair value of these intangible assets is based on valuations that use information and assumptions provided by management. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill and is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date.

In connection with certain business combinations, the Company has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements is initially recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that appropriately captures the risk associated with the obligation to determine the net amount reflected in the consolidated financial statements. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. The changes in the remeasured fair value of the contingent consideration arrangements during each reporting period, including the accretion of the discount, if applicable, are recognized in "General and administrative expense" in the accompanying consolidated statement of operations.

Recoverability of Goodwill and Indefinite-Lived Intangible Assets

Goodwill is the Company's largest asset with a carrying value of $2.7 billion and $2.6 billion at December 31, 2018 and 2017, respectively. Indefinite-lived intangible assets, which consist of the Company's acquired trade names and trademarks, have a carrying value of $458.1 million and $459.1 millionat December 31, 2018 and 2017, respectively.

Goodwill and indefinite-lived intangible assets are assessed annually for impairment as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value. In performing its annual assessment, the Company has the option to qualitatively assess whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.

For the Company's annual goodwill test at October 1, 2018, a qualitative assessment of the MTCH, ANGI, Vimeo, College Humor Media and BlueCrew reporting units' goodwill was performed because the Company concluded it was more likely than not that the fair value of these reporting units was in excess of their respective carrying values. The primary factors that the Company considered in its qualitative assessment for each of these reporting units are described below:

• MTCH's October 1, 2018 market capitalization of $15.7 billion exceeded its carrying value by approximately $15.1 billion and MTCH's strong operating performance.

• ANGI's October 1, 2018 market capitalization of $10.7 billion exceeded its carrying value by approximately $9.6 billion and ANGI's strong operating performance.

• The Company performed valuations of the Vimeo, College Humor Media and BlueCrew reporting units during 2018. These valuations were prepared primarily in connection with the issuance and/or settlement of equity awards that are denominated in the equity of these businesses. The valuations were prepared time proximate to, however, not as of, October 1, 2018. The fair value of each of these businesses was in excess of its October 1, 2018 carrying value.

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The Company tests goodwill for impairment when it concludes that it is more likely than not that there may be an impairment. For the Company's annual goodwill test at October 1, 2018, the Company quantitatively tested the Desktop and Mosaic Group reporting units (included in the Applications segment). The Company's quantitative test indicated that the fair value of these reporting units is in excess of their respective carrying values; therefore, the goodwill of these reporting units is not impaired. The Company's Dotdash, Ask Media Group and The Daily Beast reporting units have no goodwill.

The aggregate goodwill balance for the reporting units for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $265.1 million.

The annual or interim quantitative test of the recovery of goodwill involves a comparison of the estimated fair value of the Company's reporting unit that is being tested to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, an impairment equal to the excess is recorded.

The fair value of the Company's reporting units (except for MTCH and ANGI described above) is determined using both an income approach based on discounted cash flows ("DCF") and a market approach when it tests goodwill for impairment, either on an interim basis or annual basis as of October 1 each year. The Company uses the same approach in determining the fair value of its businesses in connection with its non-public subsidiary denominated stock-based compensation plans, which can be a significant factor in the decision to apply the qualitative screen. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses are based on the Company's most recent forecast and budget and, for years beyond the budget, the Company's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed based on each reporting unit's current results and forecasted future performance, as well as macroeconomic and industry specific factors. The discount rates used in the quantitative test for determining the fair value of the Company's reporting units ranged from 12.5% to 15% in 2018 and 12.5% to 17.5% in 2017. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined which is applied to financial metrics to estimate the fair value of a reporting unit. To determine a peer group of companies for our respective reporting units, we considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. While a primary driver in the determination of the fair values of the Company's reporting units is the estimate of future revenue and profitability, the determination of fair value is based, in part, upon the Company's assessment of macroeconomic factors, industry and competitive dynamics and the strategies of its businesses in response to these factors.

While the Company has the option to qualitatively assess whether it is more likely than not that the fair values of its indefinite-lived intangible assets are less than their carrying values, the Company's policy is to determine the fair value of each of its indefinite-lived intangible assets annually as of October 1. The Company determines the fair value of indefinite-lived intangible assets using an avoided royalty DCF valuation analysis. Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual indefinite-lived impairment assessment ranged from 10.5% to 35% in 2018 and 11% to 16% in 2017, and the royalty rates used ranged from 0.75% to 8.0% in 2018 and 2% to 7% in 2017.

The aggregate indefinite-lived intangible asset balance for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $131.3 million.

The 2018 annual assessment of goodwill did not identify any impairments. The 2018 annual assessment of indefinite-lived intangible assets identified impairment charges of $27.7 million and $1.1 million related to certain Desktop and College Humor Media indefinite-lived trade names, respectively. The indefinite-lived intangible asset impairment charge at Desktop was due to Google’s policy changes related to its Chrome browser which became effective on September 12, 2018 and have negatively impacted the distribution of our B2C downloadable desktop products. The impairment charge related to the B2C trade name was identified in our annual impairment assessment as of October 1, 2018 and reflects the projected reduction in profits and revenues and the resultant reduction in the assumed royalty rate from these policy changes. The impairment charges are included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The 2017 annual assessments did not identify any impairments.

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While the 2016 annual assessment did not identify any material impairments, during the second quarter of 2016, the Company recorded an impairment charge equal to the entire $275.4 million at IAC Publishing. In connection with the Company's realignment of its reportable segments in the fourth quarter of 2018, $198.3 million and $77.0 million was allocated to the Dotdash and the Emerging & Other reportable segments, respectively, based upon their relative fair values as of October 1, 2018. In addition, amortization of intangibles was further impacted by the inclusion of impairment charges in 2016 of $9.0 million and $2.6 million related to certain Dictionary.com and Dotdash indefinite-lived trade names, respectively.

Recoverability and Estimated Useful Lives of Long-Lived Assets

We review the carrying value of all long-lived assets, comprising property and equipment and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. In addition, the Company reviews the useful lives of its long-lived assets whenever events or changes in circumstances indicate that these lives may be changed. The carrying value of property and equipment and definite-lived intangible assets is $492.1 million and $519.8 million at December 31, 2018 and 2017, respectively.

Income Taxes

The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. At December 31, 2018 and 2017, the balance of the Company's net deferred tax asset is $41.2 million and $31.3 million, respectively.

The Company evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when the Company concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. This measurement step is inherently difficult and requires subjective estimations of such amounts to determine the probability of various possible outcomes. At December 31, 2018 and 2017, the Company has unrecognized tax benefits, including interest and penalties, of $52.3 million and $39.7 million, respectively. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustment and which may not accurately anticipate actual outcomes. Although management currently believes changes to reserves from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided 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 ultimate amount of deferred income tax assets realized and the amounts paid for deferred income tax liabilities and uncertain tax positions may vary from our estimates due to future changes in income tax law, state income tax apportionment or the outcome of any review of our tax returns by the various tax authorities, as well as actual operating results of the Company that vary significantly from anticipated results.

At December 31, 2018, all of the Company’s international cash can be repatriated without significant tax consequences. The Company has not provided for approximately $1.0 million of foreign deferred taxes for the $103.1 million of the foreign cash earnings that is indefinitely reinvested outside the U.S. The Company reassesses its intention to remit or permanently reinvest these cash earnings each reporting period; any required adjustment to the income tax provision would be reflected in the period that the Company changes this intention. During the year ended December 31, 2018, international cash totaling $396.2 million was repatriated to the U.S.

On December 22, 2017, the U.S. enacted the Tax Act. The Tax Act imposes a new minimum tax on GILTI earned by foreign subsidiaries beginning in 2018. The Financial Accounting Standards Board ("FASB") Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity may make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company elects to recognize the tax on GILTI as a period expense in the period the tax is incurred.

63

Stock-Based Compensation

The Company recorded stock-based compensation expense of $238.4 million, $264.6 million and $104.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. Included in stock-based compensation expense in 2018 and 2017 is $70.6 million and $122.1 million, respectively, related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination. The Company estimated the fair value of stock options issued (including those modified in connection with the Combination) in 2018, 2017 and 2016 using a Black-Scholes option pricing model and, for those with a market condition, a lattice model. For stock options, including subsidiary denominated equity, the value of the stock option is measured at the grant date at fair value and expensed over the vesting term. The impact on stock-based compensation expense for the year ended December 31, 2018, assuming a 1% increase in the risk-free interest rate, a 10% increase in the volatility factor and a one-year increase in the weighted average expected term of the outstanding options would be an increase of $3.8 million, $17.5 million and $6.1 million, respectively. The Company also issues RSUs and performance-based RSUs. For RSUs, the value of the instrument is measured at the grant date as the fair value of the underlying IAC common stock and expensed as stock-based compensation expense over the vesting term. For performance-based RSUs, the value of the instrument is measured at the grant date as the fair value of the underlying IAC common stock and expensed as stock-based compensation over the vesting term when the performance targets are considered probable of being achieved.

Investments in Debt and Equity Securities

Debt Securities

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. Marketable debt securities are adjusted to fair value each quarter, and the unrealized gains and losses, net of tax, are included in accumulated other comprehensive income (loss) as a separate component of shareholders' equity. The specific-identification method is used to determine the cost of debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. The Company also invests in non-marketable debt securities as part of its investment strategy. We review our debt securities for impairment each reporting period. The Company recognizes an unrealized loss on debt securities in net earnings when the impairment is determined to be other-than-temporary. Factors we consider in making this determination include the duration, severity and reason for the decline in value and the potential recovery and our intent to sell the debt security. We also consider whether we will be required to sell the security before recovery of its amortized cost basis and whether the amortized cost basis cannot be recovered because of credit losses. If an impairment is considered to be other-than-temporary, the debt security will be written down to its fair value and the loss will be recognized within other income (expense), net. The carrying value of marketable debt securities at December 31, 2018 is $123.7 million and consist of treasury discount notes and commercial paper rated A1/P1 or better.

Equity Securities

The Company invests in equity securities as part of its investment strategy. Our equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative of ASU No. 2016-01, following its adoption on January 1, 2018, with changes recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer; value is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews its equity securities for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. Once the qualitative indicators are identified and the fair value of the security is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. The carrying value of the Company’s equity securities without readily determinable fair values at December 31, 2018, is $235.1 million and is included in long-term investments in the accompanying consolidated balance sheet. During 2018, the Company recognized gross unrealized gains of $129.0 million related to the remeasurement of certain investments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition, during 2018, the Company recognized other-than-temporary impairments of $4.9 million related to equity securities without readily determinable fair values and $0.6 million related to an equity method investment. During 2017 and 2016, the Company recognized other-than-temporary impairments of $12.2 million and $10.7 million, respectively, related to cost and equity method investments.

64

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements, see "Note 2—Summary of Significant Accounting Policies" to the consolidated financial statements included in "Item 8—Consolidated Financial Statements and Supplementary Data."

65

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

The Company's exposure to market risk for changes in interest rates relates primarily to the Company's cash equivalents, marketable debt securities and long-term debt, including current maturities.

The Company invests its excess cash in certain cash equivalents and marketable debt securities, which may consist of money market funds, treasury discount notes, commercial paper and time deposits, and short-to-medium-term debt securities issued by investment grade corporate issuers.

Based on the Company's total investment in marketable debt securities at December 31, 2018, a 100 basis point increase or decrease in the level of interest rates would, respectively, decrease or increase the fair value of these securities by $0.1 million. Such potential increase or decrease in fair value is based on certain simplifying assumptions, including a constant level and rate of debt securities and an immediate across-the-board increase or decrease in the level of interest rates with no other subsequent changes for the remainder of the period. However, since almost all of the Company's cash and cash equivalents balance of $2.1 billion was invested in short-term fixed or variable rate money market instruments, the Company would also earn more (less) interest income due to such an increase (decrease) in interest rates.

At December 31, 2018, the Company's outstanding debt was $2.3 billion, of which $1.4 billion bears interest at fixed rates. If market rates decline, the Company runs the risk that the related required payments on the fixed rate debt will exceed those based on market rates. A 100 basis point increase or decrease in the level of interest rates would, respectively, decrease or increase the fair value of the fixed-rate debt by $58.2 million. Such potential increase or decrease in fair value is based on certain simplifying assumptions, including a constant level and rate of fixed-rate debt for all maturities and an immediate across-the-board increase or decrease in the level of interest rates with no other subsequent changes for the remainder of the period. The $425 million MTCH Term Loan, the $261.3 million outstanding balance on the ANGI Term Loan, and the $260 million of outstanding borrowings under the MTCH Credit Facility bear interest at variable rates. The MTCH Term Loan bears interest at LIBOR plus 2.50%. As of December 31, 2018, the rate in effect was 5.09%. If LIBOR were to increase or decrease by 100 basis points, then the annual interest expense on the MTCH Term Loan would increase or decrease by $4.3 million. The ANGI Term Loan bears interest at LIBOR plus 1.50%. As of December 31, 2018, the rate in effect was approximately 4.00%. If LIBOR were to increase or decrease by 100 basis points, then the annual interest expense on the ANGI Term Loan would increase or decrease by $2.6 million. The MTCH Credit Facility bears interest at LIBOR plus 1.50%. As of December 31, 2018, the rate in effect was approximately 4.00%. If LIBOR were to increase or decrease by 100 basis points, then the annual interest expense on the MTCH Credit Facility would increase or decrease by $2.6 million.

Foreign Currency Exchange Risk

The Company conducts business in certain foreign markets, primarily in various jurisdictions within the European Union, and, as a result, is exposed to foreign exchange risk for both the Euro and British Pound ("GBP").

For the years ended December 31, 2018, 2017 and 2016, international revenue accounted for 34%, 30% and 26%, respectively, of our consolidated revenue. The Company has 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. As a result, as foreign currency exchange rates fluctuate, the translation of the statement of operations of the Company's international businesses into U.S. dollars affects year-over-year comparability of operating results. The average GBP and Euro exchange rates strengthened against the U.S. dollar by approximately 4% and 5%, respectively, in 2018 compared to 2017.

The Company is also exposed to foreign currency transaction gains and losses to the extent it or its subsidiaries conduct transactions in and/or have assets and/or liabilities that are denominated in a currency other than the entity's functional currency. The Company recorded foreign exchange gains of $5.3 million, losses of $16.8 million and gains of $34.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. The increase in GBP versus the U.S. dollar during 2018 and 2017 and the decrease in the GBP versus the U.S. dollar during 2016, following the Brexit vote on June 23, 2016, generated the majority of the Company's foreign currency exchange gains and losses in these years. The foreign exchange gains and losses are primarily related to a U.S. dollar denominated intercompany loan related to a 2016 acquisition in which the receivable is held by a foreign subsidiary with a GBP functional currency. The foreign exchange losses in 2017 and gains in 2016 were further impacted by U.S. dollar denominated cash, the majority of which is from the proceeds received in the PriceRunner sale in March 2016, held by a foreign subsidiary with a GBP functional currency. Subsequent to December 31, 2017, the Company moved this U.S. dollar denominated cash to a U.S. dollar functional currency entity.

Foreign currency exchange gains or losses historically have not been material to the Company. As a result, historically, the Company has not hedged foreign currency exposures. The continued growth and expansion of our international operations increases our exposure to foreign exchange rate fluctuations. Significant foreign exchange rate fluctuations, in the case of one currency or collectively with other currencies, could have a significant impact on our future results of operations.

66

Item 8.    Consolidated Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of IAC/InterActiveCorp

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of IAC/InterActiveCorp and subsidiaries (the Company) as of December 31, 2018 and 2017, and the related consolidated statements of operations, comprehensive operations, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2018, and the related notes and the financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 1, 2019 expressed an unqualified opinion thereon.

Adoption of Accounting Standards Updates

As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for the recognition, measurement, presentation and disclosure of certain equity securities due to the adoption of ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. Additionally, as discussed in Note 11 to the consolidated financial statements, the Company changed its method of accounting for stock compensation in 2017 due to the adoption of ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ ERNST & YOUNG LLP

We have served as the Company’s auditor since 1996.     

New York, New York

March 1, 2019

67

IAC/INTERACTIVECORP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

	December 31,
	2018			2017
	(In thousands, except par value amounts)
ASSETS
Cash and cash equivalents	$	2,131,632		$	1,630,809
Marketable securities	123,665			4,995
Accounts receivable, net of allowance and reserves of $18,860 and $11,489, respectively	279,189			304,027
Other current assets	228,253			185,374
Total current assets	2,762,739			2,125,205
Property and equipment, net of accumulated depreciation and amortization	318,800			315,170
Goodwill	2,726,859			2,559,066
Intangible assets, net of accumulated amortization	631,422			663,737
Long-term investments	235,055			64,977
Deferred income taxes	64,786			66,321
Other non-current assets	134,924			73,334
TOTAL ASSETS	$	6,874,585		$	5,867,810
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Current portion of long-term debt	$	13,750		$	13,750
Accounts payable, trade	74,907			76,571
Deferred revenue	360,015			342,483
Accrued expenses and other current liabilities	434,886			366,924
Total current liabilities	883,558			799,728
Long-term debt, net	2,245,548			1,979,469
Income taxes payable	37,584			25,624
Deferred income taxes	23,600			35,070
Other long-term liabilities	66,807			38,229
Redeemable noncontrolling interests	65,687			42,867
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock $.001 par value; authorized 1,600,000 shares; issued 262,303 and 260,624 shares, respectively, and outstanding 77,963 and 76,829 shares, respectively	262			261
Class B convertible common stock $.001 par value; authorized 400,000 shares; issued 16,157 shares and outstanding 5,789 shares	16			16
Additional paid-in capital	12,022,387			12,165,002
Retained earnings	1,258,794			595,038
Accumulated other comprehensive loss	(128,722		)	(103,568		)
Treasury stock 194,708 and 194,163 shares, respectively	(10,309,612		)	(10,226,721		)
Total IAC shareholders' equity	2,843,125			2,430,028
Noncontrolling interests	708,676			516,795
Total shareholders' equity	3,551,801			2,946,823
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	6,874,585		$	5,867,810

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

68

IAC/INTERACTIVECORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

	Years Ended December 31,
	2018			2017			2016
	(In thousands, except per share data)
Revenue	$	4,262,892		$	3,307,239		$	3,139,882
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	911,146			651,008			755,730
Selling and marketing expense	1,519,440			1,381,221			1,247,097
General and administrative expense	774,079			719,257			530,446
Product development expense	309,329			250,879			212,765
Depreciation	75,360			74,265			71,676
Amortization of intangibles	108,399			42,143			79,426
Goodwill impairment	—			—			275,367
Total operating costs and expenses	3,697,753			3,118,773			3,172,507
Operating income (loss)	565,139			188,466			(32,625		)
Interest expense	(109,327		)	(105,295		)	(109,110		)
Other income (expense), net	305,746			(16,213		)	60,650
Earnings (loss) before income taxes	761,558			66,958			(81,085		)
Income tax (provision) benefit	(3,811		)	291,050			64,934
Net earnings (loss)	757,747			358,008			(16,151		)
Net earnings attributable to noncontrolling interests	(130,786		)	(53,084		)	(25,129		)
Net earnings (loss) attributable to IAC shareholders	$	626,961		$	304,924		$	(41,280	)
Per share information attributable to IAC shareholders:
Basic earnings (loss) per share	$	7.52		$	3.81		$	(0.52	)
Diluted earnings (loss) per share	$	6.59		$	3.18		$	(0.52	)
Stock-based compensation expense by function:
Cost of revenue	$	2,482		$	1,881		$	2,305
Selling and marketing expense	7,943			31,318			6,000
General and administrative expense	188,510			192,957			77,151
Product development expense	39,485			38,462			19,364
Total stock-based compensation expense	$	238,420		$	264,618		$	104,820

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

69

IAC/INTERACTIVECORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Net earnings (loss)	$	757,747		$	358,008		$	(16,151	)
Other comprehensive (loss) income, net of tax:
Change in foreign currency translation adjustment	(31,411		)	80,269			(43,126		)
Change in unrealized gains and losses on available-for-sale securities (net of tax benefit of $3,846 and $884 in 2017 and 2016, respectively)	5			(4,026		)	1,484
Total other comprehensive (loss) income	(31,406		)	76,243			(41,642		)
Comprehensive income (loss), net of tax	726,341			434,251			(57,793		)
Components of comprehensive (income) loss attributable to noncontrolling interests:
Net earnings attributable to noncontrolling interests	(130,786		)	(53,084		)	(25,129		)
Change in foreign currency translation adjustment attributable to noncontrolling interests	6,129			(13,797		)	6,033
Change in unrealized gain and losses of available-for-sale securities attributable to noncontrolling interests	(1		)	—			458
Comprehensive income attributable to noncontrolling interests	(124,658		)	(66,881		)	(18,638		)
Comprehensive income (loss) attributable to IAC shareholders	$	601,683		$	367,370		$	(76,431	)

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

70

IAC/INTERACTIVECORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

Years Ended December 31, 2018, 2017 and 2016

				IAC Shareholders' Equity
				Common Stock  $.001 Par Value			Class B Convertible Common Stock $.001 Par Value			Additional Paid-in Capital						Accumulated Other Comprehensive (Loss) Income			Treasury Stock
	Redeemable Noncontrolling Interests			$		Shares	$		Shares				Retained Earnings									Total IAC Shareholders' Equity			Noncontrolling Interests			Total Shareholders' Equity
				(In thousands)
Balance as of December 31, 2015	$	30,391		$	254	254,015	$	16	16,157	$	11,486,315		$	331,394		$	(152,103	)	$	(9,861,350	)	$	1,804,526		$	411,299		$	2,215,825
Net (loss) earnings	(3,849		)	—		—	—		—	—			(41,280		)	—			—			(41,280		)	28,978			(12,302		)
Other comprehensive income (loss), net of tax	385			—		—	—		—	—			—			(35,151		)	—			(35,151		)	(6,876		)	(42,027		)
Stock-based compensation expense	1,632			—		—	—		—	50,201			—			—			—			50,201			44,523			94,724
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	—			2		1,657	—		—	(772		)	—			—			—			(770		)	—			(770		)
Income tax benefit related to stock-based awards	—			—		—	—		—	49,406			—			—			—			49,406			—			49,406
Purchase of treasury stock	—			—		—	—		—	—			—			—			(315,250		)	(315,250		)	—			(315,250		)
Purchase of redeemable noncontrolling interests	(2,529		)	—		—	—		—	—			—			—			—			—			—			—
Adjustment of redeemable noncontrolling interests to fair value	7,921			—		—	—		—	(7,560		)	—			—			—			(7,560		)	—			(7,560		)
Purchase of noncontrolling interests	—			—		—	—		—	—			—			—			—			—			(211		)	(211		)
Issuance of Match Group common stock pursuant to stock-based awards, net of withholding taxes	—			—		—	—		—	—			—			—			—			—			10,224			10,224
Reallocation of shareholders' equity balances related to the noncontrolling interests created in the Match Group IPO	—			—		—	—		—	342,507			—			21,131			—			363,638			(363,638		)	—
Changes in noncontrolling interests of Match Group due to the issuance of its common stock	—			—		—	—		—	(7,691		)	—			—			—			(7,691		)	7,691			—
Noncontrolling interests created in an acquisition	—			—		—	—		—	12,222			—			—			—			12,222			9,811			22,033
Other	(1,124		)	—		—	—		—	(3,069		)	—			—			—			(3,069		)	(353		)	(3,422		)
Balance as of December 31, 2016	$	32,827		$	256	255,672	$	16	16,157	$	11,921,559		$	290,114		$	(166,123	)	$	(10,176,600	)	$	1,869,222		$	141,448		$	2,010,670
Net earnings	3,620			—		—	—		—	—			304,924			—			—			304,924			49,464			354,388
Other comprehensive income, net of tax	1,291			—		—	—		—	—			—			62,446			—			62,446			12,506			74,952
Stock-based compensation expense	2,017			—		—	—		—	66,333			—			—			—			66,333			180,055			246,388
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	—			5		4,952	—		—	(10,509		)	—			—			—			(10,504		)	—			(10,504		)
Purchase of treasury stock	—			—		—	—		—	—			—			—			(50,121		)	(50,121		)	—			(50,121		)
Purchase of redeemable noncontrolling interests	(14,641		)	—		—	—		—	—			—			—			—			—			—			—
Purchase of noncontrolling interests	—			—		—	—		—	—			—			—			—			—			(848		)	(848		)
Adjustment of redeemable noncontrolling interests to fair value	6,341			—		—	—		—	(6,341		)	—			—			—			(6,341		)	—			(6,341		)
Issuance of Match Group common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests in Match Group	—			—		—	—		—	(460,890		)	—			116			—			(460,774		)	(3,435		)	(464,209		)
Acquisition of Angie's List and creation of noncontrolling interests in ANGI Homeservices	—			—		—	—		—	645,475			—			—			—			645,475			133,996			779,471
Noncontrolling interests created in acquisitions	17,758			—		—	—		—	—			—			—			—			—			—			—

71

IAC/INTERACTIVECORP AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Continued)

Years Ended December 31, 2018, 2017 and 2016

				IAC Shareholders' Equity
				Common Stock  $.001 Par Value			Class B Convertible Common Stock $.001 Par Value			Additional Paid-in Capital					Accumulated Other Comprehensive (Loss) Income			Treasury Stock
	Redeemable Noncontrolling Interests			$		Shares	$		Shares				Retained Earnings								Total IAC Shareholders' Equity			Noncontrolling Interests			Total Shareholders' Equity
				(In thousands)
Issuance of ANGI Homeservices common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests in ANGI Homeservices	—			—		—	—		—	(11,216		)	—		(7		)	—			(11,223		)	2,730			(8,493		)
Purchase of exchangeable note hedge	—			—		—	—		—	(74,365		)	—		—			—			(74,365		)	—			(74,365		)
Equity component of exchangeable debt issuance, net of deferred financing costs and deferred tax asset	—			—		—	—		—	71,158			—		—			—			71,158			—			71,158
Issuance of warrants	—			—		—	—		—	23,650			—		—			—			23,650			—			23,650
Other	(6,346		)	—		—	—		—	148			—		—			—			148			879			1,027
Balance at December 31, 2017	$	42,867		$	261	260,624	$	16	16,157	$	12,165,002		$	595,038	$	(103,568	)	$	(10,226,721	)	$	2,430,028		$	516,795		$	2,946,823
Cumulative effect of adoption of ASU No. 2014-09	—			—		—	—		—	—			36,795		—			—			36,795			3,410			40,205
Net earnings	33,897			—		—	—		—	—			626,961		—			—			626,961			96,889			723,850
Other comprehensive loss, net of tax	(702		)	—		—	—		—	—			—		(25,278		)	—			(25,278		)	(5,426		)	(30,704		)
Stock-based compensation expense	1,138			—		—	—		—	75,311			—		—			—			75,311			161,971			237,282
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	—			1		1,679	—		—	21,785			—		—			—			21,786			—			21,786
Purchase of treasury stock	—			—		—	—		—	—			—		—			(82,891		)	(82,891		)	—			(82,891		)
Purchase of noncontrolling interests	(8,350		)	—		—	—		—	—			—		—			—			—			(9,364		)	(9,364		)
Adjustment of redeemable noncontrolling interests to fair value	4,098			—		—	—		—	(4,098		)	—		—			—			(4,098		)	—			(4,098		)
Issuance of Match Group common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests in Match Group	—			—		—	—		—	(342,592		)	—		135			—			(342,457		)	1,057			(341,400		)
Issuance of ANGI Homeservices common stock pursuant to an acquisition, stock-based awards, net of withholding taxes, and impact to noncontrolling interests in ANGI Homeservices	—			—		—	—		—	106,215			—		(11		)	—			106,204			34,502			140,706
Dividends paid to Match Group noncontrolling interests	—			—		—	—		—	—			—		—			—			—			(105,126		)	(105,126		)
Noncontrolling interests created in acquisitions	2,261			—		—	—		—	—			—		—			—			—			14,307			14,307
Other	(9,522		)	—		—	—		—	764			—		—			—			764			(339		)	425
Balance at December 31, 2018	$	65,687		$	262	262,303	$	16	16,157	$	12,022,387		$	1,258,794	$	(128,722	)	$	(10,309,612	)	$	2,843,125		$	708,676		$	3,551,801

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

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CONSOLIDATED STATEMENT OF CASH FLOWS

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Cash flows from operating activities:
Net earnings (loss)	$	757,747		$	358,008		$	(16,151	)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Stock-based compensation expense	238,420			264,618			104,820
Amortization of intangibles	108,399			42,143			79,426
Depreciation	75,360			74,265			71,676
Bad debt expense	48,445			28,930			17,733
Goodwill impairment	—			—			275,367
Deferred income taxes	(34,679		)	(285,278		)	(119,181		)
Unrealized gains on equity securities, net	(124,170		)	—			—
Gains from the sale of businesses and investments, net	(147,829		)	(32,673		)	(50,965		)
Other adjustments, net	15,763			61,647			596
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable	(34,828		)	(115,169		)	1,283
Other assets	(44,557		)	5,688			(12,808		)
Accounts payable and other liabilities	53,555			(25,289		)	(52,359		)
Income taxes payable and receivable	27,034			655			8,998
Deferred revenue	49,468			39,154			35,803
Net cash provided by operating activities	988,128			416,699			344,238
Cash flows from investing activities:
Acquisitions, net of cash acquired	(64,496		)	(146,553		)	(18,403		)
Capital expenditures	(85,634		)	(75,523		)	(78,039		)
Proceeds from maturities and sales of marketable debt securities	333,600			114,350			252,369
Purchases of marketable debt securities	(449,676		)	(29,891		)	(313,943		)
Investments in time deposits	—			—			(87,500		)
Proceeds from maturities of time deposits	—			—			87,500
Net proceeds from the sale of businesses and investments	136,719			185,778			172,228
Purchases of investments	(52,980		)	(9,106		)	(12,565		)
Other, net	9,027			2,994			11,215
Net cash (used in) provided by investing activities	(173,440		)	42,049			12,862
Cash flows from financing activities:
Proceeds from issuance of IAC debt	—			517,500			—
Repurchases of IAC debt	(363		)	(393,464		)	(126,409		)
Proceeds from issuance of Match Group debt	260,000			525,000			400,000
Principal payments on Match Group debt	—			(445,172		)	(450,000		)
Borrowing under ANGI Homeservices Term Loan	—			275,000			—
Principal payments on ANGI Homeservices Term Loan	(13,750		)	—			—
Purchase of exchangeable note hedge	—			(74,365		)	—
Proceeds from issuance of warrants	—			23,650			—
Debt issuance costs	(5,449		)	(33,744		)	(7,811		)
Purchase of IAC treasury stock	(82,891		)	(56,424		)	(308,948		)
Purchase of Match Group treasury stock	(133,455		)	—			—
Proceeds from the exercise of IAC stock options	41,700			82,397			25,821
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	4,705			61,095			39,378
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(18,982		)	(93,832		)	(26,716		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	(237,564		)	(264,323		)	(29,830		)
Purchase of Match Group stock-based awards	—			(272,459		)	—
Dividends paid to Match Group noncontrolling interests	(105,126		)	—			—
Purchase of noncontrolling interests	(16,063		)	(15,439		)	(2,740		)
Acquisition-related contingent consideration payments	(185		)	(27,289		)	(2,180		)
Other, net	(5,375		)	(5,000		)	(2,705		)
Net cash used in financing activities	(312,798		)	(196,869		)	(492,140		)
Total cash provided (used)	501,890			261,879			(135,040		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1,887		)	11,604			(6,434		)
Net increase (decrease) in cash, cash equivalents, and restricted cash	500,003			273,483			(141,474		)
Cash, cash equivalents, and restricted cash at beginning of period	1,633,682			1,360,199			1,501,673
Cash, cash equivalents, and restricted cash at end of period	$	2,133,685		$	1,633,682		$	1,360,199

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—ORGANIZATION

IAC has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish and OkCupid, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy, and also operates Vimeo, Dotdash and The Daily Beast, among many other online businesses.

As used herein, "IAC," the "Company," "we," "our" or "us" and similar terms refer to IAC/InterActiveCorp and its subsidiaries (unless the context requires otherwise).

During the fourth quarter of 2018, the Company realigned its reportable segments as follows:

• the Match Group, ANGI Homeservices and Applications segments remain unchanged;

• Vimeo is now reported as its own segment (it was previously included in the Video segment, which has been eliminated);

• Dotdash is now reported as its own segment (it was previously included in the Publishing segment, which has been eliminated); and

• the Company's Other segment has been renamed, Emerging & Other, and the businesses previously included in the Video segment (other than Vimeo) and the Publishing segment (other than Dotdash) are now included in the Emerging & Other segment.

Match Group

Our Match Group segment consists of the businesses and operations of Match Group, Inc. ("Match Group" or "MTCH").

MTCH completed its initial public offering ("IPO") on November 24, 2015. At December 31, 2018, IAC’s economic and voting interest in MTCH were 81.1% and 97.6%, respectively.

MTCH is a leading provider of dating products available in over 40 languages to our users all over the world through applications and websites that we own and operate. MTCH operates a portfolio of dating brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs and Hinge, as well as a number of other brands, each designed to increase users likelihood of finding a meaningful connection. Through our portfolio of trusted brands, we provide tailored products to meet the varying preferences of our users.

ANGI Homeservices

Our ANGI Homeservices segment includes the North American (United States and Canada) and European businesses and operations of ANGI Homeservices Inc. ("ANGI"). On September 29, 2017, the Company's HomeAdvisor business and Angie's List Inc. ("Angie's List") combined under a new publicly traded company called ANGI Homeservices Inc. (the "Combination"). At December 31, 2018, IAC’s economic and voting interest in ANGI were 83.9% and 98.1%, respectively.

ANGI connects millions of homeowners to home service professionals through its portfolio of digital home service brands, including HomeAdvisor®, Angie’s List® and Handy Technologies, Inc. ("Handy"). Combined, these leading marketplaces have collected more than 15 million reviews over the course of 20 years, allowing homeowners to research, match and connect on-demand to the largest network of service professionals online, through our mobile apps or by voice assistants.

On October 19, 2018, ANGI acquired Handy, a leading platform in the United States for connecting people looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals. ANGI also owns and operates mHelpDesk, a provider of cloud-based field service software for small to mid-size businesses, primarily sold today to HomeAdvisor service professionals, and CraftJack. Prior to its sale on December 31, 2018, ANGI also operated Felix, a pay-per-call advertising service business. In addition to its market-leading U.S. operations, ANGI owns leading home services online marketplaces in France (Travaux), Germany (MyHammer), Netherlands (Werkspot), United

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Kingdom (MyBuilder Limited or "MyBuilder," acquired a controlling interest on March 24, 2017), Canada (HomeStars Inc. or "HomeStars," acquired a controlling interest on February 8, 2017) and Italy (Instapro), as well as operations in Austria (MyHammer).

Vimeo

Vimeo operates a global video platform for creative professionals, marketers and enterprises to connect with their audiences, customers and employees. Vimeo provides cloud-based software products to stream, host, distribute and monetize videos online and across devices, as well as premium video tools on a subscription basis. Vimeo also sells live streaming accessories.

Dotdash

Dotdash is a portfolio of digital brands providing expert information and inspiration in select vertical content categories.

Applications

Our Applications segment consists of our Desktop business and Mosaic Group (previously referred to as Mobile), our mobile business. Through these businesses, we are a leading provider of global, advertising-driven desktop and subscription-based mobile applications.

Through our Desktop business, we own and operate a portfolio of desktop browser applications that provide users with access to a wide variety of online content, tools and services. We provide users who download our desktop browser applications with new tab search services, as well as the option of default browser search services. We distribute our desktop browser applications to consumers free of charge on an opt-in basis directly through direct to consumer (primarily Chrome Web Store) and partnership distribution channels.

Through Mosaic Group, we are a leading provider of global subscription mobile applications. Mosaic Group consists of the following businesses that we own and operate: Apalon, iTranslate, acquired in March 2018, TelTech, acquired in October 2018, and Daily Burn, transferred from the Emerging & Other segment effective April 1, 2018.

Apalon is a leading mobile development company with one of the largest and most popular application portfolios worldwide. iTranslate develops and distributes applications that enable users to read, write, speak and learn foreign languages anywhere in the world. TelTech develops and distributes unique and innovative mobile communications applications that help protect consumer privacy. Daily Burn is a health and fitness property that provides streaming fitness and workout videos across a variety of platforms (including iOS, Android, Roku and other Internet-enabled television platforms).

Emerging & Other

Our Emerging & Other segment primarily includes:

• Ask Media Group, a collection of websites providing general search services and information;

• BlueCrew, an on-demand staffing platform that connects temporary workers with traditional blue-collar jobs in areas like warehouse, delivery and moving, data entry and customer service; 

• The Daily Beast, a website dedicated to news, commentary, culture and entertainment that publishes original reporting and opinion from its roster of full-time journalists and contributors;

• College Humor Media, a provider of digital content, including its recently launched subscription only property, Dropout.tv; and

• IAC Films, a provider of production and producer services for feature films, primarily for initial sale and distribution through theatrical releases and video-on-demand services in the United States and internationally.

• For periods prior to their sales:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

◦ CityGrid, an advertising network that integrated local content and advertising for distribution to affiliated and third-party publishers across web and mobile platforms, sold December 31, 2018.

◦ Dictionary.com, an online and mobile dictionary and thesaurus service, sold November 13, 2018.

◦ Electus, including Notional, a provider of production and producer services for both unscripted and scripted television and digital content, primarily for initial sale and distribution in the United States, sold October 29, 2018.

◦ The Princeton Review, a provider of educational test preparation, academic tutoring and college counseling services, sold on March 31, 2017.

◦ ShoeBuy, an Internet retailer of footwear and related apparel and accessories, sold December 30, 2016.

◦ ASKfm, a questions and answers social network, sold June 30, 2016.

◦ PriceRunner, a shopping comparison website, sold March 18, 2016.

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation

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

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.

Accounting for Investments and Equity Securities

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. At December 31, 2018, the Company did not have any investments accounted for using the equity method.

Investments in equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative of Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, following its adoption on January 1, 2018, with any changes to fair value recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer; value is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews its equity securities for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of our equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the security is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. See "Accounting Pronouncements adopted by the Company" below for further information.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Accounting Estimates

Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions 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 recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of marketable debt securities and equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; 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.

Revenue Recognition

The Company adopted the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. See "Accounting Pronouncements adopted by the Company" below for further information.

The Company accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to our customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods.

Transaction Price

The objective of determining the transaction price is to estimate the amount of consideration the Company is due in exchange for its services or goods, including amounts that are variable. The Company determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period.

The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue.

For contracts that have an original duration of one year or less, the Company uses the practical expedient available under ASU No. 2014-09 applicable to such contracts and does not consider the time value of money.

Arrangements with Multiple Performance Obligations

The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. For our multiple performance obligation arrangements that include functional intellectual property ("IP"), which comprise the downloadable apps and software of the Applications segment, the Company uses a residual approach to determine standalone selling prices for the functional IP.

Assets Recognized from the Costs to Obtain a Contract with a Customer

The Company has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the estimated customer relationship period as the average customer life, which is

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, the Company has elected the practical expedient to expense the costs as incurred. The Company generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription.

During the year ended December 31, 2018, the Company recognized expense of $355.3 million related to the amortization of these costs. The current and non-current contract asset balances at December 31, 2018 are $69.8 million and $4.5 million, respectively. The current and non-current contract assets are included in "Other current assets" and "Other non-current assets," respectively, in the accompanying consolidated balance sheet.

Performance Obligations

As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed.

Match Group

Match Group revenue is primarily derived directly from users in the form of recurring subscriptions. Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance, primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is recognized using the straight-line method over the term of the applicable subscription period, which generally ranges from one to six months. Revenue is also earned from online advertising, the purchase of à la carte features and offline events. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the purchase of à la carte features is recognized based on usage. Revenue associated with offline events is recognized when each event occurs.

ANGI Homeservices

ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and booking fees from completed jobs sourced through the Handy platform, and (ii) membership subscription fees paid by HomeAdvisor service professionals. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service. The Company’s consumer connection revenue is generated and recognized when an in-network service professional is delivered a consumer match or when a job sourced through the Handy platform is completed. Membership subscription revenue from service professionals is initially deferred and is recognized using the straight-line method over the applicable subscription period, which is typically one year. Consumer connection revenue is generally billed one week following a consumer match, with payment due upon receipt of invoice or collected when a consumer schedules a job through the Handy platform. The Company maintains revenue reserves for potential credits for services provided by Handy service professionals to consumers.

ANGI revenue is also derived from Angie's List (i) sales of time-based website, mobile and call center advertising to service professionals and (ii) membership subscription fees from consumers. Angie's List service professionals generally pay for advertisements in advance on a monthly or annual basis at the option of the service professional, with the average advertising contract term being approximately one year. Angie's List website, mobile and call center advertising revenue is recognized ratably over the contract term. Revenue from the sale of advertising in the Angie’s List Magazine is recognized in the period in which the publication is distributed. Angie's List prepaid consumer membership subscription fees are recognized as revenue using the straight-line method over the term of the applicable subscription period, which is typically one year.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Vimeo

Vimeo revenue is derived primarily from annual and monthly SaaS subscription fees paid by creators for premium capabilities and, to a lesser extent, sales of live streaming hardware, software and professional services. Subscription revenue is recognized over the terms of the applicable subscription period, which are typically one month or one year.

Dotdash

Dotdash revenue consists principally of digital advertising revenue and affiliate commerce commission revenue. Digital advertising revenue is generated primarily through digital display advertisements sold directly and through programmatic advertising networks. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction.

Applications

Desktop revenue largely consists of advertising revenue generated principally through the display of paid listings in response to search queries. The substantial majority of the paid listings displayed by our Desktop businesses is supplied to us by Google Inc. ("Google") pursuant to our services agreement with Google. Pursuant to this agreement, those of our Desktop businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through one of our Desktop businesses and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with us. The Company recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user’s click is generated due to the efforts of a third-party distributor, we recognize the amount due from Google as revenue and record a revenue share or other payment obligation to the third-party distributor as traffic acquisition costs.

To a lesser extent, Desktop revenue also includes fees related to subscription downloadable desktop applications as well as display advertisements. Fees related to subscription downloadable desktop applications are generally recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed.

Mosaic Group revenue consists primarily of fees related to subscription downloadable mobile applications distributed through the Apple App and Google Play stores, as well as display advertisements. Fees related to subscription downloadable mobile applications are generally recognized at the time of the sale when the software license is delivered. To the extent updates or maintenance is required or expected, revenue is recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed.

Emerging & Other

Revenue of Ask Media Group consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries and display advertisements (sold directly and through programmatic ad sales). The majority of the paid listings displayed are supplied to us by Google in the manner, and pursuant to the services agreement with Google, described above under "Applications."

The Daily Beast revenue consists of advertising revenue, which is generated primarily through display advertisements (sold directly and through programmatic ad sales). 

BlueCrew revenue consists of service revenue, which is generated through staffing temporary workers and recognized as control of the promised services is transferred to our customers.

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Revenue of College Humor Media and IAC Films is generated primarily through media production and distribution and advertising. Production revenue is recognized when control is transferred to the customer to broadcast or exhibit, and advertising revenue is recognized when an advertisement is displayed or over the advertising period.

Accounts Receivables, Net of Allowance for Doubtful Accounts and Revenue Reserves

Accounts receivable include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. The Company also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience.

Deferred Revenue

Deferred revenue consists of advance payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance at January 1, 2018 is $332.2 million. During the year ended December 31, 2018, the Company recognized $330.2 million of revenue that was included in the deferred revenue balance as of January 1, 2018. The current and non-current deferred revenue balances at December 31, 2018 are $360.0 million and $1.7 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet.

Cash and Cash Equivalents

Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds, treasury discount notes, commercial paper rated A1/P1 or better, time deposits and certificates of deposit. Internationally, cash equivalents primarily consist of AAA rated government money market funds and time deposits.

Investments in Debt Securities

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. Marketable debt securities are adjusted to fair value each quarter, and the unrealized gains and losses, net of tax, are included in accumulated other comprehensive income (loss) as a separate component of shareholders' equity. The specific-identification method is used to determine the cost of debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. The Company also invests in non-marketable debt securities as part of its investment strategy. We review our debt securities for impairment each reporting period. The Company recognizes an unrealized loss on debt securities in net earnings when the impairment is determined to be other-than-temporary. Factors we consider in making such determination include the duration, severity and reason for the decline in value and the potential recovery and our intent to sell the debt security. We also consider whether we will be required to sell the security before recovery of its amortized cost basis and whether the amortized cost basis cannot be recovered because of credit losses. If an impairment is considered to be other-than-temporary, the debt security will be written down to its fair value and the loss will be recognized within other income (expense), net. At December 31, 2018, marketable debt securities consist of treasury discount notes and commercial paper rated A1/P1 or better.

Certain Risks and Concentrations

A meaningful 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").

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For the years ended December 31, 2018, 2017 and 2016, consolidated revenue earned from Google was$825.2 million,$740.7 million and $824.4 million, representing 19%, 22% and 26%, respectively, of the Company's consolidated revenue. A meaningful portion of this revenue is attributable to the service agreement with Google and earned by the Desktop business within the Applications segment and the Ask Media Group within the Emerging & Other segment. For the years ended December 31, 2018, 2017 and 2016, revenue earned from Google represents 73%, 83% and 87% of Applications revenue and 94%, 96% and 96% of Ask Media Group revenue (and 68%, 48% and 35% of Emerging & Other revenue), respectively. Accounts receivable related to revenue earned from Google totaled $69.1 million and $72.4 million at December 31, 2018 and 2017, respectively.

The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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. Google’s policy changes related to its Chrome browser became effective on September 12, 2018 and negatively impacted the distribution of our business-to-consumer ("B2C") desktop products. The impact of these changes on revenue and profits in 2018 were modest as the Company optimized marketing spend in anticipation of the changes. However, we expect these changes to reduce revenue and profits of the Desktop business in the future, which among other reasons led to a $27.7 million impairment of the related indefinite-lived intangible asset in the fourth quarter of 2018. See "Note 21—Subsequent Events (Unaudited)" for a discussion of the Company's amended services agreement with Google entered into on February 11, 2019.

The Company's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud.

Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits.

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter.

Asset Category	Estimated Useful Lives
Buildings and leasehold improvements	3 to 39 Years
Computer equipment and capitalized software	2 to 3 Years
Furniture and other equipment	3 to 12 Years

The Company capitalizes certain internal use software costs including external direct costs utilized in developing or obtaining the software and compensation for personnel directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases when the project is substantially complete and ready for its intended purpose. The net book value of capitalized internal use software is $58.1 million and $46.4 million at December 31, 2018 and 2017, respectively.

Business Combinations

The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. The fair value of these intangible assets is based on valuations that use information and assumptions

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provided by management. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill and is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date.

In connection with certain business combinations, the Company has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements is initially recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company determines the fair value of the contingent consideration arrangements using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that appropriately captures the risk associated with the obligation to determine the net amount reflected in the consolidated financial statements. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. The changes in the remeasured fair value of the contingent consideration arrangements during each reporting period, including the accretion of the discount, if applicable, are recognized in "General and administrative expense" in the accompanying consolidated statement of operations. See "Note 6—Financial Instruments" for a discussion of contingent consideration arrangements.

Goodwill and Indefinite-Lived Intangible Assets

The Company assesses goodwill and indefinite-lived intangible assets for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value.

When the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit's goodwill is necessary; otherwise, a quantitative assessment is performed and the fair value of the reporting unit is determined. If the carrying value of the reporting unit exceeds its fair value, an impairment equal to the excess is recorded.

For the Company's annual goodwill test at October 1, 2018, a qualitative assessment of the MTCH, ANGI, Vimeo, College Humor Media and BlueCrew reporting units' goodwill was performed because the Company concluded it was more likely than not that the fair value of these reporting units was in excess of their respective carrying values. The primary factors that the Company considered in its qualitative assessment for each of these reporting units are described below:

• MTCH's October 1, 2018 market capitalization of $15.7 billion exceeded its carrying value by approximately $15.1 billion and MTCH's strong operating performance.

• ANGI's October 1, 2018 market capitalization of $10.7 billion exceeded its carrying value by approximately $9.6 billion and ANGI's strong operating performance.

• The Company performed valuations of the Vimeo, College Humor Media and BlueCrew reporting units during 2018. These valuations were prepared primarily in connection with the issuance and/or settlement of equity grants that are denominated in the equity of these businesses. The valuations were prepared time proximate to, however, not as of, October 1, 2018. The fair value of each of these businesses was in excess of its October 1, 2018 carrying value.

The Company tests goodwill for impairment when it concludes that it is more likely than not that there may be an impairment. For the Company's annual goodwill test at October 1, 2018, the Company quantitatively tested the Desktop and Mosaic Group reporting units (included in the Applications segment). The Company's quantitative test indicated that the fair value of these reporting units are in excess of their respective carrying values; therefore, the goodwill of these reporting units are not impaired. The Company's Dotdash, Ask Media Group and The Daily Beast reporting units have no goodwill.

The aggregate goodwill balance for the reporting units for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $265.1 million.

The fair value of the Company's reporting units (except for MTCH and ANGI described above) is determined using both an income approach based on discounted cash flows ("DCF") and a market approach when it tests goodwill for impairment, either on an interim basis or annual basis as of October 1 each year. The Company uses the same approach in determining the fair value of its businesses in connection with its non-public subsidiary denominated stock-based compensation plans, which

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can be a significant factor in the decision to apply the qualitative screen. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses are based on the Company's most recent forecast and budget and, for years beyond the budget, the Company's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed based on each reporting unit's current results and forecasted future performance, as well as macroeconomic and industry specific factors. The discount rates used in the quantitative test for determining the fair value of the Company's reporting units ranged from 12.5% to 15% in 2018 and 12.5% to 17.5% in 2017. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined which is applied to financial metrics to estimate the fair value of a reporting unit. To determine a peer group of companies for our respective reporting units, we considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. While a primary driver in the determination of the fair values of the Company's reporting units is the estimate of future revenue and profitability, the determination of fair value is based, in part, upon the Company's assessment of macroeconomic factors, industry and competitive dynamics and the strategies of its businesses in response to these factors.

While the Company has the option to qualitatively assess whether it is more likely than not that the fair values of its indefinite-lived intangible assets are less than their carrying values, the Company's policy is to determine the fair value of each of its indefinite-lived intangible assets annually as of October 1. The Company determines the fair value of indefinite-lived intangible assets using an avoided royalty DCF valuation analysis. Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual indefinite-lived impairment assessment ranged from 10.5% to 35% in 2018 and 11% to 16% 2017, and the royalty rates used ranged from 0.75% to 8.0% in 2018 and 2% to 7% in 2017.

The aggregate indefinite-lived intangible asset balance for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $131.3 million.

The 2018 annual assessment of goodwill did not identify any impairments. The 2018 annual assessment of indefinite-lived intangible assets identified impairment charges of $27.7 million and $1.1 million related to certain Desktop and College Humor Media indefinite-lived trade names, respectively. The indefinite-lived intangible asset impairment charge at Desktop was due to Google’s policy changes related to its Chrome browser which became effective on September 12, 2018 and have negatively impacted the distribution of our B2C downloadable desktop products. The impairment charge related to the B2C trade name was identified in our annual impairment assessment as of October 1, 2018 and reflects the projected reduction in profits and revenues and the resultant reduction in the assumed royalty rate from these policy changes. The impairment charges are included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The 2017 annual assessments of goodwill and indefinite-lived intangible assets did not identify any impairments.

While the 2016 annual assessment did not identify any material impairments, during the second quarter of 2016, the Company recorded an impairment charge equal to the entire $275.4 million at IAC Publishing. In connection with the Company's realignment of its reportable segments in the fourth quarter of 2018, $198.3 million and $77.0 million was allocated to the Dotdash and the Emerging & Other reportable segments, respectively, based upon their relative fair values as of October 1, 2018. In addition, amortization of intangibles was further impacted by the inclusion of impairment charges in 2016 of $9.0 million and $2.6 million related to certain Dictionary.com and Dotdash indefinite-lived trade names, respectively. The goodwill impairment charges at IAC Publishing was driven by the impact from the Google contract, traffic trends and monetization challenges and the corresponding impact on the then estimate of fair value. The expected cash flows used in the IAC Publishing DCF analysis were based on the Company's most recent forecast for the second half of 2016 and each of the years in the forecast period, which were updated to include the effects of the Google contract, traffic trends and monetization challenges and the cost savings from our restructuring efforts. For years beyond the forecast period, the Company's estimated cash flows

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were based on forecasted growth rates. The discount rate used in the DCF analysis reflected the risks inherent in the expected future cash flows of the IAC Publishing reporting unit. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple was determined which was applied to financial metrics to estimate the fair value of the IAC Publishing reporting unit. To determine a peer group of companies for IAC Publishing, we considered companies relevant in terms of business model, revenue profile, margin and growth characteristics and brand strength. The indefinite-lived intangible asset impairment charges related to certain trade names and trademarks and were due to reduced level of revenue and profits, which, in turn, also led to a reduction in the assumed royalty rates for these assets. The royalty rates used to value the trade names that were impaired ranged from 2% to 6% and the discount rate that was used reflected the risks inherent in the expected future cash flows of the trade names and trademarks. The impairment charge is included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The Company’s operating segments are MTCH, ANGI, Vimeo, Dotdash and Applications, which are also reportable segments, and within its Emerging & Other reportable segment, Ask Media Group, BlueCrew, The Daily Beast, College Humor Media and IAC Films. The Company’s reporting units are consistent with its operating segments, with the exception of Desktop and Mosaic Group, which are separate reporting units within the Applications operating segment. Goodwill is tested for impairment at the reporting unit level. See "Note 12—Segment Information" for additional information regarding the Company's method of determining operating and reportable segments.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, which consist of property and equipment and intangible assets with definite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized.

Fair Value Measurements

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 market prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market 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 "Note 6—Financial Instruments" for a discussion of fair value measurements made using Level 3 inputs.

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment are adjusted to fair value only when an impairment is recognized. The Company's financial assets, comprising equity securities without readily determinable fair values, are adjusted to fair value when observable price changes are identified or an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

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Traffic Acquisition Costs

Traffic acquisition costs consist of (i) the amortization of fees paid to Apple and Google related to the distribution and the facilitation of in-app purchases and (ii) payments made to partners who distribute our business-to-business customized browser-based applications and who integrate our paid listings into their websites. These payments include amounts based on revenue share and other arrangements. The Company expenses these payments in the period incurred as a component of cost of revenue.

Advertising Costs

Advertising costs are expensed in the period incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines, social media sites and third parties that distribute our B2C downloadable applications, offline marketing, which is primarily television advertising, and partner-related payments to those who direct traffic to the brands within our MTCH and ANGI segments. Advertising expense is $1.2 billion, $1.1 billion and $1.0 billion for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company capitalizes and amortizes the costs associated with certain distribution arrangements that require it to pay a fee per access point delivered. These access points are generally in the form of downloadable applications associated with our direct-to consumer operations. These fees are amortized over the estimated useful lives of the access points to the extent the Company can reasonably estimate a probable future economic benefit and the period over which such benefit will be realized (generally 18 months). Otherwise, the fees are charged to expense as incurred.

Legal Costs

Legal costs are expensed as incurred.

Income Taxes

The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense.

The Company evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when the Company concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act imposes a new minimum tax on global intangible low-taxed income ("GILTI") earned by foreign subsidiaries beginning in 2018. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity may make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company elects to recognize the tax on GILTI as a period expense in the period the tax is incurred.

Earnings Per Share

Basic earnings per share is computed by dividing net earnings attributable to IAC shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vested resulting in the issuance of common stock that could share in the earnings of the Company.

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Foreign Currency Translation and Transaction Gains and Losses

The financial position and operating results of foreign entities whose primary economic environment is based on their local currency are consolidated using the local currency as the functional currency. These local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of other income (expense), net. See "Note 17—Consolidated Financial Statement Details" for additional information regarding foreign currency exchange gains and losses.

Translation gains and losses relating to foreign entities that are liquidated or substantially liquidated are reclassified out of accumulated other comprehensive income (loss) into earnings. Such losses totaled $0.1 million and gains totaled $0.7 million and $9.9 million during the years ended December 31, 2018, 2017 and 2016, respectively, and were included in "Other income (expense), net" in the accompanying consolidated statement of operations.

Stock-Based Compensation

Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. See "Note 11—Stock-based Compensation" for a discussion of the Company's stock-based compensation plans.

Redeemable Noncontrolling Interests

Noncontrolling interests in the consolidated subsidiaries of the Company are ordinarily reported on the consolidated balance sheet within shareholders' equity, separately from the Company's equity. However, securities that are redeemable at the option of the holder and not solely within the control of the issuer must be classified outside of shareholders' equity. Accordingly, all noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' equity in the accompanying consolidated balance sheet.

In connection with the acquisition of certain subsidiaries, management of these businesses has retained an ownership interest. The Company is party to fair value put and call arrangements with respect to these interests. These put and call arrangements allow management of these businesses to require the Company to purchase their interests or allow the Company to acquire such interests at fair value, respectively. The put arrangements do not meet the definition of a derivative instrument as the put agreements do not provide for net settlement. These put and call arrangements become exercisable by the Company and the counter-party at various dates in the future. Two of these arrangements were exercised during both the years ended December 31, 2018 and 2017 and one of these arrangements was exercised during the year ended December 31, 2016. These put arrangements are exercisable by the counter-party outside the control of the Company. Accordingly, to the extent that the fair value of these interests exceeds the value determined by normal noncontrolling interest accounting, the value of such interests is adjusted to fair value with a corresponding adjustment to additional paid-in capital. During the years ended December 31, 2018, 2017 and 2016, the Company recorded adjustments of $4.1 million, $6.3 million and $7.9 million, respectively, to increase these interests to fair value. Fair value determinations require high levels of judgment and are based on various valuation techniques, including market comparables and discounted cash flow projections.

Recent Accounting Pronouncements

Accounting Pronouncements adopted by the Company

ASU No. 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued ASU No. 2014-09, which superseded nearly all previous revenue recognition guidance. The Company adopted ASU No. 2014-09 effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative effect to the Company's retained earnings at January 1, 2018 was an increase of $40.2 million, of which $3.4 million was related to the noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to the Company’s ANGI and Applications segments.

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• Within ANGI, the effect of the adoption of ASU No. 2014-09 is that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million, respectively, and a related deferred tax liability of $8.0 million, resulting in a net increase to retained earnings of $25.9 million on January 1, 2018.

• Within Applications, the primary effect of the adoption of ASU No. 2014-09 is to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualifies as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million, resulting in a net increase to retained earnings of $15.5 million on January 1, 2018.

The Company's disaggregated revenue disclosures are presented in "Note 12—Segment Information."

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The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, as reported, and ASC 605, Revenue Recognition, for the year ended December 31, 2018.

	Under ASC 606 (as reported)			Under ASC 605			Effect of adoption of ASU No. 2014-09
	(In thousands)
Revenue by segment:
Match Group	$	1,729,850		$	1,729,850		$	—
ANGI Homeservices	1,132,241			1,132,241			—
Vimeo	159,641			160,931			(1,290		)
Dotdash	130,991			130,991			—
Applications	582,287			581,492			795
Emerging & Other	528,250			528,250			—
Inter-segment eliminations	(368		)	(368		)	—
Total	$	4,262,892		$	4,263,387		$	(495	)
Operating costs and expenses by segment:
Match Group	$	1,176,556		$	1,176,556		$	—
ANGI Homeservices	1,068,335			1,073,275			(4,940		)
Vimeo	195,235			196,212			(977		)
Dotdash	112,213			112,213			—
Applications	487,453			484,644			2,809
Emerging & Other	498,286			498,286			—
Corporate	159,675			159,675			—
Total	$	3,697,753		$	3,700,861		$	(3,108	)
Operating income (loss) by segment:
Match Group	$	553,294		$	553,294		$	—
ANGI Homeservices	63,906			58,966			4,940
Vimeo	(35,594		)	(35,281		)	(313		)
Dotdash	18,778			18,778			—
Applications	94,834			96,848			(2,014		)
Emerging & Other	29,964			29,964			—
Corporate	(160,043		)	(160,043		)	—
Total	$	565,139		$	562,526		$	2,613
Net earnings	$	757,747		$	755,741		$	2,006

ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, will be measured at fair value with changes in fair

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value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. There was no cumulative impact to the Company's consolidated financial statements upon adoption of ASU No. 2016-01 on January 1, 2018. The adoption of ASU No. 2016-01 increases the volatility of the Company's other income (expense), net as a result of the remeasurement of these instruments. For the year ended December 31, 2018, other income (expense), net includes net unrealized gains related to certain equity securities that were adjusted to fair value in the second quarter of 2018 in accordance with ASU No. 2016-01 of $126.4 million. See "Note 6—Financial Instruments" for additional information.

ASU No. 2016-18, Restricted Cash

In November 2016, the FASB issued ASU No. 2016-18, which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. ASU No. 2016-18 also requires companies to disclose the nature of their restricted cash and restricted cash equivalents balances. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

	December 31, 2018		December 31, 2017		December 31, 2016		December 31, 2015
	(In thousands)
Cash and cash equivalents	$	2,131,632	$	1,630,809	$	1,329,187	$	1,481,447
Restricted cash included in other current assets	1,633		2,873		20,464		126
Restricted cash included in other assets	420		—		10,548		20,100
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows	$	2,133,685	$	1,633,682	$	1,360,199	$	1,501,673

Restricted cash at December 31, 2018 primarily consists of a cash collateralized letter of credit and a deposit related to corporate credit cards.

Restricted cash at December 31, 2017 primarily supports a letter of credit to a supplier, which was released to the Company in the second quarter of 2018.

Restricted cash at December 31, 2016 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes and the MyHammer tender offer. In the first quarter of 2017, the Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company.

Restricted cash at December 31, 2015 primarily includes the repurchase of IAC Senior Notes.

ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

In August 2018, the FASB issued ASU No. 2018-15, which clarifies the accounting for implementation costs in a cloud computing arrangement that is a services contract to follow the internal-use software guidance of ASC 350-40, Intangibles - Goodwill and Other, Internal-use Software. The provisions of ASU No. 2018-15 are effective for reporting periods beginning after December 15, 2019, including interim periods and early adoption is permitted, including adoption in any interim period. The provisions of ASU No. 2018-15 may be adopted prospectively to all implementation costs incurred after the date of

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adoption or retrospectively. The Company early adopted the provisions of ASU No. 2018-15 on October 1, 2018 prospectively and the adoption of this standard did not have material impact on its consolidated financial statements.

ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting

In June 2018, the FASB issued ASU No. 2018-07, which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees. ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future.

Accounting Pronouncement not yet adopted by the Company

ASU No. 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU No. 2016-02, which supersedes existing guidance on accounting for leases and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018. The Company will adopt the new lease guidance effective January 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11.

The Company is not a lessor, has no capitalized leases and does not expect to enter into any capitalized leases prior to the adoption of ASU No. 2016-02. Accordingly, the Company does not expect the amount or classification of rent expense in its statement of operations to be affected by the adoption of ASU No. 2016-02. The primary effect of the adoption of ASU No. 2016-02 will be the recognition of a right of use asset and related lease liability to reflect the Company's rights and obligations under its operating leases. The Company will also be required to provide the additional disclosures stipulated in ASU No. 2016-02.

The adoption of ASU No. 2016-02 will not have an impact on the leverage calculation set forth in any of the agreements governing the outstanding debt of the Company or its MTCH and ANGI subsidiaries, or our credit agreement or the credit agreement of MTCH and ANGI because, in each circumstance, the leverage calculations are not affected by the lease liability that will be recorded upon adoption of the new standard.

While the Company's evaluation of the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements continues, outlined below is a summary of the status of the Company's progress:

• the Company has selected a software solution to implement ASU No. 2016-02;

• the Company has input lease summaries into the software solution;

• the Company is assessing the other inputs required in connection with the adoption of ASU No. 2016-02; and

• the Company is developing its accounting policy, procedures and internal controls related to the new standard.

Development of the selected software solution by the third-party vendor is ongoing. While significant progress has been made, certain key deliverables remain, which the Company expects to be delivered in March 2019. The Company's ability to adopt ASU No. 2016-02 in an efficient and effective manner is contingent upon the delivery and testing of these remaining deliverables. The Company has been able to develop a preliminary estimate of the impact of the adoption of ASU No. 2016-02 through the use of the third-party software solution, supplemented by our user acceptance testing. This preliminary estimate is that a $160 million right of use asset and related lease liability will be recognized on the Company's consolidated balance sheet upon adoption. The Company does not expect a material impact on its results of operations or cash flows.

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Reclassifications

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

NOTE 3—INCOME TAXES

U.S. and foreign earnings (loss) before income taxes and noncontrolling interests are as follows:

	Years Ended December 31,
	2018		2017			2016
	(In thousands)
U.S.	$	630,417	$	(52,606	)	$	(248,433	)
Foreign	131,141		119,564			167,348
Total	$	761,558	$	66,958		$	(81,085	)

The components of the income tax provision (benefit) are as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Current income tax provision (benefit):
Federal	$	(2,849	)	$	(31,844	)	$	23,343
State	2,569			1,964			3,662
Foreign	38,770			24,108			27,242
Current income tax provision (benefit)	38,490			(5,772		)	54,247
Deferred income tax provision (benefit):
Federal	(21,792		)	(255,477		)	(100,798		)
State	172			(28,364		)	(9,518		)
Foreign	(13,059		)	(1,437		)	(8,865		)
Deferred income tax benefit	(34,679		)	(285,278		)	(119,181		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

The tax provision for the year ended December 31, 2018 includes a $143.3 million benefit for excess tax deductions attributable to stock-based compensation. Of this amount, $142.2 million reduced income taxes payable and $1.1 million increased the deferred tax asset for net operating losses ("NOLs"). The deferred tax asset for NOLs was increased by $361.8 million for the year ended December 31, 2017 for excess tax deductions attributable to stock-based compensation. The related income tax benefit was recorded as a component of the deferred income tax benefit.The current income tax payable was reduced by $51.8 million for the year ended December 31, 2016 for excess tax deductions attributable to stock-based compensation. For the year ended December 31, 2016, the related income tax benefits were recorded as increases to additional paid-in capital.

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Income taxes receivable (payable) and deferred tax assets (liabilities) are included in the following captions in the accompanying consolidated balance sheet at December 31, 2018 and 2017:

	December 31,
	2018			2017
	(In thousands)
Income taxes receivable (payable):
Other current assets	$	10,132		$	33,239
Other non-current assets	11,401			1,949
Accrued expenses and other current liabilities	(12,745		)	(11,798		)
Income taxes payable	(37,584		)	(25,624		)
Net income taxes payable	$	(28,796	)	$	(2,234	)
Deferred tax assets (liabilities):
Other non-current assets	$	64,786		$	66,321
Deferred income taxes	(23,600		)	(35,070		)
Net deferred tax assets	$	41,186		$	31,251

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.

	December 31,
	2018			2017
	(In thousands)
Deferred tax assets:
Accrued expenses	$	23,525		$	22,234
NOL carryforwards	291,639			292,812
Tax credit carryforwards	89,397			78,715
Stock-based compensation	82,698			77,976
Other	30,106			42,331
Total deferred tax assets	517,365			514,068
Less valuation allowance	(115,853		)	(132,598		)
Net deferred tax assets	401,512			381,470
Deferred tax liabilities:
Investment in subsidiaries	(238,650		)	(247,167		)
Intangibles	(77,669		)	(87,811		)
Fair value investment	(22,927		)	—
Other	(21,080		)	(15,241		)
Total deferred tax liabilities	(360,326		)	(350,219		)
Net deferred tax assets	$	41,186		$	31,251

At December 31, 2018, the Company has federal and state NOLs of $856.0 million and $698.7 million, respectively. If not utilized, $13.9 million of federal NOLs can be carried forward indefinitely, and the remainder will expire at various times primarily between 2023 and 2037, and the state NOLs, if not utilized, will expire at various times between 2019 and 2038.

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Federal and state NOLs of $569.9 million and $350.4 million, respectively, can be used against future taxable income without restriction and the remaining NOLs will be subject to limitations under Section 382 of the Internal Revenue Code, separate return limitations, and applicable state law. At December 31, 2018, the Company has foreign NOLs of $383.4 million available to offset future income. Of these foreign NOLs, $352.0 million can be carried forward indefinitely and $31.4 million will expire at various times between 2019 and 2038. During 2018, the Company recognized tax benefits related to NOLs of $9.5 million.

At December 31, 2018, the Company has tax credit carryforwards of $105.4 million. Of this amount, $53.2 million relates to credits for foreign taxes, $48.3 million relates to credits for research activities and $3.9 million relates to various other credits. Of these credit carryforwards, $24.2 million can be carried forward indefinitely and $81.2 million will expire between 2019 and 2038.

The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning and historical experience.

During 2018, the Company's valuation allowance decreased by $16.7 million primarily due to a decrease in foreign tax credits subject to valuation allowance and the realization of previously unbenefited capital losses. At December 31, 2018, the Company has a valuation allowance of $115.9 million related to the portion of tax loss carryforwards, foreign tax credits and other items for which it is more likely than not that the tax benefit will not be realized.

A reconciliation of the income tax provision (benefit) to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Income tax provision (benefit) at the federal statutory rate of 21% (35% for 2017 and 2016)	$	159,927		$	23,435		$	(28,446	)
State income taxes, net of effect of federal tax benefit	14,887			86			(3,880		)
Stock-based compensation	(129,654		)	(358,901		)	3,998
Realization of certain deferred tax assets	(13,200		)	(3,133		)	—
Transition tax	(9,190		)	62,667			—
Deferred tax adjustment for enacted changes in tax laws and rates	(7,488		)	705			(4,594		)
Research credit	(4,023		)	(5,304		)	(2,231		)
Foreign income taxed at a different statutory tax rate	(3,206		)	(14,725		)	(27,115		)
Non-taxable sale and non-deductible goodwill associated with ShoeBuy	—			—			(13,142		)
Goodwill impairment of Dotdash and Emerging & Other	—			—			10,649
Non-deductible impairments for certain cost method investments	—			2,669			3,489
Other, net	(4,242		)	1,451			(3,662		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

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A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows:

	December 31,
	2018			2017			2016
	(In thousands)
Balance at January 1	$	36,732		$	38,372		$	40,808
Additions based on tax positions related to the current year	10,334			2,050			2,033
Additions for tax positions of prior years	4,716			1,994			2,676
Reductions for tax positions of prior years	(400		)	(3,761		)	(743		)
Settlements	—			—			(5,107		)
Expiration of applicable statutes of limitations	(2,507		)	(1,923		)	(1,295		)
Balance at December 31	$	48,875		$	36,732		$	38,372

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 the years ended December 31, 2018, 2017 and 2016 is a $0.3 million expense, $0.1 million benefit and $0.4 million expense, respectively, net of related deferred taxes of $0.1 million, less than $0.1 million and $0.2 million, respectively, for interest on unrecognized tax benefits. At December 31, 2018 and 2017, the Company has accrued $3.4 million and $3.0 million, respectively, for the payment of interest. At December 31, 2018 and 2017, the Company has accrued $1.4 million and $1.7 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 ("IRS") is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2016. The statute of limitations for the years 2010 through 2015 has been extended to December 31, 2019. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits considered sufficient to pay assessments that may result from examination of prior year tax returns. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided 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.

At December 31, 2018 and 2017, unrecognized tax benefits, including interest and penalties, were $52.3 million and $39.7 million, respectively. If unrecognized tax benefits at December 31, 2018 are subsequently recognized, $49.1 million, net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2017 was $37.2 million. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $21.6 million by December 31, 2019, due to expirations of statutes of limitations or other settlements; $21.6 million of which would reduce the income tax provision.

On December 22, 2017, the U.S. enacted the Tax Act. The Tax Act subjected to U.S. taxation certain previously deferred earnings of foreign subsidiaries as of December 31, 2017 ("Transition Tax") and implemented a number of changes that took effect on January 1, 2018, including but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21% and a new minimum tax on GILTI earned by foreign subsidiaries. The Company was able to make a reasonable estimate of the Transition Tax and recorded a provisional tax expense in the fourth quarter of 2017. In the third quarter of 2018, the Company finalized this calculation, which resulted in a $9.2 million reduction in the Transition Tax. The net reduction in the Transition Tax was due primarily to the utilization of additional foreign tax credits and a reduction in state taxes, partially offset by additional taxable earnings and profits of our foreign subsidiaries based on recently issued IRS guidance. The adjustment of the Company’s provisional tax expense was recorded as a change in estimate in accordance with Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which is also included in the FASB issued ASU No. 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB

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118"), whichwasissued and adopted by the Company in March 2018. Despite the completion of the Company’s accounting for the Tax Act under SAB 118, many aspects of the law remain unclear and we expect ongoing guidance to be issued at both the federal and state levels. We will continue to monitor and assess the impact of any new developments.

At December 31, 2018, all of the Company’s international cash can be repatriated without significant tax consequences. The Company has not provided for approximately $1.0 million of foreign deferred taxes for the $103.1 million of the foreign cash earnings that is indefinitely reinvested outside the U.S. The Company reassesses its intention to remit or permanently reinvest these cash earnings each reporting period; any required adjustment to the income tax provision would be reflected in the period that the Company changes this intention.

NOTE 4—BUSINESS COMBINATION

Through the Combination, ANGI acquired 100% of the common stock of Angie's List on September 29, 2017 for a total purchase price valued at $781.4 million.

The purchase price of $781.4 million was determined based on the sum of (i) the fair value of the 61.3 million shares of Angie's List common stock outstanding immediately prior to the Combination based on the closing stock price of Angie's List common stock on the NASDAQ on September 29, 2017 of $12.46per share; (ii) the cash consideration of$1.9 millionpaid to holders of Angie's List common stock who elected to receive$8.50 in cash per share; and (iii) the fair value of vested equity awards (including the pro rata portion of unvested awards attributable to pre-combination services) outstanding under Angie's List stock plans on September 29, 2017. Each stock option to purchase shares of Angie's List common stock that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an option to purchase (i) that number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List option immediately prior to the effective time of the Combination, (ii) at a per-share exercise price equal to the exercise price per share of Angie's List common stock at which such Angie's List option was exercisable immediately prior to the effective time of the Combination. Each award of Angie's List restricted stock units that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an ANGI Homeservices restricted stock unit award with respect to a number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List restricted stock unit award immediately prior to the effective time of the Combination.

The table below summarizes the purchase price:

	Angie's List
	(In thousands)
Class A common stock	$	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services	11,749
Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services	4,038
Total purchase price	$	781,384

The financial results of Angie's List are included in the Company's consolidated financial statements, within the ANGI Homeservices segment, beginning September 29, 2017. For the year ended December 31, 2017, the Company included $58.9 million of revenue and $21.8 million of net loss in its consolidated statement of operations related to Angie's List. The net loss of Angie's List reflects $28.7 million in stock-based compensation expense related to (i) the acceleration of previously issued Angie's List equity awards held by employees terminated in connection with the Combination and (ii) the expense related to previously issued Angie's List equity awards, severance and retention costs of $19.8 million related to the Combination and a reduction in revenue of $7.8 million due to the write-off of deferred revenue related to the Combination.

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The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of combination:

	Angie's List
	(In thousands)
Cash and cash equivalents	$	44,270
Other current assets	11,280
Property and equipment	16,341
Goodwill	543,674
Intangible assets	317,300
Total assets	932,865
Deferred revenue	(32,595		)
Other current liabilities	(46,150		)
Long-term debt—related party	(61,498		)
Deferred income taxes	(9,833		)
Other long-term liabilities	(1,405		)
Net assets acquired	$	781,384

The purchase price was based on the expected financial performance of Angie's List, not on the value of the net identifiable assets at the time of combination. This resulted in a significant portion of the purchase price being attributed to goodwill because Angie's List is complementary and synergistic to the other North America businesses of ANGI Homeservices.

The fair values of the identifiable intangible assets acquired at the date of combination are as follows:

	Angie's List
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	137,000	Indefinite
Service professionals	90,500		3
Developed technology	63,900		6
Memberships	15,900		3
User base	10,000		1
Total identifiable intangible assets acquired	$	317,300

Other current assets, current liabilities and other long-term liabilities of Angie's List were reviewed and adjusted to their fair values at the date of combination, as necessary. The fair value of deferred revenue was determined using an income approach that utilized a cost to fulfill analysis. The fair value of the trade name and trademarks was determined using an income approach that utilized the relief from royalty methodology. The fair values of developed technology and user base were determined using a cost approach that utilized the cost to replace methodology. The fair values of the service professionals and memberships were determined using an income approach that utilized the excess earnings methodology. The valuations of deferred revenue and intangible assets incorporate significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows, cost and profit margins related to deferred revenue and the determination of royalty and discount rates. The amount attributed to goodwill is not tax deductible.

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below presents the combined results of the Company and Angie's List as if the Combination had occurred on January 1, 2016. The unaudited pro forma financial information includes

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adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the Combination actually occurred on January 1, 2016. For the year ended December 31, 2017, pro forma adjustments include (i) reductions in stock-based compensation expense of $77.1 million and transaction related costs of $34.1 million because they are one-time in nature and will not have a continuing impact on operations; and (ii) an increase in amortization of intangibles of $31.9 million. The stock-based compensation expense is related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination. The transaction related costs include severance and retention costs of $19.8 million related to the Combination. For the year ended December 31, 2016, pro forma adjustments include a reduction in revenue of $34.1 million due to the write-off of deferred revenue at the assumed date of acquisition as well as increases in stock-based compensation expense of $81.4 million and amortization of intangibles of $56.1 million.

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Revenue	$	3,529,600	$	3,429,105
Net earnings (loss) attributable to ANGI Homeservices Inc. shareholders	$	364,496	$	(143,133	)
Basic earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.55	$	(1.79	)
Diluted earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.27	$	(1.79	)

NOTE 5—GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets, net are as follows:

	December 31,
	2018		2017
	(In thousands)
Goodwill	$	2,726,859	$	2,559,066
Intangible assets with indefinite lives	458,104		459,143
Intangible assets with definite lives, net of accumulated amortization	173,318		204,594
Total goodwill and intangible assets, net	$	3,358,281	$	3,222,803

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The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2018:

	Balance at December 31, 2017		Additions		(Deductions)			Transfers In/(Out)			Foreign Exchange Translation			Balance at December 31, 2018
	(In thousands)
Match Group	$	1,247,899	$	11,187	$	—		$	—		$	(14,073	)	$	1,245,013
ANGI Homeservices	768,317		142,768		(14,373		)	—			(3,912		)	892,800
Vimeo	77,303		—		(151		)	—			—			77,152
Applications:
Desktop	265,146		—		—			—			—			265,146
Mosaic Group	182,096		50,784		—			7,323			(457		)	239,746
Total Applications	447,242		50,784		—			7,323			(457		)	504,892
Emerging & Other	18,305		3,684		(7,664		)	(7,323		)	—			7,002
Total	$	2,559,066	$	208,423	$	(22,188	)	$	—		$	(18,442	)	$	2,726,859

Additions primarily relate to the acquisitions of Handy (included in the ANGI Homeservices segment), TelTech and iTranslate (included in the Applications segment), Hinge (included in the Match Group segment), and BlueCrew (included in the Emerging & Other segment). Deductions relate to the sales of Felix (included in the ANGI Homeservices segment) and Electus (included in the Emerging & Other segment).

The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2017:

	Balance at December 31, 2016		Additions		(Deductions)			Foreign Exchange Translation		Balance at December 31, 2017
	(In thousands)
Match Group	$	1,206,538	$	255	$	—		$	41,106	$	1,247,899
ANGI Homeservices	170,611		590,772		—			6,934		768,317
Vimeo	9,649		67,654		—			—		77,303
Applications:
Desktop	265,146		—		—			—		265,146
Mosaic Group	182,096		—		—			—		182,096
Total Applications	447,242		—		—			—		447,242
Emerging & Other	90,012		2,715		(74,430		)	8		18,305
Total	$	1,924,052	$	661,396	$	(74,430	)	$	48,048	$	2,559,066

Additions primarily relate to the acquisitions of Angie's List, MyBuilder and HomeStars (included in the ANGI Homeservices segment), and Livestream (included in the Vimeo segment). Deductions relate to the sale of The Princeton Review (included in the Emerging & Other segment).

Prior to the fourth quarter of 2018, IAC Publishing was a reportable segment consisting of one operating segment and one reporting unit. In the fourth quarter of 2018, IAC Publishing was split into the Dotdash and the Emerging & Other segments (related to the remaining businesses previously included in the IAC Publishing segment). The accumulated goodwill impairment of IAC Publishing was allocated to these businesses based upon their relative fair values as of October 1, 2018. The December 31, 2018 and 2017 goodwill balance reflects accumulated impairment losses of $529.1 million, $399.7 million, $198.3 million and $11.6 million at Applications, the businesses previously included in the IAC Publishing segment, excluding

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Dotdash (included in the Emerging & Other segment), Dotdash and College Humor Media (included in the Emerging & Other segment), respectively.

Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2018 and 2017, intangible assets with definite lives are as follows:

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted-Average Useful Life (Years)
	(In thousands)
Technology	$	143,303	$	(53,199	)	$	90,104	4.7
Service professional and contractor relationships	99,528		(44,674		)	54,854		2.9
Customer lists and user base	30,099		(15,126		)	14,973		2.9
Memberships	15,900		(6,640		)	9,260		3.0
Trade names	12,393		(9,393		)	3,000		3.3
Other	8,500		(7,373		)	1,127		4.8
Total	$	309,723	$	(136,405	)	$	173,318	3.8

	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted-Average Useful Life (Years)
	(In thousands)
Technology	$	115,200	$	(37,357	)	$	77,843	4.8
Service professional and contractor relationships	99,497		(11,452		)	88,045		3.0
Customer lists and user base	23,468		(5,401		)	18,067		2.2
Memberships	15,900		(1,340		)	14,560		3.0
Trade names	16,986		(13,634		)	3,352		2.6
Other	8,500		(5,773		)	2,727		4.8
Total	$	279,551	$	(74,957	)	$	204,594	3.7

At December 31, 2018, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows:

Years Ending December 31,	(In thousands)
2019	$	71,155
2020	51,916
2021	19,433
2022	16,310
2023	10,239
Thereafter	4,265
Total	$	173,318

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NOTE 6—FINANCIAL INSTRUMENTS

Marketable Securities

At December 31, 2018 and 2017, the fair value of marketable securities are as follows:

	December 31,
	2018		2017
	(In thousands)
Available-for-sale marketable debt securities	$	123,246	$	4,995
Marketable equity security	419		—
Total marketable securities	$	123,665	$	4,995

At December 31, 2018, current available-for-sale marketable debt securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Treasury discount notes	$	112,291	$	3	$	(3	)	$	112,291
Commercial paper	10,955		—		—			10,955
Total available-for-sale marketable debt securities	$	123,246	$	3	$	(3	)	$	123,246

The contractual maturities of debt securities classified as current available-for-sale at December 31, 2018 are within one year. There are no investments in available-for-sale marketable debt securities that have been in a continuous unrealized loss position for longer than twelve months as of December 31, 2018.

At December 31, 2017, current available-for-sale marketable debt securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Commercial paper	$	4,995	$	—	$	—	$	4,995
Total available-for-sale marketable debt securities	$	4,995	$	—	$	—	$	4,995

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

	December 31,
	2018		2017		2016
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable debt securities	$	333,600	$	114,350	$	279,485
Gross realized gains	—		—		3,556

Gross realized gains from the maturities and sales of available-for-sale marketable debt securities for the year ended December 31, 2016 are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

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There were no gross realized losses from the maturities and sales of available-for-sale marketable debt securities for the years ended December 31, 2018, 2017, and 2016.

Long-term investments

Long-term investments consist of:

	December 31,
	2018		2017
	(In thousands)
Equity securities without readily determinable fair values	$	235,055	$	—
Equity method investments	—		1,559
Cost method investments	—		63,418
Total long-term investments	$	235,055	$	64,977

Equity securities without readily determinable fair values

The following table presents a summary of realized and unrealized gains and losses recorded in other income (expense), net, as adjustments to the carrying value of equity securities without readily determinable fair values held as of December 31, 2018. The gross unrealized gains principally relate to the Company's remaining investments in an investee following the sale of a portion of the Company's investment during the second quarter of 2018.

	Year Ended December 31, 2018
	(In thousands)
Upward adjustments (gross unrealized gains)	$	128,986
Downward adjustments including impairments (gross unrealized losses)	(4,931		)
Total	$	124,055

Realized and unrealized gains and losses for the Company's marketable equity security and investments without readily determinable fair values for the year ended December 31, 2018 are as follows:

	Year Ended December 31, 2018
	(In thousands)
Realized gains, net, for equity securities sold	$	27,874
Unrealized gains, net, on equity securities held	124,170
Total gains recognized, net, in other income (expense), net	$	152,044

Equity method investments

In 2018 and 2017, the Company recorded other-than-temporary impairment charges on certain of its investments of $0.6 million and $2.7 million, respectively. These charges are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

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Cost method investments (prior to the adoption of ASU No. 2016-01)

In 2017 and 2016, the Company recorded $9.5 million and $10.0 million, respectively, of other-than-temporary impairment charges for certain of its investments as a result of our assessment of the near-term prospects and financial condition of the investees. These charges are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

On October 23, 2017, Match Group sold a cost method investment for net proceeds of $60.2 million. The gain on sale of $9.1 million is included in "Other income (expense), net" in the accompanying consolidated statement of operations.

Fair Value Measurements

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

	December 31, 2018
	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	$	880,815	$	—	$	—		$	880,815
Treasury discount notes	—		561,733		—			561,733
Commercial paper	—		162,417		—			162,417
Time deposits	—		90,036		—			90,036
Marketable securities:
Treasury discount notes	—		112,291		—			112,291
Commercial paper	—		10,955		—			10,955
Marketable equity security	419		—		—			419
Total	$	881,234	$	937,432	$	—		$	1,818,666
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(28,631	)	$	(28,631	)

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	December 31, 2017
	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	$	780,425	$	—	$	—		$	780,425
Commercial paper	—		215,325		—			215,325
Treasury discount notes	—		100,457		—			100,457
Time deposits	—		60,000		—			60,000
Certificates of deposit	—		6,195		—			6,195
Marketable securities:
Commercial paper	—		4,995		—			4,995
Total	$	780,425	$	386,972	$	—		$	1,167,397
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(2,647	)	$	(2,647	)

The Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements.

	Contingent Consideration Arrangements
	Years Ended December 31,
	2018			2017
	(In thousands)
Balance at January 1	$	(2,647	)	$	(33,871	)
Total net (losses) gains:
Included in earnings:
Fair value adjustments	(1,456		)	(5,801		)
Included in other comprehensive income (loss)	45			(1,404		)
Fair value at date of acquisition	(25,521		)	—
Settlements	948			38,429
Balance at December 31	$	(28,631	)	$	(2,647	)

Contingent consideration arrangements

At December 31, 2018, the Company has two contingent consideration arrangements outstanding related to business acquisitions.  One arrangement has a $2.0 million maximum contingent payment that has been earned and will be paid by the Companyin the first quarter of 2019.  The second arrangement has a total maximum contingent payment of $45.0 million.  At December 31, 2018, the gross fair value of this arrangement, before unamortized discount, is $44.0 million.

The contingent consideration arrangements are based upon earnings performance and/or operating metrics. The Company generally determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, because the arrangements were initially long-term in nature, applying a discount rate that appropriately captures the risks associated with the obligation to determine the net amount reflected in the consolidated financial statements. The fair values of the contingent consideration arrangements at December 31, 2018 reflect

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discount rates ranging from 12% to 25%. The fair values of the contingent consideration arrangements at December 31, 2017 reflect discount rates of 12%.

The fair value of contingent consideration arrangements is 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, including the accretion of the discount, if applicable, and changes are recognized in "General and administrative expense" in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at December 31, 2018 and 2017 includes a current portion of $2.0 million and $0.6 million, respectively, and non-current portion of $26.6 million and $2.0 million at December 31, 2018 and 2017, which are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities," respectively, 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:

	December 31, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Current portion of long-term debt	$	(13,750	)	$	(12,753	)	$	(13,750	)	$	(13,802	)
Long-term debt, net(a)	(2,245,548		)	(2,460,204		)	(1,979,469		)	(2,168,108		)

_________________

^(a)  At December 31, 2018 and 2017, the carrying value of long-term debt, net includes unamortized original issue discount and debt issuance costs of $88.9 million and $109.1 million, respectively.

Excluding the MTCH Credit Facility, the fair value of long-term debt, including the current portion, is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs. The Company considers the outstanding borrowings under the MTCH Credit Facility, which has a variable interest rate, to have a fair value equal to its carrying value.

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NOTE 7—LONG-TERM DEBT

Long-term debt consists of:

	December 31,
	2018		2017
	(In thousands)
MTCH Debt:
MTCH Term Loan due November 16, 2022	$	425,000	$	425,000
MTCH Credit Facility due December 7, 2023	260,000		—
6.375% Senior Notes due June 1, 2024 (the "6.375% MTCH Senior Notes"); interest payable each June 1 and December 1	400,000		400,000
5.00% Senior Notes due December 15, 2027 (the "5.00% MTCH Senior Notes"); interest payable each June 15 and December 15	450,000		450,000
Total MTCH long-term debt	1,535,000		1,275,000
Less: unamortized original issue discount	7,352		8,668
Less: unamortized debt issuance costs	11,737		13,636
Total MTCH debt, net	1,515,911		1,252,696
ANGI Debt:
ANGI Term Loan due November 5, 2023	261,250		275,000
Less: current portion of ANGI Term Loan	13,750		13,750
Less: unamortized debt issuance costs	2,529		2,938
Total ANGI debt, net	244,971		258,312
IAC Debt:
0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1	517,500		517,500
4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15	34,489		34,859
Total IAC long-term debt	551,989		552,359
Less: unamortized original issue discount	54,025		67,158
Less: unamortized debt issuance costs	13,298		16,740
Total IAC debt, net	484,666		468,461
Total long-term debt, net	$	2,245,548	$	1,979,469

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MTCH Senior Notes

The 6.375% MTCH Senior Notes were issued on June 1, 2016. The proceeds of $400 million were used to prepay a portion of indebtedness outstanding under the MTCH Term Loan. At any time prior to June 1, 2019, these notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium set forth in the indenture governing the notes. Thereafter, these notes may be redeemed at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on June 1 of the years indicated below:

Year	Percentage
2019	104.781	%
2020	103.188	%
2021	101.594	%
2022 and thereafter	100.000	%

On December 4, 2017, MTCH issued $450 million aggregate principal amount of its 5.00% Senior Notes. The proceeds from these notes, along with cash on hand, were used to redeem the $445.2 million outstanding balance of the 6.75% MTCH Senior Notes, which were due on December 15, 2022, and pay the related call premium. At any time prior to December 15, 2022, the 5.00% MTCH Senior Notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium set forth in the indenture governing the notes. Thereafter, these notes may be redeemed at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:

Year	Percentage
2022	102.500	%
2023	101.667	%
2024	100.833	%
2025 and thereafter	100.000	%

The indentures governing the 6.375% and 5.00% MTCH Senior Notes (i) contain covenants that would limit MTCH's ability to pay dividends, make distributions or repurchase MTCH stock in the event a default has occurred or MTCH's consolidated leverage ratio (as defined in the indentures) exceeds 5.0 to 1.0 and (ii) are ranked equally with each other. At December 31, 2018, there were no limitations pursuant thereto. There are additional covenants that limit MTCH's ability and the ability of its subsidiaries to, among other things, (i) incur indebtedness, make investments, or sell assets in the event MTCH is not in compliance with certain ratios set forth in the indentures, and (ii) incur liens, enter into agreements restricting MTCH subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell substantially all of their assets.

MTCH Term Loan and MTCH Credit Facility

At both December 31, 2018 and 2017, the outstanding balance on the MTCH Term Loan was $425 million. The MTCH Term Loan bears interest at LIBOR plus 2.50% and was 5.09% and 3.85% at December 31, 2018 and 2017, respectively. The MTCH Term Loan provides for annual principal payments as part of an excess cash flow sweep provision, the amount of which, if any, is governed by the secured net leverage ratio contained in the credit agreement. Interest payments are due at least quarterly through the term of the loan.

On December 7, 2018, the MTCH $500 million revolving credit facility (the "MTCH Credit Facility") was amended and restated, and is due on December 7, 2023. At December 31, 2018, the outstanding borrowings under the MTCH Credit Facility were $260.0 million which bear interest at LIBOR plus 1.50%, or approximately 4.00%. At December 31, 2017, there were no

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outstanding borrowings under the MTCH Credit Facility. The annual commitment fee on undrawn funds based on the current consolidated net leverage ratio is 25 basis points and 30 basis points at December 31, 2018 and 2017, respectively. Borrowings under the MTCH Credit Facility bear interest, at MTCH's option, at a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on MTCH's consolidated net leverage ratio. The terms of the MTCH Credit Facility require MTCH to maintain a consolidated net leverage ratio of not more than 5.0 to 1.0 and a minimum interest coverage ratio of not less than 2.0 to 1.0 (in each case as defined in the agreement).

The MTCH Term Loan and MTCH Credit Facility contain covenants that would limit MTCH’s ability to pay dividends, make distributions or repurchase MTCH stock in the event MTCH’s secured net leverage ratio exceeds 2.0 to 1.0, while the MTCH Term Loan remains outstanding and, thereafter, if the consolidated net leverage ratio exceeds 4.0 to 1.0, or in the event a default has occurred. There are additional covenants under these MTCH debt agreements that limit the ability of MTCH and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. Obligations under the MTCH Credit Facility and MTCH Term Loan are unconditionally guaranteed by certain MTCH wholly-owned domestic subsidiaries, and are also secured by the stock of certain MTCH domestic and foreign subsidiaries. The MTCH Term Loan and outstanding borrowings, if any, under the MTCH Credit Facility rank equally with each other, and have priority over the 6.375% and 5.00% MTCH Senior Notes to the extent of the value of the assets securing the borrowings under the MTCH credit agreement.

ANGI Term Loan and ANGI Credit Facility

On November 1, 2017, ANGI borrowed $275 million under a five-year term loan facility ("ANGI Term Loan"). On November 5, 2018, the ANGI Term Loan was amended and restated, and is now due on November 5, 2023. Interest payments are due at least quarterly through the term of the loan and quarterly principal payments of 1.25% of the original principal amount in the first three years from the amendment date, 2.50% in the fourth year and 3.75% in the fifth year are required. The ANGI Term Loan bears interest at LIBOR plus 1.50%, or approximately 4.00% at December 31, 2018, which is subject to change in future periods based on ANGI's consolidated net leverage ratio. The ANGI Term Loan bore interest at LIBOR plus 2.00%, or 3.38%, at December 31, 2017.

The terms of the ANGI Term Loan require ANGI to maintain a consolidated net leverage ratio of not more than 4.5 to 1.0 and a minimum interest coverage ratio of not less than 2.0 to 1.0 (in each case as defined in the credit agreement). The ANGI Term Loan also contains covenants that would limit ANGI’s ability to pay dividends, make distributions or repurchase ANGI stock in the event a default has occurred or ANGI’s consolidated net leverage ratio exceeds 4.25 to 1.0. There are additional covenants under the ANGI Term Loan that limit the ability of ANGI and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions.

On November 5, 2018, ANGI entered into a five-year $250 million revolving credit facility (the "ANGI Credit Facility"). At December 31, 2018, there were no outstanding borrowings under the ANGI Credit Facility. The annual commitment fee on undrawn funds is currently 25 basis points, and is based on the consolidated net leverage ratio most recently reported. Borrowings under the ANGI Credit Facility bear interest, at ANGI's option, at either a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on ANGI's consolidated net leverage ratio. The financial and other covenants are the same as those for the ANGI Term Loan.

The ANGI Term Loan and ANGI Credit Facility are guaranteed by ANGI's wholly-owned material domestic subsidiaries and are secured by substantially all assets of ANGI and the guarantors, subject to certain exceptions.

IAC Exchangeable Notes

On October 2, 2017, IAC FinanceCo, Inc., a direct, wholly-owned subsidiary of the Company, issued $517.5 million aggregate principal amount of its 0.875% Exchangeable Senior Notes (the "Exchangeable Notes"). The Exchangeable Notes are guaranteed by the Company. Each $1,000 of principal of the Exchangeable Notes is exchangeable for 6.5713 shares of the Company's common stock, which is equivalent to an exchange price of approximately $152.18 per share, subject to adjustment upon the occurrence of specified events. Upon exchange, the Company has the right to settle the principal amount of Exchangeable Notes with any of the three following alternatives: (1) shares of our common stock, (2) cash or (3) a combination of cash and shares of our common stock.

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The Exchangeable Notes are exchangeable at any time prior to the close of business on the business day immediately preceding July 1, 2022 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days during the period of 30 consecutive trading days during the immediately preceding calendar quarter is greater than or equal to 130% of the exchange price on each applicable trading day, which occurred in the third quarter of 2018; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the exchange rate on each such trading day; (3) if the issuer calls the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events as further described under the indenture governing the Exchangeable Notes. On or after July 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may exchange all or any portion of their Exchangeable Notes regardless of the foregoing conditions.

A portion of the net proceeds from the sale of the Exchangeable Notes of $499.5 million, after deducting fees and expenses, was used to pay the net premium of $50.7 million on the Exchangeable Note Hedge and Warrants (defined below).

We separately account for the debt and the equity components of the Exchangeable Notes. Accordingly, the Company recorded a debt discount and corresponding increase to additional paid-in capital of $70.4 million, which is the fair value attributed to the exchange feature or equity component of the debt, on the date of issuance. The Company is amortizing the debt discount utilizing the effective interest method over the life of the Exchangeable Notes which increases the effective interest rate from its coupon rate of 0.875% to 3.88%. Transaction costs of $18.0 million were allocated between the liability and equity components.

In connection with the debt offering, the Company purchased call options allowing the Company to purchase initially (subject to adjustment upon the occurrence of specified events) the entire 3.4 million shares that would be issuable upon the exchange of the Exchangeable Notes at approximately $152.18 per share (the "Exchangeable Note Hedge"), and sold warrants allowing the holder to purchase initially (subject to adjustment upon the occurrence of specified events) 3.4 million shares at $229.70 per share (the "Warrants"). The if-converted value of the Exchangeable Notes exceeds its principal amount by $105.0 million based on the Company's stock price on December 31, 2018. The Exchangeable Note Hedge is expected to reduce the potential dilutive effect on the Company's common stock upon any exchange of notes and/or offset any cash payment IAC FinanceCo, Inc. is required to make in excess of the principal amount of the exchanged notes. The Warrants have a dilutive effect on the Company's common stock to the extent that the market price per share of the Company common stock exceeds the strike price of the Warrants. The cost of the Exchangeable Note Hedge was $74.4 million, which was recorded as a reduction to additional paid-in capital. The aggregate proceeds from the issuance of the Warrant were $23.6 million, which was recorded as an increase to additional paid-in capital.

For the years ended December 31, 2018 and 2017, the Company incurred interest expense of $21.2 million and $5.2 million, which includes amortization of original issue discount of $13.1 million and $3.2 million, and debt issuance costs of $3.5 million and $0.9 million, respectively. As of December 31, 2018 and 2017, the unamortized discount is $54.0 million and $67.2 million, resulting in a net carrying value of the liability component of $463.5 million and $450.3 million, respectively.

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IAC Senior Notes

The 4.75% Senior Notes were issued by IAC on December 21, 2012. These Notes are unconditionally guaranteed by certain of our wholly-owned domestic subsidiaries, which are designated as guarantor subsidiaries. See "Note 19—Guarantor and Non-Guarantor Financial Information" for financial information relating to guarantor and non-guarantor subsidiaries. The 4.75% Senior Notes may be redeemed at redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:

Year	Percentage
2018	101.583	%
2019	100.792	%
2020 and thereafter	100.000	%

IAC Credit Facility

On November 5, 2018, the IAC Credit Facility, under which IAC Group, LLC, a direct, wholly-owned subsidiary of the Company is the borrower, was amended and restated, reducing the facility size from $300 million to $250 million, and now expires on November 5, 2023. At December 31, 2018 and 2017, there were no outstanding borrowings under the IAC Credit Facility. The annual commitment fee on undrawn funds is based on the consolidated net leverage ratio (as defined in the agreement) most recently reported, and is 20 basis points and 25 basis points at December 31, 2018 and 2017, respectively. Borrowings under the IAC Credit Facility bear interest, at the Company's option, at a base rate or LIBOR, in each case, plus an applicable margin, which is determined by reference to a pricing grid based on the Company's consolidated net leverage ratio. The terms of the IAC Credit Facility require that the Company maintains a consolidated net leverage ratio of not more than 3.25 to 1.0 before the date on which the Company no longer holds majority of the outstanding voting stock of each of ANGI and MTCH ("Trigger Date") and no greater than 2.75 to 1.0 on or after the Trigger Date. The terms of the IAC Credit Facility also restrict our ability to incur additional indebtedness. Borrowings under the IAC Credit Facility are unconditionally guaranteed by substantially the same domestic subsidiaries that guarantee the 4.75% Senior Notes and are also secured by the stock of certain of our domestic and foreign subsidiaries, which includes MTCH and ANGI. The 4.75% Senior Notes are subordinate to the outstanding borrowings under the IAC Credit Facility to the extent of the value of the assets securing such borrowings.

Long-term debt maturities:

Years Ending December 31,	(In thousands)
2019	$	13,750
2020	13,750
2021	13,750
2022	1,004,489
2023	452,500
2024	400,000
2027	450,000
Total	2,348,239
Less: current portion of long-term debt	13,750
Less: unamortized original issue discount	61,377
Less: unamortized debt issuance costs	27,564
Total long-term debt, net	$	2,245,548

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NOTE 8—SHAREHOLDERS' EQUITY

Description of Common Stock and Class B Convertible Common Stock

Except as described herein, shares of IAC common stock and IAC Class B common stock are identical.

Each holder of shares of IAC common stock and IAC Class B common stock vote together as a single class with respect to matters that may be submitted to a vote or for the consent of IAC's shareholders generally, including the election of directors. In connection with any such vote, each holder of IAC common stock is entitled to one vote for each share of IAC common stock held and each holder of IAC Class B common stock is entitled to ten votes for each share of IAC Class B common stock held. Notwithstanding the foregoing, the holders of shares of IAC common stock, acting as a single class, are entitled to elect 25% of the total number of IAC's directors, and, in the event that 25% of the total number of directors shall result in a fraction of a director, then the holders of shares of IAC common stock, acting as a single class, are entitled to elect the next higher whole number of IAC's directors. In addition, Delaware law requires that certain matters be approved by the holders of shares of IAC common stock or holders of IAC Class B common stock voting as a separate class.

Shares of IAC Class B common stock are convertible into shares of IAC common stock at the option of the holder thereof, at any time, on a share-for-share basis. Such conversion ratio will in all events be equitably preserved in the event of any recapitalization of IAC by means of a stock dividend on, or a stock split or combination of, outstanding shares of IAC common stock or IAC Class B common stock, or in the event of any merger, consolidation or other reorganization of IAC with another corporation. Upon the conversion of shares of IAC Class B common stock into shares of IAC common stock, those shares of IAC Class B common stock will be retired and will not be subject to reissue. Shares of IAC common stock are not convertible into shares of IAC Class B common stock.

The holders of shares of IAC common stock and the holders of shares of IAC Class B common stock are entitled to receive, share for share, such dividends as may be declared by IAC's Board of Directors out of funds legally available therefor. In the event of a liquidation, dissolution, distribution of assets or winding-up of IAC, the holders of shares of IAC common stock and the holders of shares of IAC Class B common stock are entitled to receive, share for share, all the assets of IAC available for distribution to its stockholders, after the rights of the holders of any IAC preferred stock have been satisfied.

Reserved Common Shares

In connection with equity compensation plans, the Exchangeable Notes and warrants, 28.0 million shares of IAC common stock are reserved at December 31, 2018.

Warrants and Exchangeable Notes

At December 31, 2018 and 2017, warrants to acquire initially (subject to adjustment upon the occurrence of specified events) 3.4 million shares of IAC common stock at $229.70 per share were outstanding. The warrants were issued in connection with the issuance of the Exchangeable Notes on October 2, 2017 for aggregate proceeds of $23.6 million. During the years ended December 31, 2018 and 2017, no warrants were exercised and no Exchangeable Notes were exchanged. See "Note 7—Long-term Debt" for additional information on the Exchangeable Notes.

Common Stock Repurchases

During the years ended December 31, 2018, 2017 and 2016, the Company repurchased 0.5 million, 0.7 million and 6.3 million shares of IAC common stock for aggregate consideration, on a trade date basis, of $82.9 million, $50.1 million and $315.3 million, respectively.

On May 3, 2016, IAC's Board of Directors authorized the repurchase of an additional 10.0 million shares of IAC common stock. At December 31, 2018, the Company has approximately 8.0 million shares remaining in its share repurchase authorization.

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NOTE 9—ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive loss into earnings:

	Year Ended December 31, 2018
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities		Accumulated Other Comprehensive Loss
	(In thousands)
Balance at January 1	$	(103,568	)	$	—	$	(103,568	)
Other comprehensive (loss) income before reclassifications	(25,106		)	4		(25,102		)
Amounts reclassified to earnings	(52		)	—		(52		)
Net current period other comprehensive (loss) income	(25,158		)	4		(25,154		)
Balance at December 31	$	(128,726	)	$	4	$	(128,722	)

	Year Ended December 31, 2017
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive (Loss) Income
	(In thousands)
Balance at January 1	$	(170,149	)	$	4,026		$	(166,123	)
Other comprehensive income before reclassifications	65,908			7			65,915
Amounts reclassified to earnings	673			(4,033		)	(3,360		)
Net current period other comprehensive income (loss)	66,581			(4,026		)	62,555
Balance at December 31	$	(103,568	)	$	—		$	(103,568	)

	Year Ended December 31, 2016
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive (Loss) Income
	(In thousands)
Balance at January 1	$	(154,645	)	$	2,542		$	(152,103	)
Other comprehensive (loss) income before reclassifications, net of tax benefit of $0.7 million related to unrealized losses on available-for-sale securities	(46,943		)	4,855			(42,088		)
Amounts reclassified to earnings	9,850			(2,913		)	6,937
Net current period other comprehensive (loss) income	(37,093		)	1,942			(35,151		)
Reallocation of accumulated other comprehensive loss (income) related to the noncontrolling interests created in the Match Group IPO	21,589			(458		)	21,131
Balance at December 31	$	(170,149	)	$	4,026		$	(166,123	)

The amounts reclassified out of foreign currency translation adjustment into earnings for the years ended December 31, 2018, 2017 and 2016 relate to the liquidation of international subsidiaries. The amounts reclassified out of unrealized gains on available-for-sale securities into earnings for the years ended December 31, 2017 and 2016, include a tax benefit of $3.8 million and a tax provision of $0.2 million, respectively.

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NOTE 10—EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders:

	Years Ended December 31,
	2018						2017						2016
	Basic			Diluted			Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings (loss)	$	757,747		$	757,747		$	358,008		$	358,008		$	(16,151	)	$	(16,151	)
Net earnings attributable to noncontrolling interests	(130,786		)	(130,786		)	(53,084		)	(53,084		)	(25,129		)	(25,129		)
Impact from public subsidiaries' dilutive securities (a)(b)	—			(25,228		)	—			(33,531		)	—			—
Net earnings (loss) attributable to IAC shareholders	$	626,961		$	601,733		$	304,924		$	271,393		$	(41,280	)	$	(41,280	)
Denominator:
Weighted average basic shares outstanding	83,407			83,407			80,089			80,089			80,045			80,045
Dilutive securities (a) (b) (c) (d) (e) (f) (g)	—			7,915			—			5,221			—			—
Denominator for earnings per share—weighted average shares(a) (b) (c) (d) (e) (f) (g)	83,407			91,322			80,089			85,310			80,045			80,045
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share	$	7.52		$	6.59		$	3.81		$	3.18		$	(0.52	)	$	(0.52	)

__________________________________________________________________

(a) For the year ended December 31, 2018, it is more dilutive for IAC to settle certain MTCH equity awards.  For the years ended December 31, 2017 and 2016, it is more dilutive for MTCH to settle certain MTCH equity awards.

(b) For the years ended December 31, 2018 and 2017, it is more dilutive for IAC to settle certain ANGI equity awards. The impact on earnings of ANGI dilutive securities is not applicable for periods prior to the Combination.

(c) 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, warrants and subsidiary denominated equity, exchange of the Company's Exchangeable Notes and vesting of restricted stock units ("RSUs"). For the years ended December 31, 2018 and 2017, 3.5 million and 6.9 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

(d) For the year ended December 31, 2016, the Company had a loss from operations; therefore, approximately 11.3 million potentially dilutive securities were excluded from 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.

(e) Market-based awards and performance-based stock units ("PSUs") are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For both the years ended December 31, 2018 and 2017, 0.1 million shares underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met.

(f) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; therefore, the Exchangeable Notes are only dilutive for periods during which the average price of IAC common stock exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. For the year ended December 31, 2018, the average price of IAC common stock exceeded $152.18 and the dilutive impact of the Exchangeable Notes was 0.3 million shares. For the year ended December 31, 2017, the Exchangeable Notes were anti-dilutive.

(g) See "Note 11—Stock-based Compensation" for additional information on equity instruments denominated in the shares of certain subsidiaries.

NOTE 11—STOCK-BASED COMPENSATION

IAC currently has two active plans under which awards have been granted. These plans cover stock options to acquire shares of IAC common stock, RSUs and PSUs, as well as provide for the future grant of these and other equity awards. These

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plans authorize the Company to grant awards to its employees, officers, directors and consultants. At December 31, 2018, there are 11.5 million shares available for grant under the plans.

The plans were adopted in 2013 and 2018, have a stated term of ten years, and provide that the exercise price of stock options granted will not be less than the market price of the Company's common stock on the grant date. The plans do not specify grant dates or vesting schedules of awards as those determinations have been delegated to the Compensation and Human Resources Committee of IAC's Board of Directors (the "Committee"). Each grant agreement reflects the vesting schedule for that particular grant as determined by the Committee. Broad-based stock option awards issued to date have generally vested in equal annual installments over a four-year period and RSU awards currently outstanding generally vest in three33% installments over a three-year period, in each case, from the grant date. PSU awards currently outstanding cliff-vest after a three-year period from the date of grant.

The amount of stock-based compensation expense recognized in the consolidated statement of operations is net of estimated forfeitures, as the expense recorded is based on awards that are ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. At December 31, 2018, there is $326.0 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 2.3 years.

The total income tax benefit recognized in the accompanying consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016 related to all stock-based compensation is $189.0 million, $423.0 million and $34.8 million, respectively. The increase in total income tax benefit recognized in the consolidated statement of operations during 2017 relative to 2016 is due to the adoption of ASU 2016-09, effective January 1, 2017, which required the recognition of excess tax benefits attributable to stock-based compensation to be included as a component of the provision for income taxes rather than recognized in equity. The aggregate income tax benefit recognized related solely to stock options for the years ended December 31, 2018, 2017 and 2016, including the portion recognized as a component of equity in 2016 is $169.0 million, $411.6 million, and $63.4 million, respectively.

As the Company is currently in an NOL position, there will be some delay in the timing of the realization of the cash benefit of the income tax deductions related to stock-based compensation because it will be dependent upon the amount and timing of future taxable income and the timing of estimated income tax payments.

IAC Stock Options

Stock options outstanding at December 31, 2018 and changes during the year ended December 31, 2018 are as follows:

	December 31, 2018
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
	(Shares and intrinsic value in thousands)
Options outstanding at January 1, 2018	6,586		$	60.57
Granted	80		152.53
Exercised	(774	)	52.56
Forfeited	(72	)	57.52
Expired	(6	)	19.51
Options outstanding at December 31, 2018	5,814		$	62.97	6.1	$	698,128
Options exercisable	3,592		$	59.64	5.3	$	443,293

The aggregate intrinsic value in the table above represents the difference between IAC's closing stock price on the last trading day of 2018 and the exercise price, multiplied by the number of in-the-money options that would have been exercised

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had all option holders exercised their options on December 31, 2018. The total intrinsic value of stock options exercised during the years ended December 31, 2018, 2017 and 2016 is $83.7 million, $164.6 million and $17.1 million, respectively.

The following table summarizes the information about stock options outstanding and exercisable at December 31, 2018:

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Outstanding at December 31, 2018	Weighted- Average Remaining Contractual Life in Years	Weighted- Average Exercise Price		Exercisable at December 31, 2018	Weighted- Average Remaining Contractual Life in Years	Weighted- Average Exercise Price
	(Shares in thousands)
$20.01 to $30.00	30	1.1	$	21.60	30	1.1	$	21.60
$30.01 to $40.00	389	2.3	32.30		389	2.3	32.30
$40.01 to $50.00	1,541	5.8	43.35		961	5.0	44.26
$50.01 to $60.00	246	3.2	59.85		244	3.2	59.86
$60.01 to $70.00	1,173	6.3	65.27		767	6.0	65.62
$70.01 to $80.00	1,840	7.4	75.33		822	6.8	74.72
$80.01 to $90.00	500	6.3	84.31		375	6.3	84.31
Greater than $90.01	95	9.1	148.30		4	8.9	125.08
	5,814	6.1	62.97		3,592	5.3	59.64

The fair value of stock option awards, with the exception of market-based awards, is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions, including expected volatility and expected term. During 2018, 2017 and 2016, expected stock price volatilities were estimated based on the Company's historical volatility. The risk-free interest rates are based on U.S. Treasuries with comparable terms as the awards, in effect at the grant date. Expected term is based upon the historical exercise behavior of our employees and the dividend yields are based on IAC's historical dividend payments. The following are the weighted average assumptions used in the Black-Scholes option pricing model:

	Years Ended December 31,
	2018		2017		2016
Expected volatility	27	%	29	%	29	%
Risk-free interest rate	2.7	%	2.0	%	1.2	%
Expected term	6.2 years		5.2 years		4.8 years
Dividend yield	—	%	—	%	—	%

During 2018, the Company granted market-based stock options that only vest if the price of IAC common stock exceeds the relevant price threshold for a twenty-day consecutive period and the service requirement is met. The market-based vesting condition was achieved in the fourth quarter of 2018. The service requirement provides that this award vests in two installments, the first 50% in 2021 and the second 50% in 2022. The grant date fair value of the market-based award was estimated using a lattice model that incorporates a Monte Carlo simulation of IAC's stock price. The inputs used to fair value this award included an expected volatility of 29%, risk-free interest rate of 2.8% and a zero-dividend yield. The expected term of 1.8 years for this award was derived from the output of the option valuation model. Expense is recognized over the longer of the vesting period of each of the two installments or the expected term.

Approximately less than 0.1 million, 1.2 million and 1.7 million stock options were granted by the Company during the years ended December 31, 2018, 2017 and 2016, respectively. The weighted average fair value of stock options granted during the years ended December 31, 2018, 2017 and 2016 are $53.94, $22.94 and $12.34, respectively.

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Cash received from stock option exercises for the years ended December 31, 2018, 2017 and 2016 was $41.7 million, $82.4 million and $25.8 million, respectively.

The Company has historically settled its stock options on a gross basis. Assuming all stock options outstanding on December 31, 2018 were net settled on that date, the Company would have remitted $349.1 million (of which $221.6 million is related to vested stock options and $127.4 million is related to unvested stock options) in cash for withholding taxes (assuming a 50% withholding rate).

IAC Restricted Stock Units and Performance-based Stock Units

RSUs and PSUs are awards in the form of phantom shares or units denominated in a hypothetical equivalent number of shares of IAC common stock and with the value of each RSU and PSU equal to the fair value of IAC common stock at the date of grant. Each RSU and PSU grant is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. PSUs also include performance-based vesting, where certain performance targets set at the time of grant must be achieved before an award vests. For RSU grants, the expense is measured at the grant date as the fair value of IAC common stock and expensed as stock-based compensation over the vesting term. For PSU grants, the expense is measured at the grant date as the fair value of IAC common stock and expensed as stock-based compensation over the vesting term if the performance targets are considered probable of being achieved.

Unvested RSUs and PSUs outstanding at December 31, 2018 and changes during the year ended December 31, 2018 are as follows:

	RSUs				PSUs
	Number of shares		Weighted Average Grant Date Fair Value		Number of shares		Weighted Average Grant Date Fair Value
	(Shares in thousands)
Unvested at January 1, 2018	360		$	80.81	130		$	76.00
Granted	153		183.33		30		152.53
Vested	(49	)	78.54		—		—
Forfeited	(5	)	98.81		(17	)	76.00
Unvested at December 31, 2018	459		$	115.12	143		$	92.02

The weighted average fair value of RSUs and PSUs granted during the years ended December 31, 2018, 2017 and 2016 based on market prices of IAC's common stock on the grant date was $178.29, $90.04 and $46.92, respectively. The total fair value of RSUs and PSUs that vested during the years ended December 31, 2018, 2017 and 2016 was $8.9 million, $32.5 million and $13.5 million, respectively.

Equity Instruments Denominated in the Shares of Certain Subsidiaries

Non-publicly-traded Subsidiaries

The following description excludes awards denominated in the shares of the Company's publicly-traded subsidiaries, MTCH and ANGI. MTCH and ANGI stock-based awards are issued pursuant to their respective stock incentive plans.

The Company has granted stock settled stock appreciation rights denominated in the equity of certain non-publicly traded subsidiaries to employees and management of those subsidiaries. These equity awards vest over a period of years or upon the occurrence of certain prescribed events. The value of the stock settled stock appreciation rights is tied to the value of the common stock of these subsidiaries. Accordingly, these interests only have value to the extent the relevant business appreciates in value above the initial value utilized to determine the exercise price. These interests can have significant value in the event of significant appreciation. The fair value of these interest is generally determined by negotiation or arbitration, when settled; which will occur at various dates through 2025. These equity awards are settled on a net basis, with the award holder entitled to

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receive a payment in IAC common shares equal to the intrinsic value of the award at exercise less an amount equal to the required cash tax withholding payment. The number of IAC common shares ultimately needed to settle these awards may vary significantly from the estimated number below as a result of both movements in our stock price and a determination of fair value of the relevant subsidiary that is different than our estimate. The expense associated with these equity awards is initially measured at fair value at the grant date and is expensed as stock-based compensation over the vesting term. The number of IAC common shares that would be required to settle these interests at current estimated fair values, including vested and unvested interests, at December 31, 2018 is 0.1 million shares. Withholding taxes, which will be paid by the Company on behalf of the employees upon exercise, would have been $16.0 million at December 31, 2018, assuming a 50% withholding rate.

MTCH

MTCH currently settles substantially all equity awards on a net basis. Assuming all MTCH equity awards outstanding on December 31, 2018 were net settled on that date, MTCH would have issued 9.7 million common shares (of which 1.7 million is related to vested shares and 8.0 million is related to unvested shares) and would have remitted $416.2 million (of which $75.0 million is related to vested shares and $341.2 million is related to unvested shares) in cash for withholding taxes (assuming a 50% withholding rate). If MTCH decided to issue a sufficient number of shares to cover the $416.2 million employee withholding tax obligation, 9.7 million additional shares would be issued by MTCH.

Following the completion of the MTCH IPO, equity awards that related to certain subsidiaries (principally Tinder, Inc.) of MTCH were settleable, at IAC's election, in shares of IAC common stock or MTCH common stock. Pursuant to the Employee Matters Agreement between IAC and MTCH, to the extent shares of IAC common stock are issued in settlement of these awards, MTCH reimburses IAC for the cost of those shares in cash or by issuing IAC shares of MTCH common stock. In July 2017, Tinder was merged into MTCH and as a result, all Tinder denominated equity awards were converted into MTCH tandem stock options ("Tandem Awards"). All of the MTCH Tandem Awards exercised during 2018 and 2017 were exercised on a net basis and were settled in IAC common shares; the Company issued 0.7 million and 2.0 million shares, respectively, of its common stock to settle these awards and MTCH issued 2.5 million and 11.3 million shares, respectively, of its common stock to IAC as reimbursement. Assuming all vested and unvested Tandem Awards outstanding on December 31, 2018 were exercised on that date and settled using IAC stock, 0.3 million IAC common shares would have been issued in settlement and MTCH would have issued 1.4 million shares, which is included in the amount above, to IAC as reimbursement.

During 2017, MTCH also purchased certain fully vested Tandem Awards, and made cash payments of approximately $520 million to cover both the withholding taxes paid on behalf of employees exercising these converted awards and the purchase of certain fully vested awards.

During 2016, the Company granted a nominal amount of IAC denominated market-based awards to certain MTCH employees. The number of awards that ultimately vest is dependent upon MTCH's stock price. The grant date fair value of each market-based award is estimated using a lattice model that incorporates a Monte Carlo simulation of MTCH's stock price. Each market-based award is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. Some of the market-based awards contain performance targets set at the time of grant that must be achieved before an award vests.

ANGI

In connection with the Combination, previously issued stock appreciation rights related to the common stock of HomeAdvisor (US) were converted into ANGI stock appreciation rights that are settleable, at ANGI's option, on a net basis with ANGI remitting withholding taxes on behalf of the employee or on a gross basis with ANGI issuing a sufficient number of Class A shares to cover the withholding taxes. In addition, at IAC's option, these awards can be settled in either Class A shares of ANGI or shares of IAC common stock. If settled in IAC common stock, ANGI reimburses IAC in either cash or through the issuance of Class A shares to IAC. Assuming all of the stock appreciation rights outstanding on December 31, 2018 were net settled on that date using IAC stock, 1.1 million IAC common shares would have been issued in settlement and IAC would have been issued 12.8 million shares of ANGI Class A stock and ANGI would have remitted $205.9 million in cash for withholding taxes (assuming a 50% withholding rate). If ANGI decided to issue a sufficient number of shares to cover the $205.9 million employee withholding tax obligation, 12.8 million additional Class A shares would be issued by ANGI. ANGI's

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cash withholding obligation on all other ANGI net settled awards outstanding on December 31, 2018 is $36.5 million (assuming a 50% withholding rate), which is the equivalent of 2.3 million shares.

Prior to the Combination in 2017, the Company issued a number of IAC denominated PSUs to certain ANGI employees. Vesting of the PSUs is contingent upon ANGI's performance. Assuming all of the PSUs outstanding on December 31, 2018 were net settled on that date using IAC stock, 0.1 million IAC common shares would have been issued in settlement and IAC would have been issued 0.6 million shares of ANGI Class A stock and ANGI would have remitted $10.4 million in cash for withholding taxes (assuming a 50% withholding rate).

Modification of awards

During 2018, the Company modified certain equity awards and recognized modification charges of $7.9 million. In addition, in connection with the ANGI chief executive officer transition during the fourth quarter of 2018, ANGI accelerated $3.9 million of expense into 2018 from 2019.

In connection with the Combination, the previously issued HomeAdvisor (US) stock appreciation rights were converted into ANGI equity awards resulting in a modification charge of $217.7 million of which $56.9 million and $93.4 million were recognized as stock-based compensation expense in the years ended December 31, 2018 and 2017, respectively, and the remaining charge will be recognized over the vesting period of the modified awards.

During the second quarter of 2017, the Company modified certain HomeAdvisor (US) denominated equity awards and recognized a modification charge of $6.6 million.

During 2016, the Company modified certain subsidiary denominated equity awards resulting in a modification charge of $7.3 million (subsequently reduced to $7.1 million due to forfeitures) of which $0.1 million, $0.7 million and $6.3 million were recognized as stock-based compensation in the years ended December 31, 2018, 2017 and 2016, respectively.

During 2014, the Company granted an equity award denominated in shares of a subsidiary of the Company to a non-employee, which was marked to market each reporting period. In the third quarter of 2016, MTCH settled the vested portion of the award for cash of $13.4 million. In the third quarter of 2017, the award was modified and MTCH settled the remaining portion of the award for cash of $33.9 million.

NOTE 12—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 Emerging & Other reportable segment, do not meet the quantitative thresholds that require presentation as separate reportable segments.

The following table presents revenue by reportable segment:

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	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Revenue:
Match Group	$	1,729,850		$	1,330,661		$	1,118,110
ANGI Homeservices	1,132,241			736,386			498,890
Vimeo	159,641			103,332			78,805
Dotdash	130,991			90,890			77,913
Applications	582,287			577,998			604,140
Emerging & Other	528,250			468,589			762,609
Inter-segment elimination	(368		)	(617		)	(585		)
Total	$	4,262,892		$	3,307,239		$	3,139,882

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

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Match Group
Direct revenue:
North America	$	902,478	$	741,334	$	673,944
International	774,693		539,915		393,420
Direct revenue	1,677,171		1,281,249		1,067,364
Indirect revenue (principally advertising revenue)	52,679		49,412		50,746
Total Match Group revenue	$	1,729,850	$	1,330,661	$	1,118,110
Supplemental information on Direct revenue
Tinder	$	805,316	$	403,216	$	168,522
Other brands	871,855		878,033		898,842
Total Direct revenue	$	1,677,171	$	1,281,249	$	1,067,364
ANGI Homeservices
Marketplace:
Consumer connection revenue	$	704,341	$	521,481	$	382,466
Membership subscription revenue	66,214		56,135		43,573
Other revenue	3,940		3,798		2,827
Marketplace revenue	774,495		581,414		428,866
Advertising and other revenue	287,676		97,483		32,981
North America	1,062,171		678,897		461,847
Consumer connection revenue	50,913		40,009		28,124
Membership subscription revenue	17,362		16,596		7,936
Advertising and other revenue	1,795		884		983
Europe	70,070		57,489		37,043
Total ANGI Homeservices revenue	$	1,132,241	$	736,386	$	498,890
Vimeo
Platform revenue	$	146,665	$	99,650	$	78,805
Hardware revenue	12,976		3,682		—

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	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Total Vimeo revenue	$	159,641	$	103,332	$	78,805
Dotdash
Advertising revenue	$	113,014	$	81,948	$	76,099
Affiliate commerce commission revenue	14,458		7,372		1,685
Other revenue	3,519		1,570		129
Total Dotdash revenue	$	130,991	$	90,890	$	77,913
Applications
Desktop
Advertising revenue:
Google advertising revenue	$	426,964	$	480,774	$	523,335
Other	10,992		6,762		10,037
Advertising revenue	437,956		487,536		533,372
Subscription and other revenue	20,815		34,613		29,943
Total Desktop	458,771		522,149		563,315
Mosaic Group
Subscription and other revenue	104,975		27,980		21,787
Advertising revenue	18,541		27,869		19,038
Total Mosaic Group	123,516		55,849		40,825
Total Applications revenue	$	582,287	$	577,998	$	604,140
Emerging & Other
Advertising revenue:
Google advertising revenue	$	357,752	$	225,576	$	269,192
Other	66,733		53,911		75,008
Advertising revenue	424,485		279,487		344,200
Other revenue	103,765		169,497		160,329
Test preparation revenue	—		19,605		86,517
Product revenue	—		—		171,563
Total Emerging & Other revenue	$	528,250	$	468,589	$	762,609

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,
	2018		2017		2016
	(In thousands)
Revenue
United States	$	2,824,928	$	2,323,050	$	2,318,976
All other countries	1,437,964		984,189		820,906
Total	$	4,262,892	$	3,307,239	$	3,139,882

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	December 31,
	2018		2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	289,756	$	286,541
All other countries	29,044		28,629
Total	$	318,800	$	315,170

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

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Operating Income (Loss):
Match Group	$	553,294		$	360,517		$	315,549
ANGI Homeservices	63,906			(149,176		)	25,363
Vimeo	(35,594		)	(27,328		)	(25,350		)
Dotdash	18,778			(15,694		)	(248,705		)
Applications	94,834			130,176			109,663
Emerging & Other	29,964			17,412			(99,696		)
Corporate	(160,043		)	(127,441		)	(109,449		)
Total	$	565,139		$	188,466		$	(32,625	)

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Adjusted EBITDA:(a)
Match Group	$	653,931		$	468,941		$	403,380
ANGI Homeservices	$	247,506		$	37,858		$	45,851
Vimeo	$	(28,045	)	$	(23,607	)	$	(20,281	)
Dotdash	$	21,384		$	(2,763	)	$	(16,846	)
Applications	$	131,837		$	136,757		$	132,276
Emerging & Other	$	36,178		$	25,862		$	10,111
Corporate	$	(74,017	)	$	(67,755	)	$	(53,272	)

_______________________________________________________________________________

(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, 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.

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

	Year Ended December 31, 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	$	553,294		$	66,031	$	32,968	$	1,318	$	320	$	653,931
ANGI Homeservices	63,906			$	97,078	$	24,310	$	62,212	$	—	$	247,506
Vimeo	(35,594		)	$	—	$	1,200	$	6,349	$	—	$	(28,045	)
Dotdash	18,778			$	—	$	969	$	1,637	$	—	$	21,384
Applications	94,834			$	—	$	2,601	$	33,266	$	1,136	$	131,837
Emerging & Other	29,964			$	919	$	1,678	$	3,617	$	—	$	36,178
Corporate	(160,043		)	$	74,392	$	11,634	$	—	$	—	$	(74,017	)
Total	565,139
Interest expense	(109,327		)
Other income, net	305,746
Earnings before income taxes	761,558
Income tax provision	(3,811		)
Net earnings	757,747
Net earnings attributable to noncontrolling interests	(130,786		)
Net earnings attributable to IAC shareholders	$	626,961

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	Year Ended December 31, 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	$	360,517		$	69,090	$	32,613	$	1,468	$	5,253		$	468,941
ANGI Homeservices	(149,176		)	$	149,230	$	14,543	$	23,261	$	—		$	37,858
Vimeo	(27,328		)	$	—	$	1,408	$	2,313	$	—		$	(23,607	)
Dotdash	(15,694		)	$	—	$	2,255	$	10,676	$	—		$	(2,763	)
Applications	130,176			$	—	$	3,863	$	2,170	548		—	$	136,757
Emerging & Other	17,412			$	2,130	$	4,065	$	2,255	$	—		$	25,862
Corporate	(127,441		)	$	44,168	$	15,518	$	—	$	—		$	(67,755	)
Total	188,466
Interest expense	(105,295		)
Other expense, net	(16,213		)
Earnings before income taxes	66,958
Income tax benefit	291,050
Net earnings	358,008
Net earnings attributable to noncontrolling interests	(53,084		)
Net earnings attributable to IAC shareholders	$	304,924

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	Year Ended December 31, 2016
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments			Goodwill Impairment		Adjusted EBITDA
	(In thousands)
Match Group	$	315,549		$	52,370	$	27,726	$	16,932	$	(9,197	)	$	—	$	403,380
ANGI Homeservices	25,363			$	8,916	$	8,419	$	3,153	$	—		$	—	$	45,851
Vimeo	(25,350		)	$	—	$	1,085	$	4,176	$	(192	)	$	—	$	(20,281	)
Dotdash	(248,705		)	$	—	$	2,775	$	30,754	$	—		$	198,330	$	(16,846	)
Applications	109,663			$	—	$	5,095	$	5,483	$	12,035		$	—	$	132,276
Emerging & Other	(99,696		)	$	1,258	$	12,675	$	18,928	$	(91	)	$	77,037	$	10,111
Corporate	(109,449		)	$	42,276	$	13,901	$	—	$	—		$	—	$	(53,272	)
Total	(32,625		)
Interest expense	(109,110		)
Other income, net	60,650
Loss before income taxes	(81,085		)
Income tax benefit	64,934
Net loss	(16,151		)
Net earnings attributable to noncontrolling interests	(25,129		)
Net loss attributable to IAC shareholders	$	(41,280	)

The following tables reconcile segment assets to total assets by reportable segment:

	December 31, 2018
	Segment  Assets (b)		Property and Equipment, Net		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets, Net		Total Assets
	(In thousands)
Match Group	$	377,965	$	58,351	$	1,245,013	$	230,684	$	6,956	$	1,918,969
ANGI Homeservices	497,327		70,859		892,800		171,486		132,809		1,765,281
Vimeo	33,568		1,014		77,152		—		9,442		121,176
Dotdash	39,276		3,229		—		13,500		1,514		57,519
Applications	153,781		4,867		504,892		39,463		22,447		725,450
Emerging & Other	95,858		1,638		7,002		2,971		150		107,619
Corporate (c)	1,934,943		178,842		—		—		—		2,113,785
Total	$	3,132,718	$	318,800	$	2,726,859	$	458,104	$	173,318	6,809,799
Add: Deferred tax assets (d)											64,786
Total Assets											$	6,874,585

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	December 31, 2017
	Segment  Assets (b)		Property and Equipment, Net		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets, Net		Total Assets
	(In thousands)
Match Group	$	467,338	$	61,620	$	1,247,899	$	228,296	$	2,049	$	2,007,202
ANGI Homeservices	264,450		53,292		768,317		153,447		175,124		1,414,630
Vimeo	30,507		1,972		77,303		—		15,655		125,437
Dotdash	27,190		4,077		—		6,000		3,152		40,419
Applications	345,532		7,004		447,242		60,600		847		861,225
Emerging & Other	255,107		2,377		18,305		10,800		7,767		294,356
Corporate (c)	873,392		184,828		—		—		—		1,058,220
Total	$	2,263,516	$	315,170	$	2,559,066	$	459,143	$	204,594	5,801,489
Add: Deferred tax assets (d)											66,321
Total Assets											$	5,867,810

_____________________________________

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

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

(d) Total segment assets differ from total assets on a consolidated basis as a result of unallocated deferred tax assets.

The following table presents capital expenditures by reportable segment:

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Capital expenditures:
Match Group	$	30,954	$	28,833	$	46,098
ANGI Homeservices	46,976		26,837		16,660
Vimeo	209		109		1,959
Dotdash	102		825		1,671
Applications	111		227		1,196
Emerging & Other	1,119		852		6,683
Corporate	6,163		17,840		3,772
Total	$	85,634	$	75,523	$	78,039

NOTE 13—COMMITMENTS AND CONTINGENCIES

Commitments

The Company leases land, office space, data center facilities and equipment used in connection with its 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 certain lease agreements. These operating expenses are not included in the table below.

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Future minimum payments under operating lease agreements are as follows:

Years Ending December 31,	(In thousands)
2019	$	38,770
2020	46,440
2021	40,998
2022	34,066
2023	30,567
Thereafter	255,563
Total	$	446,404

Expenses charged to operations under these agreements are $42.0 million, $37.9 million and $50.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company's three most significant operating leases are for IAC's headquarters in New York City that expires in 2081, ANGI's call center in New York that expires in 2028 and ANGI's headquarters in Denver, Colorado that expires in 2029, which collectively approximate 61% of the future minimum payments due under all operating lease agreements in the table above.

The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events as follows:

	Amount of Commitment Expiration Per Period
	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total Amounts Committed
	(In thousands)
Purchase obligations	$	40,428	$	23,897	$	—	$	—	$	64,325
Letters of credit and surety bonds	449		—		—		2,272		2,721
Total commercial commitments	$	40,877	$	23,897	$	—	$	2,272	$	67,046

The purchase obligations principally include web hosting commitments. The letters of credit primarily support the Company's casualty insurance program.

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 3—Income Taxes" for additional information related to income tax contingencies.

On August 14, 2018, ten then-current and former employees of Match Group, LLC or Tinder, Inc. ("Tinder"), an operating business of Match Group, filed a lawsuit in New York state court against IAC and Match Group. See Sean Rad et al. v. IAC/InterActiveCorp and Match Group, Inc., No. 654038/2018 (Supreme Court, New York County). The complaint alleges that in 2017, the defendants: (i) wrongfully interfered with a contractually established process for the independent valuation of Tinder

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by certain investment banks, resulting in a substantial undervaluation of Tinder and a consequent underpayment to the plaintiffs upon exercise of their Tinder stock options, and (ii) then wrongfully merged Tinder into Match Group, thereby depriving one of the plaintiffs (Mr. Rad) of his contractual right to later valuations of Tinder on a stand-alone basis. The complaint asserts claims for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, interference with contractual relations (as against Match Group only), and interference with prospective economic advantage, and seeks compensatory damages in the amount of at least $2 billion, as well as punitive damages. On August 31, 2018, four plaintiffs who were still employed by Match Group filed a notice of discontinuance of their claims without prejudice, leaving the six former employees as the remaining plaintiffs. On October 9, 2018, the defendants filed a motion to dismiss the complaint on various grounds, including that the 2017 valuation of Tinder by the investment banks was an expert determination any challenge to which is both time-barred under applicable law and available only on narrow substantive grounds that the plaintiffs have not pleaded in their complaint. On December 17, 2018, plaintiffs filed their opposition to the motion to dismiss. On January 15, 2019, the defendants filed their reply brief. A hearing on the motion is scheduled for March 6, 2019, and discovery in the case is proceeding. IAC and Match Group believe that the allegations in this lawsuit are without merit and will continue to defend vigorously against it.

NOTE 14—SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental Disclosure of Non-Cash Transactions:

The Company recorded acquisition-related contingent consideration liabilities of $25.5 million and $0.2 million during the years ended December 31, 2018 and 2016, respectively, in connection with various acquisitions. There were no acquisition-related contingent consideration liabilities recorded for the year ended December 31, 2017. See "Note 6—Financial Instruments" for additional information on contingent consideration arrangements.

On October 19, 2018, ANGI issued 8.6 million shares of its Class A common stock valued at $165.8 millionin connection with the acquisition of Handy.

On September 29, 2017, ANGI issued 61.3 million shares of its Class A common stock valued at $763.7 million in connection with the Combination.

Supplemental Disclosure of Cash Flow Information:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Cash paid (received) during the year for:
Interest	$	90,485		$	92,461		$	107,360
Income tax payments	45,154			35,598			69,103
Income tax refunds	(33,698		)	(42,025		)	(23,877		)

NOTE 15—RELATED PARTY TRANSACTIONS

IAC and MTCH:

IAC and MTCH, in connection with MTCH's IPO, entered into the following agreements:

• A Master Transaction Agreement, under which MTCH agrees to assume all of the assets and liabilities related to its business and agrees to indemnify IAC against any losses arising out of any breach by MTCH of the Master Transaction Agreement or other IPO related agreements;

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• An Investor Rights Agreement that provides IAC with (i) specified registration and other rights relating to shares of MTCH common stock and (ii) anti-dilution rights with respect to MTCH common stock;

• An Employee Matters Agreement, which governs the respective rights, responsibilities and obligations of IAC and MTCH after the IPO with respect to a range of compensation and benefit issues;

• A Tax Sharing Agreement, which governs the respective rights, responsibilities and obligations of IAC and MTCH with respect to tax liabilities and benefits, entitlement to refunds, preparation of tax returns, tax contests and other tax matters regarding U.S. federal, state, local and foreign income taxes; and

• A Services Agreement, under which IAC has agreed to provide a range of services to MTCH, including, among others, (i) assistance with certain legal, finance, internal audit, treasury, information technology support, insurance and tax affairs, including assistance with certain public company reporting obligations; (ii) payroll processing services; (iii) tax compliance services; and (iv) such other services as to which IAC and MTCH may agree, and MTCH agrees to provide IAC informational technology services and such other services as to which IAC and MTCH may agree.

During the years ended December 31, 2018, 2017 and 2016, 3.0 million, 11.9 million and 1.0 million shares, respectively, of MTCH common stock were issued to IAC pursuant to the employee matters agreement; 2.5 million, 11.3 million and 0.5 million, respectively, of which were issued as reimbursement for shares of IAC common stock issued in connection with the exercise and settlement of MTCH tandem stock options and equity awards denominated in shares of a subsidiary of MTCH, respectively; and 0.5 million, 0.6 million and 0.4 million, respectively, of which were issued as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by MTCH employees.

For the years ended December 31, 2018, 2017 and 2016, MTCH was charged $7.6 million, $9.9 million and $11.8 million, respectively, by the Company for services rendered pursuant to a services agreement. Included in these amounts are $5.2 million, $5.1 million and $4.3 million, respectively, for leasing of office space for certain of MTCH's businesses at properties owned by IAC. These amounts were paid in full by MTCH at December 31, 2018, 2017 and 2016, respectively.

At December 31, 2017, MTCH had a tax receivable of $7.3 million due from the Company pursuant to the tax sharing agreement. Refunds made by the Company during 2018 and 2017 pursuant to this agreement were $7.0 million and $10.9 million, respectively. There were no outstanding receivables or payables pursuant to the tax sharing agreement as of December 31, 2018.

In December 2017, certain international subsidiaries of MTCH agreed to sell NOLs that were not expected to be utilized to an IAC subsidiary for $0.9 million.

IAC and ANGI:

IAC and ANGI, in connection with the Combination, entered into the following agreements:

• A Contribution Agreement under which the Company separated its HomeAdvisor business from its other businesses and caused the HomeAdvisor business to be transferred to ANGI prior to the Combination. Under the Contribution Agreement, ANGI agrees to indemnify IAC against any losses arising out of any breach by ANGI of the Contribution Agreement;

• An Investor Rights Agreement that provides IAC with (i) specified registration and other rights relating to shares of ANGI common stock owned by IAC; (ii) anti-dilution rights with respect to ANGI common stock; and (iii) specified board matters with respect to designation of ANGI directors;

• A Services Agreement, under which IAC has agreed to provide a range of services to ANGI, including, among others, (i) assistance with certain legal, M&A, human resources, finance, risk management, internal audit and treasury functions, health and wellness, information security services and insurance and tax affairs, including assistance with certain public company and unclaimed property reporting obligations; (ii) accounting, controllership and payroll

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processing services; (iii) investor relations services; (iv) tax compliance services; and (iv) such other services as to which IAC and ANGI may agree.

• A Tax Sharing Agreement, which governs the respective rights, responsibilities and obligations of IAC and ANGI with respect to tax matters, including taxes attributable to ANGI, entitlement to refunds, allocation of tax attributes, preparation of tax returns, certain tax elections, control of tax contests and other tax matters regarding U.S. federal, state, local and foreign income taxes; and

• An Employee Matters Agreement, which governs the respective rights, responsibilities and obligations of IAC and ANGI after the closing of the Combination with respect to a range of compensation and benefit issues.

Additionally, on September 29, 2017, the Company and ANGI entered intotwointercompany notes (collectively referred to as "Intercompany Notes") to ANGI as follows: (i) a Payoff Intercompany Note, which provided the funds necessary to repay the outstanding balance under Angie's List's previously existing credit agreement, totaling$61.5 million; and (ii) a Working Capital Intercompany Note, which provided ANGI with$15 millionfor working capital purposes. These Intercompany Notes were repaid on November 1, 2017, with a portion of the proceeds from the ANGI Term Loan that were received on the same date.

For the years ended December 31, 2018 and for the period subsequent to the Combination through December 31, 2017, 0.9 million and 0.4 million shares, respectively, of ANGI Class B common stock were issued to IAC pursuant to the employee matters agreement as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by ANGI employees.

On October 10, 2018, IAC was issued 5.1 million shares of Class B common stock of ANGI pursuant to the post-closing adjustment provision of the Angie's List merger agreement.

For the years ended December 31, 2018 and for the period subsequent to the Combination through December 31, 2017, ANGI was charged $5.7 million and $1.7 million, respectively, by the Company for services rendered pursuant to the services agreement. At December 31, 2018 and 2017, the Company had a $0.1 million outstanding payable to ANGI and a $0.4 million receivable from ANGI, respectively, pursuant to the services agreement. In addition, ANGI had an outstanding payable due to IAC of $2.0 million at December 31, 2017 related primarily to transaction related costs incurred in connection with the Combination, which was paid in full during the first quarter of 2018. There were no comparable costs in 2018.

At December 31, 2018, ANGI had taxes payable of $12.1 million due to the Company pursuant to the tax sharing agreement. No payments were made to the Company during 2018 pursuant to this agreement.

IAC and Expedia:

Each of IAC and Expedia has a 50% ownership interest in two aircrafts that may be used by both companies. The Company and Expedia purchased an aircraft during the second quarter of 2017 to replace a previously owned aircraft, which was subsequently sold on February 13, 2018. The Company paid $17.4 million (50% of the total purchase price and refurbish costs) for its interest in the new aircraft. Members of the aircrafts' flight crews are employed by an entity in which each of the Company and Expedia has a 50% ownership interest. The Company and Expedia have agreed to share costs relating to flight crew compensation and benefits pro-rata according to each company's respective usage of the aircraft, for which they are separately billed by the entity described above. The Company and Expedia are related parties since they are under common control, given that Mr. Diller serves as Chairman and Senior Executive of both IAC and Expedia. For the years ended December 31, 2018, 2017 and 2016, total payments made to this entity by the Company were not material.

NOTE 16—BENEFIT PLANS

IAC has a retirement savings plan in the United States that qualifies under Section 401(k) of the Internal Revenue Code. Under the IAC/InterActiveCorp Retirement Savings Plan ("the Plan"), participating employees may contribute up to 50% of their pre-tax earnings, but not more than statutory limits. IAC contributes fifty cents for each dollar a participant contributes in this plan, with a maximum contribution of 3% of a participant's eligible earnings. Matching contributions for the Plan for the years ended December 31, 2018, 2017 and 2016 are $12.9 million, $11.1 million and $10.0 million, respectively. Matching

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contributions are invested in the same manner as each participant's voluntary contributions in the investment options provided under the Plan. An investment option in the Plan is IAC common stock, but neither participant nor matching contributions are required to be invested in IAC common stock. The increase in matching contributions in 2018 and 2017 are due primarily to an increase in participation in the Plan due to increases in headcount from the Combination and continued corporate growth at ANGI, MTCH, Vimeo and Dotdash.

IAC also has or participates in various benefit plans, principally defined contribution plans, for its international employees. IAC's contributions for these plans for the years ended December 31, 2018, 2017 and 2016 are $3.4 million, $2.5 million and $2.1 million, respectively. The increase in contributions in 2018 and 2017 were due, in part, to an increase in participation in the international plans due to an increase in headcount at MTCH and ANGI as a result of continued business growth.

NOTE 17—CONSOLIDATED FINANCIAL STATEMENT DETAILS

	December 31,
	2018		2017
	(In thousands)
Other current assets:
Capitalized costs to obtain a contract with a customer	$	69,817	$	—
Prepaid expenses	55,586		49,350
Capitalized downloadable search toolbar costs, net	33,365		31,588
Income taxes receivable	10,132		33,239
Production costs	2,260		18,570
Other	57,093		52,627
Other current assets	$	228,253	$	185,374

	December 31,
	2018			2017
	(In thousands)
Property and equipment, net of accumulated depreciation and amortization:
Buildings and leasehold improvements	$	249,026		$	246,038
Computer equipment and capitalized software	229,083			218,529
Furniture and other equipment	86,694			88,930
Projects in progress	29,204			19,094
Land	11,591			14,390
Property and equipment	605,598			586,981
Accumulated depreciation and amortization	(286,798		)	(271,811		)
Property and equipment, net of accumulated depreciation and amortization	$	318,800		$	315,170

	December 31,
	2018		2017
	(In thousands)
Accrued expenses and other current liabilities:
Accrued employee compensation and benefits	$	137,583	$	108,431
Accrued advertising expense	105,520		96,445
Other	191,783		162,048
Accrued expenses and other current liabilities	$	434,886	$	366,924

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	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Revenue:
Service revenue	$	4,249,227	$	3,302,937	$	2,967,474
Product revenue	13,665		4,302		172,408
Revenue	$	4,262,892	$	3,307,239	$	3,139,882

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Cost of revenue:
Cost of service revenue	$	898,736	$	647,226	$	617,058
Cost of product revenue	12,410		3,782		138,672
Cost of revenue	$	911,146	$	651,008	$	755,730

	Years Ended December 31,
	2018		2017			2016
	(In thousands)
Other income (expense), net	$	305,746	$	(16,213	)	$	60,650

Other income, net in 2018 includes: $124.2 million of net unrealized gains related to certain equity investments that were adjusted to fair value in accordance with ASU No. 2016-01, which was adopted on January 1, 2018; $120.6 million in gains related to the sales of Dictionary.com, Electus, Felix and CityGrid; $30.4 million of interest income; $27.9 million in realized gains related to the sale of certain equity investments; and $5.3 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound.

Other expense, net in 2017 includes: $16.8 million in net foreign currency exchange losses due primarily to the weakening of the dollar relative to the British Pound; $15.4 million expense related to the extinguishment of the 6.75% MTCH Senior Notes and repricing of the MTCH Term Loan; $13.0 million mark-to-market charge principally pertaining to a subsidiary denominated equity award held by a non-employee; $12.2 million in other-than-temporary impairment charges related to certain investments; $1.2 million expense related to the write-off of deferred financing costs associated with the repayment of the 4.875% Senior Notes; $34.9 million in realized gains related to the sale of certain investments; and $11.4 million of interest income.

Other income, net in 2016 includes: $37.5 million and $12.0 million in realized gains related to the sales of ShoeBuy and PriceRunner, respectively; $34.4 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound and Euro; $5.1 million of interest income; $3.6 million gain related to the sale of certain equity investments; $12.1 million non-cash charge related to the write-off of a proportionate share of original issue discount and deferred financing costs associated with the repayment of $440 million of the MTCH Term Loan; $10.7 million in other-than-temporary impairment charges related to certain investments; $3.8 million loss related to the sale of ASKfm; $3.6 million loss on the 4.75% and 4.875% Senior Note redemptions and repurchases; and $2.5 million mark-to-market charge principally pertaining to a subsidiary denominated equity award held by a non-employee.

NOTE 18—TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION

During the years ended December 31, 2018 and 2017, the Company incurred $3.6 million and $44.1 million, respectively, in costs related to the Combination (including severance, retention, transaction and integration related costs), as well as deferred revenue write-offs of $5.5 million and $7.8 million, respectively. During the years ended December 31, 2018 and 2017, the

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Company also incurred $70.6 million and $122.1 million, respectively, in stock-based compensation expense related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination.

See "Note 4—Business Combination" for additional information on the Combination.

A summary of the costs incurred, payments made and the related accrual is presented below.

	Years Ended December 31,
	2018		2017
	(In thousands)
Transaction and integration related costs	$	3,584	$	44,101
Stock-based compensation expense	70,645		122,066
Total	$	74,229	$	166,167

	December 31,
	2018			2017
	(In thousands)
Accrual as of January 1	$	8,480		$	—
Costs incurred	3,584			44,101
Payments made	(12,064		)	(35,621		)
Accrual as of December 31	$	—		$	8,480

The costs are allocated as follows in the accompanying consolidated statement of operations:

	Year Ended December 31, 2018
	Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	—		2,161		2,161
General and administrative expense	3,584		61,010		64,594
Product development expense	—		7,474		7,474
Total	$	3,584	$	70,645	$	74,229

	Year Ended December 31, 2017
	Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	7,430		24,416		31,846
General and administrative expense	36,120		83,420		119,540
Product development expense	551		14,230		14,781
Total	$	44,101	$	122,066	$	166,167

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NOTE 19—GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The 4.75% Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries which are 100% owned by the Company. The following tables present condensed consolidating financial information at December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 for: IAC, on a standalone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.

Balance sheet at December 31, 2018:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	1,018,082	$	—	$	1,113,550		$	—		$	2,131,632
Marketable securities	98,299		—		25,366			—			123,665
Accounts receivable, net of allowance and reserves	—		99,970		179,219			—			279,189
Other current assets	27,349		29,222		171,682			—			228,253
Intercompany receivables	—		1,423,456		—			(1,423,456		)	—
Property and equipment, net of accumulated depreciation and amortization	6,526		163,281		148,993			—			318,800
Goodwill	—		412,009		2,314,850			—			2,726,859
Intangible assets, net of accumulated amortization	—		43,914		587,508			—			631,422
Investment in subsidiaries	1,897,699		214,519		—			(2,112,218		)	—
Other non-current assets	274,789		94,290		251,315			(185,629		)	434,765
Total assets	$	3,322,744	$	2,480,661	$	4,792,483		$	(3,721,303	)	$	6,874,585
Current portion of long-term debt	$	—	$	—	$	13,750		$	—		$	13,750
Accounts payable, trade	1,304		36,293		37,310			—			74,907
Other current liabilities	41,721		95,405		657,775			—			794,901
Long-term debt, net	34,262		—		2,211,286			—			2,245,548
Income taxes payable	15		1,707		35,862			—			37,584
Intercompany liabilities	402,056		—		1,021,400			(1,423,456		)	—
Other long-term liabilities	261		18,181		257,594			(185,629		)	90,407
Redeemable noncontrolling interests	—		—		65,687			—			65,687
Shareholders' equity (deficit)	2,843,125		2,329,075		(216,857		)	(2,112,218		)	2,843,125
Noncontrolling interests	—		—		708,676			—			708,676
Total liabilities and shareholders' equity	$	3,322,744	$	2,480,661	$	4,792,483		$	(3,721,303	)	$	6,874,585

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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 and reserves	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

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Statement of operations for the year ended December 31, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	850,475		$	3,412,795		$	(378	)	$	4,262,892
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	195			262,912			648,330			(291		)	911,146
Selling and marketing expense	977			313,769			1,204,844			(150		)	1,519,440
General and administrative expense	141,727			49,563			582,720			69			774,079
Product development expense	2,003			56,431			250,901			(6		)	309,329
Depreciation	1,203			12,497			61,660			—			75,360
Amortization of intangibles	—			29,437			78,962			—			108,399
Total operating costs and expenses	146,105			724,609			2,827,417			(378		)	3,697,753
Operating (loss) income	(146,105		)	125,866			585,378			—			565,139
Equity in earnings of unconsolidated affiliates	731,834			20,083			—			(751,917		)	—
Interest expense	(1,700		)	—			(107,627		)	—			(109,327		)
Other (expense) income, net (a)	(18,834		)	503,261			199,757			(378,438		)	305,746
Earnings before income taxes	565,195			649,210			677,508			(1,130,355		)	761,558
Income tax benefit (provision)	61,766			(56,612		)	(8,965		)	—			(3,811		)
Net earnings	626,961			592,598			668,543			(1,130,355		)	757,747
Net earnings attributable to noncontrolling interests	—			—			(130,786		)	—			(130,786		)
Net earnings attributable to IAC shareholders	$	626,961		$	592,598		$	537,757		$	(1,130,355	)	$	626,961
Comprehensive income attributable to IAC shareholders	$	601,683		$	601,232		$	515,766		$	(1,116,998	)	$	601,683

____________________

^(a)  During the year ended December 31, 2018, foreign cash of $396.2 million was repatriated to the U.S, of which $25.2 million was between non-guarantor subsidiaries.

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Statement of operations for the year ended December 31, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	753,858		$	2,553,998		$	(617	)	$	3,307,239
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	160			159,488			491,865			(505		)	651,008
Selling and marketing expense	1,250			353,186			1,027,304			(519		)	1,381,221
General and administrative expense	100,237			62,340			556,273			407			719,257
Product development expense	2,421			55,232			193,226			—			250,879
Depreciation	1,564			20,668			52,033			—			74,265
Amortization of intangibles	—			11,213			30,930			—			42,143
Total operating costs and expenses	105,632			662,127			2,351,631			(617		)	3,118,773
Operating (loss) income	(105,632		)	91,731			202,367			—			188,466
Equity in earnings of unconsolidated affiliates	419,149			20,755			—			(439,904		)	—
Interest expense	(20,339		)	—			(84,956		)	—			(105,295		)
Other (expense) income, net	(30,787		)	28,434			(13,860		)	—			(16,213		)
Earnings before income taxes	262,391			140,920			103,551			(439,904		)	66,958
Income tax benefit (provision)	42,533			(119,957		)	368,474			—			291,050
Net earnings	304,924			20,963			472,025			(439,904		)	358,008
Net earnings attributable to noncontrolling interests	—			—			(53,084		)	—			(53,084		)
Net earnings attributable to IAC shareholders	$	304,924		$	20,963		$	418,941		$	(439,904	)	$	304,924
Comprehensive income attributable to IAC shareholders	$	367,370		$	7,629		$	498,032		$	(505,661	)	$	367,370

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Statement of operations for the year ended December 31, 2016:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	960,000		$	2,180,487		$	(605	)	$	3,139,882
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	859			297,712			457,571			(412		)	755,730
Selling and marketing expense	2,353			417,051			828,016			(323		)	1,247,097
General and administrative expense	89,583			83,636			357,097			130			530,446
Product development expense	4,807			69,778			138,180			—			212,765
Depreciation	1,610			26,514			43,552			—			71,676
Amortization of intangibles	—			41,157			38,269			—			79,426
Goodwill impairment	—			253,245			22,122			—			275,367
Total operating costs and expenses	99,212			1,189,093			1,884,807			(605		)	3,172,507
Operating (loss) income	(99,212		)	(229,093		)	295,680			—			(32,625		)
Equity in earnings of unconsolidated affiliates	49,545			6,774			—			(56,319		)	—
Interest expense	(26,876		)	—			(82,234		)	—			(109,110		)
Other (expense) income, net	(1,879		)	10,209			52,320			—			60,650
(Loss) earnings before income taxes	(78,422		)	(212,110		)	265,766			(56,319		)	(81,085		)
Income tax benefit (provision)	37,142			77,851			(50,059		)	—			64,934
Net (loss) earnings	(41,280		)	(134,259		)	215,707			(56,319		)	(16,151		)
Net earnings attributable to noncontrolling interests	—			—			(25,129		)	—			(25,129		)
Net (loss) earnings attributable to IAC shareholders	$	(41,280	)	$	(134,259	)	$	190,578		$	(56,319	)	$	(41,280	)
Comprehensive (loss) income attributable to IAC shareholders	$	(76,431	)	$	(142,494	)	$	145,039		$	(2,545	)	$	(76,431	)

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Statement of cash flows for the year ended December 31, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(38,737	)	$	583,498		$	822,227		$	(378,860	)	$	988,128
Cash flows from investing activities:
Acquisitions, net of cash acquired	(4,142		)	(50,530		)	(9,824		)	—			(64,496		)
Capital expenditures	(5,274		)	(1,396		)	(78,964		)	—			(85,634		)
Proceeds from maturities and sales of marketable debt securities	298,600			—			35,000			—			333,600
Purchases of marketable debt securities	(390,005		)	—			(59,671		)	—			(449,676		)
Net proceeds from the sale of businesses and investments	408			87,254			49,057			—			136,719
Purchases of investments	(39,180		)	—			(13,800		)	—			(52,980		)
Other, net	(5,000		)	7,451			6,576			—			9,027
Net cash (used in) provided by investing activities	(144,593		)	42,779			(71,626		)	—			(173,440		)
Cash flows from financing activities:
Repurchases of IAC debt	(363		)	—			—			—			(363		)
Proceeds from issuance of Match Group debt	—			—			260,000			—			260,000
Principal payments on ANGI Homeservices Term Loan	—			—			(13,750		)	—			(13,750		)
Debt issuance costs	—			—			(5,449		)	—			(5,449		)
Purchase of IAC treasury stock	(82,891		)	—			—			—			(82,891		)
Purchase of Match Group treasury stock	—			—			(133,455		)	—			(133,455		)
Proceeds from the exercise of IAC stock options	41,700			—			—			—			41,700
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			4,705			—			4,705
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(18,982		)	—			—			—			(18,982		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(237,564		)	—			(237,564		)
Dividends paid to Match Group noncontrolling interests	—			—			(105,126		)	—			(105,126		)
Purchase of noncontrolling interests	—			—			(16,063		)	—			(16,063		)
Acquisition-related contingent consideration payments	—			—			(185		)	—			(185		)
Intercompany	673,308			(625,338		)	(426,830		)	378,860			—
Other, net	2,674			(939		)	(7,110		)	—			(5,375		)
Net cash provided by (used in) financing activities	615,446			(626,277		)	(680,827		)	378,860			(312,798		)
Total cash provided	432,116			—			69,774			—			501,890
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	327			—			(2,214		)	—			(1,887		)
Net increase in cash, cash equivalents, and restricted cash	432,443			—			67,560			—			500,003
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	$	1,018,082		$	—		$	1,115,603		$	—		$	2,133,685

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Statement of cash flows for the year ended December 31, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(52,582	)	$	131,700		$	337,581		$	416,699
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(2,550		)	(144,003		)	(146,553		)
Capital expenditures	(337		)	(1,169		)	(74,017		)	(75,523		)
Proceeds from maturities and sales of marketable debt securities	114,350			—			—			114,350
Purchases of marketable debt securities	(29,891		)	—			—			(29,891		)
Net proceeds from the sale of businesses and investments	1,266			—			184,512			185,778
Purchases of investments	—			—			(9,106		)	(9,106		)
Other, net	—			1,944			1,050			2,994
Net cash provided by (used in) investing activities	85,388			(1,775		)	(41,564		)	42,049
Cash flows from financing activities:
Proceeds from issuance of IAC debt	—			—			517,500			517,500
Repurchases of IAC debt	(393,464		)	—			—			(393,464		)
Proceeds from issuance of Match Group debt	—			—			525,000			525,000
Principal payments on Match Group debt	—			—			(445,172		)	(445,172		)
Borrowing under ANGI Homeservices Term Loan	—			—			275,000			275,000
Purchase of exchangeable note hedge	—			—			(74,365		)	(74,365		)
Proceeds from issuance of warrants	23,650			—			—			23,650
Debt issuance costs	—			—			(33,744		)	(33,744		)
Purchase of IAC treasury stock	(56,424		)	—			—			(56,424		)
Proceeds from the exercise of IAC stock options	82,397			—			—			82,397
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			61,095			61,095
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(93,832		)	—			—			(93,832		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(264,323		)	(264,323		)
Purchase of Match Group stock-based awards	—			—			(272,459		)	(272,459		)
Purchase of noncontrolling interests	—			—			(15,439		)	(15,439		)
Acquisition-related contingent consideration payments	—			—			(27,289		)	(27,289		)
Intercompany	416,396			(129,925		)	(286,471		)	—
Other, net	251			—			(5,251		)	(5,000		)
Net cash used in financing activities	(21,026		)	(129,925		)	(45,918		)	(196,869		)
Total cash provided	11,780			—			250,099			261,879
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	75			—			11,529			11,604
Net increase in cash, cash equivalents, and restricted cash	11,855			—			261,628			273,483
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	$	585,639		$	—		$	1,048,043		$	1,633,682

138

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Statement of cash flows for the year ended December 31, 2016:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(62,686	)	$	128,503		$	278,421		$	—		$	344,238
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			—			(18,403		)	—			(18,403		)
Capital expenditures	(479		)	(5,792		)	(71,768		)	—			(78,039		)
Proceeds from maturities and sales of marketable debt securities	252,369			—			—			—			252,369
Purchases of marketable debt securities	(313,943		)	—			—			—			(313,943		)
Investments in time deposits	—			—			(87,500		)	—			(87,500		)
Proceeds from maturities of time deposits	—			—			87,500			—			87,500
Net proceeds from the sale of businesses and investments	73,843			1,779			96,606			—			172,228
Purchases of investments	—			—			(12,565		)	—			(12,565		)
Intercompany	(155,104		)	—			—			155,104			—
Other, net	126			910			10,179			—			11,215
Net cash (used in) provided by investing activities	(143,188		)	(3,103		)	4,049			155,104			12,862
Cash flows from financing activities:
Repurchases of IAC debt	(126,409		)	—			—			—			(126,409		)
Proceeds from issuance of Match Group debt	—			—			400,000			—			400,000
Principal payments on Match Group debt	—			—			(450,000		)	—			(450,000		)
Debt issuance costs	—			—			(7,811		)	—			(7,811		)
Purchase of IAC treasury stock	(308,948		)	—			—			—			(308,948		)
Proceeds from the exercise of IAC stock options	25,821			—			—			—			25,821
Proceeds from the exercise of Match Group stock options	—			—			39,378			—			39,378
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(26,716		)	—			—			—			(26,716		)
Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards	—			—			(29,830		)	—			(29,830		)
Purchase of noncontrolling interests	(1,400		)	—			(1,340		)	—			(2,740		)
Acquisition-related contingent consideration payments	—			(351		)	(1,829		)	—			(2,180		)
Intercompany	122,965			(122,965		)	155,104			(155,104		)	—
Other, net	(313		)	(2,084		)	(308		)	—			(2,705		)
Net cash (used in) provided by financing activities	(315,000		)	(125,400		)	103,364			(155,104		)	(492,140		)
Total cash (used) provided	(520,874		)	—			385,834			—			(135,040		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(6,434		)	—			(6,434		)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(520,874		)	—			379,400			—			(141,474		)
Cash, cash equivalents, and restricted cash at beginning of period	1,094,658			—			407,015			—			1,501,673
Cash, cash equivalents, and restricted cash at end of period	$	573,784		$	—		$	786,415		$	—		$	1,360,199

139

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 20—QUARTERLY RESULTS (UNAUDITED)

	Quarter Ended March 31 (a)		Quarter Ended June 30  (b)		Quarter Ended September 30  (c)			Quarter Ended December 31(d)
	(In thousands, except per share data)
Year Ended December 31, 2018
Revenue	$	995,075	$	1,059,122	$	1,104,592		$	1,104,103
Cost of revenue	201,962		218,224		237,238			253,722
Operating income	89,950		168,437		172,832			133,920
Net earnings	87,839		280,854		171,577			217,477
Net earnings attributable to IAC shareholders	71,082		218,353		145,774			191,752
Per share information attributable to IAC shareholders:
Basic earnings per share(g)	$	0.86	$	2.61	$	1.75		$	2.29
Diluted earnings per share(g)	$	0.71	$	2.32	$	1.49		$	2.04
	Quarter Ended March 31		Quarter Ended June 30		Quarter Ended September 30(e)			Quarter Ended December 31(f)
	(In thousands, except per share data)
Year Ended December 31, 2017
Revenue	$	760,833	$	767,387	$	828,434		$	950,585
Cost of revenue	145,958		139,033		166,290			199,727
Operating income (loss)	37,060		75,635		(18,589		)	94,360
Net earnings	28,463		80,557		225,639			23,349
Net earnings attributable to IAC shareholders	26,209		66,268		179,643			32,804
Per share information attributable to IAC shareholders:
Basic earnings per share(g)	$	0.34	$	0.84	$	2.22		$	0.40
Diluted earnings per share(g)	$	0.29	$	0.70	$	1.79		$	0.37

_______________________________________________________________________________

^(a)  The first quarter of 2018 includes after-tax stock-based compensation expense of $14.6 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $4.1 million related to the Combination (including $2.8 million of deferred revenue write-offs).

^(b)  The second quarter of 2018 includes:

i. after-tax stock-based compensation expense of $12.8 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $2.0 million related to the Combination (including $1.8 million of deferred revenue write-offs).

ii. after-tax realized and unrealized gains of $133.3 million related to the sale of a certain equity investment.

^(c)  The third quarter of 2018 includes after-tax stock-based compensation expense of $12.3 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination.

^(d)  The fourth quarter of 2018 includes:

i. after-tax stock-based compensation expense of $14.4 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination.

ii. combined after-tax gains of $92.5 million related to the sales of Dictionary.com, Electus, Felix and CityGrid.

iii. after-tax impairment charges related to indefinite-lived intangible assets of $21.3 million.

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IAC/INTERACTIVECORP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

^(e)  The third quarter of 2017 includes:

i. after-tax stock-based compensation expense of $60.9 million related to the modification of previously issued HomeAdvisor vested awards, which were converted into ANGI Homeservices equity awards, and the acceleration of certain Angie’s List equity awards in connection with the Combination, as well as after-tax costs of $17.4 million related to the Combination.

ii. a reduction to the income tax provision of $257.0 million related to excess tax benefits generated by the exercise, purchase and settlement of stock-based awards.

^(f)  The fourth quarter of 2017 includes after-tax stock-based compensation expense of $15.8 million related to the modification of previously issued HomeAdvisor unvested awards, which were converted into ANGI Homeservices equity awards, the expense related to previously issued Angie's List equity awards and the acceleration of certain Angie's List equity awards resulting from the termination of employees in connection with the Combination, as well as after-tax costs of $13.9 million related to the Combination (including $7.6 million of deferred revenue write-offs).

^(g)  Quarterly per share amounts may not add to the related annual per share amount because of differences in the average common shares outstanding during each period.

NOTE 21—SUBSEQUENT EVENTS (UNAUDITED)

On February 11, 2019, the Company and Google amended the services agreement, effective as of April 1, 2020.  The amendment extends the expiration date of the agreement to March 31, 2023; provided that beginning September 2020 and each September thereafter, either party may, after discussion with the other party, terminate the services agreement, effective on September 30 of the year following the year such notice is given.  The Company believes that the amended agreement, taken as a whole, is comparable to the Company’s previously existing agreement with Google.

On February 15, 2019, MTCH completed a private offering of $350 million aggregate principal amount of its 5.625% Senior Notes due 2029. A portion of the proceeds from these notes were used to repay outstanding borrowings under the MTCH Credit Facility and to pay expenses associated with the offering; the remaining proceeds will be used for general corporate purposes.

141

Item 9.    Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Not applicable.

Item 9A.    Controls and Procedures

Conclusion Regarding the Effectiveness of the Company's Disclosure Controls and Procedures

The Company monitors and evaluates on an ongoing basis its disclosure controls and procedures in order to improve their 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) of the Exchange Act, IAC management, including the Chairman and Senior Executive, the Chief Executive Officer and the Chief Financial Officer, conducted an evaluation, as of the end of the period covered by this report, of the effectiveness of the Company's disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e). Based on this evaluation, the Chairman and Senior Executive, the Chief Executive Officer and the Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Management's Report on Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) for the Company. The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2018. In making this assessment, our management used the criteria for effective internal control over financial reporting described in "Internal Control—Integrated Framework" issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this assessment, management has determined that, as of December 31, 2018, the Company's internal control over financial reporting is effective. The effectiveness of our internal control over financial reporting as of December 31, 2018 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their attestation report, included herein.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control Over Financial Reporting

The Company monitors and evaluates on an ongoing basis its 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(d), IAC management, including the Chairman and Senior Executive, the Chief Executive Officer and the Chief Financial Officer, also conducted an evaluation of the Company's internal control over financial reporting to determine whether any changes occurred during the quarter ended December 31, 2018 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. Based on that evaluation, there has been no such change during the quarter ended December 31, 2018.

142

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of IAC/InterActiveCorp

Opinion on Internal Control over Financial Reporting

We have audited IAC/InterActiveCorp and subsidiaries’ internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, IAC/InterActiveCorp and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2018 and 2017, and the related consolidated statements of operations, comprehensive operations, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2018, and the related notes and the financial statement schedule listed in the Index at Item 15(a), and our report dated March 1, 2019 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ ERNST & YOUNG LLP

New York, New York

March 1, 2019

143

Item 9B.    Other Information

Not applicable.

144

PART III

The information required by Part III (Items 10, 11, 12, 13 and 14) has been incorporated herein by reference to IAC's definitive Proxy Statement to be used in connection with its 2019 Annual Meeting of Stockholders (the "2019 Proxy Statement"), as set forth below in accordance with General Instruction G(3) of Form 10-K.

Item 10.    Directors, Executive Officers and Corporate Governance

The information required by Items 401 and 405 of Regulation S-K relating to directors and executive officers of IAC and their compliance with Section 16(a) of the Exchange Act is set forth in the sections entitled "Information Concerning Director Nominees" and "Information Concerning IAC Executive Officers Who Are Not Directors," and "Section 16(a) Beneficial Ownership Reporting Compliance," respectively, in the 2019 Proxy Statement and is incorporated herein by reference. The information required by Item 406 of Regulation S-K relating to IAC's Code of Ethics is set forth under the caption "Part I-Item 1-Business-Description of IAC Businesses-Additional Information-Code of Ethics" of this annual report and is incorporated herein by reference. The information required by subsections (c)(3), (d)(4) and (d)(5) of Item 407 of Regulation S-K is set forth in the sections entitled "Corporate Governance" and "The Board and Board Committees" in the 2019 Proxy Statement and is incorporated herein by reference.

Item 11.    Executive Compensation

The information required by Item 402 of Regulation S-K relating to executive and director compensation and pay ratio disclosure is set forth in the sections entitled "Executive Compensation," "Director Compensation" and "Pay Ratio Disclosure" in the 2019 Proxy Statement and is incorporated herein by reference. The information required by subsections (e)(4) and (e)(5) of Item 407 of Regulation S-K relating to certain compensation committee matters is set forth in the sections entitled "The Board and Board Committees," "Compensation Committee Report" and "Compensation Committee Interlocks and Insider Participation" in the 2019 Proxy Statement and is incorporated herein by reference; provided, that the information set forth in the section entitled "Compensation Committee Report" shall be deemed furnished herein and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information regarding ownership of IAC common stock and Class B common stock required by Item 403 of Regulation S-K and securities authorized for issuance under IAC's various equity compensation plans required by Item 201(d) of Regulation S-K is set forth in the sections entitled "Security Ownership of Certain Beneficial Owners and Management" and "Equity Compensation Plan Information," respectively, in the 2019 Proxy Statement and is incorporated herein by reference.

Item 13.    Certain Relationships and Related Transactions, and Director Independence

Information regarding certain relationships and related transactions involving IAC required by Item 404 of Regulation S-K and director independence determinations required by Item 407(a) of Regulation S-K is set forth in the sections entitled "Certain Relationships and Related Person Transactions" and "Corporate Governance," respectively, in the 2019 Proxy Statement and is incorporated herein by reference.

Item 14.    Principal Accounting Fees and Services

Information required by Item 9(e) of Schedule 14A regarding the fees and services of IAC's independent registered public accounting firm and the pre-approval policies and procedures applicable to services provided to IAC by such firm is set forth in the sections entitled "Fees Paid to Our Independent Registered Public Accounting Firm" and "Audit and Non-Audit Services Pre-Approval Policy," respectively, in the 2019 Proxy Statement and is incorporated herein by reference.

145

PART IV

Item 15.    Exhibits and Financial Statement Schedules

(a)   List of documents filed as part of this Report:

(1)   Consolidated Financial Statements of IAC

Report of Independent Registered Public Accounting Firm: Ernst & Young LLP.

Consolidated Balance Sheet as of December 31, 2018 and 2017.

Consolidated Statement of Operations for the Years Ended December 31, 2018, 2017 and 2016.

Consolidated Statement of Comprehensive Operations for the Years Ended December 31, 2018, 2017 and 2016.

Consolidated Statement of Shareholders' Equity for the Years Ended December 31, 2018, 2017 and 2016.

Consolidated Statement of Cash Flows for the Years Ended December 31, 2018, 2017 and 2016.

Notes to Consolidated Financial Statements.

(2)  Consolidated Financial Statement Schedule of IAC

Schedule Number
II	Valuation and Qualifying Accounts.

All other financial statements and schedules not listed have been omitted since the required information is either included in the Consolidated Financial Statements or the notes thereto, is not applicable or is not required.

146

(3)   Exhibits

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

Exhibit No.	Description	Location
2.1	Agreement and Plan of Merger, dated as of May 1, 2017, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of August 26, 2017, by and among Angie’s List, Inc., IAC/InterActiveCorp, ANGI Homeservices Inc. and Casa Merger Sub, Inc.	Annex B to the Proxy Statement/Prospectus filed on August 30, 2017 by ANGI Homeservices Inc. pursuant to Rule 424(b)(3) of the Securities Act of 1933, as amended.
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 (dated as of August 20, 2008).	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 (amended and restated as of December 1, 2010).	Exhibit 3.1(II) to the Registrant's Current Report on Form 8-K, filed on December 6, 2010.
3.4	Certificate of Designations of Series C Cumulative Preferred Stock.	Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on October 2, 2017.
3.5	Certificate of Designations of Series D Cumulative Preferred Stock.	Exhibit 3.5 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018.
4.1	Indenture for 4.75% Senior Notes due 2022, dated as of December 21, 2012, among IAC/InterActiveCorp, the Guarantors named therein and Computershare Trust Company, N.A., as Trustee.	Exhibit 4.1 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
4.2	Supplemental Indenture for 4.75% Senior Notes due 2022, dated as of May 30, 2013, among IAC/InterActiveCorp, the Guarantors named therein and Computershare Trust Company, N.A., as Trustee, with a schedule of subsequent Guarantors.	Exhibit 4.2 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2017.
4.3	Indenture for 0.875% Senior Exchangeable Notes due 2022, dated as of October 2, 2017, among IAC FinanceCo, Inc., IAC/InterActiveCorp and Computershare Trust Company, N.A., as Trustee.	Exhibit 4.1 to the Registrant's Current Report on Form 8-K, filed on October 6, 2017.
4.4	Indenture for 6.375% Senior Notes, dated June 1, 2016, between Match Group, Inc. and Computershare Trust Company, N.A., as Trustee.	Exhibit 4.1 to Match Group, Inc.’s Current Report on Form 8-K, filed on June 2, 2016.
4.5	Indenture for 5.00% Senior Notes, dated as of December 4, 2017, between Match Group, Inc. and Computershare Trust Company, N.A., as Trustee.	Exhibit 4.1 to the Registrant's Current Report on Form 8-K, filed on December 4, 2017.
4.6	Registration Rights Agreement, dated as of October 2, 2017, among IAC/InterActiveCorp, IAC FinanceCo, Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on October 6, 2017.
10.1	Amended and Restated Governance Agreement, dated as of August 9, 2005, among the Registrant, Liberty Media Corporation and Barry Diller.	Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2005.
10.2	Letter Agreement, dated as of December 1, 2010, by and among the Registrant, Liberty Media Corporation, Liberty USA Holdings, LLC and Barry Diller.	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on December 6, 2010.
10.3	Letter Agreement, dated as of December 1, 2010, by and between the Registrant and Barry Diller.	Exhibit 10.2 to the Registrant's Current Report on Form 8-K, filed on December 6, 2010.
10.4	IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan.(1)	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on June 29, 2018.

147

10.5	Form of Terms and Conditions for Stock Options granted under the IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan.(1)(2)
10.6	Form of Terms and Conditions for Restricted Stock Units granted under the IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan.(1)(2)
10.7	IAC/InterActiveCorp 2013 Stock and Annual Incentive Plan.(1)	Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013.
10.8	Form of Terms and Conditions for Stock Options granted under the IAC/InterActiveCorp 2013 Stock and Annual Incentive Plan.(1)	Exhibit 10.6 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
10.9	Form of Terms and Conditions for Restricted Stock Units granted under the IAC/InterActiveCorp 2013 Stock and Annual Incentive Plan.(1)	Exhibit 10.7 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
10.10	IAC/InterActiveCorp 2008 Stock and Annual Incentive Plan.(1)	Annex F to the Registrant's Definitive Proxy Statement, filed on July 10, 2008.
10.11	Form of Terms and Conditions for Stock Options granted under the IAC/InterActiveCorp 2008 Stock and Annual Incentive Plan.(1)	Exhibit 10.7 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2008.
10.12	Form of Terms and Conditions for Restricted Stock Units granted under the IAC/InterActiveCorp 2008 Stock and Annual Incentive Plan.(1)	Exhibit 10.7 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.
10.13	IAC/InterActiveCorp 2005 Stock and Annual Incentive Plan.(1)	Exhibit 10.8 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2008.
10.14	Form of Terms and Conditions for Stock Options granted under the IAC/InterActiveCorp 2005 Stock and Annual Incentive Plan.(1)	Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008.
10.15	Summary of Non-Employee Director Compensation Arrangements.(1)	Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009.
10.16	2011 IAC/InterActiveCorp Deferred Compensation Plan for Non-Employee Directors.(1)	Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2011.

10.17	Equity and Bonus Compensation Arrangement, dated as of August 24, 1995, between Barry Diller and the Registrant.	Exhibit 10.26 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.
10.18	Employment Agreement between Joseph Levin and the Registrant, dated as of November 21, 2017.(1)	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on November 22, 2017.
10.19	Second Amended and Restated Employment Agreement between Victor A. Kaufman and the Registrant, dated as of March 15, 2012.(1)	Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012.
10.20	Employment Agreement between Glenn H. Schiffman and the Registrant, dated as of April 7, 2016.(1)	Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016.
10.21	Employment Agreement between Mark Stein and the Registrant, dated as of June 28, 2018.(1)	Exhibit 10.2 to the Registrant's Current Report on Form 8-K, filed on June 29, 2018.
10.22	Employment Agreement between Gregg Winiarski and the Registrant, dated as of February 26, 2010.(1)	Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2010.
10.23	Google Services Agreement, dated as of October 26, 2015, between the Registrant and Google Inc.(3)	Exhibit 10.18 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

148

10.24	Second Amended and Restated Credit Agreement, dated as of November 5, 2018, by and among IAC Group, LLC, the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on November 9, 2018.
10.25	Amended and Restated Credit Agreement, dated as of November 16, 2015, among Match Group, Inc., as Borrower, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto.	Exhibit 10.11 to Match Group, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
10.26	Amendment No. 3, dated as of December 8, 2016, to the Credit Agreement dated as of October 7, 2015, as amended and restated as of November 16, 2015, as further amended as of December 16, 2015, among Match Group, Inc., as Borrower, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto.	Exhibit 10.1 to Match Group, Inc.'s Current Report on Form 8-K, filed on December 8, 2016.
10.27	Amendment No. 4, dated as of August 14, 2017, to the Credit Agreement dated as of October 7, 2015, as amended and restated as of November 16, 2015, as further amended as of December 16, 2015, as further amended December 8, 2016, among Match Group, Inc., as Borrower, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto.	Exhibit 10.1 to Match Group, Inc.'s Current Report on Form 8-K, filed on August 17, 2017.
10.28	Amendment No. 5, dated as of December 7, 2018, to the Credit Agreement dated as of October 7, 2015, as amended and restated as of November 16, 2015, as further amended as of December 16, 2015, as further amended December 8, 2016 and as further amended August 14, 2017, among Match Group, Inc., as Borrower, the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other parties thereto.	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on December 13, 2018.
10.29	Amended and Restated Credit Agreement, dated as of November 5, 2018, by and among ANGI Homeservices Inc., the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.	Exhibit 10.2 to the Registrant's Current Report on Form 8-K, filed on November 9, 2018.
10.30	Master Transaction Agreement, dated as of November 24, 2015, by and between IAC/InterActiveCorp and Match Group, Inc..	Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on November 24, 2015.
10.31	Employee Matters Agreement, dated as of November 24, 2015, by and between IAC/InterActiveCorp and Match Group, Inc.	Exhibit 10.2 to the Registrant's Current Report on Form 8-K, filed on November 24, 2015.
10.32	Amendment No.1 to Employee Matters Agreement, dated as of April 13, 2016, by and between IAC/InterActiveCorp and Match Group, Inc.	Exhibit 99.2 to the Schedule 13D related to Match Group, Inc. filed by the Registrant on April 14, 2016.
10.33	Investor Rights Agreement, dated as of November 24, 2015, by and between IAC/InterActiveCorp and Match Group, Inc.	Exhibit 10.3 to the Registrant's Current Report on Form 8-K, filed on November 24, 2015.
10.34	Tax Sharing Agreement, dated as of November 24, 2015, by and between IAC/InterActiveCorp and Match Group, Inc.	Exhibit 10.4 to the Registrant's Current Report on Form 8-K, filed on November 24, 2015.
10.35	Services Agreement, dated as of November 24, 2015, by and between IAC/InterActiveCorp and Match Group, Inc.	Exhibit 10.5 to the Registrant's Current Report on Form 8-K, filed on November 24, 2015.
10.36	Contribution Agreement, dated as of September 29, 2017, by and between IAC/InterActiveCorp and ANGI Homeservices Inc.	Exhibit 2.1 to the Registrant's Current Report on Form 8-K, filed on October 2, 2017.
10.37	Employee Matters Agreement, dated as of September 29, 2017, by and between IAC/InterActiveCorp and ANGI Homeservices Inc.	Exhibit 2.5 to the Registrant's Current Report on Form 8-K, filed on October 2, 2017.

149

10.38	Investor Rights Agreement, dated as of September 29, 2017, by and between IAC/InterActiveCorp and ANGI Homeservices Inc.	Exhibit 2.2 to the Registrant's Current Report on Form 8-K, filed on October 2, 2017.
10.39	Tax Sharing Agreement, dated as of September 29, 2017, by and between IAC/InterActiveCorp and ANGI Homeservices Inc.	Exhibit 2.4 to the Registrant's Current Report on Form 8-K, filed on October 2, 2017.
10.40	Services Agreement, dated as of September 29, 2017, by and between IAC/InterActiveCorp and ANGI Homeservices Inc.	Exhibit 2.3 to the Registrant's Current Report on Form 8-K, filed on October 2, 2017.
21.1	Subsidiaries of the Registrant as of December 31, 2018.(2)
23.1	Consent of Ernst & Young LLP.(2)
31.1	Certification of the Chairman and Senior Executive pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.(2)
31.2	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.(2)
31.3	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.(2)

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 of 2002.(4)
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 of 2002.(4)
32.3	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(4)
101.INS	XBRL Instance (2)
101.SCH	XBRL Taxonomy Extension Schema (2)
101.CAL	XBRL Taxonomy Extension Calculation (2)
101.DEF	XBRL Taxonomy Extension Definition (2)
101.LAB	XBRL Taxonomy Extension Labels (2)
101.PRE	XBRL Taxonomy Extension Presentation (2)

_______________________________________________________________________________

(1) Reflects management contracts and management and director compensatory plans.

(2) Filed herewith.

(3) Certain portions of this document have been omitted pursuant to a confidential treatment request.

(4) Furnished herewith.

150

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

March 1, 2019	IAC/INTERACTIVECORP
	By:	/s/ GLENN H. SCHIFFMAN
		Glenn H. Schiffman
		Executive Vice President and Chief Financial Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated on March 1, 2019:

Signature	Title
/s/ BARRY DILLER	Chairman of the Board, Senior Executive and Director
Barry Diller
/s/ JOSEPH LEVIN	Chief Executive Officer and Director
Joseph Levin
/s/ VICTOR A. KAUFMAN	Vice Chairman and Director
Victor A. Kaufman
/s/ GLENN H. SCHIFFMAN	Executive Vice President and Chief Financial Officer
Glenn H. Schiffman
/s/ MICHAEL H. SCHWERDTMAN	Senior Vice President and Controller (Chief Accounting Officer)
Michael H. Schwerdtman
/s/ EDGAR BRONFMAN, JR.	Director
Edgar Bronfman, Jr.
/s/ CHELSEA CLINTON	Director
Chelsea Clinton
/s/ MICHAEL D. EISNER	Director
Michael D. Eisner
/s/ BONNIE S. HAMMER	Director
Bonnie S. Hammer
/s/ BRYAN LOURD	Director
Bryan Lourd
/s/ DAVID S. ROSENBLATT	Director
David S. Rosenblatt
/s/ ALAN G. SPOON	Director
Alan G. Spoon
/s/ ALEXANDER VON FURSTENBERG	Director
Alexander von Furstenberg
/s/ RICHARD F. ZANNINO	Director
Richard F. Zannino

151

Schedule II

IAC/INTERACTIVECORP AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

Description	Balance at Beginning of Period		Charges to Earnings				Charges to Other Accounts				Deductions				Balance at End of Period
	(In thousands)
2018
Allowance for doubtful accounts and revenue reserves	$	11,489	$	48,445		(a)	$	(573	)		$	(40,501	)	(d)	$	18,860
Deferred tax valuation allowance	132,598		(20,746		)	(b)	4,001			(c)	—				115,853
Other reserves	2,544														7,734
2017
Allowance for doubtful accounts and revenue reserves	$	16,405	$	28,930		(a)	$	(1,006	)		$	(32,840	)	(d)	$	11,489
Sales returns accrual	80		—				(80		)		—				—
Deferred tax valuation allowance	88,170		38,144			(e)	6,284			(f)	—				132,598
Other reserves	2,822														2,544
2016
Allowance for doubtful accounts and revenue reserves	$	16,528	$	17,733		(a)	$	(695	)		$	(17,161	)	(d)	$	16,405
Sales returns accrual	828		14,998				(962		)		(14,784		)		80
Deferred tax valuation allowance	90,482		(837		)	(g)	(1,475		)	(h)	—				88,170
Other reserves	2,801														2,822

_________________________________________________________

(a) Additions to the allowance for doubtful accounts are charged to expense. Additions to the revenue reserves are charged against revenue.

(b) Amount is primarily related to a decrease in foreign tax credits subject to a valuation allowance and the realization of previously unbenefited capital losses, partially offset by an increase in state net operating losses and foreign interest deduction carryforwards.

(c) Amount is primarily related to acquired federal and state NOLs, partially offset by currency translation adjustments on foreign NOLs.

(d) Write-off of fully reserved accounts receivable.

(e) Amount is due primarily to the establishment of foreign NOLs related to an acquisition.

(f) Amount is primarily related to acquired state NOLs, acquired foreign tax credits and currency translation adjustments on foreign NOLs.

(g) Amount is primarily related to other-than-temporary impairment charges for certain cost method investments and an increase in federal capital and NOLs, partially offset by a decrease in state NOLs, foreign tax credits, and foreign NOLs.

(h) Amount is primarily related to the realization of previously unbenefited unrealized losses on available-for-sale marketable equity securities included in accumulated other comprehensive income and currency translation adjustments on foreign NOLs.

152

EX-10.5

Exhibit 10.5

Terms and Conditions for Stock Options Granted Under the

IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan

Overview

These Terms and Conditions apply to the grant to you by IAC/InterActiveCorp (“IAC” or the “Company”) pursuant to Section 5 of the IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan (the “Plan”) of the right and option (the “Stock Options”) to purchase the number of shares of common stock of the Company, par value $0.001 per share (the “Common Stock”), set forth in your award notice (the “Award Notice” and together with these Terms and Conditions, the “Award Agreement”) at the exercise price per share set forth in the Award Notice. he Stock Options shall be Nonqualified Options. Unless earlier terminated pursuant to the terms of your Award Agreement or the Plan, the Stock Options shall expire on the ten year anniversary of your Award Date (the “Expiration Date”).

All capitalized terms used herein, to the extent not defined, shall have the meanings set forth in the Plan.

Continuous Service

In order for your Stock Options to vest, you must be continuously employed by IAC or one of its Subsidiaries or Affiliates (excluding, for purposes of the Stock Options, Expedia, Inc. and its subsidiaries) during the Restriction Period (as defined below). Nothing in this Award Agreement or the Plan shall confer upon you any right to continue in the employ or service of IAC or any of its Subsidiaries or Affiliates or interfere in any way with their rights to terminate your employment or service at any time.

Vesting

Subject to this Award Agreement and the Plan, your Stock Options shall vest and become exercisable (such period prior to vesting is the “Restriction Period”) as set forth in your Award Notice.

Method of Exercise of the Stock Options and Payment of the Exercise Price

The portion of your Stock Options that is vested may be exercised by delivering to the Company or the agent selected by IAC to administer the Plan (the “Agent”) a written (including by way of electronic means) notice stating the number of whole shares to be purchased pursuant to this Award Agreement, accompanied by payment of the full purchase price of the shares of Common Stock to be purchased. Your Stock Options may not be exercised at any one time as to fewer than 100 shares (or such number of shares as to which the Stock Options are then exercisable if less than 100). Fractional share interests shall be disregarded except they may be accumulated.

The exercise price of the Stock Options shall be paid: (i) in cash, by certified check or bank draft payable to the order of the Company or by way of such other instrument as the Company may accept from time to time; (ii) by exchange of shares of unrestricted Common Stock of the Company already owned by you and having an aggregate Fair Market Value equal to the aggregate purchase price (which amount shall be equal to the product of the exercise price multiplied by the number of shares of Common Stock in respect of which the Stock Options are being exercised); provided, that you represent and warrant to the Company that you hold the shares of Common Stock free and clear of liens and encumbrances; (iii) by delivering, along with a properly executed exercise notice to the Company, a copy of irrevocable instructions to a broker to deliver promptly to the Company the aggregate exercise price and the amount of any applicable federal, state, local and/or foreign withholding taxes required to be withheld by the Company; provided, however, that such exercise must be implemented solely under a program or arrangement established and approved by the Company with a brokerage firm selected by the Company; or (iv) by any other procedure approved by the Committee, or by a combination of the foregoing.

Termination of Employment

The treatment of your Stock Options upon the termination of your employment is set forth in this Award Agreement and the Plan. Unless otherwise provided in this Award Agreement or the Plan, upon any Termination of Employment for any reason, any and all of your unvested Stock Options will be forfeited and canceled in their entirety. For the avoidance of doubt, a transfer of employment among the Company and its Subsidiaries and Affiliates, without any break in service, is not a Termination of Employment. Except as set forth below, upon a Termination of Employment, that portion of the Stock Options, if any, which is exercisable at the time of such Termination of Employment may be exercised prior to the first to occur of: (a) the 90^th day after such Termination of Employment or (b) the Expiration Date and will thereafter be forfeited and canceled.

If: (i) your employment is terminated by IAC or any of its Subsidiaries or Affiliates for Cause (or if you resign in anticipation of being terminated by IAC or any of its Subsidiaries or Affiliates for Cause) or (ii) if following any Termination of Employment for any reason, IAC becomes aware that during the two (2) years prior to such Termination of Employment there was an event or circumstance that constituted fraud (financial or otherwise) or that would have been grounds for termination for Cause that caused or is reasonably likely to cause meaningful damage (economic, reputational or otherwise) to IAC and/or any of its Affiliates (the “Underlying Event”), then: (a) all of your Stock Options (whether or not vested) shall be forfeited and canceled in their entirety and (b) if any portion of your Stock Options were exercised after the Underlying Event, then IAC shall be entitled to recover from you at any time within two (2) years after such exercise(s), and you shall pay over to IAC, any gain realized as a result of such exercise(s). This remedy shall be without prejudice to, or waiver of, any other remedies IAC and/or its Affiliates may have in such event.

In the event of a Termination of Employment due to your death, that portion of the Stock Options, if any, which is exercisable at the time of death may be exercised by your estate or by a person who acquired the right to exercise such Stock Options by bequest or inheritance or otherwise by reason of your death at any time prior to the first to occur of: (a) the first anniversary of the date of death or (b) the Expiration Date and will thereafter be forfeited and canceled. In the event of a Termination of Employment due to your Disability or Retirement, that portion of the Stock Options, if any, which is exercisable at the time of such Termination of Employment for Disability or Retirement may be exercised by you or your guardian or legal representative at any time prior to the first to occur of: (a) the first anniversary of such Termination of Employment or (b) the Expiration Date and will thereafter be forfeited and canceled.

Taxes and Withholding

No later than the date as of which an amount in respect of the Stock Options first becomes includible in your gross income for federal, state, local or foreign income or employment or other tax purposes, you shall pay to the Company or make arrangements satisfactory to the Committee regarding payment of any federal, state, local and/or foreign taxes of any kind required by law to be withheld with respect to such amount and the Company shall, to the extent permitted or required by law, have the right to deduct from any payment of any kind otherwise due to you (either directly or indirectly through its agent), federal, state, local and foreign taxes of any kind required by law to be withheld. Notwithstanding the foregoing, the Company shall be entitled to hold the shares issuable to you upon the exercise of your Stock Options (or the related proceeds) until the Company or the Agent has received from you: (i) a duly executed Form W-9 or W-8, as applicable and (ii) payment for any federal, state, local and/or foreign taxes of any kind required by law to be withheld with respect to such Stock Options. Payment for any federal, state, local and/or foreign taxes of any kind may be made in the same manner as payment for the exercise price (as described above).

Adjustment in the Event of Change in Stock; Change in Control

Adjustment in the Event of Change in Stock. In the event of a stock dividend, stock split, reverse stock split, separation, spinoff, reorganization, extraordinary dividend of cash or other property, share combination, or recapitalization or similar event affecting the capital structure of IAC (each, a “Share Change”), the Committee or the Board shall make such substitutions or adjustments as it deems appropriate and equitable to the number and kind of shares of Common Stock subject to your Stock Options and/or the exercise price per share. In the event of a merger, consolidation, acquisition of property or shares, stock rights offering, liquidation, Disaffiliation, or similar event affecting IAC or any of its Subsidiaries (each, a “Corporate Transaction”), the Committee or the Board may, in its discretion, make such substitutions or adjustments as it deems appropriate and equitable to the number and kind of shares of Common Stock subject to your Stock Options and/or the exercise price per share. The determination of the Committee regarding any such adjustments will be final and conclusive and need not be the same for all Stock Option award recipients.

Change in Control. “Change in Control” is defined as set forth in the Plan. The vesting of your Stock Options will not be accelerated upon a Change in Control of IAC. However (and except as otherwise provided in this Award Agreement or the Plan), in the event of a termination of your employment by IAC or any of its Subsidiaries or Affiliates without Cause or your resignation during the (2) year period following a Change in Control of IAC, then upon the occurrence of such event, 100% of your unvested Stock Options shall automatically vest.

In addition,followinga Termination of Employment under these circumstances, your Stock Options may be exercised through the later of: (i) the last date on which the Stock Options would be exercisable in the absence of a Change in Control and (ii) the earlier of: (A) the first anniversary of the Change in Control and (B) the Expiration Date and will thereafter be forfeited and canceled. For the avoidance of doubt, the Disaffiliation of the Subsidiary, Affiliate or division of IAC by which you are employed or for which you are performing services at the time of such sale or other disposition by IAC shall be considered a Termination of Employment (not a Change in Control) and shall be governed by the applicable provisions of this Award Agreement and the Plan; provided, that the Committee or the Board may deem it appropriate to make an equitable adjustment to your Stock Options in such case.

“Good Reason” means (i) “Good Reason” as defined in any Individual Agreement or Award Agreement to which you are a party, or (ii) if there is no such Individual Agreement or if it does not define Good Reason, without your prior written consent: (A) a material reduction in your rate of annual base salary from the rate of annual base salary in effect for you immediately prior to the Change in Control, (B) a relocation of your principal place of business more than 35 miles from the city in which your principal place of business was located immediately prior to the Change in Control or (C) a material and demonstrable adverse change in the nature and scope of your duties from those in effect immediately prior to the Change in Control. In order to invoke a Termination of Employment for Good Reason, you must provide written notice to the Company of the existence of one or more of the conditions described in clauses (A) through (C) within 90 days following your knowledge of the initial existence of such condition(s), and the Company shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition. In the event that the Company fails to remedy the condition constituting Good Reason during the Cure Period, you must terminate employment, if at all, within 90 days following the Cure Period in order for such Termination of Employment to constitute a Termination of Employment for Good Reason.

The Disaffiliation of the business or subsidiary of IAC by which you are employed or for which you are performing services at the time of such sale or other disposition by IAC shall be considered a Termination of Employment (not a Change in Control of IAC) and shall be governed by the applicable provisions of the Plan and the provision set forth under the caption “Termination of Employment” above; provided, however, that the Committee or the Board may deem it appropriate to make an equitable adjustment to the number of Stock your Options and the number and kind of shares of Common Stock underlying your Stock Options.

Non-Transferability of Stock Options

Your Stock Options are non-transferable (including by way of sale, assignment, exchange, encumbrance, pledge, hedge or otherwise) by you other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order, and your Stock Options may be exercised, during your lifetime, only by you or by your guardian or legal representative or any transferee described above.

No Rights as a Stockholder

Neither you nor any transferee of your Stock Options shall have rights as a stockholder (including the right to vote the shares underlying your Stock Options and the right to receive dividends) with respect to any shares covered by such Stock Options until you or your transferee: (i) has given written notice of exercise, (ii) if requested, has given the representation described in Section 14(a) of the Plan and (iii) has paid in full for the shares issuable upon exercise.

Payment of Transfer Taxes, Fees and Other Expenses

The Company agrees to pay any and all original issue taxes and stock transfer taxes that may be imposed on the issuance of shares acquired pursuant to exercise of your Stock Options, together with any and all other fees and expenses necessarily incurred by the Company in
connection therewith. Notwithstanding the foregoing, you shall be solely responsible for any other taxes (including, without limitation, federal, state, local or foreign income taxes, social security, Medicare and/or other similar taxes and/or estate or excise taxes) that may be payable as a result of your participation in the Plan or as a result of the exercise of your Stock Options and/or the sale, disposition or transfer of any shares of Common Stock acquired upon the exercise of your Stock Options.

Other Restrictions

The exercise of your Stock Options shall be subject to the requirement that, if at any time the Committee shall determine that: (i) the listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law or (ii) the consent or approval of any government regulatory body,is necessary or desirable as a condition of, or in connection with, such exercise or the delivery or purchase of shares pursuant thereto, then in any such event, the exercise shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

Conflicts and Interpretation

In the event of any conflict between these Terms and Conditions and the Plan, the Plan shall control; provided, that an action or provision that is permissive under the terms of the Plan, and required under these Terms and Conditions, shall not be deemed a conflict and these Terms and Conditions shall control. In the event of any ambiguity in these Terms and Conditions, or any matters as to which these Terms and Conditions are silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Committee has the power, among others, to: (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan. In the event of any conflict between your Award Notice (or any other information given to you directly or indirectly through the Agent (including information posted on the stock plan administration database maintained by the Agent)) and IAC’s books and records, or (ii) ambiguity in the Award Notice (or any other information given to you directly or indirectly through the Agent (including information posted on the stock plan administration database maintained by the Agent)), IAC’s books and records shall control.

Amendment

IAC may modify, amend or waive the terms of your Stock Options, prospectively or retroactively, but no such modification, amendment or waiver shall materially impair your rights without your consent, except as required by applicable law, NASDAQ or stock exchange rules, tax rules or accounting rules. The waiver by either party of compliance with any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision hereof.

Data Protection

The acceptance of your Stock Options constitutes your authorization of the release from time to time to IAC or any of its Subsidiaries or Affiliates and to the Agent (together, the “Relevant Companies”) of any and all personal or professional data that is necessary or desirable for the administration of your Stock Options and/or the Plan (the “Relevant Information”). Without limiting the above, this authorization permits your employing company to collect, process, register and transfer to the Relevant Companies all Relevant Information (including any professional and personal data that may be useful or necessary for the purposes of the administration of your Stock Options and/or the Plan and/or to implement or structure any further grants of equity awards (if any)). The acceptance of your Stock Options also constitutes your authorization of the transfer of the Relevant Information to any jurisdiction in which IAC, your employing company or the Agent considers appropriate. You shall have access to, and the right to change, the Relevant Information, which will only be used in accordance with applicable law.

1

EX-10.6

Exhibit 10.6

Terms and Conditions for Restricted Stock Units Granted Under the

IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan Overview

These Terms and Conditions apply to your award of restricted stock units (the “Award”) granted pursuant to Section 7 of the IAC/InterActiveCorp 2018 Stock and Annual Incentive Plan (the “Plan”). You were notified of your Award by way of an award notice (the “Award Notice”).

ALL CAPITALIZED TERMS USED HEREIN, TO THE EXTENT NOT DEFINED, SHALL HAVE THE MEANINGS SET FORTH IN Plan.

Continuous Service

In order for your Award to vest, you must be continuously employed by IAC or any of its Subsidiaries or Affiliates during the Restriction Period (as defined below). Nothing in your Award Notice, these Terms and Conditions or the Plan shall confer upon you any right to continue in the employ or service of IAC or any of its Subsidiaries or Affiliates or interfere in any way with their rights to terminate your employment or service at any time.

Vesting

Subject to these Terms and Conditions and the Plan, the restricted stock units (“RSUs”) in respect of your Award shall vest and no longer be subject to any restriction (such period during which such restriction applies is the “Restriction Period”) as specified in your Award Notice.

Termination of Employment

Except as set forth in your Award Notice, employment agreement (if applicable) or below, upon any termination of your employment with IAC or any of its Subsidiaries or Affiliates (excluding, for purposes of the RSUs, Expedia, Inc. and its subsidiaries) during the Restriction Period for any reason (including, for the avoidance of doubt, due to your death or Disability) any unvested portion of your Award shall be forfeited and canceled in its entirety effective immediately upon such event.

If (i) your employment is terminated for Cause or if you resign in anticipation of being terminated for Cause or (ii) if following any termination of your employment for any reason, IAC becomes aware that during the two (2) years prior to such termination of employment there was an event or circumstance that constituted fraud (financial or otherwise) or would have been grounds for termination for Cause that caused or is reasonably likely to cause meaningful damage (economic, reputational or otherwise) to IAC and/or any of its Affiliates (the “Underlying Event”) (and which would not have been curable upon notice), then (a) your Award (whether or not vested) shall be forfeited and canceled in its entirety and (b) if your Award vested after the Underlying Event, then IAC shall be entitled to recover from you at any time within two (2) years after such vesting, and you shall pay over to IAC, any amounts realized as a result of such vesting. This remedy shall be without prejudice to, or waiver of, any other remedies IAC and/or its Subsidiaries and/or its Affiliates may have in such event.

Settlement

Subject to your satisfaction of the tax obligations described immediately below under “Taxes and Withholding,” as soon as practicable after any RSUs in respect of your Award have vested and are no longer subject to the Restriction Period, such RSUs shall be settled. For each RSU settled, IAC shall pay, or cause to be paid, to you an amount of cash equal to the Fair Market Value of one share of Common Stock for each RSU vesting. Notwithstanding the foregoing, IAC shall be entitled to hold the shares or cash issuable to you upon settlement of all RSUs that have vested until IAC or the agent selected by IAC to administer the Plan (the “Agent”) has received from you: (i) a duly executed Form W-9 or W-8, as applicable or (ii) payment for any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such RSUs.

Taxes and Withholding

No later than the date as of which an amount in respect of any RSUs first becomes includible in your gross income for federal, state, local or foreign income or employment or other tax purposes, IAC or its Subsidiaries and/or Affiliates shall, unless prohibited by law, have the right to deduct any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount due to you, including deducting such amount from the delivery of shares or cash issued upon settlement of the RSUs that gives rise to the withholding requirement. In the event shares are deducted to cover tax withholdings, the number of shares withheld shall generally have a Fair Market Value equal to the aggregate amount of IAC’s withholding obligation. If the event that any such deduction and/or withholding is prohibited by law, you shall, prior to or contemporaneously with the vesting or your RSUs, pay to IAC, or make arrangements satisfactory to IAC regarding the payment of, any federal, state, local or foreign taxes of any kind required by law to be withheld with respect to such amount.

Adjustment in the Event of Change in Stock; Change in Control

Adjustment in the Event of Change in Stock. In the event of a stock dividend, stock split, reverse stock split, separation, spinoff, reorganization, extraordinary dividend of cash or other property, share combination, or recapitalization or similar event affecting the capital structure of IAC (each, a “Share Change”), the Committee or the Board shall, in its sole discretion, make such substitutions or adjustments as it deems appropriate and equitable to the number of RSUs underlying your Award and the number and kind of shares of Common Stock underlying such RSUs. In the event of a merger, consolidation, acquisition of property or shares, stock rights offering, liquidation, Disaffiliation, or similar event affecting IAC or any of its Subsidiaries (each, a “Corporate Transaction”), the Committee or the Board may, in its sole discretion, make such substitutions or adjustments as it deems appropriate and equitable to the number of RSUs underlying your Award and the number and kind of shares of Common Stock underlying such RSUs. The determination of the Committee regarding any such adjustments will be final and conclusive and need not be the same for all RSU award recipients.

Change in Control. “Change in Control” is defined as set forth in the Plan. The vesting of your Award will not be accelerated upon a Change in Control of IAC. However (and except as otherwise provided in this Award Agreement or the Plan), in the event of a termination of your employment by IAC or any of its Subsidiaries or Affiliates without Cause or your resignation during the (2) year period following a Change in Control of IAC, then upon the occurrence of such event, 100% of your Award shall vest in one lump sum installment as of the date of such event. The Disaffiliation of the business or subsidiary of IAC by which you are employed or for which you are performing services at the time of such sale or other disposition by IAC shall be considered a Termination of Employment (not a Change in Control of IAC) and shall be governed by the applicable provisions of the Plan and the provision set forth under the caption “Termination of Employment” above; provided, however, that the Committee or the Board may deem it appropriate to make an equitable adjustment to the number of RSUs and the number and kind of shares of Common Stock underlying the RSUs underlying your Award.

Non-Transferability of the RSUs

Until such time as your RSUs are ultimately settled, they shall not be transferable by you by means of sale, assignment, exchange, encumbrance, pledge, hedge or otherwise.

No Rights as a Stockholder

Except as otherwise specifically provided in the Plan, unless and until your RSUs are settled, you shall not be entitled to any rights of a stockholder with respect to the RSUs (including the right to vote the shares underlying your RSUs and the right to receive dividends).

Other Restrictions

The RSUs shall be subject to the requirement that, if at any time the Committee shall determine that (i) the listing, registration or qualification of the shares of Common Stock subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body, is necessary or desirable as a condition of (or in connection with) the delivery of shares, then in any such event, the award of RSUs shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

Conflicts and Interpretation

In the event of any conflict between these Terms and Conditions and the Plan, the Plan shall control; provided, that an action or provision that is permissive under the terms of the Plan, and required under these Terms and Conditions, shall not be deemed a conflict and these Terms and Conditions shall control. In the event of any ambiguity in these Terms and Conditions, or any matters as to which these Terms and Conditions are silent, the Plan shall govern including, without limitation, the provisions thereof pursuant to which the Committee has the power, among others, to: (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable for the administration of the Plan. In the event of any conflict between your Award Notice (or any other information given to you directly or indirectly through the Agent (including information posted on the stock plan administration database maintained by the Agent)) and IAC’s books and records, or (ii) ambiguity in the Award Notice (or any other information given to you directly or indirectly through the Agent (including information posted on the stock plan administration database maintained by the Agent)), IAC’s books and records shall control.

Amendment

IAC may modify, amend or waive the terms of your RSUs, prospectively or retroactively, but no such modification, amendment or waiver shall materially impair your rights without your consent, except as required by applicable law, NASDAQ or stock exchange rules, tax rules or accounting rules.

Data Protection

The acceptance of your RSUs constitutes your authorization of the release from time to time to IAC or any of its Subsidiaries or Affiliates and to the Agent (together, the “Relevant Companies”) of any and all personal or professional data that is necessary or desirable for the administration of your RSUs and/or the Plan (the “Relevant Information”). Without limiting the above, this authorization permits your employing company to collect, process, register and transfer to the Relevant Companies all Relevant Information (including any professional and personal data that may be useful or necessary for the purposes of the administration of your RSUs and/or the Plan and/or to implement or structure any further grants of equity awards (if any)). The acceptance of your RSUs also constitutes your authorization of the transfer of the Relevant Information to any jurisdiction in which IAC, your employing company or the Agent considers appropriate. You shall have access to, and the right to change, the Relevant Information, which will only be used in accordance with applicable law.

Section 409A of the Code

Your Award is not intended to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the rules and regulations issued thereunder (“Section 409A”). Notwithstanding the foregoing, to the extent your Award is subject to Section 409A, to the maximum extent permitted, your Award shall be interpreted and administered to be in compliance therewith. Accordingly, to the extent required to avoid accelerated taxation and/or tax penalties under Section 409A: if (i) any amounts or benefits payable in respect of your Award are payable upon a termination of employment and (ii) you are a “Specified Employee” (as defined under Section 409A) as of the date of your termination of employment, then such amounts or benefits (if any) shall be paid or provided to you in a single lump sum on the earlier of: (x) the first day of the seventh month following your termination of employment or (y) your death. In no event shall IAC be required to pay you any “gross-up” or other payment with respect to any taxes or penalties imposed under Section 409A with respect to any amounts or benefits paid to you in respect of your Award.

1

EX-21.1

Exhibit 21.1

IAC/InterActiveCorp Subsidiaries

(As of December 31, 2018)

Entity	Jurisdiction of Formation
24apps GmbH	Austria
8831-8833 Sunset, LLC	Delaware
About Information Technology (Beijing) Co., Ltd.	People’s Republic of China
About International	Cayman Islands
About, Inc.	Delaware
Affinity Apps LLC	Delaware
AL Real Estate Holdings, LLC	Indiana
ANGI Homeservices Inc.	Delaware
Angie’s List, Inc.	Delaware
Apalon Apps LLC	Republic of Belarus
APN, LLC	Delaware
Applications Partner, LLC	Delaware
Ask Applications, Inc.	Delaware
BlueCrew, Inc.	Delaware
BlueCrew, LLC	Delaware
Buzz Technologies, Inc.	Washington
CH Pacific, LLC	Delaware
Comedy News Ventures, Inc.	Delaware
Connect, LLC	Delaware
Connected Ventures, LLC	Delaware
ConsumerSearch, Inc.	Delaware
CraftJack Inc.	Illinois
CV Acquisition Corp.	Delaware
Daily Burn Holdings, LLC	Delaware
Daily Burn, Inc.	Delaware
DatingDirect.com Limited	England and Wales
Delightful.com, LLC	Delaware
Diamond Dogs, LLC	Delaware
Epic Enterprises LLC	New Jersey
Eureka SG Pte. Ltd.	Singapore
Eureka Taiwan	Taiwan
Eureka, Inc.	Japan
Exec, Inc.	Delaware
Falcon Holdings II, LLC	Delaware

1

Exhibit 21.1

Entity	Jurisdiction of Formation
Five Star Matchmaking Information Technology (Beijing) Co., Ltd.	People’s Republic of China
FriendScout24 GmbH	Germany
Good Hang, LLC	Delaware
HABC Assets, LLC	Delaware
Handy Inventory, LLC	Delaware
Handy Platform Limited	Ireland
Handy Technologies, Inc.	Delaware
HandyBook Canada ULC	British Columbia
Hinge, Inc.	Delaware
HLVP Follow On Fund GP, LLC	Delaware
HLVP Follow On Fund, L.P.	Delaware
HLVP I GP, LLC	Delaware
HLVP I, L.P.	Delaware
HLVP II GP, LLC	Delaware
HLVP II Token, LLC	Delaware
HLVP II, L.P.	Delaware
HLVP III GP, LLC	Delaware
HLVP III, L.P.	Delaware
Home Advisor Limited	England and Wales
HomeAdvisor Finance Co.	Cayman Islands
HomeAdvisor GmbH	Germany
HomeAdvisor International, LLC	Delaware
HomeAdvisor, Inc.	Delaware
HomeStars, Inc.	Canada
HowAboutWe, LLC	Delaware
HSN Capital LLC	Delaware
HSN, LLC	Delaware
HTRF Ventures, LLC	Delaware
Humor Rainbow, Inc.	New York
IAC 19th St. Holdings, LLC	Delaware
IAC Applications Holding Limited Partnership	Ireland
IAC Applications, LLC	Delaware
IAC Falcon Holdings, LLC	Delaware
IAC Family Foundation, Inc.	Delaware
IAC FinanceCo, Inc.	Delaware
IAC Group, LLC	Delaware
IAC Publishing Holding Limited Partnership	Ireland
IAC Publishing, LLC	Delaware
IAC Search & Media (Canada) Inc.	Canada

2

Exhibit 21.1

Entity	Jurisdiction of Formation
IAC Search & Media B.V.	Netherlands
IAC Search & Media Brands, Inc.	California
IAC Search & Media Europe Limited	Ireland
IAC Search & Media Finance Co.	Cayman Islands
IAC Search & Media Hong Kong, Limited	Hong Kong
IAC Search & Media International, Inc.	Delaware
IAC Search & Media Massachusetts, Inc.	Massachusetts
IAC Search & Media Technologies FinanceCo II	Cayman Islands
IAC Search & Media Technologies Limited	Ireland
IAC Search & Media UK Limited	United Kingdom
IAC Search & Media Washington, LLC	Washington
IAC Search & Media, Inc.	Delaware
IAC Search, LLC	Delaware
IAC Shopping International, Inc.	Delaware
IAC/Expedia Global, LLC	Delaware
IACF Developments LLC	Delaware
ImproveNet, Inc.	Delaware
Inflight Entertainment, LLC	Delaware
INKD LLC	Delaware
Insider Pages, Inc.	Delaware
InstantAction, LLC	Delaware
InterActiveCorp Films, Inc.	Delaware
InterActiveCorp Films, LLC	Delaware
InterCaptiveCorp, Ltd.	Bermuda
Internet Shopping Network LLC	Delaware
Investopedia Canada, Inc.	Canada
Investopedia LLC	Delaware
iTranslate GmbH	Germany
Life123, Inc.	Delaware
Livestream Inc.	Delaware
Livestream Limited	England and Wales
Livestream LLC	New York
M8 Singlesnet LLC	Delaware
Mash Dating, LLC	Delaware
Massive Media Europe NV	Belgium
Massive Media Limited	England and Wales
Massive Media Match NV	Belgium
Match Group Europe Limited	England and Wales
Match Group, Inc.	Delaware

3

Exhibit 21.1

Entity	Jurisdiction of Formation
Match Group, LLC	Delaware
Match Internet Financial Services Designated Activity Company	Ireland
Match ProfilePro, LLC	Delaware
Match.com Europe Limited	England and Wales
Match.com Events LLC	Delaware
Match.com Foreign Holdings II Limited	England and Wales
Match.com Foreign Holdings III Limited	England and Wales
Match.com Foreign Holdings Limited	England and Wales
Match.com Global Investments S.à r.l.	Luxembourg
Match.com Global Services Limited	England and Wales
Match.com HK Limited	Hong Kong
Match.com International Holdings, Inc.	Delaware
Match.com International II Limited	England and Wales
Match.com International Limited	England and Wales
Match.com Investments, Inc.	Cayman Island
Match.com Japan KK	Japan
Match.com Japan Networks GK	Japan
Match.com LatAm Limited	England and Wales
Match.com Luxembourg S.à r.l.	Luxembourg
Match.com Nordic AB	Sweden
Match.com Offshore Holdings, Ltd	Mauritius
Match.com Pegasus Limited	England and Wales
Matchcom Mexico, S. de R.L., de C.V.	Mexico
Meetic Espana, SLU	Spain
Meetic Italia SRL	Italy
Meetic Netherlands BV	Netherlands
Meetic SAS	France
MG France Services SAS	France
MG Korea Services Limited	South Korea
MG Services Alpha, LLC	Delaware
MG Services Beta, LLC	Delaware
Mhelpdesk, Inc.	Delaware
Mile High Insights, LLC	Delaware
Mindspark Interactive Network, Inc.	Delaware
MM LatAm, LLC	Delaware
Mojo Acquisition Corp.	Delaware
Mojo Finance Co.	Cayman Islands
MTCH Technology Services Ltd.	Ireland
MyBuilder Limited	England and Wales

4

Exhibit 21.1

Entity	Jurisdiction of Formation
MyHammer AG	Germany
MyHammer Holding AG	Germany
Neu.de GmbH	Germany
Nexus Dating Limited	England and Wales
NRelate LLC	Delaware
Oportuna I, LLC	Delaware
Out to Lunch Productions, LLC	Delaware
Parperfeito Comunicacao SA	Brazil
People Media, Inc.	Delaware
People Media, LLC	Arizona
Plentyoffish Media ULC	British Columbia
Plentyoffish Media, LLC	Delaware
Pretty Fun Therapy SAS	France
Pronto, LLC	Delaware
Publishing Partner, LLC	Delaware
Search Floor, Inc.	California
ServiceMagic Canada Inc.	Canada
ServiceMagic Europe S.à r.l.	Luxembourg
ServiceMagic GmbH	Germany
ServiceMagic International S.à r.l.	Luxembourg
ServiceMagic IP Ireland Limited	Ireland
Shanghai Huike Network Technology Co., Ltd.	People’s Republic of China
Shoptouch, Inc.	Delaware
Slimware Utilities Holdings, Inc.	Delaware
SpeedDate.com, LLC	Delaware
Spotlight Studios, LLC	Delaware
Stage Four, LLC	Delaware
Starnet Interactive, Inc.	Delaware
Stream Team, LLC	Delaware
Styleclick Chicago, Inc.	Delaware
Styleclick, Inc.	Delaware
Styleclick.com Enterprises Inc.	California
Targeted Media Solutions LLC	Delaware
TDB Holdings, Inc.	Delaware
TelTech Systems, Inc.	Delaware
The Daily Beast Company LLC	Delaware
The IAC Foundation, Inc.	Delaware
Tinder Development, LLC	Delaware
Tinder, LLC	Delaware

5

Exhibit 21.1

Entity	Jurisdiction of Formation
TMC Realty, L.L.C.	Delaware
TPR/Tutor Holdings, LLC	Delaware
Travaux.com S.à r.l.	France
USA Video Distribution LLC	Delaware
USANi LLC	Delaware
USANi Sub LLC	Delaware
VHX Corporation	Delaware
Vimeo FinanceCo, LLC	Delaware
Vimeo Technologies Private Limited	India
Vimeo, Inc.	Delaware
Wanderspot LLC	Washington
We are Mop! Limited	England and Wales
Werkspot BV	Netherlands

6

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following registration statements (and any amendments thereto):

(1)Form S-8, No. 333-127410

(2) Form S-8, No. 333-146940

(3) Form S-8, No. 333-154875

(4) Form S-8, No. 333-174538

(5) Form S-8, No. 333-192186

(6)Form S-3, No. 333-222643

(7)Form S-8, No. 333-226745

of our reports dated March 1, 2019, with respect to the consolidated financial statements and schedule of IAC/InterActiveCorp, and the effectiveness of internal control over financial reporting of IAC/InterActiveCorp, included in this Annual Report (Form 10-K) of IAC/InterActiveCorp for the year ended December 31, 2018.

/s/ ERNST & YOUNG LLP

New York, New York

March 1, 2019

EX-31.1

Exhibit 31.1

Certification

I, Barry Diller, certify that:

1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2018 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:	March 1, 2019	/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 report on Form 10-K for the fiscal year ended December 31, 2018 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:	March 1, 2019	/s/ JOSEPH LEVIN
		Joseph Levin Chief Executive Officer

EX-31.3

Exhibit 31.3

Certification

I, Glenn H. Schiffman, certify that:

1. I have reviewed this report on Form 10-K for the fiscal year ended December 31, 2018 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:	March 1, 2019	/s/ GLENN H. SCHIFFMAN
		Glenn H. Schiffman Executive Vice President and Chief 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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:	March 1, 2019	/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 Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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:	March 1, 2019	/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, Glenn H. Schiffman, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to my knowledge:

(1) the Annual Report on Form 10-K for the fiscal year ended December 31, 2018 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:	March 1, 2019	/s/ GLENN H. SCHIFFMAN
		Glenn H. Schiffman Executive Vice President and Chief Financial Officer

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Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 01, 2019	Jun. 30, 2018
Document Information [Line Items]
Entity Registrant Name	IAC/INTERACTIVECORP
Entity Central Index Key	0000891103
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 11,833,394,558
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		77,986,305
Class B Convertible Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,789,499

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CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 2,131,632	$ 1,630,809
Marketable securities	123,665	4,995
Accounts receivable, net of allowance and reserves of $18,860 and $11,489, respectively	279,189	304,027
Other current assets	228,253	185,374
Total current assets	2,762,739	2,125,205
Property and equipment, net of accumulated depreciation and amortization	318,800	315,170
Goodwill	2,726,859	2,559,066
Intangible assets, net of accumulated amortization	631,422	663,737
Long-term investments	235,055	64,977
Deferred income taxes	64,786	66,321
Other non-current assets	134,924	73,334
TOTAL ASSETS	6,874,585	5,867,810
LIABILITIES:
Current portion of long-term debt	13,750	13,750
Accounts payable, trade	74,907	76,571
Deferred revenue	360,015	342,483
Accrued expenses and other current liabilities	434,886	366,924
Total current liabilities	883,558	799,728
Long-term debt, net	2,245,548	1,979,469
Income taxes payable	37,584	25,624
Deferred income taxes	23,600	35,070
Other long-term liabilities	66,807	38,229
Redeemable noncontrolling interests	65,687	42,867
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Additional paid-in capital	12,022,387	12,165,002
Retained earnings	1,258,794	595,038
Accumulated other comprehensive loss	(128,722)	(103,568)
Treasury stock 194,708 and 194,163 shares, respectively	(10,309,612)	(10,226,721)
Total IAC shareholders' equity	2,843,125	2,430,028
Noncontrolling interests	708,676	516,795
Total shareholders' equity	3,551,801	2,946,823
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	6,874,585	5,867,810
Common stock $.001 par value; authorized 1,600,000 shares; issued 262,303 and 260,624 shares, respectively, and outstanding 77,963 and 76,829 shares, respectively
SHAREHOLDERS' EQUITY:
Common stock	262	261
Class B convertible common stock $.001 par value; authorized 400,000 shares; issued 16,157 shares and outstanding 5,789 shares
SHAREHOLDERS' EQUITY:
Common stock	$ 16	$ 16

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CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance and reserves of accounts receivable	$ 18,860	$ 11,489
Treasury stock (shares)	194,708,000	194,163,000
Common Stock
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock authorized (shares)	1,600,000,000	1,600,000,000
Common stock issued (shares)	262,303,000	260,624,000
Common stock outstanding (shares)	77,963,000	76,829,000
Class B Convertible Common Stock
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock authorized (shares)	400,000,000	400,000,000
Common stock issued (shares)	16,157,000	16,157,000
Common stock outstanding (shares)	5,789,000	5,789,000

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CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	253,722	237,238	218,224	201,962	199,727	166,290	139,033	145,958	911,146	651,008	755,730
Selling and marketing expense									1,519,440	1,381,221	1,247,097
General and administrative expense									774,079	719,257	530,446
Product development expense									309,329	250,879	212,765
Depreciation									75,360	74,265	71,676
Amortization of intangibles									108,399	42,143	79,426
Goodwill impairment									0	0	275,367
Total operating costs and expenses									3,697,753	3,118,773	3,172,507
Operating income (loss)	133,920	172,832	168,437	89,950	94,360	(18,589)	75,635	37,060	565,139	188,466	(32,625)
Interest expense									(109,327)	(105,295)	(109,110)
Other income (expense), net									305,746	(16,213)	60,650
Earnings (loss) before income taxes									761,558	66,958	(81,085)
Income tax (provision) benefit						(257,000)			(3,811)	291,050	64,934
Net earnings (loss)	217,477	171,577	280,854	87,839	23,349	225,639	80,557	28,463	757,747	358,008	(16,151)
Net earnings attributable to noncontrolling interests									(130,786)	(53,084)	(25,129)
Net earnings (loss) attributable to IAC shareholders	$ 191,752	$ 145,774	$ 218,353	$ 71,082	$ 32,804	$ 179,643	$ 66,268	$ 26,209	$ 626,961	$ 304,924	$ (41,280)
Per share information attributable to IAC shareholders:
Basic earnings (loss) per share (USD per share)	$ 2.29	$ 1.75	$ 2.61	$ 0.86	$ 0.40	$ 2.22	$ 0.84	$ 0.34	$ 7.52	$ 3.81	$ (0.52)
Diluted earnings (loss) per share (USD per share)	$ 2.04	$ 1.49	$ 2.32	$ 0.71	$ 0.37	$ 1.79	$ 0.70	$ 0.29	$ 6.59	$ 3.18	$ (0.52)
Stock-based compensation expense by function:
Stock-based compensation expense									$ 238,420	$ 264,618	$ 104,820
Cost of revenue
Stock-based compensation expense by function:
Stock-based compensation expense									2,482	1,881	2,305
Selling and marketing expense
Stock-based compensation expense by function:
Stock-based compensation expense									7,943	31,318	6,000
General and administrative expense
Stock-based compensation expense by function:
Stock-based compensation expense									188,510	192,957	77,151
Product development expense
Stock-based compensation expense by function:
Stock-based compensation expense									$ 39,485	$ 38,462	$ 19,364

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CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	$ 757,747	$ 358,008	$ (16,151)
Other comprehensive (loss) income, net of tax:
Change in foreign currency translation adjustment	(31,411)	80,269	(43,126)
Change in unrealized gains and losses on available-for-sale securities (net of tax benefit of $3,846 and $884 in 2017 and 2016, respectively)	5	(4,026)	1,484
Total other comprehensive (loss) income	(31,406)	76,243	(41,642)
Comprehensive income (loss), net of tax	726,341	434,251	(57,793)
Components of comprehensive (income) loss attributable to noncontrolling interests:
Net earnings attributable to noncontrolling interests	(130,786)	(53,084)	(25,129)
Change in foreign currency translation adjustment attributable to noncontrolling interests	6,129	(13,797)	6,033
Change in unrealized gain and losses of available-for-sale securities attributable to noncontrolling interests	(1)	0	458
Comprehensive income attributable to noncontrolling interests	(124,658)	(66,881)	(18,638)
Comprehensive income (loss) attributable to IAC shareholders	$ 601,683	$ 367,370	$ (76,431)

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CONSOLIDATED STATEMENT OF COMPREHENSIVE OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Change in unrealized gains and losses on available-for-sale securities, tax provision (benefit)	$ 0	$ (3,846)	$ (884)

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CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Total IAC Shareholders' Equity	Redeemable Noncontrolling Interests	Common Stock Common Stock	Common Stock Class B Convertible Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Noncontrolling Interests	Match Group	Match Group Total IAC Shareholders' Equity	Match Group Additional Paid-in Capital	Match Group Accumulated Other Comprehensive (Loss) Income	Match Group Noncontrolling Interests	ANGI Homeservices	ANGI Homeservices Total IAC Shareholders' Equity	ANGI Homeservices Additional Paid-in Capital	ANGI Homeservices Accumulated Other Comprehensive (Loss) Income	ANGI Homeservices Noncontrolling Interests
Balance at beginning of period at Dec. 31, 2015				$ 30,391
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) earnings				(3,849)
Other comprehensive income (loss), net of tax				385
Stock-based compensation expense				1,632
Purchase of redeemable noncontrolling interests				(2,529)
Adjustment of redeemable noncontrolling interests to fair value				7,921
Noncontrolling interests created in acquisitions	$ 22,033		$ 12,222				$ 12,222				$ 9,811
Other				(1,124)
Balance at end of period at Dec. 31, 2016				32,827
Balance at beginning of period at Dec. 31, 2015	2,215,825		1,804,526		$ 254	$ 16	11,486,315	$ 331,394	$ (152,103)	$ (9,861,350)	411,299
Balance at beginning of period (shares) at Dec. 31, 2015					254,015,000	16,157,000
Increase (Decrease) in Shareholders' Equity
Net (loss) earnings	(12,302)		(41,280)					(41,280)			28,978
Other comprehensive income (loss), net of tax	(42,027)		(35,151)						(35,151)		(6,876)
Stock-based compensation expense	94,724		50,201				50,201				44,523
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	(770)		(770)		$ 2		(772)
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares)					1,657,000
Income tax benefit related to stock-based awards	49,406		49,406				49,406
Purchase of treasury stock	(315,250)	$ (315,300)	(315,250)							(315,250)
Adjustment of redeemable noncontrolling interests to fair value	(7,560)		(7,560)				(7,560)
Purchase of noncontrolling interests	(211)										(211)
Issuance of Match Group common stock pursuant to stock-based awards, net of withholding taxes	10,224										10,224
Reallocation of shareholders' equity balances related to the noncontrolling interests created in the Match Group IPO	0		363,638				342,507		21,131		(363,638)
Changes in noncontrolling interests of Match Group due to the issuance of its common stock	0		(7,691)				(7,691)				7,691
Noncontrolling interests created in an acquisition	22,033		12,222				12,222				9,811
Other	(3,422)		(3,069)				(3,069)				(353)
Balance at end of period at Dec. 31, 2016	2,010,670		1,869,222		$ 256	$ 16	11,921,559	290,114	(166,123)	(10,176,600)	141,448
Balance at end of period (shares) at Dec. 31, 2016					255,672,000	16,157,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) earnings				3,620
Other comprehensive income (loss), net of tax				1,291
Stock-based compensation expense				2,017
Purchase of redeemable noncontrolling interests				(14,641)
Adjustment of redeemable noncontrolling interests to fair value				6,341
Noncontrolling interests created in acquisitions				17,758
Other				(6,346)
Balance at end of period at Dec. 31, 2017	42,867			42,867
Increase (Decrease) in Shareholders' Equity
Net (loss) earnings	354,388		304,924					304,924			49,464
Other comprehensive income (loss), net of tax	74,952		62,446						62,446		12,506
Stock-based compensation expense	246,388		66,333				66,333				180,055
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	(10,504)		(10,504)		$ 5		(10,509)
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares)					4,952,000
Purchase of treasury stock	(50,121)	(50,100)	(50,121)							(50,121)
Adjustment of redeemable noncontrolling interests to fair value	(6,341)		(6,341)				(6,341)
Purchase of noncontrolling interests	(848)										(848)
Issuance of common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests												$ (464,209)	$ (460,774)	$ (460,890)	$ 116	$ (3,435)	$ (8,493)	$ (11,223)	$ (11,216)	$ (7)	$ 2,730
Purchase of exchangeable note hedge	(74,365)		(74,365)				(74,365)
Equity component of exchangeable debt issuance, net of deferred financing costs and deferred tax asset	71,158		71,158				71,158
Acquisition of Angie's List and creation of noncontrolling interests in ANGI Homeservices	779,471		645,475				645,475				133,996
Noncontrolling interests created in an acquisition				17,758
Issuance of warrants	23,650		23,650				23,650
Other	1,027		148				148				879
Balance at end of period at Dec. 31, 2017	2,946,823		2,430,028		$ 261	$ 16	12,165,002	595,038	(103,568)	(10,226,721)	516,795
Balance at end of period (shares) at Dec. 31, 2017					260,624,000	16,157,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Net (loss) earnings				33,897
Other comprehensive income (loss), net of tax				(702)
Stock-based compensation expense				1,138
Purchase of redeemable noncontrolling interests				(8,350)
Adjustment of redeemable noncontrolling interests to fair value				4,098
Noncontrolling interests created in acquisitions	14,307			2,261							14,307
Other				(9,522)
Balance at end of period at Dec. 31, 2018	65,687			65,687
Increase (Decrease) in Shareholders' Equity
Net (loss) earnings	723,850		626,961					626,961			96,889
Other comprehensive income (loss), net of tax	(30,704)		(25,278)						(25,278)		(5,426)
Stock-based compensation expense	237,282		75,311				75,311				161,971
Issuance of common stock pursuant to stock-based awards, net of withholding taxes	21,786		21,786		$ 1		21,785
Issuance of common stock pursuant to stock-based awards, net of withholding taxes (shares)					1,679,000
Purchase of treasury stock	(82,891)	$ (82,900)	(82,891)							(82,891)
Adjustment of redeemable noncontrolling interests to fair value	(4,098)		(4,098)				(4,098)
Purchase of noncontrolling interests	(9,364)										(9,364)
Issuance of common stock pursuant to stock-based awards, net of withholding taxes, and impact to noncontrolling interests												$ (341,400)	$ (342,457)	$ (342,592)	$ 135	$ 1,057	140,706	$ 106,204	$ 106,215	$ (11)	34,502
Dividends paid to Match Group noncontrolling interests																	$ (105,126)				$ (105,126)
Noncontrolling interests created in an acquisition	14,307			$ 2,261							14,307
Other	425		764				764				(339)
Balance at end of period at Dec. 31, 2018	$ 3,551,801		$ 2,843,125		$ 262	$ 16	$ 12,022,387	$ 1,258,794	$ (128,722)	$ (10,309,612)	$ 708,676
Balance at end of period (shares) at Dec. 31, 2018					262,303,000	16,157,000

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CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Common Stock
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Class B Convertible Common Stock
Common stock, par value (USD per share)	0.001	0.001
Common Stock | Common Stock
Common stock, par value (USD per share)	1.000	1.000	$ 1.000
Common Stock | Class B Convertible Common Stock
Common stock, par value (USD per share)	$ 1.000	$ 1.000	$ 1.000

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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net earnings (loss)	$ 757,747	$ 358,008	$ (16,151)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Stock-based compensation expense	238,420	264,618	104,820
Amortization of intangibles	108,399	42,143	79,426
Depreciation	75,360	74,265	71,676
Bad debt expense	48,445	28,930	17,733
Goodwill impairment	0	0	275,367
Deferred income taxes	(34,679)	(285,278)	(119,181)
Unrealized gains on equity securities, net	(124,170)	0	0
Gains from the sale of businesses and investments, net	(147,829)	(32,673)	(50,965)
Other adjustments, net	15,763	61,647	596
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable	(34,828)	(115,169)	1,283
Other assets	(44,557)	5,688	(12,808)
Accounts payable and other liabilities	53,555	(25,289)	(52,359)
Income taxes payable and receivable	27,034	655	8,998
Deferred revenue	49,468	39,154	35,803
Net cash provided by operating activities	988,128	416,699	344,238
Cash flows from investing activities:
Acquisitions, net of cash acquired	(64,496)	(146,553)	(18,403)
Capital expenditures	(85,634)	(75,523)	(78,039)
Proceeds from maturities and sales of marketable debt securities	333,600	114,350	252,369
Purchases of marketable debt securities	(449,676)	(29,891)	(313,943)
Investments in time deposits	0	0	(87,500)
Proceeds from maturities of time deposits	0	0	87,500
Net proceeds from the sale of businesses and investments	136,719	185,778	172,228
Purchases of investments	(52,980)	(9,106)	(12,565)
Other, net	9,027	2,994	11,215
Net cash (used in) provided by investing activities	(173,440)	42,049	12,862
Cash flows from financing activities:
Purchase of exchangeable note hedge	0	(74,365)	0
Proceeds from issuance of warrants	0	23,650	0
Debt issuance costs	(5,449)	(33,744)	(7,811)
Dividends paid to Match Group noncontrolling interests	(105,126)	0	0
Purchase of noncontrolling interests	(16,063)	(15,439)	(2,740)
Acquisition-related contingent consideration payments	(185)	(27,289)	(2,180)
Other, net	(5,375)	(5,000)	(2,705)
Net cash used in financing activities	(312,798)	(196,869)	(492,140)
Total cash provided (used)	501,890	261,879	(135,040)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1,887)	11,604	(6,434)
Net increase (decrease) in cash, cash equivalents, and restricted cash	500,003	273,483	(141,474)
Cash, cash equivalents, and restricted cash at beginning of period	1,633,682	1,360,199	1,501,673
Cash, cash equivalents, and restricted cash at end of period	2,133,685	1,633,682	1,360,199
IAC/InterActiveCorp
Cash flows from financing activities:
Proceeds from issuance of debt	0	517,500	0
Repurchases of IAC debt	(363)	(393,464)	(126,409)
Purchase of treasury stock	(82,891)	(56,424)	(308,948)
Proceeds from the exercise of stock options	41,700	82,397	25,821
Withholding taxes paid on behalf of employees on net settled stock-based awards	(18,982)	(93,832)	(26,716)
Match Group and ANGI Homeservices
Cash flows from financing activities:
Proceeds from the exercise of stock options	4,705	61,095	39,378
Withholding taxes paid on behalf of employees on net settled stock-based awards	(237,564)	(264,323)	(29,830)
Match Group
Cash flows from financing activities:
Proceeds from issuance of debt	260,000	525,000	400,000
Principal payments on debt	0	(445,172)	(450,000)
Purchase of treasury stock	(133,455)	0	0
Proceeds from the exercise of stock options			39,378
Withholding taxes paid on behalf of employees on net settled stock-based awards			(29,830)
Purchase of Match Group stock-based awards	0	(272,459)	0
ANGI Homeservices
Cash flows from financing activities:
Principal payments on debt	$ (13,750)	0	$ 0
Borrowing under ANGI Homeservices Term Loan		$ 275,000

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ORGANIZATION

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

IAC has majority ownership of both Match Group, which includes Tinder, Match, PlentyOfFish and OkCupid, and ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy, and also operates Vimeo, Dotdash and The Daily Beast, among many other online businesses.

As used herein, "IAC," the "Company," "we," "our" or "us" and similar terms refer to IAC/InterActiveCorp and its subsidiaries (unless the context requires otherwise).

During the fourth quarter of 2018, the Company realigned its reportable segments as follows:

• the Match Group, ANGI Homeservices and Applications segments remain unchanged;

• Vimeo is now reported as its own segment (it was previously included in the Video segment, which has been eliminated);

• Dotdash is now reported as its own segment (it was previously included in the Publishing segment, which has been eliminated); and

• the Company's Other segment has been renamed, Emerging & Other, and the businesses previously included in the Video segment (other than Vimeo) and the Publishing segment (other than Dotdash) are now included in the Emerging & Other segment.

Match Group

Our Match Group segment consists of the businesses and operations of Match Group, Inc. ("Match Group" or "MTCH").

MTCH completed its initial public offering ("IPO") on November 24, 2015. At December 31, 2018, IAC’s economic and voting interest in MTCH were 81.1% and 97.6%, respectively.

MTCH is a leading provider of dating products available in over 40 languages to our users all over the world through applications and websites that we own and operate. MTCH operates a portfolio of dating brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs and Hinge, as well as a number of other brands, each designed to increase users likelihood of finding a meaningful connection. Through our portfolio of trusted brands, we provide tailored products to meet the varying preferences of our users.

ANGI Homeservices

Our ANGI Homeservices segment includes the North American (United States and Canada) and European businesses and operations of ANGI Homeservices Inc. ("ANGI"). On September 29, 2017, the Company's HomeAdvisor business and Angie's List Inc. ("Angie's List") combined under a new publicly traded company called ANGI Homeservices Inc. (the "Combination"). At December 31, 2018, IAC’s economic and voting interest in ANGI were 83.9% and 98.1%, respectively.

ANGI connects millions of homeowners to home service professionals through its portfolio of digital home service brands, including HomeAdvisor®, Angie’s List® and Handy Technologies, Inc. ("Handy"). Combined, these leading marketplaces have collected more than 15 million reviews over the course of 20 years, allowing homeowners to research, match and connect on-demand to the largest network of service professionals online, through our mobile apps or by voice assistants.

On October 19, 2018, ANGI acquired Handy, a leading platform in the United States for connecting people looking for household services (primarily cleaning and handyman services) with top-quality, pre-screened independent service professionals. ANGI also owns and operates mHelpDesk, a provider of cloud-based field service software for small to mid-size businesses, primarily sold today to HomeAdvisor service professionals, and CraftJack. Prior to its sale on December 31, 2018, ANGI also operated Felix, a pay-per-call advertising service business. In addition to its market-leading U.S. operations, ANGI owns leading home services online marketplaces in France (Travaux), Germany (MyHammer), Netherlands (Werkspot), United Kingdom (MyBuilder Limited or "MyBuilder," acquired a controlling interest on March 24, 2017), Canada (HomeStars Inc. or "HomeStars," acquired a controlling interest on February 8, 2017) and Italy (Instapro), as well as operations in Austria (MyHammer).

Vimeo

Vimeo operates a global video platform for creative professionals, marketers and enterprises to connect with their audiences, customers and employees. Vimeo provides cloud-based software products to stream, host, distribute and monetize videos online and across devices, as well as premium video tools on a subscription basis. Vimeo also sells live streaming accessories.

Dotdash

Dotdash is a portfolio of digital brands providing expert information and inspiration in select vertical content categories.

Applications

Our Applications segment consists of our Desktop business and Mosaic Group (previously referred to as Mobile), our mobile business. Through these businesses, we are a leading provider of global, advertising-driven desktop and subscription-based mobile applications.

Through our Desktop business, we own and operate a portfolio of desktop browser applications that provide users with access to a wide variety of online content, tools and services. We provide users who download our desktop browser applications with new tab search services, as well as the option of default browser search services. We distribute our desktop browser applications to consumers free of charge on an opt-in basis directly through direct to consumer (primarily Chrome Web Store) and partnership distribution channels.

Through Mosaic Group, we are a leading provider of global subscription mobile applications. Mosaic Group consists of the following businesses that we own and operate: Apalon, iTranslate, acquired in March 2018, TelTech, acquired in October 2018, and Daily Burn, transferred from the Emerging & Other segment effective April 1, 2018.

Apalon is a leading mobile development company with one of the largest and most popular application portfolios worldwide. iTranslate develops and distributes applications that enable users to read, write, speak and learn foreign languages anywhere in the world. TelTech develops and distributes unique and innovative mobile communications applications that help protect consumer privacy. Daily Burn is a health and fitness property that provides streaming fitness and workout videos across a variety of platforms (including iOS, Android, Roku and other Internet-enabled television platforms).

Emerging & Other

Our Emerging & Other segment primarily includes:

• Ask Media Group, a collection of websites providing general search services and information;

• BlueCrew, an on-demand staffing platform that connects temporary workers with traditional blue-collar jobs in areas like warehouse, delivery and moving, data entry and customer service; 

• The Daily Beast, a website dedicated to news, commentary, culture and entertainment that publishes original reporting and opinion from its roster of full-time journalists and contributors;

• College Humor Media, a provider of digital content, including its recently launched subscription only property, Dropout.tv; and

• IAC Films, a provider of production and producer services for feature films, primarily for initial sale and distribution through theatrical releases and video-on-demand services in the United States and internationally.

• For periods prior to their sales:

◦ CityGrid, an advertising network that integrated local content and advertising for distribution to affiliated and third-party publishers across web and mobile platforms, sold December 31, 2018.

◦ Dictionary.com, an online and mobile dictionary and thesaurus service, sold November 13, 2018.

◦ Electus, including Notional, a provider of production and producer services for both unscripted and scripted television and digital content, primarily for initial sale and distribution in the United States, sold October 29, 2018.

◦ The Princeton Review, a provider of educational test preparation, academic tutoring and college counseling services, sold on March 31, 2017.

◦ ShoeBuy, an Internet retailer of footwear and related apparel and accessories, sold December 30, 2016.

◦ ASKfm, a questions and answers social network, sold June 30, 2016.

◦ PriceRunner, a shopping comparison website, sold March 18, 2016.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation

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

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.

Accounting for Investments and Equity Securities

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. At December 31, 2018, the Company did not have any investments accounted for using the equity method.

Investments in equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative of Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, following its adoption on January 1, 2018, with any changes to fair value recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer; value is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews its equity securities for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of our equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the security is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. See "Accounting Pronouncements adopted by the Company" below for further information.

Accounting Estimates

Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions 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 recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of marketable debt securities and equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; 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.

Revenue Recognition

The Company adopted the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. See "Accounting Pronouncements adopted by the Company" below for further information.

The Company accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to our customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods.

Transaction Price

The objective of determining the transaction price is to estimate the amount of consideration the Company is due in exchange for its services or goods, including amounts that are variable. The Company determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period.

The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue.

For contracts that have an original duration of one year or less, the Company uses the practical expedient available under ASU No. 2014-09 applicable to such contracts and does not consider the time value of money.

Arrangements with Multiple Performance Obligations

The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. For our multiple performance obligation arrangements that include functional intellectual property ("IP"), which comprise the downloadable apps and software of the Applications segment, the Company uses a residual approach to determine standalone selling prices for the functional IP.

Assets Recognized from the Costs to Obtain a Contract with a Customer

The Company has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, the Company has elected the practical expedient to expense the costs as incurred. The Company generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription.

During the year ended December 31, 2018, the Company recognized expense of $355.3 million related to the amortization of these costs. The current and non-current contract asset balances at December 31, 2018 are $69.8 million and $4.5 million, respectively. The current and non-current contract assets are included in "Other current assets" and "Other non-current assets," respectively, in the accompanying consolidated balance sheet.

Performance Obligations

As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed.

Match Group

Match Group revenue is primarily derived directly from users in the form of recurring subscriptions. Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance, primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is recognized using the straight-line method over the term of the applicable subscription period, which generally ranges from one to six months. Revenue is also earned from online advertising, the purchase of à la carte features and offline events. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the purchase of à la carte features is recognized based on usage. Revenue associated with offline events is recognized when each event occurs.

ANGI Homeservices

ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and booking fees from completed jobs sourced through the Handy platform, and (ii) membership subscription fees paid by HomeAdvisor service professionals. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service. The Company’s consumer connection revenue is generated and recognized when an in-network service professional is delivered a consumer match or when a job sourced through the Handy platform is completed. Membership subscription revenue from service professionals is initially deferred and is recognized using the straight-line method over the applicable subscription period, which is typically one year. Consumer connection revenue is generally billed one week following a consumer match, with payment due upon receipt of invoice or collected when a consumer schedules a job through the Handy platform. The Company maintains revenue reserves for potential credits for services provided by Handy service professionals to consumers.

ANGI revenue is also derived from Angie's List (i) sales of time-based website, mobile and call center advertising to service professionals and (ii) membership subscription fees from consumers. Angie's List service professionals generally pay for advertisements in advance on a monthly or annual basis at the option of the service professional, with the average advertising contract term being approximately one year. Angie's List website, mobile and call center advertising revenue is recognized ratably over the contract term. Revenue from the sale of advertising in the Angie’s List Magazine is recognized in the period in which the publication is distributed. Angie's List prepaid consumer membership subscription fees are recognized as revenue using the straight-line method over the term of the applicable subscription period, which is typically one year.

Vimeo

Vimeo revenue is derived primarily from annual and monthly SaaS subscription fees paid by creators for premium capabilities and, to a lesser extent, sales of live streaming hardware, software and professional services. Subscription revenue is recognized over the terms of the applicable subscription period, which are typically one month or one year.

Dotdash

Dotdash revenue consists principally of digital advertising revenue and affiliate commerce commission revenue. Digital advertising revenue is generated primarily through digital display advertisements sold directly and through programmatic advertising networks. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction.

Applications

Desktop revenue largely consists of advertising revenue generated principally through the display of paid listings in response to search queries. The substantial majority of the paid listings displayed by our Desktop businesses is supplied to us by Google Inc. ("Google") pursuant to our services agreement with Google. Pursuant to this agreement, those of our Desktop businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through one of our Desktop businesses and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with us. The Company recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user’s click is generated due to the efforts of a third-party distributor, we recognize the amount due from Google as revenue and record a revenue share or other payment obligation to the third-party distributor as traffic acquisition costs.

To a lesser extent, Desktop revenue also includes fees related to subscription downloadable desktop applications as well as display advertisements. Fees related to subscription downloadable desktop applications are generally recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed.

Mosaic Group revenue consists primarily of fees related to subscription downloadable mobile applications distributed through the Apple App and Google Play stores, as well as display advertisements. Fees related to subscription downloadable mobile applications are generally recognized at the time of the sale when the software license is delivered. To the extent updates or maintenance is required or expected, revenue is recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed.

Emerging & Other

Revenue of Ask Media Group consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries and display advertisements (sold directly and through programmatic ad sales). The majority of the paid listings displayed are supplied to us by Google in the manner, and pursuant to the services agreement with Google, described above under "Applications."

The Daily Beast revenue consists of advertising revenue, which is generated primarily through display advertisements (sold directly and through programmatic ad sales). 

BlueCrew revenue consists of service revenue, which is generated through staffing temporary workers and recognized as control of the promised services is transferred to our customers.

Revenue of College Humor Media and IAC Films is generated primarily through media production and distribution and advertising. Production revenue is recognized when control is transferred to the customer to broadcast or exhibit, and advertising revenue is recognized when an advertisement is displayed or over the advertising period.

Accounts Receivables, Net of Allowance for Doubtful Accounts and Revenue Reserves

Accounts receivable include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. The Company also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience.

Deferred Revenue

Deferred revenue consists of advance payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance at January 1, 2018 is $332.2 million. During the year ended December 31, 2018, the Company recognized $330.2 million of revenue that was included in the deferred revenue balance as of January 1, 2018. The current and non-current deferred revenue balances at December 31, 2018 are $360.0 million and $1.7 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet.

Cash and Cash Equivalents

Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds, treasury discount notes, commercial paper rated A1/P1 or better, time deposits and certificates of deposit. Internationally, cash equivalents primarily consist of AAA rated government money market funds and time deposits.

Investments in Debt Securities

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. Marketable debt securities are adjusted to fair value each quarter, and the unrealized gains and losses, net of tax, are included in accumulated other comprehensive income (loss) as a separate component of shareholders' equity. The specific-identification method is used to determine the cost of debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. The Company also invests in non-marketable debt securities as part of its investment strategy. We review our debt securities for impairment each reporting period. The Company recognizes an unrealized loss on debt securities in net earnings when the impairment is determined to be other-than-temporary. Factors we consider in making such determination include the duration, severity and reason for the decline in value and the potential recovery and our intent to sell the debt security. We also consider whether we will be required to sell the security before recovery of its amortized cost basis and whether the amortized cost basis cannot be recovered because of credit losses. If an impairment is considered to be other-than-temporary, the debt security will be written down to its fair value and the loss will be recognized within other income (expense), net. At December 31, 2018, marketable debt securities consist of treasury discount notes and commercial paper rated A1/P1 or better.

Certain Risks and Concentrations

A meaningful 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").

For the years ended December 31, 2018, 2017 and 2016, consolidated revenue earned from Google was$825.2 million,$740.7 million and $824.4 million, representing 19%, 22% and 26%, respectively, of the Company's consolidated revenue. A meaningful portion of this revenue is attributable to the service agreement with Google and earned by the Desktop business within the Applications segment and the Ask Media Group within the Emerging & Other segment. For the years ended December 31, 2018, 2017 and 2016, revenue earned from Google represents 73%, 83% and 87% of Applications revenue and 94%, 96% and 96% of Ask Media Group revenue (and 68%, 48% and 35% of Emerging & Other revenue), respectively. Accounts receivable related to revenue earned from Google totaled $69.1 million and $72.4 million at December 31, 2018 and 2017, respectively.

The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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. Google’s policy changes related to its Chrome browser became effective on September 12, 2018 and negatively impacted the distribution of our business-to-consumer ("B2C") desktop products. The impact of these changes on revenue and profits in 2018 were modest as the Company optimized marketing spend in anticipation of the changes. However, we expect these changes to reduce revenue and profits of the Desktop business in the future, which among other reasons led to a $27.7 million impairment of the related indefinite-lived intangible asset in the fourth quarter of 2018. See "Note 21—Subsequent Events (Unaudited)" for a discussion of the Company's amended services agreement with Google entered into on February 11, 2019.

The Company's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud.

Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits.

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter.

Asset Category	Estimated Useful Lives
Buildings and leasehold improvements	3 to 39 Years
Computer equipment and capitalized software	2 to 3 Years
Furniture and other equipment	3 to 12 Years

The Company capitalizes certain internal use software costs including external direct costs utilized in developing or obtaining the software and compensation for personnel directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases when the project is substantially complete and ready for its intended purpose. The net book value of capitalized internal use software is $58.1 million and $46.4 million at December 31, 2018 and 2017, respectively.

Business Combinations

The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. The fair value of these intangible assets is based on valuations that use information and assumptions provided by management. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill and is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date.

In connection with certain business combinations, the Company has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements is initially recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company determines the fair value of the contingent consideration arrangements using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that appropriately captures the risk associated with the obligation to determine the net amount reflected in the consolidated financial statements. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. The changes in the remeasured fair value of the contingent consideration arrangements during each reporting period, including the accretion of the discount, if applicable, are recognized in "General and administrative expense" in the accompanying consolidated statement of operations. See "Note 6—Financial Instruments" for a discussion of contingent consideration arrangements.

Goodwill and Indefinite-Lived Intangible Assets

The Company assesses goodwill and indefinite-lived intangible assets for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value.

When the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit's goodwill is necessary; otherwise, a quantitative assessment is performed and the fair value of the reporting unit is determined. If the carrying value of the reporting unit exceeds its fair value, an impairment equal to the excess is recorded.

For the Company's annual goodwill test at October 1, 2018, a qualitative assessment of the MTCH, ANGI, Vimeo, College Humor Media and BlueCrew reporting units' goodwill was performed because the Company concluded it was more likely than not that the fair value of these reporting units was in excess of their respective carrying values. The primary factors that the Company considered in its qualitative assessment for each of these reporting units are described below:

• MTCH's October 1, 2018 market capitalization of $15.7 billion exceeded its carrying value by approximately $15.1 billion and MTCH's strong operating performance.

• ANGI's October 1, 2018 market capitalization of $10.7 billion exceeded its carrying value by approximately $9.6 billion and ANGI's strong operating performance.

• The Company performed valuations of the Vimeo, College Humor Media and BlueCrew reporting units during 2018. These valuations were prepared primarily in connection with the issuance and/or settlement of equity grants that are denominated in the equity of these businesses. The valuations were prepared time proximate to, however, not as of, October 1, 2018. The fair value of each of these businesses was in excess of its October 1, 2018 carrying value.

The Company tests goodwill for impairment when it concludes that it is more likely than not that there may be an impairment. For the Company's annual goodwill test at October 1, 2018, the Company quantitatively tested the Desktop and Mosaic Group reporting units (included in the Applications segment). The Company's quantitative test indicated that the fair value of these reporting units are in excess of their respective carrying values; therefore, the goodwill of these reporting units are not impaired. The Company's Dotdash, Ask Media Group and The Daily Beast reporting units have no goodwill.

The aggregate goodwill balance for the reporting units for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $265.1 million.

The fair value of the Company's reporting units (except for MTCH and ANGI described above) is determined using both an income approach based on discounted cash flows ("DCF") and a market approach when it tests goodwill for impairment, either on an interim basis or annual basis as of October 1 each year. The Company uses the same approach in determining the fair value of its businesses in connection with its non-public subsidiary denominated stock-based compensation plans, which can be a significant factor in the decision to apply the qualitative screen. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses are based on the Company's most recent forecast and budget and, for years beyond the budget, the Company's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed based on each reporting unit's current results and forecasted future performance, as well as macroeconomic and industry specific factors. The discount rates used in the quantitative test for determining the fair value of the Company's reporting units ranged from 12.5% to 15% in 2018 and 12.5% to 17.5% in 2017. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined which is applied to financial metrics to estimate the fair value of a reporting unit. To determine a peer group of companies for our respective reporting units, we considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. While a primary driver in the determination of the fair values of the Company's reporting units is the estimate of future revenue and profitability, the determination of fair value is based, in part, upon the Company's assessment of macroeconomic factors, industry and competitive dynamics and the strategies of its businesses in response to these factors.

While the Company has the option to qualitatively assess whether it is more likely than not that the fair values of its indefinite-lived intangible assets are less than their carrying values, the Company's policy is to determine the fair value of each of its indefinite-lived intangible assets annually as of October 1. The Company determines the fair value of indefinite-lived intangible assets using an avoided royalty DCF valuation analysis. Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual indefinite-lived impairment assessment ranged from 10.5% to 35% in 2018 and 11% to 16% 2017, and the royalty rates used ranged from 0.75% to 8.0% in 2018 and 2% to 7% in 2017.

The aggregate indefinite-lived intangible asset balance for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $131.3 million.

The 2018 annual assessment of goodwill did not identify any impairments. The 2018 annual assessment of indefinite-lived intangible assets identified impairment charges of $27.7 million and $1.1 million related to certain Desktop and College Humor Media indefinite-lived trade names, respectively. The indefinite-lived intangible asset impairment charge at Desktop was due to Google’s policy changes related to its Chrome browser which became effective on September 12, 2018 and have negatively impacted the distribution of our B2C downloadable desktop products. The impairment charge related to the B2C trade name was identified in our annual impairment assessment as of October 1, 2018 and reflects the projected reduction in profits and revenues and the resultant reduction in the assumed royalty rate from these policy changes. The impairment charges are included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The 2017 annual assessments of goodwill and indefinite-lived intangible assets did not identify any impairments.

While the 2016 annual assessment did not identify any material impairments, during the second quarter of 2016, the Company recorded an impairment charge equal to the entire $275.4 million at IAC Publishing. In connection with the Company's realignment of its reportable segments in the fourth quarter of 2018, $198.3 million and $77.0 million was allocated to the Dotdash and the Emerging & Other reportable segments, respectively, based upon their relative fair values as of October 1, 2018. In addition, amortization of intangibles was further impacted by the inclusion of impairment charges in 2016 of $9.0 million and $2.6 million related to certain Dictionary.com and Dotdash indefinite-lived trade names, respectively. The goodwill impairment charges at IAC Publishing was driven by the impact from the Google contract, traffic trends and monetization challenges and the corresponding impact on the then estimate of fair value. The expected cash flows used in the IAC Publishing DCF analysis were based on the Company's most recent forecast for the second half of 2016 and each of the years in the forecast period, which were updated to include the effects of the Google contract, traffic trends and monetization challenges and the cost savings from our restructuring efforts. For years beyond the forecast period, the Company's estimated cash flows were based on forecasted growth rates. The discount rate used in the DCF analysis reflected the risks inherent in the expected future cash flows of the IAC Publishing reporting unit. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple was determined which was applied to financial metrics to estimate the fair value of the IAC Publishing reporting unit. To determine a peer group of companies for IAC Publishing, we considered companies relevant in terms of business model, revenue profile, margin and growth characteristics and brand strength. The indefinite-lived intangible asset impairment charges related to certain trade names and trademarks and were due to reduced level of revenue and profits, which, in turn, also led to a reduction in the assumed royalty rates for these assets. The royalty rates used to value the trade names that were impaired ranged from 2% to 6% and the discount rate that was used reflected the risks inherent in the expected future cash flows of the trade names and trademarks. The impairment charge is included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The Company’s operating segments are MTCH, ANGI, Vimeo, Dotdash and Applications, which are also reportable segments, and within its Emerging & Other reportable segment, Ask Media Group, BlueCrew, The Daily Beast, College Humor Media and IAC Films. The Company’s reporting units are consistent with its operating segments, with the exception of Desktop and Mosaic Group, which are separate reporting units within the Applications operating segment. Goodwill is tested for impairment at the reporting unit level. See "Note 12—Segment Information" for additional information regarding the Company's method of determining operating and reportable segments.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, which consist of property and equipment and intangible assets with definite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized.

Fair Value Measurements

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 market prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market 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 "Note 6—Financial Instruments" for a discussion of fair value measurements made using Level 3 inputs.

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment are adjusted to fair value only when an impairment is recognized. The Company's financial assets, comprising equity securities without readily determinable fair values, are adjusted to fair value when observable price changes are identified or an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

Traffic Acquisition Costs

Traffic acquisition costs consist of (i) the amortization of fees paid to Apple and Google related to the distribution and the facilitation of in-app purchases and (ii) payments made to partners who distribute our business-to-business customized browser-based applications and who integrate our paid listings into their websites. These payments include amounts based on revenue share and other arrangements. The Company expenses these payments in the period incurred as a component of cost of revenue.

Advertising Costs

Advertising costs are expensed in the period incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines, social media sites and third parties that distribute our B2C downloadable applications, offline marketing, which is primarily television advertising, and partner-related payments to those who direct traffic to the brands within our MTCH and ANGI segments. Advertising expense is $1.2 billion, $1.1 billion and $1.0 billion for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company capitalizes and amortizes the costs associated with certain distribution arrangements that require it to pay a fee per access point delivered. These access points are generally in the form of downloadable applications associated with our direct-to consumer operations. These fees are amortized over the estimated useful lives of the access points to the extent the Company can reasonably estimate a probable future economic benefit and the period over which such benefit will be realized (generally 18 months). Otherwise, the fees are charged to expense as incurred.

Legal Costs

Legal costs are expensed as incurred.

Income Taxes

The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense.

The Company evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when the Company concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act imposes a new minimum tax on global intangible low-taxed income ("GILTI") earned by foreign subsidiaries beginning in 2018. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity may make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company elects to recognize the tax on GILTI as a period expense in the period the tax is incurred.

Earnings Per Share

Basic earnings per share is computed by dividing net earnings attributable to IAC shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vested resulting in the issuance of common stock that could share in the earnings of the Company.

Foreign Currency Translation and Transaction Gains and Losses

The financial position and operating results of foreign entities whose primary economic environment is based on their local currency are consolidated using the local currency as the functional currency. These local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of other income (expense), net. See "Note 17—Consolidated Financial Statement Details" for additional information regarding foreign currency exchange gains and losses.

Translation gains and losses relating to foreign entities that are liquidated or substantially liquidated are reclassified out of accumulated other comprehensive income (loss) into earnings. Such losses totaled $0.1 million and gains totaled $0.7 million and $9.9 million during the years ended December 31, 2018, 2017 and 2016, respectively, and were included in "Other income (expense), net" in the accompanying consolidated statement of operations.

Stock-Based Compensation

Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period. See "Note 11—Stock-based Compensation" for a discussion of the Company's stock-based compensation plans.

Redeemable Noncontrolling Interests

Noncontrolling interests in the consolidated subsidiaries of the Company are ordinarily reported on the consolidated balance sheet within shareholders' equity, separately from the Company's equity. However, securities that are redeemable at the option of the holder and not solely within the control of the issuer must be classified outside of shareholders' equity. Accordingly, all noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' equity in the accompanying consolidated balance sheet.

In connection with the acquisition of certain subsidiaries, management of these businesses has retained an ownership interest. The Company is party to fair value put and call arrangements with respect to these interests. These put and call arrangements allow management of these businesses to require the Company to purchase their interests or allow the Company to acquire such interests at fair value, respectively. The put arrangements do not meet the definition of a derivative instrument as the put agreements do not provide for net settlement. These put and call arrangements become exercisable by the Company and the counter-party at various dates in the future. Two of these arrangements were exercised during both the years ended December 31, 2018 and 2017 and one of these arrangements was exercised during the year ended December 31, 2016. These put arrangements are exercisable by the counter-party outside the control of the Company. Accordingly, to the extent that the fair value of these interests exceeds the value determined by normal noncontrolling interest accounting, the value of such interests is adjusted to fair value with a corresponding adjustment to additional paid-in capital. During the years ended December 31, 2018, 2017 and 2016, the Company recorded adjustments of $4.1 million, $6.3 million and $7.9 million, respectively, to increase these interests to fair value. Fair value determinations require high levels of judgment and are based on various valuation techniques, including market comparables and discounted cash flow projections.

Recent Accounting Pronouncements

Accounting Pronouncements adopted by the Company

ASU No. 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued ASU No. 2014-09, which superseded nearly all previous revenue recognition guidance. The Company adopted ASU No. 2014-09 effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative effect to the Company's retained earnings at January 1, 2018 was an increase of $40.2 million, of which $3.4 million was related to the noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to the Company’s ANGI and Applications segments.

• Within ANGI, the effect of the adoption of ASU No. 2014-09 is that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million, respectively, and a related deferred tax liability of $8.0 million, resulting in a net increase to retained earnings of $25.9 million on January 1, 2018.

• Within Applications, the primary effect of the adoption of ASU No. 2014-09 is to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualifies as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million, resulting in a net increase to retained earnings of $15.5 million on January 1, 2018.

The Company's disaggregated revenue disclosures are presented in "Note 12—Segment Information."

The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, as reported, and ASC 605, Revenue Recognition, for the year ended December 31, 2018.

	Under ASC 606 (as reported)			Under ASC 605			Effect of adoption of ASU No. 2014-09
	(In thousands)
Revenue by segment:
Match Group	$	1,729,850		$	1,729,850		$	—
ANGI Homeservices	1,132,241			1,132,241			—
Vimeo	159,641			160,931			(1,290		)
Dotdash	130,991			130,991			—
Applications	582,287			581,492			795
Emerging & Other	528,250			528,250			—
Inter-segment eliminations	(368		)	(368		)	—
Total	$	4,262,892		$	4,263,387		$	(495	)
Operating costs and expenses by segment:
Match Group	$	1,176,556		$	1,176,556		$	—
ANGI Homeservices	1,068,335			1,073,275			(4,940		)
Vimeo	195,235			196,212			(977		)
Dotdash	112,213			112,213			—
Applications	487,453			484,644			2,809
Emerging & Other	498,286			498,286			—
Corporate	159,675			159,675			—
Total	$	3,697,753		$	3,700,861		$	(3,108	)
Operating income (loss) by segment:
Match Group	$	553,294		$	553,294		$	—
ANGI Homeservices	63,906			58,966			4,940
Vimeo	(35,594		)	(35,281		)	(313		)
Dotdash	18,778			18,778			—
Applications	94,834			96,848			(2,014		)
Emerging & Other	29,964			29,964			—
Corporate	(160,043		)	(160,043		)	—
Total	$	565,139		$	562,526		$	2,613
Net earnings	$	757,747		$	755,741		$	2,006

ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, will be measured at fair value with changes in fair value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. There was no cumulative impact to the Company's consolidated financial statements upon adoption of ASU No. 2016-01 on January 1, 2018. The adoption of ASU No. 2016-01 increases the volatility of the Company's other income (expense), net as a result of the remeasurement of these instruments. For the year ended December 31, 2018, other income (expense), net includes net unrealized gains related to certain equity securities that were adjusted to fair value in the second quarter of 2018 in accordance with ASU No. 2016-01 of $126.4 million. See "Note 6—Financial Instruments" for additional information.

ASU No. 2016-18, Restricted Cash

In November 2016, the FASB issued ASU No. 2016-18, which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. ASU No. 2016-18 also requires companies to disclose the nature of their restricted cash and restricted cash equivalents balances. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

	December 31, 2018		December 31, 2017		December 31, 2016		December 31, 2015
	(In thousands)
Cash and cash equivalents	$	2,131,632	$	1,630,809	$	1,329,187	$	1,481,447
Restricted cash included in other current assets	1,633		2,873		20,464		126
Restricted cash included in other assets	420		—		10,548		20,100
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows	$	2,133,685	$	1,633,682	$	1,360,199	$	1,501,673

Restricted cash at December 31, 2018 primarily consists of a cash collateralized letter of credit and a deposit related to corporate credit cards.

Restricted cash at December 31, 2017 primarily supports a letter of credit to a supplier, which was released to the Company in the second quarter of 2018.

Restricted cash at December 31, 2016 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes and the MyHammer tender offer. In the first quarter of 2017, the Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company.

Restricted cash at December 31, 2015 primarily includes the repurchase of IAC Senior Notes.

ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

In August 2018, the FASB issued ASU No. 2018-15, which clarifies the accounting for implementation costs in a cloud computing arrangement that is a services contract to follow the internal-use software guidance of ASC 350-40, Intangibles - Goodwill and Other, Internal-use Software. The provisions of ASU No. 2018-15 are effective for reporting periods beginning after December 15, 2019, including interim periods and early adoption is permitted, including adoption in any interim period. The provisions of ASU No. 2018-15 may be adopted prospectively to all implementation costs incurred after the date of adoption or retrospectively. The Company early adopted the provisions of ASU No. 2018-15 on October 1, 2018 prospectively and the adoption of this standard did not have material impact on its consolidated financial statements.

ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting

In June 2018, the FASB issued ASU No. 2018-07, which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees. ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future.

Accounting Pronouncement not yet adopted by the Company

ASU No. 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU No. 2016-02, which supersedes existing guidance on accounting for leases and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018. The Company will adopt the new lease guidance effective January 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11.

The Company is not a lessor, has no capitalized leases and does not expect to enter into any capitalized leases prior to the adoption of ASU No. 2016-02. Accordingly, the Company does not expect the amount or classification of rent expense in its statement of operations to be affected by the adoption of ASU No. 2016-02. The primary effect of the adoption of ASU No. 2016-02 will be the recognition of a right of use asset and related lease liability to reflect the Company's rights and obligations under its operating leases. The Company will also be required to provide the additional disclosures stipulated in ASU No. 2016-02.

The adoption of ASU No. 2016-02 will not have an impact on the leverage calculation set forth in any of the agreements governing the outstanding debt of the Company or its MTCH and ANGI subsidiaries, or our credit agreement or the credit agreement of MTCH and ANGI because, in each circumstance, the leverage calculations are not affected by the lease liability that will be recorded upon adoption of the new standard.

While the Company's evaluation of the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements continues, outlined below is a summary of the status of the Company's progress:

• the Company has selected a software solution to implement ASU No. 2016-02;

• the Company has input lease summaries into the software solution;

• the Company is assessing the other inputs required in connection with the adoption of ASU No. 2016-02; and

• the Company is developing its accounting policy, procedures and internal controls related to the new standard.

Development of the selected software solution by the third-party vendor is ongoing. While significant progress has been made, certain key deliverables remain, which the Company expects to be delivered in March 2019. The Company's ability to adopt ASU No. 2016-02 in an efficient and effective manner is contingent upon the delivery and testing of these remaining deliverables. The Company has been able to develop a preliminary estimate of the impact of the adoption of ASU No. 2016-02 through the use of the third-party software solution, supplemented by our user acceptance testing. This preliminary estimate is that a $160 million right of use asset and related lease liability will be recognized on the Company's consolidated balance sheet upon adoption. The Company does not expect a material impact on its results of operations or cash flows.

Reclassifications

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

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INCOME TAXES

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

U.S. and foreign earnings (loss) before income taxes and noncontrolling interests are as follows:

	Years Ended December 31,
	2018		2017			2016
	(In thousands)
U.S.	$	630,417	$	(52,606	)	$	(248,433	)
Foreign	131,141		119,564			167,348
Total	$	761,558	$	66,958		$	(81,085	)

The components of the income tax provision (benefit) are as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Current income tax provision (benefit):
Federal	$	(2,849	)	$	(31,844	)	$	23,343
State	2,569			1,964			3,662
Foreign	38,770			24,108			27,242
Current income tax provision (benefit)	38,490			(5,772		)	54,247
Deferred income tax provision (benefit):
Federal	(21,792		)	(255,477		)	(100,798		)
State	172			(28,364		)	(9,518		)
Foreign	(13,059		)	(1,437		)	(8,865		)
Deferred income tax benefit	(34,679		)	(285,278		)	(119,181		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

The tax provision for the year ended December 31, 2018 includes a $143.3 million benefit for excess tax deductions attributable to stock-based compensation. Of this amount, $142.2 million reduced income taxes payable and $1.1 million increased the deferred tax asset for net operating losses ("NOLs"). The deferred tax asset for NOLs was increased by $361.8 million for the year ended December 31, 2017 for excess tax deductions attributable to stock-based compensation. The related income tax benefit was recorded as a component of the deferred income tax benefit.The current income tax payable was reduced by $51.8 million for the year ended December 31, 2016 for excess tax deductions attributable to stock-based compensation. For the year ended December 31, 2016, the related income tax benefits were recorded as increases to additional paid-in capital.

Income taxes receivable (payable) and deferred tax assets (liabilities) are included in the following captions in the accompanying consolidated balance sheet at December 31, 2018 and 2017:

	December 31,
	2018			2017
	(In thousands)
Income taxes receivable (payable):
Other current assets	$	10,132		$	33,239
Other non-current assets	11,401			1,949
Accrued expenses and other current liabilities	(12,745		)	(11,798		)
Income taxes payable	(37,584		)	(25,624		)
Net income taxes payable	$	(28,796	)	$	(2,234	)
Deferred tax assets (liabilities):
Other non-current assets	$	64,786		$	66,321
Deferred income taxes	(23,600		)	(35,070		)
Net deferred tax assets	$	41,186		$	31,251

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.

	December 31,
	2018			2017
	(In thousands)
Deferred tax assets:
Accrued expenses	$	23,525		$	22,234
NOL carryforwards	291,639			292,812
Tax credit carryforwards	89,397			78,715
Stock-based compensation	82,698			77,976
Other	30,106			42,331
Total deferred tax assets	517,365			514,068
Less valuation allowance	(115,853		)	(132,598		)
Net deferred tax assets	401,512			381,470
Deferred tax liabilities:
Investment in subsidiaries	(238,650		)	(247,167		)
Intangibles	(77,669		)	(87,811		)
Fair value investment	(22,927		)	—
Other	(21,080		)	(15,241		)
Total deferred tax liabilities	(360,326		)	(350,219		)
Net deferred tax assets	$	41,186		$	31,251

At December 31, 2018, the Company has federal and state NOLs of $856.0 million and $698.7 million, respectively. If not utilized, $13.9 million of federal NOLs can be carried forward indefinitely, and the remainder will expire at various times primarily between 2023 and 2037, and the state NOLs, if not utilized, will expire at various times between 2019 and 2038. Federal and state NOLs of $569.9 million and $350.4 million, respectively, can be used against future taxable income without restriction and the remaining NOLs will be subject to limitations under Section 382 of the Internal Revenue Code, separate return limitations, and applicable state law. At December 31, 2018, the Company has foreign NOLs of $383.4 million available to offset future income. Of these foreign NOLs, $352.0 million can be carried forward indefinitely and $31.4 million will expire at various times between 2019 and 2038. During 2018, the Company recognized tax benefits related to NOLs of $9.5 million.

At December 31, 2018, the Company has tax credit carryforwards of $105.4 million. Of this amount, $53.2 million relates to credits for foreign taxes, $48.3 million relates to credits for research activities and $3.9 million relates to various other credits. Of these credit carryforwards, $24.2 million can be carried forward indefinitely and $81.2 million will expire between 2019 and 2038.

The Company regularly assesses the realizability of deferred tax assets considering all available evidence including, to the extent applicable, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, tax filing status, the duration of statutory carryforward periods, available tax planning and historical experience.

During 2018, the Company's valuation allowance decreased by $16.7 million primarily due to a decrease in foreign tax credits subject to valuation allowance and the realization of previously unbenefited capital losses. At December 31, 2018, the Company has a valuation allowance of $115.9 million related to the portion of tax loss carryforwards, foreign tax credits and other items for which it is more likely than not that the tax benefit will not be realized.

A reconciliation of the income tax provision (benefit) to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Income tax provision (benefit) at the federal statutory rate of 21% (35% for 2017 and 2016)	$	159,927		$	23,435		$	(28,446	)
State income taxes, net of effect of federal tax benefit	14,887			86			(3,880		)
Stock-based compensation	(129,654		)	(358,901		)	3,998
Realization of certain deferred tax assets	(13,200		)	(3,133		)	—
Transition tax	(9,190		)	62,667			—
Deferred tax adjustment for enacted changes in tax laws and rates	(7,488		)	705			(4,594		)
Research credit	(4,023		)	(5,304		)	(2,231		)
Foreign income taxed at a different statutory tax rate	(3,206		)	(14,725		)	(27,115		)
Non-taxable sale and non-deductible goodwill associated with ShoeBuy	—			—			(13,142		)
Goodwill impairment of Dotdash and Emerging & Other	—			—			10,649
Non-deductible impairments for certain cost method investments	—			2,669			3,489
Other, net	(4,242		)	1,451			(3,662		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows:

	December 31,
	2018			2017			2016
	(In thousands)
Balance at January 1	$	36,732		$	38,372		$	40,808
Additions based on tax positions related to the current year	10,334			2,050			2,033
Additions for tax positions of prior years	4,716			1,994			2,676
Reductions for tax positions of prior years	(400		)	(3,761		)	(743		)
Settlements	—			—			(5,107		)
Expiration of applicable statutes of limitations	(2,507		)	(1,923		)	(1,295		)
Balance at December 31	$	48,875		$	36,732		$	38,372

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 the years ended December 31, 2018, 2017 and 2016 is a $0.3 million expense, $0.1 million benefit and $0.4 million expense, respectively, net of related deferred taxes of $0.1 million, less than $0.1 million and $0.2 million, respectively, for interest on unrecognized tax benefits. At December 31, 2018 and 2017, the Company has accrued $3.4 million and $3.0 million, respectively, for the payment of interest. At December 31, 2018 and 2017, the Company has accrued $1.4 million and $1.7 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 ("IRS") is currently auditing the Company’s federal income tax returns for the years ended December 31, 2010 through 2016. The statute of limitations for the years 2010 through 2015 has been extended to December 31, 2019. Various other jurisdictions are open to examination for tax years beginning with 2009. Income taxes payable include unrecognized tax benefits considered sufficient to pay assessments that may result from examination of prior year tax returns. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may not accurately anticipate actual outcomes and, therefore, may require periodic adjustment. Although management currently believes changes in unrecognized tax benefits from period to period and differences between amounts paid, if any, upon resolution of issues raised in audits and amounts previously provided 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.

At December 31, 2018 and 2017, unrecognized tax benefits, including interest and penalties, were $52.3 million and $39.7 million, respectively. If unrecognized tax benefits at December 31, 2018 are subsequently recognized, $49.1 million, net of related deferred tax assets and interest, would reduce income tax expense. The comparable amount as of December 31, 2017 was $37.2 million. The Company believes that it is reasonably possible that its unrecognized tax benefits could decrease by $21.6 million by December 31, 2019, due to expirations of statutes of limitations or other settlements; $21.6 million of which would reduce the income tax provision.

On December 22, 2017, the U.S. enacted the Tax Act. The Tax Act subjected to U.S. taxation certain previously deferred earnings of foreign subsidiaries as of December 31, 2017 ("Transition Tax") and implemented a number of changes that took effect on January 1, 2018, including but not limited to, a reduction of the U.S. federal corporate tax rate from 35% to 21% and a new minimum tax on GILTI earned by foreign subsidiaries. The Company was able to make a reasonable estimate of the Transition Tax and recorded a provisional tax expense in the fourth quarter of 2017. In the third quarter of 2018, the Company finalized this calculation, which resulted in a $9.2 million reduction in the Transition Tax. The net reduction in the Transition Tax was due primarily to the utilization of additional foreign tax credits and a reduction in state taxes, partially offset by additional taxable earnings and profits of our foreign subsidiaries based on recently issued IRS guidance. The adjustment of the Company’s provisional tax expense was recorded as a change in estimate in accordance with Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which is also included in the FASB issued ASU No. 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB 118"), whichwasissued and adopted by the Company in March 2018. Despite the completion of the Company’s accounting for the Tax Act under SAB 118, many aspects of the law remain unclear and we expect ongoing guidance to be issued at both the federal and state levels. We will continue to monitor and assess the impact of any new developments.

At December 31, 2018, all of the Company’s international cash can be repatriated without significant tax consequences. The Company has not provided for approximately $1.0 million of foreign deferred taxes for the $103.1 million of the foreign cash earnings that is indefinitely reinvested outside the U.S. The Company reassesses its intention to remit or permanently reinvest these cash earnings each reporting period; any required adjustment to the income tax provision would be reflected in the period that the Company changes this intention.

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BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

BUSINESS COMBINATION

BUSINESS COMBINATION

Through the Combination, ANGI acquired 100% of the common stock of Angie's List on September 29, 2017 for a total purchase price valued at $781.4 million.

The purchase price of $781.4 million was determined based on the sum of (i) the fair value of the 61.3 million shares of Angie's List common stock outstanding immediately prior to the Combination based on the closing stock price of Angie's List common stock on the NASDAQ on September 29, 2017 of $12.46per share; (ii) the cash consideration of$1.9 millionpaid to holders of Angie's List common stock who elected to receive$8.50 in cash per share; and (iii) the fair value of vested equity awards (including the pro rata portion of unvested awards attributable to pre-combination services) outstanding under Angie's List stock plans on September 29, 2017. Each stock option to purchase shares of Angie's List common stock that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an option to purchase (i) that number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List option immediately prior to the effective time of the Combination, (ii) at a per-share exercise price equal to the exercise price per share of Angie's List common stock at which such Angie's List option was exercisable immediately prior to the effective time of the Combination. Each award of Angie's List restricted stock units that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an ANGI Homeservices restricted stock unit award with respect to a number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List restricted stock unit award immediately prior to the effective time of the Combination.

The table below summarizes the purchase price:

	Angie's List
	(In thousands)
Class A common stock	$	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services	11,749
Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services	4,038
Total purchase price	$	781,384

The financial results of Angie's List are included in the Company's consolidated financial statements, within the ANGI Homeservices segment, beginning September 29, 2017. For the year ended December 31, 2017, the Company included $58.9 million of revenue and $21.8 million of net loss in its consolidated statement of operations related to Angie's List. The net loss of Angie's List reflects $28.7 million in stock-based compensation expense related to (i) the acceleration of previously issued Angie's List equity awards held by employees terminated in connection with the Combination and (ii) the expense related to previously issued Angie's List equity awards, severance and retention costs of $19.8 million related to the Combination and a reduction in revenue of $7.8 million due to the write-off of deferred revenue related to the Combination.

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of combination:

	Angie's List
	(In thousands)
Cash and cash equivalents	$	44,270
Other current assets	11,280
Property and equipment	16,341
Goodwill	543,674
Intangible assets	317,300
Total assets	932,865
Deferred revenue	(32,595		)
Other current liabilities	(46,150		)
Long-term debt—related party	(61,498		)
Deferred income taxes	(9,833		)
Other long-term liabilities	(1,405		)
Net assets acquired	$	781,384

The purchase price was based on the expected financial performance of Angie's List, not on the value of the net identifiable assets at the time of combination. This resulted in a significant portion of the purchase price being attributed to goodwill because Angie's List is complementary and synergistic to the other North America businesses of ANGI Homeservices.

The fair values of the identifiable intangible assets acquired at the date of combination are as follows:

	Angie's List
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	137,000	Indefinite
Service professionals	90,500		3
Developed technology	63,900		6
Memberships	15,900		3
User base	10,000		1
Total identifiable intangible assets acquired	$	317,300

Other current assets, current liabilities and other long-term liabilities of Angie's List were reviewed and adjusted to their fair values at the date of combination, as necessary. The fair value of deferred revenue was determined using an income approach that utilized a cost to fulfill analysis. The fair value of the trade name and trademarks was determined using an income approach that utilized the relief from royalty methodology. The fair values of developed technology and user base were determined using a cost approach that utilized the cost to replace methodology. The fair values of the service professionals and memberships were determined using an income approach that utilized the excess earnings methodology. The valuations of deferred revenue and intangible assets incorporate significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows, cost and profit margins related to deferred revenue and the determination of royalty and discount rates. The amount attributed to goodwill is not tax deductible.

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below presents the combined results of the Company and Angie's List as if the Combination had occurred on January 1, 2016. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the Combination actually occurred on January 1, 2016. For the year ended December 31, 2017, pro forma adjustments include (i) reductions in stock-based compensation expense of $77.1 million and transaction related costs of $34.1 million because they are one-time in nature and will not have a continuing impact on operations; and (ii) an increase in amortization of intangibles of $31.9 million. The stock-based compensation expense is related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination. The transaction related costs include severance and retention costs of $19.8 million related to the Combination. For the year ended December 31, 2016, pro forma adjustments include a reduction in revenue of $34.1 million due to the write-off of deferred revenue at the assumed date of acquisition as well as increases in stock-based compensation expense of $81.4 million and amortization of intangibles of $56.1 million.

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Revenue	$	3,529,600	$	3,429,105
Net earnings (loss) attributable to ANGI Homeservices Inc. shareholders	$	364,496	$	(143,133	)
Basic earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.55	$	(1.79	)
Diluted earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.27	$	(1.79	)

TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION

During the years ended December 31, 2018 and 2017, the Company incurred $3.6 million and $44.1 million, respectively, in costs related to the Combination (including severance, retention, transaction and integration related costs), as well as deferred revenue write-offs of $5.5 million and $7.8 million, respectively. During the years ended December 31, 2018 and 2017, the Company also incurred $70.6 million and $122.1 million, respectively, in stock-based compensation expense related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination.

See "Note 4—Business Combination" for additional information on the Combination.

A summary of the costs incurred, payments made and the related accrual is presented below.

	Years Ended December 31,
	2018		2017
	(In thousands)
Transaction and integration related costs	$	3,584	$	44,101
Stock-based compensation expense	70,645		122,066
Total	$	74,229	$	166,167

	December 31,
	2018			2017
	(In thousands)
Accrual as of January 1	$	8,480		$	—
Costs incurred	3,584			44,101
Payments made	(12,064		)	(35,621		)
Accrual as of December 31	$	—		$	8,480

The costs are allocated as follows in the accompanying consolidated statement of operations:

	Year Ended December 31, 2018
	Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	—		2,161		2,161
General and administrative expense	3,584		61,010		64,594
Product development expense	—		7,474		7,474
Total	$	3,584	$	70,645	$	74,229

	Year Ended December 31, 2017
	Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	7,430		24,416		31,846
General and administrative expense	36,120		83,420		119,540
Product development expense	551		14,230		14,781
Total	$	44,101	$	122,066	$	166,167

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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets, net are as follows:

	December 31,
	2018		2017
	(In thousands)
Goodwill	$	2,726,859	$	2,559,066
Intangible assets with indefinite lives	458,104		459,143
Intangible assets with definite lives, net of accumulated amortization	173,318		204,594
Total goodwill and intangible assets, net	$	3,358,281	$	3,222,803

The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2018:

	Balance at December 31, 2017		Additions		(Deductions)			Transfers In/(Out)			Foreign Exchange Translation			Balance at December 31, 2018
	(In thousands)
Match Group	$	1,247,899	$	11,187	$	—		$	—		$	(14,073	)	$	1,245,013
ANGI Homeservices	768,317		142,768		(14,373		)	—			(3,912		)	892,800
Vimeo	77,303		—		(151		)	—			—			77,152
Applications:
Desktop	265,146		—		—			—			—			265,146
Mosaic Group	182,096		50,784		—			7,323			(457		)	239,746
Total Applications	447,242		50,784		—			7,323			(457		)	504,892
Emerging & Other	18,305		3,684		(7,664		)	(7,323		)	—			7,002
Total	$	2,559,066	$	208,423	$	(22,188	)	$	—		$	(18,442	)	$	2,726,859

Additions primarily relate to the acquisitions of Handy (included in the ANGI Homeservices segment), TelTech and iTranslate (included in the Applications segment), Hinge (included in the Match Group segment), and BlueCrew (included in the Emerging & Other segment). Deductions relate to the sales of Felix (included in the ANGI Homeservices segment) and Electus (included in the Emerging & Other segment).

The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2017:

	Balance at December 31, 2016		Additions		(Deductions)			Foreign Exchange Translation		Balance at December 31, 2017
	(In thousands)
Match Group	$	1,206,538	$	255	$	—		$	41,106	$	1,247,899
ANGI Homeservices	170,611		590,772		—			6,934		768,317
Vimeo	9,649		67,654		—			—		77,303
Applications:
Desktop	265,146		—		—			—		265,146
Mosaic Group	182,096		—		—			—		182,096
Total Applications	447,242		—		—			—		447,242
Emerging & Other	90,012		2,715		(74,430		)	8		18,305
Total	$	1,924,052	$	661,396	$	(74,430	)	$	48,048	$	2,559,066

Additions primarily relate to the acquisitions of Angie's List, MyBuilder and HomeStars (included in the ANGI Homeservices segment), and Livestream (included in the Vimeo segment). Deductions relate to the sale of The Princeton Review (included in the Emerging & Other segment).

Prior to the fourth quarter of 2018, IAC Publishing was a reportable segment consisting of one operating segment and one reporting unit. In the fourth quarter of 2018, IAC Publishing was split into the Dotdash and the Emerging & Other segments (related to the remaining businesses previously included in the IAC Publishing segment). The accumulated goodwill impairment of IAC Publishing was allocated to these businesses based upon their relative fair values as of October 1, 2018. The December 31, 2018 and 2017 goodwill balance reflects accumulated impairment losses of $529.1 million, $399.7 million, $198.3 million and $11.6 million at Applications, the businesses previously included in the IAC Publishing segment, excluding Dotdash (included in the Emerging & Other segment), Dotdash and College Humor Media (included in the Emerging & Other segment), respectively.

Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2018 and 2017, intangible assets with definite lives are as follows:

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted-Average Useful Life (Years)
	(In thousands)
Technology	$	143,303	$	(53,199	)	$	90,104	4.7
Service professional and contractor relationships	99,528		(44,674		)	54,854		2.9
Customer lists and user base	30,099		(15,126		)	14,973		2.9
Memberships	15,900		(6,640		)	9,260		3.0
Trade names	12,393		(9,393		)	3,000		3.3
Other	8,500		(7,373		)	1,127		4.8
Total	$	309,723	$	(136,405	)	$	173,318	3.8

	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted-Average Useful Life (Years)
	(In thousands)
Technology	$	115,200	$	(37,357	)	$	77,843	4.8
Service professional and contractor relationships	99,497		(11,452		)	88,045		3.0
Customer lists and user base	23,468		(5,401		)	18,067		2.2
Memberships	15,900		(1,340		)	14,560		3.0
Trade names	16,986		(13,634		)	3,352		2.6
Other	8,500		(5,773		)	2,727		4.8
Total	$	279,551	$	(74,957	)	$	204,594	3.7

At December 31, 2018, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows:

Years Ending December 31,	(In thousands)
2019	$	71,155
2020	51,916
2021	19,433
2022	16,310
2023	10,239
Thereafter	4,265
Total	$	173,318

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FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

Marketable Securities

At December 31, 2018 and 2017, the fair value of marketable securities are as follows:

	December 31,
	2018		2017
	(In thousands)
Available-for-sale marketable debt securities	$	123,246	$	4,995
Marketable equity security	419		—
Total marketable securities	$	123,665	$	4,995

At December 31, 2018, current available-for-sale marketable debt securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Treasury discount notes	$	112,291	$	3	$	(3	)	$	112,291
Commercial paper	10,955		—		—			10,955
Total available-for-sale marketable debt securities	$	123,246	$	3	$	(3	)	$	123,246

The contractual maturities of debt securities classified as current available-for-sale at December 31, 2018 are within one year. There are no investments in available-for-sale marketable debt securities that have been in a continuous unrealized loss position for longer than twelve months as of December 31, 2018.

At December 31, 2017, current available-for-sale marketable debt securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Commercial paper	$	4,995	$	—	$	—	$	4,995
Total available-for-sale marketable debt securities	$	4,995	$	—	$	—	$	4,995

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

	December 31,
	2018		2017		2016
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable debt securities	$	333,600	$	114,350	$	279,485
Gross realized gains	—		—		3,556

Gross realized gains from the maturities and sales of available-for-sale marketable debt securities for the year ended December 31, 2016 are included in "Other income (expense), net" in the accompanying consolidated statement of operations. There were no gross realized losses from the maturities and sales of available-for-sale marketable debt securities for the years ended December 31, 2018, 2017, and 2016.

Long-term investments

Long-term investments consist of:

	December 31,
	2018		2017
	(In thousands)
Equity securities without readily determinable fair values	$	235,055	$	—
Equity method investments	—		1,559
Cost method investments	—		63,418
Total long-term investments	$	235,055	$	64,977

Equity securities without readily determinable fair values

The following table presents a summary of realized and unrealized gains and losses recorded in other income (expense), net, as adjustments to the carrying value of equity securities without readily determinable fair values held as of December 31, 2018. The gross unrealized gains principally relate to the Company's remaining investments in an investee following the sale of a portion of the Company's investment during the second quarter of 2018.

	Year Ended December 31, 2018
	(In thousands)
Upward adjustments (gross unrealized gains)	$	128,986
Downward adjustments including impairments (gross unrealized losses)	(4,931		)
Total	$	124,055

Realized and unrealized gains and losses for the Company's marketable equity security and investments without readily determinable fair values for the year ended December 31, 2018 are as follows:

	Year Ended December 31, 2018
	(In thousands)
Realized gains, net, for equity securities sold	$	27,874
Unrealized gains, net, on equity securities held	124,170
Total gains recognized, net, in other income (expense), net	$	152,044

Equity method investments

In 2018 and 2017, the Company recorded other-than-temporary impairment charges on certain of its investments of $0.6 million and $2.7 million, respectively. These charges are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

Cost method investments (prior to the adoption of ASU No. 2016-01)

In 2017 and 2016, the Company recorded $9.5 million and $10.0 million, respectively, of other-than-temporary impairment charges for certain of its investments as a result of our assessment of the near-term prospects and financial condition of the investees. These charges are included in "Other income (expense), net" in the accompanying consolidated statement of operations.

On October 23, 2017, Match Group sold a cost method investment for net proceeds of $60.2 million. The gain on sale of $9.1 million is included in "Other income (expense), net" in the accompanying consolidated statement of operations.

Fair Value Measurements

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

	December 31, 2018
	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	$	880,815	$	—	$	—		$	880,815
Treasury discount notes	—		561,733		—			561,733
Commercial paper	—		162,417		—			162,417
Time deposits	—		90,036		—			90,036
Marketable securities:
Treasury discount notes	—		112,291		—			112,291
Commercial paper	—		10,955		—			10,955
Marketable equity security	419		—		—			419
Total	$	881,234	$	937,432	$	—		$	1,818,666
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(28,631	)	$	(28,631	)

	December 31, 2017
	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	$	780,425	$	—	$	—		$	780,425
Commercial paper	—		215,325		—			215,325
Treasury discount notes	—		100,457		—			100,457
Time deposits	—		60,000		—			60,000
Certificates of deposit	—		6,195		—			6,195
Marketable securities:
Commercial paper	—		4,995		—			4,995
Total	$	780,425	$	386,972	$	—		$	1,167,397
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(2,647	)	$	(2,647	)

The Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements.

	Contingent Consideration Arrangements
	Years Ended December 31,
	2018			2017
	(In thousands)
Balance at January 1	$	(2,647	)	$	(33,871	)
Total net (losses) gains:
Included in earnings:
Fair value adjustments	(1,456		)	(5,801		)
Included in other comprehensive income (loss)	45			(1,404		)
Fair value at date of acquisition	(25,521		)	—
Settlements	948			38,429
Balance at December 31	$	(28,631	)	$	(2,647	)

Contingent consideration arrangements

At December 31, 2018, the Company has two contingent consideration arrangements outstanding related to business acquisitions.  One arrangement has a $2.0 million maximum contingent payment that has been earned and will be paid by the Companyin the first quarter of 2019.  The second arrangement has a total maximum contingent payment of $45.0 million.  At December 31, 2018, the gross fair value of this arrangement, before unamortized discount, is $44.0 million.

The contingent consideration arrangements are based upon earnings performance and/or operating metrics. The Company generally determines the fair value of the contingent consideration arrangements by using probability-weighted analyses to determine the amounts of the gross liability, and, because the arrangements were initially long-term in nature, applying a discount rate that appropriately captures the risks associated with the obligation to determine the net amount reflected in the consolidated financial statements. The fair values of the contingent consideration arrangements at December 31, 2018 reflect discount rates ranging from 12% to 25%. The fair values of the contingent consideration arrangements at December 31, 2017 reflect discount rates of 12%.

The fair value of contingent consideration arrangements is 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, including the accretion of the discount, if applicable, and changes are recognized in "General and administrative expense" in the accompanying consolidated statement of operations. The contingent consideration arrangement liability at December 31, 2018 and 2017 includes a current portion of $2.0 million and $0.6 million, respectively, and non-current portion of $26.6 million and $2.0 million at December 31, 2018 and 2017, which are included in "Accrued expenses and other current liabilities" and "Other long-term liabilities," respectively, 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:

	December 31, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Current portion of long-term debt	$	(13,750	)	$	(12,753	)	$	(13,750	)	$	(13,802	)
Long-term debt, net(a)	(2,245,548		)	(2,460,204		)	(1,979,469		)	(2,168,108		)

_________________

^(a)  At December 31, 2018 and 2017, the carrying value of long-term debt, net includes unamortized original issue discount and debt issuance costs of $88.9 million and $109.1 million, respectively.

Excluding the MTCH Credit Facility, the fair value of long-term debt, including the current portion, is estimated using observable market prices or indices for similar liabilities, which are Level 2 inputs. The Company considers the outstanding borrowings under the MTCH Credit Facility, which has a variable interest rate, to have a fair value equal to its carrying value.

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LONG-TERM DEBT

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

Long-term debt consists of:

	December 31,
	2018		2017
	(In thousands)
MTCH Debt:
MTCH Term Loan due November 16, 2022	$	425,000	$	425,000
MTCH Credit Facility due December 7, 2023	260,000		—
6.375% Senior Notes due June 1, 2024 (the "6.375% MTCH Senior Notes"); interest payable each June 1 and December 1	400,000		400,000
5.00% Senior Notes due December 15, 2027 (the "5.00% MTCH Senior Notes"); interest payable each June 15 and December 15	450,000		450,000
Total MTCH long-term debt	1,535,000		1,275,000
Less: unamortized original issue discount	7,352		8,668
Less: unamortized debt issuance costs	11,737		13,636
Total MTCH debt, net	1,515,911		1,252,696
ANGI Debt:
ANGI Term Loan due November 5, 2023	261,250		275,000
Less: current portion of ANGI Term Loan	13,750		13,750
Less: unamortized debt issuance costs	2,529		2,938
Total ANGI debt, net	244,971		258,312
IAC Debt:
0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1	517,500		517,500
4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15	34,489		34,859
Total IAC long-term debt	551,989		552,359
Less: unamortized original issue discount	54,025		67,158
Less: unamortized debt issuance costs	13,298		16,740
Total IAC debt, net	484,666		468,461
Total long-term debt, net	$	2,245,548	$	1,979,469

MTCH Senior Notes

The 6.375% MTCH Senior Notes were issued on June 1, 2016. The proceeds of $400 million were used to prepay a portion of indebtedness outstanding under the MTCH Term Loan. At any time prior to June 1, 2019, these notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium set forth in the indenture governing the notes. Thereafter, these notes may be redeemed at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on June 1 of the years indicated below:

Year	Percentage
2019	104.781	%
2020	103.188	%
2021	101.594	%
2022 and thereafter	100.000	%

On December 4, 2017, MTCH issued $450 million aggregate principal amount of its 5.00% Senior Notes. The proceeds from these notes, along with cash on hand, were used to redeem the $445.2 million outstanding balance of the 6.75% MTCH Senior Notes, which were due on December 15, 2022, and pay the related call premium. At any time prior to December 15, 2022, the 5.00% MTCH Senior Notes may be redeemed at a redemption price equal to the sum of the principal amount thereof, plus accrued and unpaid interest and a make-whole premium set forth in the indenture governing the notes. Thereafter, these notes may be redeemed at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:

Year	Percentage
2022	102.500	%
2023	101.667	%
2024	100.833	%
2025 and thereafter	100.000	%

The indentures governing the 6.375% and 5.00% MTCH Senior Notes (i) contain covenants that would limit MTCH's ability to pay dividends, make distributions or repurchase MTCH stock in the event a default has occurred or MTCH's consolidated leverage ratio (as defined in the indentures) exceeds 5.0 to 1.0 and (ii) are ranked equally with each other. At December 31, 2018, there were no limitations pursuant thereto. There are additional covenants that limit MTCH's ability and the ability of its subsidiaries to, among other things, (i) incur indebtedness, make investments, or sell assets in the event MTCH is not in compliance with certain ratios set forth in the indentures, and (ii) incur liens, enter into agreements restricting MTCH subsidiaries' ability to pay dividends, enter into transactions with affiliates and consolidate, merge or sell substantially all of their assets.

MTCH Term Loan and MTCH Credit Facility

At both December 31, 2018 and 2017, the outstanding balance on the MTCH Term Loan was $425 million. The MTCH Term Loan bears interest at LIBOR plus 2.50% and was 5.09% and 3.85% at December 31, 2018 and 2017, respectively. The MTCH Term Loan provides for annual principal payments as part of an excess cash flow sweep provision, the amount of which, if any, is governed by the secured net leverage ratio contained in the credit agreement. Interest payments are due at least quarterly through the term of the loan.

On December 7, 2018, the MTCH $500 million revolving credit facility (the "MTCH Credit Facility") was amended and restated, and is due on December 7, 2023. At December 31, 2018, the outstanding borrowings under the MTCH Credit Facility were $260.0 million which bear interest at LIBOR plus 1.50%, or approximately 4.00%. At December 31, 2017, there were no outstanding borrowings under the MTCH Credit Facility. The annual commitment fee on undrawn funds based on the current consolidated net leverage ratio is 25 basis points and 30 basis points at December 31, 2018 and 2017, respectively. Borrowings under the MTCH Credit Facility bear interest, at MTCH's option, at a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on MTCH's consolidated net leverage ratio. The terms of the MTCH Credit Facility require MTCH to maintain a consolidated net leverage ratio of not more than 5.0 to 1.0 and a minimum interest coverage ratio of not less than 2.0 to 1.0 (in each case as defined in the agreement).

The MTCH Term Loan and MTCH Credit Facility contain covenants that would limit MTCH’s ability to pay dividends, make distributions or repurchase MTCH stock in the event MTCH’s secured net leverage ratio exceeds 2.0 to 1.0, while the MTCH Term Loan remains outstanding and, thereafter, if the consolidated net leverage ratio exceeds 4.0 to 1.0, or in the event a default has occurred. There are additional covenants under these MTCH debt agreements that limit the ability of MTCH and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions. Obligations under the MTCH Credit Facility and MTCH Term Loan are unconditionally guaranteed by certain MTCH wholly-owned domestic subsidiaries, and are also secured by the stock of certain MTCH domestic and foreign subsidiaries. The MTCH Term Loan and outstanding borrowings, if any, under the MTCH Credit Facility rank equally with each other, and have priority over the 6.375% and 5.00% MTCH Senior Notes to the extent of the value of the assets securing the borrowings under the MTCH credit agreement.

ANGI Term Loan and ANGI Credit Facility

On November 1, 2017, ANGI borrowed $275 million under a five-year term loan facility ("ANGI Term Loan"). On November 5, 2018, the ANGI Term Loan was amended and restated, and is now due on November 5, 2023. Interest payments are due at least quarterly through the term of the loan and quarterly principal payments of 1.25% of the original principal amount in the first three years from the amendment date, 2.50% in the fourth year and 3.75% in the fifth year are required. The ANGI Term Loan bears interest at LIBOR plus 1.50%, or approximately 4.00% at December 31, 2018, which is subject to change in future periods based on ANGI's consolidated net leverage ratio. The ANGI Term Loan bore interest at LIBOR plus 2.00%, or 3.38%, at December 31, 2017.

The terms of the ANGI Term Loan require ANGI to maintain a consolidated net leverage ratio of not more than 4.5 to 1.0 and a minimum interest coverage ratio of not less than 2.0 to 1.0 (in each case as defined in the credit agreement). The ANGI Term Loan also contains covenants that would limit ANGI’s ability to pay dividends, make distributions or repurchase ANGI stock in the event a default has occurred or ANGI’s consolidated net leverage ratio exceeds 4.25 to 1.0. There are additional covenants under the ANGI Term Loan that limit the ability of ANGI and its subsidiaries to, among other things, incur indebtedness, pay dividends or make distributions.

On November 5, 2018, ANGI entered into a five-year $250 million revolving credit facility (the "ANGI Credit Facility"). At December 31, 2018, there were no outstanding borrowings under the ANGI Credit Facility. The annual commitment fee on undrawn funds is currently 25 basis points, and is based on the consolidated net leverage ratio most recently reported. Borrowings under the ANGI Credit Facility bear interest, at ANGI's option, at either a base rate or LIBOR, in each case plus an applicable margin, which is determined by reference to a pricing grid based on ANGI's consolidated net leverage ratio. The financial and other covenants are the same as those for the ANGI Term Loan.

The ANGI Term Loan and ANGI Credit Facility are guaranteed by ANGI's wholly-owned material domestic subsidiaries and are secured by substantially all assets of ANGI and the guarantors, subject to certain exceptions.

IAC Exchangeable Notes

On October 2, 2017, IAC FinanceCo, Inc., a direct, wholly-owned subsidiary of the Company, issued $517.5 million aggregate principal amount of its 0.875% Exchangeable Senior Notes (the "Exchangeable Notes"). The Exchangeable Notes are guaranteed by the Company. Each $1,000 of principal of the Exchangeable Notes is exchangeable for 6.5713 shares of the Company's common stock, which is equivalent to an exchange price of approximately $152.18 per share, subject to adjustment upon the occurrence of specified events. Upon exchange, the Company has the right to settle the principal amount of Exchangeable Notes with any of the three following alternatives: (1) shares of our common stock, (2) cash or (3) a combination of cash and shares of our common stock.

The Exchangeable Notes are exchangeable at any time prior to the close of business on the business day immediately preceding July 1, 2022 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days during the period of 30 consecutive trading days during the immediately preceding calendar quarter is greater than or equal to 130% of the exchange price on each applicable trading day, which occurred in the third quarter of 2018; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the exchange rate on each such trading day; (3) if the issuer calls the notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events as further described under the indenture governing the Exchangeable Notes. On or after July 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may exchange all or any portion of their Exchangeable Notes regardless of the foregoing conditions.

A portion of the net proceeds from the sale of the Exchangeable Notes of $499.5 million, after deducting fees and expenses, was used to pay the net premium of $50.7 million on the Exchangeable Note Hedge and Warrants (defined below).

We separately account for the debt and the equity components of the Exchangeable Notes. Accordingly, the Company recorded a debt discount and corresponding increase to additional paid-in capital of $70.4 million, which is the fair value attributed to the exchange feature or equity component of the debt, on the date of issuance. The Company is amortizing the debt discount utilizing the effective interest method over the life of the Exchangeable Notes which increases the effective interest rate from its coupon rate of 0.875% to 3.88%. Transaction costs of $18.0 million were allocated between the liability and equity components.

In connection with the debt offering, the Company purchased call options allowing the Company to purchase initially (subject to adjustment upon the occurrence of specified events) the entire 3.4 million shares that would be issuable upon the exchange of the Exchangeable Notes at approximately $152.18 per share (the "Exchangeable Note Hedge"), and sold warrants allowing the holder to purchase initially (subject to adjustment upon the occurrence of specified events) 3.4 million shares at $229.70 per share (the "Warrants"). The if-converted value of the Exchangeable Notes exceeds its principal amount by $105.0 million based on the Company's stock price on December 31, 2018. The Exchangeable Note Hedge is expected to reduce the potential dilutive effect on the Company's common stock upon any exchange of notes and/or offset any cash payment IAC FinanceCo, Inc. is required to make in excess of the principal amount of the exchanged notes. The Warrants have a dilutive effect on the Company's common stock to the extent that the market price per share of the Company common stock exceeds the strike price of the Warrants. The cost of the Exchangeable Note Hedge was $74.4 million, which was recorded as a reduction to additional paid-in capital. The aggregate proceeds from the issuance of the Warrant were $23.6 million, which was recorded as an increase to additional paid-in capital.

For the years ended December 31, 2018 and 2017, the Company incurred interest expense of $21.2 million and $5.2 million, which includes amortization of original issue discount of $13.1 million and $3.2 million, and debt issuance costs of $3.5 million and $0.9 million, respectively. As of December 31, 2018 and 2017, the unamortized discount is $54.0 million and $67.2 million, resulting in a net carrying value of the liability component of $463.5 million and $450.3 million, respectively.

IAC Senior Notes

The 4.75% Senior Notes were issued by IAC on December 21, 2012. These Notes are unconditionally guaranteed by certain of our wholly-owned domestic subsidiaries, which are designated as guarantor subsidiaries. See "Note 19—Guarantor and Non-Guarantor Financial Information" for financial information relating to guarantor and non-guarantor subsidiaries. The 4.75% Senior Notes may be redeemed at redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:

Year	Percentage
2018	101.583	%
2019	100.792	%
2020 and thereafter	100.000	%

IAC Credit Facility

On November 5, 2018, the IAC Credit Facility, under which IAC Group, LLC, a direct, wholly-owned subsidiary of the Company is the borrower, was amended and restated, reducing the facility size from $300 million to $250 million, and now expires on November 5, 2023. At December 31, 2018 and 2017, there were no outstanding borrowings under the IAC Credit Facility. The annual commitment fee on undrawn funds is based on the consolidated net leverage ratio (as defined in the agreement) most recently reported, and is 20 basis points and 25 basis points at December 31, 2018 and 2017, respectively. Borrowings under the IAC Credit Facility bear interest, at the Company's option, at a base rate or LIBOR, in each case, plus an applicable margin, which is determined by reference to a pricing grid based on the Company's consolidated net leverage ratio. The terms of the IAC Credit Facility require that the Company maintains a consolidated net leverage ratio of not more than 3.25 to 1.0 before the date on which the Company no longer holds majority of the outstanding voting stock of each of ANGI and MTCH ("Trigger Date") and no greater than 2.75 to 1.0 on or after the Trigger Date. The terms of the IAC Credit Facility also restrict our ability to incur additional indebtedness. Borrowings under the IAC Credit Facility are unconditionally guaranteed by substantially the same domestic subsidiaries that guarantee the 4.75% Senior Notes and are also secured by the stock of certain of our domestic and foreign subsidiaries, which includes MTCH and ANGI. The 4.75% Senior Notes are subordinate to the outstanding borrowings under the IAC Credit Facility to the extent of the value of the assets securing such borrowings.

Long-term debt maturities:

Years Ending December 31,	(In thousands)
2019	$	13,750
2020	13,750
2021	13,750
2022	1,004,489
2023	452,500
2024	400,000
2027	450,000
Total	2,348,239
Less: current portion of long-term debt	13,750
Less: unamortized original issue discount	61,377
Less: unamortized debt issuance costs	27,564
Total long-term debt, net	$	2,245,548

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SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

Description of Common Stock and Class B Convertible Common Stock

Except as described herein, shares of IAC common stock and IAC Class B common stock are identical.

Each holder of shares of IAC common stock and IAC Class B common stock vote together as a single class with respect to matters that may be submitted to a vote or for the consent of IAC's shareholders generally, including the election of directors. In connection with any such vote, each holder of IAC common stock is entitled to one vote for each share of IAC common stock held and each holder of IAC Class B common stock is entitled to ten votes for each share of IAC Class B common stock held. Notwithstanding the foregoing, the holders of shares of IAC common stock, acting as a single class, are entitled to elect 25% of the total number of IAC's directors, and, in the event that 25% of the total number of directors shall result in a fraction of a director, then the holders of shares of IAC common stock, acting as a single class, are entitled to elect the next higher whole number of IAC's directors. In addition, Delaware law requires that certain matters be approved by the holders of shares of IAC common stock or holders of IAC Class B common stock voting as a separate class.

Shares of IAC Class B common stock are convertible into shares of IAC common stock at the option of the holder thereof, at any time, on a share-for-share basis. Such conversion ratio will in all events be equitably preserved in the event of any recapitalization of IAC by means of a stock dividend on, or a stock split or combination of, outstanding shares of IAC common stock or IAC Class B common stock, or in the event of any merger, consolidation or other reorganization of IAC with another corporation. Upon the conversion of shares of IAC Class B common stock into shares of IAC common stock, those shares of IAC Class B common stock will be retired and will not be subject to reissue. Shares of IAC common stock are not convertible into shares of IAC Class B common stock.

The holders of shares of IAC common stock and the holders of shares of IAC Class B common stock are entitled to receive, share for share, such dividends as may be declared by IAC's Board of Directors out of funds legally available therefor. In the event of a liquidation, dissolution, distribution of assets or winding-up of IAC, the holders of shares of IAC common stock and the holders of shares of IAC Class B common stock are entitled to receive, share for share, all the assets of IAC available for distribution to its stockholders, after the rights of the holders of any IAC preferred stock have been satisfied.

Reserved Common Shares

In connection with equity compensation plans, the Exchangeable Notes and warrants, 28.0 million shares of IAC common stock are reserved at December 31, 2018.

Warrants and Exchangeable Notes

At December 31, 2018 and 2017, warrants to acquire initially (subject to adjustment upon the occurrence of specified events) 3.4 million shares of IAC common stock at $229.70 per share were outstanding. The warrants were issued in connection with the issuance of the Exchangeable Notes on October 2, 2017 for aggregate proceeds of $23.6 million. During the years ended December 31, 2018 and 2017, no warrants were exercised and no Exchangeable Notes were exchanged. See "Note 7—Long-term Debt" for additional information on the Exchangeable Notes.

Common Stock Repurchases

During the years ended December 31, 2018, 2017 and 2016, the Company repurchased 0.5 million, 0.7 million and 6.3 million shares of IAC common stock for aggregate consideration, on a trade date basis, of $82.9 million, $50.1 million and $315.3 million, respectively.

On May 3, 2016, IAC's Board of Directors authorized the repurchase of an additional 10.0 million shares of IAC common stock. At December 31, 2018, the Company has approximately 8.0 million shares remaining in its share repurchase authorization.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive loss into earnings:

	Year Ended December 31, 2018
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities		Accumulated Other Comprehensive Loss
	(In thousands)
Balance at January 1	$	(103,568	)	$	—	$	(103,568	)
Other comprehensive (loss) income before reclassifications	(25,106		)	4		(25,102		)
Amounts reclassified to earnings	(52		)	—		(52		)
Net current period other comprehensive (loss) income	(25,158		)	4		(25,154		)
Balance at December 31	$	(128,726	)	$	4	$	(128,722	)

	Year Ended December 31, 2017
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive (Loss) Income
	(In thousands)
Balance at January 1	$	(170,149	)	$	4,026		$	(166,123	)
Other comprehensive income before reclassifications	65,908			7			65,915
Amounts reclassified to earnings	673			(4,033		)	(3,360		)
Net current period other comprehensive income (loss)	66,581			(4,026		)	62,555
Balance at December 31	$	(103,568	)	$	—		$	(103,568	)

	Year Ended December 31, 2016
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive (Loss) Income
	(In thousands)
Balance at January 1	$	(154,645	)	$	2,542		$	(152,103	)
Other comprehensive (loss) income before reclassifications, net of tax benefit of $0.7 million related to unrealized losses on available-for-sale securities	(46,943		)	4,855			(42,088		)
Amounts reclassified to earnings	9,850			(2,913		)	6,937
Net current period other comprehensive (loss) income	(37,093		)	1,942			(35,151		)
Reallocation of accumulated other comprehensive loss (income) related to the noncontrolling interests created in the Match Group IPO	21,589			(458		)	21,131
Balance at December 31	$	(170,149	)	$	4,026		$	(166,123	)

The amounts reclassified out of foreign currency translation adjustment into earnings for the years ended December 31, 2018, 2017 and 2016 relate to the liquidation of international subsidiaries. The amounts reclassified out of unrealized gains on available-for-sale securities into earnings for the years ended December 31, 2017 and 2016, include a tax benefit of $3.8 million and a tax provision of $0.2 million, respectively.

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EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders:

	Years Ended December 31,
	2018						2017						2016
	Basic			Diluted			Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings (loss)	$	757,747		$	757,747		$	358,008		$	358,008		$	(16,151	)	$	(16,151	)
Net earnings attributable to noncontrolling interests	(130,786		)	(130,786		)	(53,084		)	(53,084		)	(25,129		)	(25,129		)
Impact from public subsidiaries' dilutive securities (a)(b)	—			(25,228		)	—			(33,531		)	—			—
Net earnings (loss) attributable to IAC shareholders	$	626,961		$	601,733		$	304,924		$	271,393		$	(41,280	)	$	(41,280	)
Denominator:
Weighted average basic shares outstanding	83,407			83,407			80,089			80,089			80,045			80,045
Dilutive securities (a) (b) (c) (d) (e) (f) (g)	—			7,915			—			5,221			—			—
Denominator for earnings per share—weighted average shares(a) (b) (c) (d) (e) (f) (g)	83,407			91,322			80,089			85,310			80,045			80,045
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share	$	7.52		$	6.59		$	3.81		$	3.18		$	(0.52	)	$	(0.52	)

__________________________________________________________________

(a) For the year ended December 31, 2018, it is more dilutive for IAC to settle certain MTCH equity awards.  For the years ended December 31, 2017 and 2016, it is more dilutive for MTCH to settle certain MTCH equity awards.

(b) For the years ended December 31, 2018 and 2017, it is more dilutive for IAC to settle certain ANGI equity awards. The impact on earnings of ANGI dilutive securities is not applicable for periods prior to the Combination.

(c) 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, warrants and subsidiary denominated equity, exchange of the Company's Exchangeable Notes and vesting of restricted stock units ("RSUs"). For the years ended December 31, 2018 and 2017, 3.5 million and 6.9 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

(d) For the year ended December 31, 2016, the Company had a loss from operations; therefore, approximately 11.3 million potentially dilutive securities were excluded from 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.

(e) Market-based awards and performance-based stock units ("PSUs") are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For both the years ended December 31, 2018 and 2017, 0.1 million shares underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met.

(f) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; therefore, the Exchangeable Notes are only dilutive for periods during which the average price of IAC common stock exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. For the year ended December 31, 2018, the average price of IAC common stock exceeded $152.18 and the dilutive impact of the Exchangeable Notes was 0.3 million shares. For the year ended December 31, 2017, the Exchangeable Notes were anti-dilutive.

(g) See "Note 11—Stock-based Compensation" for additional information on equity instruments denominated in the shares of certain subsidiaries.

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STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

IAC currently has two active plans under which awards have been granted. These plans cover stock options to acquire shares of IAC common stock, RSUs and PSUs, as well as provide for the future grant of these and other equity awards. These plans authorize the Company to grant awards to its employees, officers, directors and consultants. At December 31, 2018, there are 11.5 million shares available for grant under the plans.

The plans were adopted in 2013 and 2018, have a stated term of ten years, and provide that the exercise price of stock options granted will not be less than the market price of the Company's common stock on the grant date. The plans do not specify grant dates or vesting schedules of awards as those determinations have been delegated to the Compensation and Human Resources Committee of IAC's Board of Directors (the "Committee"). Each grant agreement reflects the vesting schedule for that particular grant as determined by the Committee. Broad-based stock option awards issued to date have generally vested in equal annual installments over a four-year period and RSU awards currently outstanding generally vest in three33% installments over a three-year period, in each case, from the grant date. PSU awards currently outstanding cliff-vest after a three-year period from the date of grant.

The amount of stock-based compensation expense recognized in the consolidated statement of operations is net of estimated forfeitures, as the expense recorded is based on awards that are ultimately expected to vest. The forfeiture rate is estimated at the grant date based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from the estimated rate. At December 31, 2018, there is $326.0 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 2.3 years.

The total income tax benefit recognized in the accompanying consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016 related to all stock-based compensation is $189.0 million, $423.0 million and $34.8 million, respectively. The increase in total income tax benefit recognized in the consolidated statement of operations during 2017 relative to 2016 is due to the adoption of ASU 2016-09, effective January 1, 2017, which required the recognition of excess tax benefits attributable to stock-based compensation to be included as a component of the provision for income taxes rather than recognized in equity. The aggregate income tax benefit recognized related solely to stock options for the years ended December 31, 2018, 2017 and 2016, including the portion recognized as a component of equity in 2016 is $169.0 million, $411.6 million, and $63.4 million, respectively.

As the Company is currently in an NOL position, there will be some delay in the timing of the realization of the cash benefit of the income tax deductions related to stock-based compensation because it will be dependent upon the amount and timing of future taxable income and the timing of estimated income tax payments.

IAC Stock Options

Stock options outstanding at December 31, 2018 and changes during the year ended December 31, 2018 are as follows:

	December 31, 2018
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
	(Shares and intrinsic value in thousands)
Options outstanding at January 1, 2018	6,586		$	60.57
Granted	80		152.53
Exercised	(774	)	52.56
Forfeited	(72	)	57.52
Expired	(6	)	19.51
Options outstanding at December 31, 2018	5,814		$	62.97	6.1	$	698,128
Options exercisable	3,592		$	59.64	5.3	$	443,293

The aggregate intrinsic value in the table above represents the difference between IAC's closing stock price on the last trading day of 2018 and the exercise price, multiplied by the number of in-the-money options that would have been exercised had all option holders exercised their options on December 31, 2018. The total intrinsic value of stock options exercised during the years ended December 31, 2018, 2017 and 2016 is $83.7 million, $164.6 million and $17.1 million, respectively.

The following table summarizes the information about stock options outstanding and exercisable at December 31, 2018:

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Outstanding at December 31, 2018	Weighted- Average Remaining Contractual Life in Years	Weighted- Average Exercise Price		Exercisable at December 31, 2018	Weighted- Average Remaining Contractual Life in Years	Weighted- Average Exercise Price
	(Shares in thousands)
$20.01 to $30.00	30	1.1	$	21.60	30	1.1	$	21.60
$30.01 to $40.00	389	2.3	32.30		389	2.3	32.30
$40.01 to $50.00	1,541	5.8	43.35		961	5.0	44.26
$50.01 to $60.00	246	3.2	59.85		244	3.2	59.86
$60.01 to $70.00	1,173	6.3	65.27		767	6.0	65.62
$70.01 to $80.00	1,840	7.4	75.33		822	6.8	74.72
$80.01 to $90.00	500	6.3	84.31		375	6.3	84.31
Greater than $90.01	95	9.1	148.30		4	8.9	125.08
	5,814	6.1	62.97		3,592	5.3	59.64

The fair value of stock option awards, with the exception of market-based awards, is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model incorporates various assumptions, including expected volatility and expected term. During 2018, 2017 and 2016, expected stock price volatilities were estimated based on the Company's historical volatility. The risk-free interest rates are based on U.S. Treasuries with comparable terms as the awards, in effect at the grant date. Expected term is based upon the historical exercise behavior of our employees and the dividend yields are based on IAC's historical dividend payments. The following are the weighted average assumptions used in the Black-Scholes option pricing model:

	Years Ended December 31,
	2018		2017		2016
Expected volatility	27	%	29	%	29	%
Risk-free interest rate	2.7	%	2.0	%	1.2	%
Expected term	6.2 years		5.2 years		4.8 years
Dividend yield	—	%	—	%	—	%

During 2018, the Company granted market-based stock options that only vest if the price of IAC common stock exceeds the relevant price threshold for a twenty-day consecutive period and the service requirement is met. The market-based vesting condition was achieved in the fourth quarter of 2018. The service requirement provides that this award vests in two installments, the first 50% in 2021 and the second 50% in 2022. The grant date fair value of the market-based award was estimated using a lattice model that incorporates a Monte Carlo simulation of IAC's stock price. The inputs used to fair value this award included an expected volatility of 29%, risk-free interest rate of 2.8% and a zero-dividend yield. The expected term of 1.8 years for this award was derived from the output of the option valuation model. Expense is recognized over the longer of the vesting period of each of the two installments or the expected term.

Approximately less than 0.1 million, 1.2 million and 1.7 million stock options were granted by the Company during the years ended December 31, 2018, 2017 and 2016, respectively. The weighted average fair value of stock options granted during the years ended December 31, 2018, 2017 and 2016 are $53.94, $22.94 and $12.34, respectively.

Cash received from stock option exercises for the years ended December 31, 2018, 2017 and 2016 was $41.7 million, $82.4 million and $25.8 million, respectively.

The Company has historically settled its stock options on a gross basis. Assuming all stock options outstanding on December 31, 2018 were net settled on that date, the Company would have remitted $349.1 million (of which $221.6 million is related to vested stock options and $127.4 million is related to unvested stock options) in cash for withholding taxes (assuming a 50% withholding rate).

IAC Restricted Stock Units and Performance-based Stock Units

RSUs and PSUs are awards in the form of phantom shares or units denominated in a hypothetical equivalent number of shares of IAC common stock and with the value of each RSU and PSU equal to the fair value of IAC common stock at the date of grant. Each RSU and PSU grant is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. PSUs also include performance-based vesting, where certain performance targets set at the time of grant must be achieved before an award vests. For RSU grants, the expense is measured at the grant date as the fair value of IAC common stock and expensed as stock-based compensation over the vesting term. For PSU grants, the expense is measured at the grant date as the fair value of IAC common stock and expensed as stock-based compensation over the vesting term if the performance targets are considered probable of being achieved.

Unvested RSUs and PSUs outstanding at December 31, 2018 and changes during the year ended December 31, 2018 are as follows:

	RSUs				PSUs
	Number of shares		Weighted Average Grant Date Fair Value		Number of shares		Weighted Average Grant Date Fair Value
	(Shares in thousands)
Unvested at January 1, 2018	360		$	80.81	130		$	76.00
Granted	153		183.33		30		152.53
Vested	(49	)	78.54		—		—
Forfeited	(5	)	98.81		(17	)	76.00
Unvested at December 31, 2018	459		$	115.12	143		$	92.02

The weighted average fair value of RSUs and PSUs granted during the years ended December 31, 2018, 2017 and 2016 based on market prices of IAC's common stock on the grant date was $178.29, $90.04 and $46.92, respectively. The total fair value of RSUs and PSUs that vested during the years ended December 31, 2018, 2017 and 2016 was $8.9 million, $32.5 million and $13.5 million, respectively.

Equity Instruments Denominated in the Shares of Certain Subsidiaries

Non-publicly-traded Subsidiaries

The following description excludes awards denominated in the shares of the Company's publicly-traded subsidiaries, MTCH and ANGI. MTCH and ANGI stock-based awards are issued pursuant to their respective stock incentive plans.

The Company has granted stock settled stock appreciation rights denominated in the equity of certain non-publicly traded subsidiaries to employees and management of those subsidiaries. These equity awards vest over a period of years or upon the occurrence of certain prescribed events. The value of the stock settled stock appreciation rights is tied to the value of the common stock of these subsidiaries. Accordingly, these interests only have value to the extent the relevant business appreciates in value above the initial value utilized to determine the exercise price. These interests can have significant value in the event of significant appreciation. The fair value of these interest is generally determined by negotiation or arbitration, when settled; which will occur at various dates through 2025. These equity awards are settled on a net basis, with the award holder entitled to receive a payment in IAC common shares equal to the intrinsic value of the award at exercise less an amount equal to the required cash tax withholding payment. The number of IAC common shares ultimately needed to settle these awards may vary significantly from the estimated number below as a result of both movements in our stock price and a determination of fair value of the relevant subsidiary that is different than our estimate. The expense associated with these equity awards is initially measured at fair value at the grant date and is expensed as stock-based compensation over the vesting term. The number of IAC common shares that would be required to settle these interests at current estimated fair values, including vested and unvested interests, at December 31, 2018 is 0.1 million shares. Withholding taxes, which will be paid by the Company on behalf of the employees upon exercise, would have been $16.0 million at December 31, 2018, assuming a 50% withholding rate.

MTCH

MTCH currently settles substantially all equity awards on a net basis. Assuming all MTCH equity awards outstanding on December 31, 2018 were net settled on that date, MTCH would have issued 9.7 million common shares (of which 1.7 million is related to vested shares and 8.0 million is related to unvested shares) and would have remitted $416.2 million (of which $75.0 million is related to vested shares and $341.2 million is related to unvested shares) in cash for withholding taxes (assuming a 50% withholding rate). If MTCH decided to issue a sufficient number of shares to cover the $416.2 million employee withholding tax obligation, 9.7 million additional shares would be issued by MTCH.

Following the completion of the MTCH IPO, equity awards that related to certain subsidiaries (principally Tinder, Inc.) of MTCH were settleable, at IAC's election, in shares of IAC common stock or MTCH common stock. Pursuant to the Employee Matters Agreement between IAC and MTCH, to the extent shares of IAC common stock are issued in settlement of these awards, MTCH reimburses IAC for the cost of those shares in cash or by issuing IAC shares of MTCH common stock. In July 2017, Tinder was merged into MTCH and as a result, all Tinder denominated equity awards were converted into MTCH tandem stock options ("Tandem Awards"). All of the MTCH Tandem Awards exercised during 2018 and 2017 were exercised on a net basis and were settled in IAC common shares; the Company issued 0.7 million and 2.0 million shares, respectively, of its common stock to settle these awards and MTCH issued 2.5 million and 11.3 million shares, respectively, of its common stock to IAC as reimbursement. Assuming all vested and unvested Tandem Awards outstanding on December 31, 2018 were exercised on that date and settled using IAC stock, 0.3 million IAC common shares would have been issued in settlement and MTCH would have issued 1.4 million shares, which is included in the amount above, to IAC as reimbursement.

During 2017, MTCH also purchased certain fully vested Tandem Awards, and made cash payments of approximately $520 million to cover both the withholding taxes paid on behalf of employees exercising these converted awards and the purchase of certain fully vested awards.

During 2016, the Company granted a nominal amount of IAC denominated market-based awards to certain MTCH employees. The number of awards that ultimately vest is dependent upon MTCH's stock price. The grant date fair value of each market-based award is estimated using a lattice model that incorporates a Monte Carlo simulation of MTCH's stock price. Each market-based award is subject to service-based vesting, where a specific period of continued employment must pass before an award vests. Some of the market-based awards contain performance targets set at the time of grant that must be achieved before an award vests.

ANGI

In connection with the Combination, previously issued stock appreciation rights related to the common stock of HomeAdvisor (US) were converted into ANGI stock appreciation rights that are settleable, at ANGI's option, on a net basis with ANGI remitting withholding taxes on behalf of the employee or on a gross basis with ANGI issuing a sufficient number of Class A shares to cover the withholding taxes. In addition, at IAC's option, these awards can be settled in either Class A shares of ANGI or shares of IAC common stock. If settled in IAC common stock, ANGI reimburses IAC in either cash or through the issuance of Class A shares to IAC. Assuming all of the stock appreciation rights outstanding on December 31, 2018 were net settled on that date using IAC stock, 1.1 million IAC common shares would have been issued in settlement and IAC would have been issued 12.8 million shares of ANGI Class A stock and ANGI would have remitted $205.9 million in cash for withholding taxes (assuming a 50% withholding rate). If ANGI decided to issue a sufficient number of shares to cover the $205.9 million employee withholding tax obligation, 12.8 million additional Class A shares would be issued by ANGI. ANGI's cash withholding obligation on all other ANGI net settled awards outstanding on December 31, 2018 is $36.5 million (assuming a 50% withholding rate), which is the equivalent of 2.3 million shares.

Prior to the Combination in 2017, the Company issued a number of IAC denominated PSUs to certain ANGI employees. Vesting of the PSUs is contingent upon ANGI's performance. Assuming all of the PSUs outstanding on December 31, 2018 were net settled on that date using IAC stock, 0.1 million IAC common shares would have been issued in settlement and IAC would have been issued 0.6 million shares of ANGI Class A stock and ANGI would have remitted $10.4 million in cash for withholding taxes (assuming a 50% withholding rate).

Modification of awards

During 2018, the Company modified certain equity awards and recognized modification charges of $7.9 million. In addition, in connection with the ANGI chief executive officer transition during the fourth quarter of 2018, ANGI accelerated $3.9 million of expense into 2018 from 2019.

In connection with the Combination, the previously issued HomeAdvisor (US) stock appreciation rights were converted into ANGI equity awards resulting in a modification charge of $217.7 million of which $56.9 million and $93.4 million were recognized as stock-based compensation expense in the years ended December 31, 2018 and 2017, respectively, and the remaining charge will be recognized over the vesting period of the modified awards.

During the second quarter of 2017, the Company modified certain HomeAdvisor (US) denominated equity awards and recognized a modification charge of $6.6 million.

During 2016, the Company modified certain subsidiary denominated equity awards resulting in a modification charge of $7.3 million (subsequently reduced to $7.1 million due to forfeitures) of which $0.1 million, $0.7 million and $6.3 million were recognized as stock-based compensation in the years ended December 31, 2018, 2017 and 2016, respectively.

During 2014, the Company granted an equity award denominated in shares of a subsidiary of the Company to a non-employee, which was marked to market each reporting period. In the third quarter of 2016, MTCH settled the vested portion of the award for cash of $13.4 million. In the third quarter of 2017, the award was modified and MTCH settled the remaining portion of the award for cash of $33.9 million.

XML

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

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

The following table presents revenue by reportable segment:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Revenue:
Match Group	$	1,729,850		$	1,330,661		$	1,118,110
ANGI Homeservices	1,132,241			736,386			498,890
Vimeo	159,641			103,332			78,805
Dotdash	130,991			90,890			77,913
Applications	582,287			577,998			604,140
Emerging & Other	528,250			468,589			762,609
Inter-segment elimination	(368		)	(617		)	(585		)
Total	$	4,262,892		$	3,307,239		$	3,139,882

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

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Match Group
Direct revenue:
North America	$	902,478	$	741,334	$	673,944
International	774,693		539,915		393,420
Direct revenue	1,677,171		1,281,249		1,067,364
Indirect revenue (principally advertising revenue)	52,679		49,412		50,746
Total Match Group revenue	$	1,729,850	$	1,330,661	$	1,118,110
Supplemental information on Direct revenue
Tinder	$	805,316	$	403,216	$	168,522
Other brands	871,855		878,033		898,842
Total Direct revenue	$	1,677,171	$	1,281,249	$	1,067,364
ANGI Homeservices
Marketplace:
Consumer connection revenue	$	704,341	$	521,481	$	382,466
Membership subscription revenue	66,214		56,135		43,573
Other revenue	3,940		3,798		2,827
Marketplace revenue	774,495		581,414		428,866
Advertising and other revenue	287,676		97,483		32,981
North America	1,062,171		678,897		461,847
Consumer connection revenue	50,913		40,009		28,124
Membership subscription revenue	17,362		16,596		7,936
Advertising and other revenue	1,795		884		983
Europe	70,070		57,489		37,043
Total ANGI Homeservices revenue	$	1,132,241	$	736,386	$	498,890
Vimeo
Platform revenue	$	146,665	$	99,650	$	78,805
Hardware revenue	12,976		3,682		—

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Total Vimeo revenue	$	159,641	$	103,332	$	78,805
Dotdash
Advertising revenue	$	113,014	$	81,948	$	76,099
Affiliate commerce commission revenue	14,458		7,372		1,685
Other revenue	3,519		1,570		129
Total Dotdash revenue	$	130,991	$	90,890	$	77,913
Applications
Desktop
Advertising revenue:
Google advertising revenue	$	426,964	$	480,774	$	523,335
Other	10,992		6,762		10,037
Advertising revenue	437,956		487,536		533,372
Subscription and other revenue	20,815		34,613		29,943
Total Desktop	458,771		522,149		563,315
Mosaic Group
Subscription and other revenue	104,975		27,980		21,787
Advertising revenue	18,541		27,869		19,038
Total Mosaic Group	123,516		55,849		40,825
Total Applications revenue	$	582,287	$	577,998	$	604,140
Emerging & Other
Advertising revenue:
Google advertising revenue	$	357,752	$	225,576	$	269,192
Other	66,733		53,911		75,008
Advertising revenue	424,485		279,487		344,200
Other revenue	103,765		169,497		160,329
Test preparation revenue	—		19,605		86,517
Product revenue	—		—		171,563
Total Emerging & Other revenue	$	528,250	$	468,589	$	762,609

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,
	2018		2017		2016
	(In thousands)
Revenue
United States	$	2,824,928	$	2,323,050	$	2,318,976
All other countries	1,437,964		984,189		820,906
Total	$	4,262,892	$	3,307,239	$	3,139,882

	December 31,
	2018		2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	289,756	$	286,541
All other countries	29,044		28,629
Total	$	318,800	$	315,170

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

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Operating Income (Loss):
Match Group	$	553,294		$	360,517		$	315,549
ANGI Homeservices	63,906			(149,176		)	25,363
Vimeo	(35,594		)	(27,328		)	(25,350		)
Dotdash	18,778			(15,694		)	(248,705		)
Applications	94,834			130,176			109,663
Emerging & Other	29,964			17,412			(99,696		)
Corporate	(160,043		)	(127,441		)	(109,449		)
Total	$	565,139		$	188,466		$	(32,625	)

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Adjusted EBITDA:(a)
Match Group	$	653,931		$	468,941		$	403,380
ANGI Homeservices	$	247,506		$	37,858		$	45,851
Vimeo	$	(28,045	)	$	(23,607	)	$	(20,281	)
Dotdash	$	21,384		$	(2,763	)	$	(16,846	)
Applications	$	131,837		$	136,757		$	132,276
Emerging & Other	$	36,178		$	25,862		$	10,111
Corporate	$	(74,017	)	$	(67,755	)	$	(53,272	)

_______________________________________________________________________________

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

	Year Ended December 31, 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	$	553,294		$	66,031	$	32,968	$	1,318	$	320	$	653,931
ANGI Homeservices	63,906			$	97,078	$	24,310	$	62,212	$	—	$	247,506
Vimeo	(35,594		)	$	—	$	1,200	$	6,349	$	—	$	(28,045	)
Dotdash	18,778			$	—	$	969	$	1,637	$	—	$	21,384
Applications	94,834			$	—	$	2,601	$	33,266	$	1,136	$	131,837
Emerging & Other	29,964			$	919	$	1,678	$	3,617	$	—	$	36,178
Corporate	(160,043		)	$	74,392	$	11,634	$	—	$	—	$	(74,017	)
Total	565,139
Interest expense	(109,327		)
Other income, net	305,746
Earnings before income taxes	761,558
Income tax provision	(3,811		)
Net earnings	757,747
Net earnings attributable to noncontrolling interests	(130,786		)
Net earnings attributable to IAC shareholders	$	626,961

	Year Ended December 31, 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	$	360,517		$	69,090	$	32,613	$	1,468	$	5,253		$	468,941
ANGI Homeservices	(149,176		)	$	149,230	$	14,543	$	23,261	$	—		$	37,858
Vimeo	(27,328		)	$	—	$	1,408	$	2,313	$	—		$	(23,607	)
Dotdash	(15,694		)	$	—	$	2,255	$	10,676	$	—		$	(2,763	)
Applications	130,176			$	—	$	3,863	$	2,170	548		—	$	136,757
Emerging & Other	17,412			$	2,130	$	4,065	$	2,255	$	—		$	25,862
Corporate	(127,441		)	$	44,168	$	15,518	$	—	$	—		$	(67,755	)
Total	188,466
Interest expense	(105,295		)
Other expense, net	(16,213		)
Earnings before income taxes	66,958
Income tax benefit	291,050
Net earnings	358,008
Net earnings attributable to noncontrolling interests	(53,084		)
Net earnings attributable to IAC shareholders	$	304,924

	Year Ended December 31, 2016
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments			Goodwill Impairment		Adjusted EBITDA
	(In thousands)
Match Group	$	315,549		$	52,370	$	27,726	$	16,932	$	(9,197	)	$	—	$	403,380
ANGI Homeservices	25,363			$	8,916	$	8,419	$	3,153	$	—		$	—	$	45,851
Vimeo	(25,350		)	$	—	$	1,085	$	4,176	$	(192	)	$	—	$	(20,281	)
Dotdash	(248,705		)	$	—	$	2,775	$	30,754	$	—		$	198,330	$	(16,846	)
Applications	109,663			$	—	$	5,095	$	5,483	$	12,035		$	—	$	132,276
Emerging & Other	(99,696		)	$	1,258	$	12,675	$	18,928	$	(91	)	$	77,037	$	10,111
Corporate	(109,449		)	$	42,276	$	13,901	$	—	$	—		$	—	$	(53,272	)
Total	(32,625		)
Interest expense	(109,110		)
Other income, net	60,650
Loss before income taxes	(81,085		)
Income tax benefit	64,934
Net loss	(16,151		)
Net earnings attributable to noncontrolling interests	(25,129		)
Net loss attributable to IAC shareholders	$	(41,280	)

The following tables reconcile segment assets to total assets by reportable segment:

	December 31, 2018
	Segment  Assets (b)		Property and Equipment, Net		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets, Net		Total Assets
	(In thousands)
Match Group	$	377,965	$	58,351	$	1,245,013	$	230,684	$	6,956	$	1,918,969
ANGI Homeservices	497,327		70,859		892,800		171,486		132,809		1,765,281
Vimeo	33,568		1,014		77,152		—		9,442		121,176
Dotdash	39,276		3,229		—		13,500		1,514		57,519
Applications	153,781		4,867		504,892		39,463		22,447		725,450
Emerging & Other	95,858		1,638		7,002		2,971		150		107,619
Corporate (c)	1,934,943		178,842		—		—		—		2,113,785
Total	$	3,132,718	$	318,800	$	2,726,859	$	458,104	$	173,318	6,809,799
Add: Deferred tax assets (d)											64,786
Total Assets											$	6,874,585

	December 31, 2017
	Segment  Assets (b)		Property and Equipment, Net		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets, Net		Total Assets
	(In thousands)
Match Group	$	467,338	$	61,620	$	1,247,899	$	228,296	$	2,049	$	2,007,202
ANGI Homeservices	264,450		53,292		768,317		153,447		175,124		1,414,630
Vimeo	30,507		1,972		77,303		—		15,655		125,437
Dotdash	27,190		4,077		—		6,000		3,152		40,419
Applications	345,532		7,004		447,242		60,600		847		861,225
Emerging & Other	255,107		2,377		18,305		10,800		7,767		294,356
Corporate (c)	873,392		184,828		—		—		—		1,058,220
Total	$	2,263,516	$	315,170	$	2,559,066	$	459,143	$	204,594	5,801,489
Add: Deferred tax assets (d)											66,321
Total Assets											$	5,867,810

_____________________________________

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

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

(d) Total segment assets differ from total assets on a consolidated basis as a result of unallocated deferred tax assets.

The following table presents capital expenditures by reportable segment:

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Capital expenditures:
Match Group	$	30,954	$	28,833	$	46,098
ANGI Homeservices	46,976		26,837		16,660
Vimeo	209		109		1,959
Dotdash	102		825		1,671
Applications	111		227		1,196
Emerging & Other	1,119		852		6,683
Corporate	6,163		17,840		3,772
Total	$	85,634	$	75,523	$	78,039

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments

The Company leases land, office space, data center facilities and equipment used in connection with its 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 certain lease agreements. These operating expenses are not included in the table below.

Future minimum payments under operating lease agreements are as follows:

Years Ending December 31,	(In thousands)
2019	$	38,770
2020	46,440
2021	40,998
2022	34,066
2023	30,567
Thereafter	255,563
Total	$	446,404

Expenses charged to operations under these agreements are $42.0 million, $37.9 million and $50.8 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company's three most significant operating leases are for IAC's headquarters in New York City that expires in 2081, ANGI's call center in New York that expires in 2028 and ANGI's headquarters in Denver, Colorado that expires in 2029, which collectively approximate 61% of the future minimum payments due under all operating lease agreements in the table above.

The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events as follows:

	Amount of Commitment Expiration Per Period
	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total Amounts Committed
	(In thousands)
Purchase obligations	$	40,428	$	23,897	$	—	$	—	$	64,325
Letters of credit and surety bonds	449		—		—		2,272		2,721
Total commercial commitments	$	40,877	$	23,897	$	—	$	2,272	$	67,046

The purchase obligations principally include web hosting commitments. The letters of credit primarily support the Company's casualty insurance program.

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 3—Income Taxes" for additional information related to income tax contingencies.

On August 14, 2018, ten then-current and former employees of Match Group, LLC or Tinder, Inc. ("Tinder"), an operating business of Match Group, filed a lawsuit in New York state court against IAC and Match Group. See Sean Rad et al. v. IAC/InterActiveCorp and Match Group, Inc., No. 654038/2018 (Supreme Court, New York County). The complaint alleges that in 2017, the defendants: (i) wrongfully interfered with a contractually established process for the independent valuation of Tinder by certain investment banks, resulting in a substantial undervaluation of Tinder and a consequent underpayment to the plaintiffs upon exercise of their Tinder stock options, and (ii) then wrongfully merged Tinder into Match Group, thereby depriving one of the plaintiffs (Mr. Rad) of his contractual right to later valuations of Tinder on a stand-alone basis. The complaint asserts claims for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, interference with contractual relations (as against Match Group only), and interference with prospective economic advantage, and seeks compensatory damages in the amount of at least $2 billion, as well as punitive damages. On August 31, 2018, four plaintiffs who were still employed by Match Group filed a notice of discontinuance of their claims without prejudice, leaving the six former employees as the remaining plaintiffs. On October 9, 2018, the defendants filed a motion to dismiss the complaint on various grounds, including that the 2017 valuation of Tinder by the investment banks was an expert determination any challenge to which is both time-barred under applicable law and available only on narrow substantive grounds that the plaintiffs have not pleaded in their complaint. On December 17, 2018, plaintiffs filed their opposition to the motion to dismiss. On January 15, 2019, the defendants filed their reply brief. A hearing on the motion is scheduled for March 6, 2019, and discovery in the case is proceeding. IAC and Match Group believe that the allegations in this lawsuit are without merit and will continue to defend vigorously against it.

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SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental Disclosure of Non-Cash Transactions:

The Company recorded acquisition-related contingent consideration liabilities of $25.5 million and $0.2 million during the years ended December 31, 2018 and 2016, respectively, in connection with various acquisitions. There were no acquisition-related contingent consideration liabilities recorded for the year ended December 31, 2017. See "Note 6—Financial Instruments" for additional information on contingent consideration arrangements.

On October 19, 2018, ANGI issued 8.6 million shares of its Class A common stock valued at $165.8 millionin connection with the acquisition of Handy.

On September 29, 2017, ANGI issued 61.3 million shares of its Class A common stock valued at $763.7 million in connection with the Combination.

Supplemental Disclosure of Cash Flow Information:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Cash paid (received) during the year for:
Interest	$	90,485		$	92,461		$	107,360
Income tax payments	45,154			35,598			69,103
Income tax refunds	(33,698		)	(42,025		)	(23,877		)

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

IAC and MTCH:

IAC and MTCH, in connection with MTCH's IPO, entered into the following agreements:

• A Master Transaction Agreement, under which MTCH agrees to assume all of the assets and liabilities related to its business and agrees to indemnify IAC against any losses arising out of any breach by MTCH of the Master Transaction Agreement or other IPO related agreements;

• An Investor Rights Agreement that provides IAC with (i) specified registration and other rights relating to shares of MTCH common stock and (ii) anti-dilution rights with respect to MTCH common stock;

• An Employee Matters Agreement, which governs the respective rights, responsibilities and obligations of IAC and MTCH after the IPO with respect to a range of compensation and benefit issues;

• A Tax Sharing Agreement, which governs the respective rights, responsibilities and obligations of IAC and MTCH with respect to tax liabilities and benefits, entitlement to refunds, preparation of tax returns, tax contests and other tax matters regarding U.S. federal, state, local and foreign income taxes; and

• A Services Agreement, under which IAC has agreed to provide a range of services to MTCH, including, among others, (i) assistance with certain legal, finance, internal audit, treasury, information technology support, insurance and tax affairs, including assistance with certain public company reporting obligations; (ii) payroll processing services; (iii) tax compliance services; and (iv) such other services as to which IAC and MTCH may agree, and MTCH agrees to provide IAC informational technology services and such other services as to which IAC and MTCH may agree.

During the years ended December 31, 2018, 2017 and 2016, 3.0 million, 11.9 million and 1.0 million shares, respectively, of MTCH common stock were issued to IAC pursuant to the employee matters agreement; 2.5 million, 11.3 million and 0.5 million, respectively, of which were issued as reimbursement for shares of IAC common stock issued in connection with the exercise and settlement of MTCH tandem stock options and equity awards denominated in shares of a subsidiary of MTCH, respectively; and 0.5 million, 0.6 million and 0.4 million, respectively, of which were issued as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by MTCH employees.

For the years ended December 31, 2018, 2017 and 2016, MTCH was charged $7.6 million, $9.9 million and $11.8 million, respectively, by the Company for services rendered pursuant to a services agreement. Included in these amounts are $5.2 million, $5.1 million and $4.3 million, respectively, for leasing of office space for certain of MTCH's businesses at properties owned by IAC. These amounts were paid in full by MTCH at December 31, 2018, 2017 and 2016, respectively.

At December 31, 2017, MTCH had a tax receivable of $7.3 million due from the Company pursuant to the tax sharing agreement. Refunds made by the Company during 2018 and 2017 pursuant to this agreement were $7.0 million and $10.9 million, respectively. There were no outstanding receivables or payables pursuant to the tax sharing agreement as of December 31, 2018.

In December 2017, certain international subsidiaries of MTCH agreed to sell NOLs that were not expected to be utilized to an IAC subsidiary for $0.9 million.

IAC and ANGI:

IAC and ANGI, in connection with the Combination, entered into the following agreements:

• A Contribution Agreement under which the Company separated its HomeAdvisor business from its other businesses and caused the HomeAdvisor business to be transferred to ANGI prior to the Combination. Under the Contribution Agreement, ANGI agrees to indemnify IAC against any losses arising out of any breach by ANGI of the Contribution Agreement;

• An Investor Rights Agreement that provides IAC with (i) specified registration and other rights relating to shares of ANGI common stock owned by IAC; (ii) anti-dilution rights with respect to ANGI common stock; and (iii) specified board matters with respect to designation of ANGI directors;

• A Services Agreement, under which IAC has agreed to provide a range of services to ANGI, including, among others, (i) assistance with certain legal, M&A, human resources, finance, risk management, internal audit and treasury functions, health and wellness, information security services and insurance and tax affairs, including assistance with certain public company and unclaimed property reporting obligations; (ii) accounting, controllership and payroll processing services; (iii) investor relations services; (iv) tax compliance services; and (iv) such other services as to which IAC and ANGI may agree.

• A Tax Sharing Agreement, which governs the respective rights, responsibilities and obligations of IAC and ANGI with respect to tax matters, including taxes attributable to ANGI, entitlement to refunds, allocation of tax attributes, preparation of tax returns, certain tax elections, control of tax contests and other tax matters regarding U.S. federal, state, local and foreign income taxes; and

• An Employee Matters Agreement, which governs the respective rights, responsibilities and obligations of IAC and ANGI after the closing of the Combination with respect to a range of compensation and benefit issues.

Additionally, on September 29, 2017, the Company and ANGI entered intotwointercompany notes (collectively referred to as "Intercompany Notes") to ANGI as follows: (i) a Payoff Intercompany Note, which provided the funds necessary to repay the outstanding balance under Angie's List's previously existing credit agreement, totaling$61.5 million; and (ii) a Working Capital Intercompany Note, which provided ANGI with$15 millionfor working capital purposes. These Intercompany Notes were repaid on November 1, 2017, with a portion of the proceeds from the ANGI Term Loan that were received on the same date.

For the years ended December 31, 2018 and for the period subsequent to the Combination through December 31, 2017, 0.9 million and 0.4 million shares, respectively, of ANGI Class B common stock were issued to IAC pursuant to the employee matters agreement as reimbursement for shares of IAC common stock issued in connection with the exercise and vesting of IAC equity awards held by ANGI employees.

On October 10, 2018, IAC was issued 5.1 million shares of Class B common stock of ANGI pursuant to the post-closing adjustment provision of the Angie's List merger agreement.

For the years ended December 31, 2018 and for the period subsequent to the Combination through December 31, 2017, ANGI was charged $5.7 million and $1.7 million, respectively, by the Company for services rendered pursuant to the services agreement. At December 31, 2018 and 2017, the Company had a $0.1 million outstanding payable to ANGI and a $0.4 million receivable from ANGI, respectively, pursuant to the services agreement. In addition, ANGI had an outstanding payable due to IAC of $2.0 million at December 31, 2017 related primarily to transaction related costs incurred in connection with the Combination, which was paid in full during the first quarter of 2018. There were no comparable costs in 2018.

At December 31, 2018, ANGI had taxes payable of $12.1 million due to the Company pursuant to the tax sharing agreement. No payments were made to the Company during 2018 pursuant to this agreement.

IAC and Expedia:

Each of IAC and Expedia has a 50% ownership interest in two aircrafts that may be used by both companies. The Company and Expedia purchased an aircraft during the second quarter of 2017 to replace a previously owned aircraft, which was subsequently sold on February 13, 2018. The Company paid $17.4 million (50% of the total purchase price and refurbish costs) for its interest in the new aircraft. Members of the aircrafts' flight crews are employed by an entity in which each of the Company and Expedia has a 50% ownership interest. The Company and Expedia have agreed to share costs relating to flight crew compensation and benefits pro-rata according to each company's respective usage of the aircraft, for which they are separately billed by the entity described above. The Company and Expedia are related parties since they are under common control, given that Mr. Diller serves as Chairman and Senior Executive of both IAC and Expedia. For the years ended December 31, 2018, 2017 and 2016, total payments made to this entity by the Company were not material.

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BENEFIT PLANS

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

BENEFIT PLANS

BENEFIT PLANS

IAC has a retirement savings plan in the United States that qualifies under Section 401(k) of the Internal Revenue Code. Under the IAC/InterActiveCorp Retirement Savings Plan ("the Plan"), participating employees may contribute up to 50% of their pre-tax earnings, but not more than statutory limits. IAC contributes fifty cents for each dollar a participant contributes in this plan, with a maximum contribution of 3% of a participant's eligible earnings. Matching contributions for the Plan for the years ended December 31, 2018, 2017 and 2016 are $12.9 million, $11.1 million and $10.0 million, respectively. Matching contributions are invested in the same manner as each participant's voluntary contributions in the investment options provided under the Plan. An investment option in the Plan is IAC common stock, but neither participant nor matching contributions are required to be invested in IAC common stock. The increase in matching contributions in 2018 and 2017 are due primarily to an increase in participation in the Plan due to increases in headcount from the Combination and continued corporate growth at ANGI, MTCH, Vimeo and Dotdash.

IAC also has or participates in various benefit plans, principally defined contribution plans, for its international employees. IAC's contributions for these plans for the years ended December 31, 2018, 2017 and 2016 are $3.4 million, $2.5 million and $2.1 million, respectively. The increase in contributions in 2018 and 2017 were due, in part, to an increase in participation in the international plans due to an increase in headcount at MTCH and ANGI as a result of continued business growth.

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CONSOLIDATED FINANCIAL STATEMENT DETAILS

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONSOLIDATED FINANCIAL STATEMENT DETAILS

CONSOLIDATED FINANCIAL STATEMENT DETAILS

	December 31,
	2018		2017
	(In thousands)
Other current assets:
Capitalized costs to obtain a contract with a customer	$	69,817	$	—
Prepaid expenses	55,586		49,350
Capitalized downloadable search toolbar costs, net	33,365		31,588
Income taxes receivable	10,132		33,239
Production costs	2,260		18,570
Other	57,093		52,627
Other current assets	$	228,253	$	185,374

	December 31,
	2018			2017
	(In thousands)
Property and equipment, net of accumulated depreciation and amortization:
Buildings and leasehold improvements	$	249,026		$	246,038
Computer equipment and capitalized software	229,083			218,529
Furniture and other equipment	86,694			88,930
Projects in progress	29,204			19,094
Land	11,591			14,390
Property and equipment	605,598			586,981
Accumulated depreciation and amortization	(286,798		)	(271,811		)
Property and equipment, net of accumulated depreciation and amortization	$	318,800		$	315,170

	December 31,
	2018		2017
	(In thousands)
Accrued expenses and other current liabilities:
Accrued employee compensation and benefits	$	137,583	$	108,431
Accrued advertising expense	105,520		96,445
Other	191,783		162,048
Accrued expenses and other current liabilities	$	434,886	$	366,924

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Revenue:
Service revenue	$	4,249,227	$	3,302,937	$	2,967,474
Product revenue	13,665		4,302		172,408
Revenue	$	4,262,892	$	3,307,239	$	3,139,882

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Cost of revenue:
Cost of service revenue	$	898,736	$	647,226	$	617,058
Cost of product revenue	12,410		3,782		138,672
Cost of revenue	$	911,146	$	651,008	$	755,730

	Years Ended December 31,
	2018		2017			2016
	(In thousands)
Other income (expense), net	$	305,746	$	(16,213	)	$	60,650

Other income, net in 2018 includes: $124.2 million of net unrealized gains related to certain equity investments that were adjusted to fair value in accordance with ASU No. 2016-01, which was adopted on January 1, 2018; $120.6 million in gains related to the sales of Dictionary.com, Electus, Felix and CityGrid; $30.4 million of interest income; $27.9 million in realized gains related to the sale of certain equity investments; and $5.3 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound.

Other expense, net in 2017 includes: $16.8 million in net foreign currency exchange losses due primarily to the weakening of the dollar relative to the British Pound; $15.4 million expense related to the extinguishment of the 6.75% MTCH Senior Notes and repricing of the MTCH Term Loan; $13.0 million mark-to-market charge principally pertaining to a subsidiary denominated equity award held by a non-employee; $12.2 million in other-than-temporary impairment charges related to certain investments; $1.2 million expense related to the write-off of deferred financing costs associated with the repayment of the 4.875% Senior Notes; $34.9 million in realized gains related to the sale of certain investments; and $11.4 million of interest income.

Other income, net in 2016 includes: $37.5 million and $12.0 million in realized gains related to the sales of ShoeBuy and PriceRunner, respectively; $34.4 million in net foreign currency exchange gains due primarily to the strengthening of the dollar relative to the British Pound and Euro; $5.1 million of interest income; $3.6 million gain related to the sale of certain equity investments; $12.1 million non-cash charge related to the write-off of a proportionate share of original issue discount and deferred financing costs associated with the repayment of $440 million of the MTCH Term Loan; $10.7 million in other-than-temporary impairment charges related to certain investments; $3.8 million loss related to the sale of ASKfm; $3.6 million loss on the 4.75% and 4.875% Senior Note redemptions and repurchases; and $2.5 million mark-to-market charge principally pertaining to a subsidiary denominated equity award held by a non-employee.

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TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION

BUSINESS COMBINATION

Through the Combination, ANGI acquired 100% of the common stock of Angie's List on September 29, 2017 for a total purchase price valued at $781.4 million.

The purchase price of $781.4 million was determined based on the sum of (i) the fair value of the 61.3 million shares of Angie's List common stock outstanding immediately prior to the Combination based on the closing stock price of Angie's List common stock on the NASDAQ on September 29, 2017 of $12.46per share; (ii) the cash consideration of$1.9 millionpaid to holders of Angie's List common stock who elected to receive$8.50 in cash per share; and (iii) the fair value of vested equity awards (including the pro rata portion of unvested awards attributable to pre-combination services) outstanding under Angie's List stock plans on September 29, 2017. Each stock option to purchase shares of Angie's List common stock that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an option to purchase (i) that number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List option immediately prior to the effective time of the Combination, (ii) at a per-share exercise price equal to the exercise price per share of Angie's List common stock at which such Angie's List option was exercisable immediately prior to the effective time of the Combination. Each award of Angie's List restricted stock units that was outstanding immediately prior to the effective time of the Combination was, as of the effective time of the Combination, converted into an ANGI Homeservices restricted stock unit award with respect to a number of Class A shares of ANGI Homeservices equal to the total number of shares of Angie's List common stock subject to such Angie's List restricted stock unit award immediately prior to the effective time of the Combination.

The table below summarizes the purchase price:

	Angie's List
	(In thousands)
Class A common stock	$	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services	11,749
Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services	4,038
Total purchase price	$	781,384

The financial results of Angie's List are included in the Company's consolidated financial statements, within the ANGI Homeservices segment, beginning September 29, 2017. For the year ended December 31, 2017, the Company included $58.9 million of revenue and $21.8 million of net loss in its consolidated statement of operations related to Angie's List. The net loss of Angie's List reflects $28.7 million in stock-based compensation expense related to (i) the acceleration of previously issued Angie's List equity awards held by employees terminated in connection with the Combination and (ii) the expense related to previously issued Angie's List equity awards, severance and retention costs of $19.8 million related to the Combination and a reduction in revenue of $7.8 million due to the write-off of deferred revenue related to the Combination.

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of combination:

	Angie's List
	(In thousands)
Cash and cash equivalents	$	44,270
Other current assets	11,280
Property and equipment	16,341
Goodwill	543,674
Intangible assets	317,300
Total assets	932,865
Deferred revenue	(32,595		)
Other current liabilities	(46,150		)
Long-term debt—related party	(61,498		)
Deferred income taxes	(9,833		)
Other long-term liabilities	(1,405		)
Net assets acquired	$	781,384

The purchase price was based on the expected financial performance of Angie's List, not on the value of the net identifiable assets at the time of combination. This resulted in a significant portion of the purchase price being attributed to goodwill because Angie's List is complementary and synergistic to the other North America businesses of ANGI Homeservices.

The fair values of the identifiable intangible assets acquired at the date of combination are as follows:

	Angie's List
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	137,000	Indefinite
Service professionals	90,500		3
Developed technology	63,900		6
Memberships	15,900		3
User base	10,000		1
Total identifiable intangible assets acquired	$	317,300

Other current assets, current liabilities and other long-term liabilities of Angie's List were reviewed and adjusted to their fair values at the date of combination, as necessary. The fair value of deferred revenue was determined using an income approach that utilized a cost to fulfill analysis. The fair value of the trade name and trademarks was determined using an income approach that utilized the relief from royalty methodology. The fair values of developed technology and user base were determined using a cost approach that utilized the cost to replace methodology. The fair values of the service professionals and memberships were determined using an income approach that utilized the excess earnings methodology. The valuations of deferred revenue and intangible assets incorporate significant unobservable inputs and require significant judgment and estimates, including the amount and timing of future cash flows, cost and profit margins related to deferred revenue and the determination of royalty and discount rates. The amount attributed to goodwill is not tax deductible.

Unaudited Pro Forma Financial Information

The unaudited pro forma financial information in the table below presents the combined results of the Company and Angie's List as if the Combination had occurred on January 1, 2016. The unaudited pro forma financial information includes adjustments required under the acquisition method of accounting and is presented for informational purposes only and is not necessarily indicative of the results that would have been achieved had the Combination actually occurred on January 1, 2016. For the year ended December 31, 2017, pro forma adjustments include (i) reductions in stock-based compensation expense of $77.1 million and transaction related costs of $34.1 million because they are one-time in nature and will not have a continuing impact on operations; and (ii) an increase in amortization of intangibles of $31.9 million. The stock-based compensation expense is related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination. The transaction related costs include severance and retention costs of $19.8 million related to the Combination. For the year ended December 31, 2016, pro forma adjustments include a reduction in revenue of $34.1 million due to the write-off of deferred revenue at the assumed date of acquisition as well as increases in stock-based compensation expense of $81.4 million and amortization of intangibles of $56.1 million.

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Revenue	$	3,529,600	$	3,429,105
Net earnings (loss) attributable to ANGI Homeservices Inc. shareholders	$	364,496	$	(143,133	)
Basic earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.55	$	(1.79	)
Diluted earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.27	$	(1.79	)

TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION

During the years ended December 31, 2018 and 2017, the Company incurred $3.6 million and $44.1 million, respectively, in costs related to the Combination (including severance, retention, transaction and integration related costs), as well as deferred revenue write-offs of $5.5 million and $7.8 million, respectively. During the years ended December 31, 2018 and 2017, the Company also incurred $70.6 million and $122.1 million, respectively, in stock-based compensation expense related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination.

See "Note 4—Business Combination" for additional information on the Combination.

A summary of the costs incurred, payments made and the related accrual is presented below.

	Years Ended December 31,
	2018		2017
	(In thousands)
Transaction and integration related costs	$	3,584	$	44,101
Stock-based compensation expense	70,645		122,066
Total	$	74,229	$	166,167

	December 31,
	2018			2017
	(In thousands)
Accrual as of January 1	$	8,480		$	—
Costs incurred	3,584			44,101
Payments made	(12,064		)	(35,621		)
Accrual as of December 31	$	—		$	8,480

The costs are allocated as follows in the accompanying consolidated statement of operations:

	Year Ended December 31, 2018
	Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	—		2,161		2,161
General and administrative expense	3,584		61,010		64,594
Product development expense	—		7,474		7,474
Total	$	3,584	$	70,645	$	74,229

	Year Ended December 31, 2017
	Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	7,430		24,416		31,846
General and administrative expense	36,120		83,420		119,540
Product development expense	551		14,230		14,781
Total	$	44,101	$	122,066	$	166,167

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2018

Guarantor and Nonguarantor Financial Statements [Abstract]

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION

The 4.75% Senior Notes are unconditionally guaranteed, jointly and severally, by certain domestic subsidiaries which are 100% owned by the Company. The following tables present condensed consolidating financial information at December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016 for: IAC, on a standalone basis; the combined guarantor subsidiaries of IAC; the combined non-guarantor subsidiaries of IAC; and IAC on a consolidated basis.

Balance sheet at December 31, 2018:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	1,018,082	$	—	$	1,113,550		$	—		$	2,131,632
Marketable securities	98,299		—		25,366			—			123,665
Accounts receivable, net of allowance and reserves	—		99,970		179,219			—			279,189
Other current assets	27,349		29,222		171,682			—			228,253
Intercompany receivables	—		1,423,456		—			(1,423,456		)	—
Property and equipment, net of accumulated depreciation and amortization	6,526		163,281		148,993			—			318,800
Goodwill	—		412,009		2,314,850			—			2,726,859
Intangible assets, net of accumulated amortization	—		43,914		587,508			—			631,422
Investment in subsidiaries	1,897,699		214,519		—			(2,112,218		)	—
Other non-current assets	274,789		94,290		251,315			(185,629		)	434,765
Total assets	$	3,322,744	$	2,480,661	$	4,792,483		$	(3,721,303	)	$	6,874,585
Current portion of long-term debt	$	—	$	—	$	13,750		$	—		$	13,750
Accounts payable, trade	1,304		36,293		37,310			—			74,907
Other current liabilities	41,721		95,405		657,775			—			794,901
Long-term debt, net	34,262		—		2,211,286			—			2,245,548
Income taxes payable	15		1,707		35,862			—			37,584
Intercompany liabilities	402,056		—		1,021,400			(1,423,456		)	—
Other long-term liabilities	261		18,181		257,594			(185,629		)	90,407
Redeemable noncontrolling interests	—		—		65,687			—			65,687
Shareholders' equity (deficit)	2,843,125		2,329,075		(216,857		)	(2,112,218		)	2,843,125
Noncontrolling interests	—		—		708,676			—			708,676
Total liabilities and shareholders' equity	$	3,322,744	$	2,480,661	$	4,792,483		$	(3,721,303	)	$	6,874,585

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 and reserves	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

Statement of operations for the year ended December 31, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	850,475		$	3,412,795		$	(378	)	$	4,262,892
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	195			262,912			648,330			(291		)	911,146
Selling and marketing expense	977			313,769			1,204,844			(150		)	1,519,440
General and administrative expense	141,727			49,563			582,720			69			774,079
Product development expense	2,003			56,431			250,901			(6		)	309,329
Depreciation	1,203			12,497			61,660			—			75,360
Amortization of intangibles	—			29,437			78,962			—			108,399
Total operating costs and expenses	146,105			724,609			2,827,417			(378		)	3,697,753
Operating (loss) income	(146,105		)	125,866			585,378			—			565,139
Equity in earnings of unconsolidated affiliates	731,834			20,083			—			(751,917		)	—
Interest expense	(1,700		)	—			(107,627		)	—			(109,327		)
Other (expense) income, net (a)	(18,834		)	503,261			199,757			(378,438		)	305,746
Earnings before income taxes	565,195			649,210			677,508			(1,130,355		)	761,558
Income tax benefit (provision)	61,766			(56,612		)	(8,965		)	—			(3,811		)
Net earnings	626,961			592,598			668,543			(1,130,355		)	757,747
Net earnings attributable to noncontrolling interests	—			—			(130,786		)	—			(130,786		)
Net earnings attributable to IAC shareholders	$	626,961		$	592,598		$	537,757		$	(1,130,355	)	$	626,961
Comprehensive income attributable to IAC shareholders	$	601,683		$	601,232		$	515,766		$	(1,116,998	)	$	601,683

____________________

^(a)  During the year ended December 31, 2018, foreign cash of $396.2 million was repatriated to the U.S, of which $25.2 million was between non-guarantor subsidiaries.

Statement of operations for the year ended December 31, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	753,858		$	2,553,998		$	(617	)	$	3,307,239
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	160			159,488			491,865			(505		)	651,008
Selling and marketing expense	1,250			353,186			1,027,304			(519		)	1,381,221
General and administrative expense	100,237			62,340			556,273			407			719,257
Product development expense	2,421			55,232			193,226			—			250,879
Depreciation	1,564			20,668			52,033			—			74,265
Amortization of intangibles	—			11,213			30,930			—			42,143
Total operating costs and expenses	105,632			662,127			2,351,631			(617		)	3,118,773
Operating (loss) income	(105,632		)	91,731			202,367			—			188,466
Equity in earnings of unconsolidated affiliates	419,149			20,755			—			(439,904		)	—
Interest expense	(20,339		)	—			(84,956		)	—			(105,295		)
Other (expense) income, net	(30,787		)	28,434			(13,860		)	—			(16,213		)
Earnings before income taxes	262,391			140,920			103,551			(439,904		)	66,958
Income tax benefit (provision)	42,533			(119,957		)	368,474			—			291,050
Net earnings	304,924			20,963			472,025			(439,904		)	358,008
Net earnings attributable to noncontrolling interests	—			—			(53,084		)	—			(53,084		)
Net earnings attributable to IAC shareholders	$	304,924		$	20,963		$	418,941		$	(439,904	)	$	304,924
Comprehensive income attributable to IAC shareholders	$	367,370		$	7,629		$	498,032		$	(505,661	)	$	367,370

Statement of operations for the year ended December 31, 2016:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	960,000		$	2,180,487		$	(605	)	$	3,139,882
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	859			297,712			457,571			(412		)	755,730
Selling and marketing expense	2,353			417,051			828,016			(323		)	1,247,097
General and administrative expense	89,583			83,636			357,097			130			530,446
Product development expense	4,807			69,778			138,180			—			212,765
Depreciation	1,610			26,514			43,552			—			71,676
Amortization of intangibles	—			41,157			38,269			—			79,426
Goodwill impairment	—			253,245			22,122			—			275,367
Total operating costs and expenses	99,212			1,189,093			1,884,807			(605		)	3,172,507
Operating (loss) income	(99,212		)	(229,093		)	295,680			—			(32,625		)
Equity in earnings of unconsolidated affiliates	49,545			6,774			—			(56,319		)	—
Interest expense	(26,876		)	—			(82,234		)	—			(109,110		)
Other (expense) income, net	(1,879		)	10,209			52,320			—			60,650
(Loss) earnings before income taxes	(78,422		)	(212,110		)	265,766			(56,319		)	(81,085		)
Income tax benefit (provision)	37,142			77,851			(50,059		)	—			64,934
Net (loss) earnings	(41,280		)	(134,259		)	215,707			(56,319		)	(16,151		)
Net earnings attributable to noncontrolling interests	—			—			(25,129		)	—			(25,129		)
Net (loss) earnings attributable to IAC shareholders	$	(41,280	)	$	(134,259	)	$	190,578		$	(56,319	)	$	(41,280	)
Comprehensive (loss) income attributable to IAC shareholders	$	(76,431	)	$	(142,494	)	$	145,039		$	(2,545	)	$	(76,431	)

Statement of cash flows for the year ended December 31, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(38,737	)	$	583,498		$	822,227		$	(378,860	)	$	988,128
Cash flows from investing activities:
Acquisitions, net of cash acquired	(4,142		)	(50,530		)	(9,824		)	—			(64,496		)
Capital expenditures	(5,274		)	(1,396		)	(78,964		)	—			(85,634		)
Proceeds from maturities and sales of marketable debt securities	298,600			—			35,000			—			333,600
Purchases of marketable debt securities	(390,005		)	—			(59,671		)	—			(449,676		)
Net proceeds from the sale of businesses and investments	408			87,254			49,057			—			136,719
Purchases of investments	(39,180		)	—			(13,800		)	—			(52,980		)
Other, net	(5,000		)	7,451			6,576			—			9,027
Net cash (used in) provided by investing activities	(144,593		)	42,779			(71,626		)	—			(173,440		)
Cash flows from financing activities:
Repurchases of IAC debt	(363		)	—			—			—			(363		)
Proceeds from issuance of Match Group debt	—			—			260,000			—			260,000
Principal payments on ANGI Homeservices Term Loan	—			—			(13,750		)	—			(13,750		)
Debt issuance costs	—			—			(5,449		)	—			(5,449		)
Purchase of IAC treasury stock	(82,891		)	—			—			—			(82,891		)
Purchase of Match Group treasury stock	—			—			(133,455		)	—			(133,455		)
Proceeds from the exercise of IAC stock options	41,700			—			—			—			41,700
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			4,705			—			4,705
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(18,982		)	—			—			—			(18,982		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(237,564		)	—			(237,564		)
Dividends paid to Match Group noncontrolling interests	—			—			(105,126		)	—			(105,126		)
Purchase of noncontrolling interests	—			—			(16,063		)	—			(16,063		)
Acquisition-related contingent consideration payments	—			—			(185		)	—			(185		)
Intercompany	673,308			(625,338		)	(426,830		)	378,860			—
Other, net	2,674			(939		)	(7,110		)	—			(5,375		)
Net cash provided by (used in) financing activities	615,446			(626,277		)	(680,827		)	378,860			(312,798		)
Total cash provided	432,116			—			69,774			—			501,890
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	327			—			(2,214		)	—			(1,887		)
Net increase in cash, cash equivalents, and restricted cash	432,443			—			67,560			—			500,003
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	$	1,018,082		$	—		$	1,115,603		$	—		$	2,133,685

Statement of cash flows for the year ended December 31, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(52,582	)	$	131,700		$	337,581		$	416,699
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(2,550		)	(144,003		)	(146,553		)
Capital expenditures	(337		)	(1,169		)	(74,017		)	(75,523		)
Proceeds from maturities and sales of marketable debt securities	114,350			—			—			114,350
Purchases of marketable debt securities	(29,891		)	—			—			(29,891		)
Net proceeds from the sale of businesses and investments	1,266			—			184,512			185,778
Purchases of investments	—			—			(9,106		)	(9,106		)
Other, net	—			1,944			1,050			2,994
Net cash provided by (used in) investing activities	85,388			(1,775		)	(41,564		)	42,049
Cash flows from financing activities:
Proceeds from issuance of IAC debt	—			—			517,500			517,500
Repurchases of IAC debt	(393,464		)	—			—			(393,464		)
Proceeds from issuance of Match Group debt	—			—			525,000			525,000
Principal payments on Match Group debt	—			—			(445,172		)	(445,172		)
Borrowing under ANGI Homeservices Term Loan	—			—			275,000			275,000
Purchase of exchangeable note hedge	—			—			(74,365		)	(74,365		)
Proceeds from issuance of warrants	23,650			—			—			23,650
Debt issuance costs	—			—			(33,744		)	(33,744		)
Purchase of IAC treasury stock	(56,424		)	—			—			(56,424		)
Proceeds from the exercise of IAC stock options	82,397			—			—			82,397
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			61,095			61,095
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(93,832		)	—			—			(93,832		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(264,323		)	(264,323		)
Purchase of Match Group stock-based awards	—			—			(272,459		)	(272,459		)
Purchase of noncontrolling interests	—			—			(15,439		)	(15,439		)
Acquisition-related contingent consideration payments	—			—			(27,289		)	(27,289		)
Intercompany	416,396			(129,925		)	(286,471		)	—
Other, net	251			—			(5,251		)	(5,000		)
Net cash used in financing activities	(21,026		)	(129,925		)	(45,918		)	(196,869		)
Total cash provided	11,780			—			250,099			261,879
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	75			—			11,529			11,604
Net increase in cash, cash equivalents, and restricted cash	11,855			—			261,628			273,483
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	$	585,639		$	—		$	1,048,043		$	1,633,682

Statement of cash flows for the year ended December 31, 2016:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(62,686	)	$	128,503		$	278,421		$	—		$	344,238
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			—			(18,403		)	—			(18,403		)
Capital expenditures	(479		)	(5,792		)	(71,768		)	—			(78,039		)
Proceeds from maturities and sales of marketable debt securities	252,369			—			—			—			252,369
Purchases of marketable debt securities	(313,943		)	—			—			—			(313,943		)
Investments in time deposits	—			—			(87,500		)	—			(87,500		)
Proceeds from maturities of time deposits	—			—			87,500			—			87,500
Net proceeds from the sale of businesses and investments	73,843			1,779			96,606			—			172,228
Purchases of investments	—			—			(12,565		)	—			(12,565		)
Intercompany	(155,104		)	—			—			155,104			—
Other, net	126			910			10,179			—			11,215
Net cash (used in) provided by investing activities	(143,188		)	(3,103		)	4,049			155,104			12,862
Cash flows from financing activities:
Repurchases of IAC debt	(126,409		)	—			—			—			(126,409		)
Proceeds from issuance of Match Group debt	—			—			400,000			—			400,000
Principal payments on Match Group debt	—			—			(450,000		)	—			(450,000		)
Debt issuance costs	—			—			(7,811		)	—			(7,811		)
Purchase of IAC treasury stock	(308,948		)	—			—			—			(308,948		)
Proceeds from the exercise of IAC stock options	25,821			—			—			—			25,821
Proceeds from the exercise of Match Group stock options	—			—			39,378			—			39,378
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(26,716		)	—			—			—			(26,716		)
Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards	—			—			(29,830		)	—			(29,830		)
Purchase of noncontrolling interests	(1,400		)	—			(1,340		)	—			(2,740		)
Acquisition-related contingent consideration payments	—			(351		)	(1,829		)	—			(2,180		)
Intercompany	122,965			(122,965		)	155,104			(155,104		)	—
Other, net	(313		)	(2,084		)	(308		)	—			(2,705		)
Net cash (used in) provided by financing activities	(315,000		)	(125,400		)	103,364			(155,104		)	(492,140		)
Total cash (used) provided	(520,874		)	—			385,834			—			(135,040		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(6,434		)	—			(6,434		)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(520,874		)	—			379,400			—			(141,474		)
Cash, cash equivalents, and restricted cash at beginning of period	1,094,658			—			407,015			—			1,501,673
Cash, cash equivalents, and restricted cash at end of period	$	573,784		$	—		$	786,415		$	—		$	1,360,199

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QUARTERLY RESULTS (UNAUDITED)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY RESULTS (UNAUDITED)

QUARTERLY RESULTS (UNAUDITED)

	Quarter Ended March 31 (a)		Quarter Ended June 30  (b)		Quarter Ended September 30  (c)			Quarter Ended December 31(d)
	(In thousands, except per share data)
Year Ended December 31, 2018
Revenue	$	995,075	$	1,059,122	$	1,104,592		$	1,104,103
Cost of revenue	201,962		218,224		237,238			253,722
Operating income	89,950		168,437		172,832			133,920
Net earnings	87,839		280,854		171,577			217,477
Net earnings attributable to IAC shareholders	71,082		218,353		145,774			191,752
Per share information attributable to IAC shareholders:
Basic earnings per share(g)	$	0.86	$	2.61	$	1.75		$	2.29
Diluted earnings per share(g)	$	0.71	$	2.32	$	1.49		$	2.04
	Quarter Ended March 31		Quarter Ended June 30		Quarter Ended September 30(e)			Quarter Ended December 31(f)
	(In thousands, except per share data)
Year Ended December 31, 2017
Revenue	$	760,833	$	767,387	$	828,434		$	950,585
Cost of revenue	145,958		139,033		166,290			199,727
Operating income (loss)	37,060		75,635		(18,589		)	94,360
Net earnings	28,463		80,557		225,639			23,349
Net earnings attributable to IAC shareholders	26,209		66,268		179,643			32,804
Per share information attributable to IAC shareholders:
Basic earnings per share(g)	$	0.34	$	0.84	$	2.22		$	0.40
Diluted earnings per share(g)	$	0.29	$	0.70	$	1.79		$	0.37

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^(a)  The first quarter of 2018 includes after-tax stock-based compensation expense of $14.6 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $4.1 million related to the Combination (including $2.8 million of deferred revenue write-offs).

^(b)  The second quarter of 2018 includes:

i. after-tax stock-based compensation expense of $12.8 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $2.0 million related to the Combination (including $1.8 million of deferred revenue write-offs).

ii. after-tax realized and unrealized gains of $133.3 million related to the sale of a certain equity investment.

^(c)  The third quarter of 2018 includes after-tax stock-based compensation expense of $12.3 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination.

^(d)  The fourth quarter of 2018 includes:

i. after-tax stock-based compensation expense of $14.4 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination.

ii. combined after-tax gains of $92.5 million related to the sales of Dictionary.com, Electus, Felix and CityGrid.

iii. after-tax impairment charges related to indefinite-lived intangible assets of $21.3 million.

^(e)  The third quarter of 2017 includes:

i. after-tax stock-based compensation expense of $60.9 million related to the modification of previously issued HomeAdvisor vested awards, which were converted into ANGI Homeservices equity awards, and the acceleration of certain Angie’s List equity awards in connection with the Combination, as well as after-tax costs of $17.4 million related to the Combination.

ii. a reduction to the income tax provision of $257.0 million related to excess tax benefits generated by the exercise, purchase and settlement of stock-based awards.

^(f)  The fourth quarter of 2017 includes after-tax stock-based compensation expense of $15.8 million related to the modification of previously issued HomeAdvisor unvested awards, which were converted into ANGI Homeservices equity awards, the expense related to previously issued Angie's List equity awards and the acceleration of certain Angie's List equity awards resulting from the termination of employees in connection with the Combination, as well as after-tax costs of $13.9 million related to the Combination (including $7.6 million of deferred revenue write-offs).

^(g)  Quarterly per share amounts may not add to the related annual per share amount because of differences in the average common shares outstanding during each period.

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SUBSEQUENT EVENTS (UNAUDITED)

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

SUBSEQUENT EVENTS (UNAUDITED)

SUBSEQUENT EVENTS (UNAUDITED)

On February 11, 2019, the Company and Google amended the services agreement, effective as of April 1, 2020.  The amendment extends the expiration date of the agreement to March 31, 2023; provided that beginning September 2020 and each September thereafter, either party may, after discussion with the other party, terminate the services agreement, effective on September 30 of the year following the year such notice is given.  The Company believes that the amended agreement, taken as a whole, is comparable to the Company’s previously existing agreement with Google.

On February 15, 2019, MTCH completed a private offering of $350 million aggregate principal amount of its 5.625% Senior Notes due 2029. A portion of the proceeds from these notes were used to repay outstanding borrowings under the MTCH Credit Facility and to pay expenses associated with the offering; the remaining proceeds will be used for general corporate purposes.

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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

Schedule II

IAC/INTERACTIVECORP AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

Description	Balance at Beginning of Period		Charges to Earnings				Charges to Other Accounts				Deductions				Balance at End of Period
	(In thousands)
2018
Allowance for doubtful accounts and revenue reserves	$	11,489	$	48,445		(a)	$	(573	)		$	(40,501	)	(d)	$	18,860
Deferred tax valuation allowance	132,598		(20,746		)	(b)	4,001			(c)	—				115,853
Other reserves	2,544														7,734
2017
Allowance for doubtful accounts and revenue reserves	$	16,405	$	28,930		(a)	$	(1,006	)		$	(32,840	)	(d)	$	11,489
Sales returns accrual	80		—				(80		)		—				—
Deferred tax valuation allowance	88,170		38,144			(e)	6,284			(f)	—				132,598
Other reserves	2,822														2,544
2016
Allowance for doubtful accounts and revenue reserves	$	16,528	$	17,733		(a)	$	(695	)		$	(17,161	)	(d)	$	16,405
Sales returns accrual	828		14,998				(962		)		(14,784		)		80
Deferred tax valuation allowance	90,482		(837		)	(g)	(1,475		)	(h)	—				88,170
Other reserves	2,801														2,822

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(a) Additions to the allowance for doubtful accounts are charged to expense. Additions to the revenue reserves are charged against revenue.

(b) Amount is primarily related to a decrease in foreign tax credits subject to a valuation allowance and the realization of previously unbenefited capital losses, partially offset by an increase in state net operating losses and foreign interest deduction carryforwards.

(c) Amount is primarily related to acquired federal and state NOLs, partially offset by currency translation adjustments on foreign NOLs.

(d) Write-off of fully reserved accounts receivable.

(e) Amount is due primarily to the establishment of foreign NOLs related to an acquisition.

(f) Amount is primarily related to acquired state NOLs, acquired foreign tax credits and currency translation adjustments on foreign NOLs.

(g) Amount is primarily related to other-than-temporary impairment charges for certain cost method investments and an increase in federal capital and NOLs, partially offset by a decrease in state NOLs, foreign tax credits, and foreign NOLs.

(h) Amount is primarily related to the realization of previously unbenefited unrealized losses on available-for-sale marketable equity securities included in accumulated other comprehensive income and currency translation adjustments on foreign NOLs.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

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 and Equity Securities

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.

Accounting for Investments and Equity Securities

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. At December 31, 2018, the Company did not have any investments accounted for using the equity method.

Investments in equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, are accounted for at fair value or under the measurement alternative of Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, following its adoption on January 1, 2018, with any changes to fair value recognized within other income (expense), net each reporting period. Under the measurement alternative, equity investments without readily determinable fair values are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer; value is generally determined based on a market approach as of the transaction date. An investment will be considered identical or similar if it has identical or similar rights to the equity investments held by the Company. The Company reviews its equity securities for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of our equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the security is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. See "Accounting Pronouncements adopted by the Company" below for further information.

Accounting Estimates

Accounting Estimates

Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions 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 recoverability of goodwill and indefinite-lived intangible assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the fair values of marketable debt securities and equity securities without readily determinable fair values; the carrying value of accounts receivable, including the determination of the allowance for doubtful accounts; the determination of revenue reserves; the fair value of acquisition-related contingent consideration arrangements; unrecognized tax benefits; 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.

Revenue Recognition

Revenue Recognition

The Company adopted the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. See "Accounting Pronouncements adopted by the Company" below for further information.

The Company accounts for a contract with a customer when it has approval and commitment from all parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Revenue is recognized when control of the promised services or goods is transferred to our customers, and in an amount that reflects the consideration the Company is contractually due in exchange for those services or goods.

Transaction Price

The objective of determining the transaction price is to estimate the amount of consideration the Company is due in exchange for its services or goods, including amounts that are variable. The Company determines the total transaction price, including an estimate of any variable consideration, at contract inception and reassesses this estimate each reporting period.

The Company excludes from the measurement of transaction price all taxes assessed by governmental authorities that are both (i) imposed on and concurrent with a specific revenue-producing transaction and (ii) collected from customers. Accordingly, such tax amounts are not included as a component of revenue or cost of revenue.

For contracts that have an original duration of one year or less, the Company uses the practical expedient available under ASU No. 2014-09 applicable to such contracts and does not consider the time value of money.

Arrangements with Multiple Performance Obligations

The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers, which are directly observable or based on an estimate if not directly observable. For our multiple performance obligation arrangements that include functional intellectual property ("IP"), which comprise the downloadable apps and software of the Applications segment, the Company uses a residual approach to determine standalone selling prices for the functional IP.

Assets Recognized from the Costs to Obtain a Contract with a Customer

The Company has determined that certain costs, primarily commissions paid to employees pursuant to certain sales incentive programs and mobile app store fees, meet the requirements to be capitalized as a cost of obtaining a contract. Commissions paid to employees pursuant to certain sales incentive programs are amortized over the estimated customer relationship period. The Company calculates the estimated customer relationship period as the average customer life, which is based on historical data. When customer renewals are expected and the renewal commission is not commensurate with the initial commission, the average customer life includes renewal periods. For sales incentive programs where the customer relationship period is one year or less, the Company has elected the practical expedient to expense the costs as incurred. The Company generally capitalizes and amortizes mobile app store fees over the term of the applicable subscription.

During the year ended December 31, 2018, the Company recognized expense of $355.3 million related to the amortization of these costs. The current and non-current contract asset balances at December 31, 2018 are $69.8 million and $4.5 million, respectively. The current and non-current contract assets are included in "Other current assets" and "Other non-current assets," respectively, in the accompanying consolidated balance sheet.

Performance Obligations

As permitted under the practical expedient available under ASU No. 2014-09, the Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts with variable consideration that is allocated entirely to unsatisfied performance obligations or to a wholly unsatisfied promise accounted for under the series guidance, and (iii) contracts for which the Company recognizes revenue at the amount which we have the right to invoice for services performed.

Match Group

Match Group revenue is primarily derived directly from users in the form of recurring subscriptions. Subscription revenue is presented net of credits and credit card chargebacks. Subscribers pay in advance, primarily by credit card or through mobile app stores, and, subject to certain conditions identified in our terms and conditions, generally all purchases are final and nonrefundable. Revenue is initially deferred and is recognized using the straight-line method over the term of the applicable subscription period, which generally ranges from one to six months. Revenue is also earned from online advertising, the purchase of à la carte features and offline events. Online advertising revenue is recognized when an advertisement is displayed. Revenue from the purchase of à la carte features is recognized based on usage. Revenue associated with offline events is recognized when each event occurs.

ANGI Homeservices

ANGI revenue is primarily derived from (i) consumer connection revenue, which comprises fees paid by HomeAdvisor service professionals for consumer matches (regardless of whether the service professional ultimately provides the requested service) and booking fees from completed jobs sourced through the Handy platform, and (ii) membership subscription fees paid by HomeAdvisor service professionals. Consumer connection revenue varies based upon several factors, including the service requested, product experience offered and geographic location of service. The Company’s consumer connection revenue is generated and recognized when an in-network service professional is delivered a consumer match or when a job sourced through the Handy platform is completed. Membership subscription revenue from service professionals is initially deferred and is recognized using the straight-line method over the applicable subscription period, which is typically one year. Consumer connection revenue is generally billed one week following a consumer match, with payment due upon receipt of invoice or collected when a consumer schedules a job through the Handy platform. The Company maintains revenue reserves for potential credits for services provided by Handy service professionals to consumers.

ANGI revenue is also derived from Angie's List (i) sales of time-based website, mobile and call center advertising to service professionals and (ii) membership subscription fees from consumers. Angie's List service professionals generally pay for advertisements in advance on a monthly or annual basis at the option of the service professional, with the average advertising contract term being approximately one year. Angie's List website, mobile and call center advertising revenue is recognized ratably over the contract term. Revenue from the sale of advertising in the Angie’s List Magazine is recognized in the period in which the publication is distributed. Angie's List prepaid consumer membership subscription fees are recognized as revenue using the straight-line method over the term of the applicable subscription period, which is typically one year.

Vimeo

Vimeo revenue is derived primarily from annual and monthly SaaS subscription fees paid by creators for premium capabilities and, to a lesser extent, sales of live streaming hardware, software and professional services. Subscription revenue is recognized over the terms of the applicable subscription period, which are typically one month or one year.

Dotdash

Dotdash revenue consists principally of digital advertising revenue and affiliate commerce commission revenue. Digital advertising revenue is generated primarily through digital display advertisements sold directly and through programmatic advertising networks. Affiliate commerce commission revenue is generated when Dotdash refers users to commerce partner websites resulting in a purchase or transaction.

Applications

Desktop revenue largely consists of advertising revenue generated principally through the display of paid listings in response to search queries. The substantial majority of the paid listings displayed by our Desktop businesses is supplied to us by Google Inc. ("Google") pursuant to our services agreement with Google. Pursuant to this agreement, those of our Desktop businesses that provide search services transmit search queries to Google, which in turn transmits a set of relevant and responsive paid listings back to these businesses for display in search results. This ad-serving process occurs independently of, but concurrently with, the generation of algorithmic search results for the same search queries. Google paid listings are displayed separately from algorithmic search results and are identified as sponsored listings on search results pages. Paid listings are priced on a price per click basis and when a user submits a search query through one of our Desktop businesses and then clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a portion of the fee charged to the advertiser with us. The Company recognizes paid listing revenue from Google when it delivers the user's click. In cases where the user’s click is generated due to the efforts of a third-party distributor, we recognize the amount due from Google as revenue and record a revenue share or other payment obligation to the third-party distributor as traffic acquisition costs.

To a lesser extent, Desktop revenue also includes fees related to subscription downloadable desktop applications as well as display advertisements. Fees related to subscription downloadable desktop applications are generally recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed.

Mosaic Group revenue consists primarily of fees related to subscription downloadable mobile applications distributed through the Apple App and Google Play stores, as well as display advertisements. Fees related to subscription downloadable mobile applications are generally recognized at the time of the sale when the software license is delivered. To the extent updates or maintenance is required or expected, revenue is recognized over the term of the applicable subscription period, which is primarily one or two years. Fees related to display advertisements are recognized when an advertisement is displayed.

Emerging & Other

Revenue of Ask Media Group consists principally of advertising revenue, which is generated primarily through the display of paid listings in response to search queries and display advertisements (sold directly and through programmatic ad sales). The majority of the paid listings displayed are supplied to us by Google in the manner, and pursuant to the services agreement with Google, described above under "Applications."

The Daily Beast revenue consists of advertising revenue, which is generated primarily through display advertisements (sold directly and through programmatic ad sales). 

BlueCrew revenue consists of service revenue, which is generated through staffing temporary workers and recognized as control of the promised services is transferred to our customers.

Revenue of College Humor Media and IAC Films is generated primarily through media production and distribution and advertising. Production revenue is recognized when control is transferred to the customer to broadcast or exhibit, and advertising revenue is recognized when an advertisement is displayed or over the advertising period.

Accounts Receivables, Net of Allowance for Doubtful Accounts and Revenue Reserves

Accounts receivable include amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of accounts receivable that will not be collected. The allowance for doubtful accounts is based upon a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history and the specific customer’s ability to pay its obligation. The time between the Company issuance of an invoice and payment due date is not significant; customer payments that are not collected in advance of the transfer of promised services or goods are generally due no later than 30 days from invoice date. The Company also maintains allowances to reserve for potential credits issued to consumers or other revenue adjustments. The amounts of these reserves are based primarily upon historical experience.

Deferred Revenue

Deferred revenue consists of advance payments that are received or are contractually due in advance of the Company's performance. The Company’s deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The deferred revenue balance at January 1, 2018 is $332.2 million. During the year ended December 31, 2018, the Company recognized $330.2 million of revenue that was included in the deferred revenue balance as of January 1, 2018. The current and non-current deferred revenue balances at December 31, 2018 are $360.0 million and $1.7 million, respectively. Non-current deferred revenue is included in "Other long-term liabilities" in the accompanying consolidated balance sheet.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and short-term investments, with maturities of less than 91 days from the date of purchase. Domestically, cash equivalents primarily consist of AAA rated government money market funds, treasury discount notes, commercial paper rated A1/P1 or better, time deposits and certificates of deposit. Internationally, cash equivalents primarily consist of AAA rated government money market funds and time deposits.

Investments in Debt Securities

Investments in Debt Securities

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. Marketable debt securities are adjusted to fair value each quarter, and the unrealized gains and losses, net of tax, are included in accumulated other comprehensive income (loss) as a separate component of shareholders' equity. The specific-identification method is used to determine the cost of debt securities sold and the amount of unrealized gains and losses reclassified out of accumulated other comprehensive income (loss) into earnings. The Company also invests in non-marketable debt securities as part of its investment strategy. We review our debt securities for impairment each reporting period. The Company recognizes an unrealized loss on debt securities in net earnings when the impairment is determined to be other-than-temporary. Factors we consider in making such determination include the duration, severity and reason for the decline in value and the potential recovery and our intent to sell the debt security. We also consider whether we will be required to sell the security before recovery of its amortized cost basis and whether the amortized cost basis cannot be recovered because of credit losses. If an impairment is considered to be other-than-temporary, the debt security will be written down to its fair value and the loss will be recognized within other income (expense), net. At December 31, 2018, marketable debt securities consist of treasury discount notes and commercial paper rated A1/P1 or better.

Certain Risks and Concentrations

Certain Risks and Concentrations

A meaningful 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").

For the years ended December 31, 2018, 2017 and 2016, consolidated revenue earned from Google was$825.2 million,$740.7 million and $824.4 million, representing 19%, 22% and 26%, respectively, of the Company's consolidated revenue. A meaningful portion of this revenue is attributable to the service agreement with Google and earned by the Desktop business within the Applications segment and the Ask Media Group within the Emerging & Other segment. For the years ended December 31, 2018, 2017 and 2016, revenue earned from Google represents 73%, 83% and 87% of Applications revenue and 94%, 96% and 96% of Ask Media Group revenue (and 68%, 48% and 35% of Emerging & Other revenue), respectively. Accounts receivable related to revenue earned from Google totaled $69.1 million and $72.4 million at December 31, 2018 and 2017, respectively.

The services agreement became effective on April 1, 2016, following the expiration of the previous services agreement, and expires on March 31, 2020. The services agreement requires that the Company comply with certain guidelines promulgated by Google. Google may generally unilaterally update its policies and guidelines without advance notice, which could in turn 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. Google’s policy changes related to its Chrome browser became effective on September 12, 2018 and negatively impacted the distribution of our business-to-consumer ("B2C") desktop products. The impact of these changes on revenue and profits in 2018 were modest as the Company optimized marketing spend in anticipation of the changes. However, we expect these changes to reduce revenue and profits of the Desktop business in the future, which among other reasons led to a $27.7 million impairment of the related indefinite-lived intangible asset in the fourth quarter of 2018. See "Note 21—Subsequent Events (Unaudited)" for a discussion of the Company's amended services agreement with Google entered into on February 11, 2019.

The Company's business is subject to certain risks and concentrations including dependence on third-party technology providers, exposure to risks associated with online commerce security and credit card fraud.

Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and marketable securities. Cash and cash equivalents are maintained with financial institutions and are in excess of Federal Deposit Insurance Corporation insurance limits.

Property and Equipment

The Company capitalizes certain internal use software costs including external direct costs utilized in developing or obtaining the software and compensation for personnel directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases when the project is substantially complete and ready for its intended purpose.

Property and Equipment

Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance costs are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, or, in the case of leasehold improvements, the lease term, if shorter.

Business Combinations

Business Combinations

The purchase price of each acquisition is attributed to the assets acquired and liabilities assumed based on their fair values at the date of acquisition, including identifiable intangible assets that either arise from a contractual or legal right or are separable from goodwill. The fair value of these intangible assets is based on valuations that use information and assumptions provided by management. The excess purchase price over the net tangible and identifiable intangible assets is recorded as goodwill and is assigned to the reporting unit(s) that is expected to benefit from the combination as of the acquisition date.

In connection with certain business combinations, the Company has entered into contingent consideration arrangements that are determined to be part of the purchase price. Each of these arrangements is initially recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The contingent consideration arrangements are generally based upon earnings performance and/or operating metrics. The Company determines the fair value of the contingent consideration arrangements using probability-weighted analyses to determine the amounts of the gross liability, and, if the arrangement is long-term in nature, applying a discount rate that appropriately captures the risk associated with the obligation to determine the net amount reflected in the consolidated financial statements. Significant changes in forecasted earnings or operating metrics would result in a significantly higher or lower fair value measurement. The changes in the remeasured fair value of the contingent consideration arrangements during each reporting period, including the accretion of the discount, if applicable, are recognized in "General and administrative expense" in the accompanying consolidated statement of operations.

Goodwill and Indefinite-Lived Intangible Assets

Goodwill and Indefinite-Lived Intangible Assets

The Company assesses goodwill and indefinite-lived intangible assets for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value.

When the Company elects to perform a qualitative assessment and concludes it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit's goodwill is necessary; otherwise, a quantitative assessment is performed and the fair value of the reporting unit is determined. If the carrying value of the reporting unit exceeds its fair value, an impairment equal to the excess is recorded.

For the Company's annual goodwill test at October 1, 2018, a qualitative assessment of the MTCH, ANGI, Vimeo, College Humor Media and BlueCrew reporting units' goodwill was performed because the Company concluded it was more likely than not that the fair value of these reporting units was in excess of their respective carrying values. The primary factors that the Company considered in its qualitative assessment for each of these reporting units are described below:

• MTCH's October 1, 2018 market capitalization of $15.7 billion exceeded its carrying value by approximately $15.1 billion and MTCH's strong operating performance.

• ANGI's October 1, 2018 market capitalization of $10.7 billion exceeded its carrying value by approximately $9.6 billion and ANGI's strong operating performance.

• The Company performed valuations of the Vimeo, College Humor Media and BlueCrew reporting units during 2018. These valuations were prepared primarily in connection with the issuance and/or settlement of equity grants that are denominated in the equity of these businesses. The valuations were prepared time proximate to, however, not as of, October 1, 2018. The fair value of each of these businesses was in excess of its October 1, 2018 carrying value.

The Company tests goodwill for impairment when it concludes that it is more likely than not that there may be an impairment. For the Company's annual goodwill test at October 1, 2018, the Company quantitatively tested the Desktop and Mosaic Group reporting units (included in the Applications segment). The Company's quantitative test indicated that the fair value of these reporting units are in excess of their respective carrying values; therefore, the goodwill of these reporting units are not impaired. The Company's Dotdash, Ask Media Group and The Daily Beast reporting units have no goodwill.

The aggregate goodwill balance for the reporting units for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $265.1 million.

The fair value of the Company's reporting units (except for MTCH and ANGI described above) is determined using both an income approach based on discounted cash flows ("DCF") and a market approach when it tests goodwill for impairment, either on an interim basis or annual basis as of October 1 each year. The Company uses the same approach in determining the fair value of its businesses in connection with its non-public subsidiary denominated stock-based compensation plans, which can be a significant factor in the decision to apply the qualitative screen. Determining fair value using a DCF analysis requires the exercise of significant judgment with respect to several items, including the amount and timing of expected future cash flows and appropriate discount rates. The expected cash flows used in the DCF analyses are based on the Company's most recent forecast and budget and, for years beyond the budget, the Company's estimates, which are based, in part, on forecasted growth rates. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows of the respective reporting units. Assumptions used in the DCF analyses, including the discount rate, are assessed based on each reporting unit's current results and forecasted future performance, as well as macroeconomic and industry specific factors. The discount rates used in the quantitative test for determining the fair value of the Company's reporting units ranged from 12.5% to 15% in 2018 and 12.5% to 17.5% in 2017. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined which is applied to financial metrics to estimate the fair value of a reporting unit. To determine a peer group of companies for our respective reporting units, we considered companies relevant in terms of consumer use, monetization model, margin and growth characteristics, and brand strength operating in their respective sectors. While a primary driver in the determination of the fair values of the Company's reporting units is the estimate of future revenue and profitability, the determination of fair value is based, in part, upon the Company's assessment of macroeconomic factors, industry and competitive dynamics and the strategies of its businesses in response to these factors.

While the Company has the option to qualitatively assess whether it is more likely than not that the fair values of its indefinite-lived intangible assets are less than their carrying values, the Company's policy is to determine the fair value of each of its indefinite-lived intangible assets annually as of October 1. The Company determines the fair value of indefinite-lived intangible assets using an avoided royalty DCF valuation analysis. Significant judgments inherent in this analysis include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the DCF analyses are intended to reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the DCF analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. Assumptions used in the avoided royalty DCF analyses, including the discount rate and royalty rate, are assessed annually based on the actual and projected cash flows related to the asset, as well as macroeconomic and industry specific factors. The discount rates used in the Company's annual indefinite-lived impairment assessment ranged from 10.5% to 35% in 2018 and 11% to 16% 2017, and the royalty rates used ranged from 0.75% to 8.0% in 2018 and 2% to 7% in 2017.

The aggregate indefinite-lived intangible asset balance for which the most recent estimate of fair value is less than 110% of their carrying values is approximately $131.3 million.

The 2018 annual assessment of goodwill did not identify any impairments. The 2018 annual assessment of indefinite-lived intangible assets identified impairment charges of $27.7 million and $1.1 million related to certain Desktop and College Humor Media indefinite-lived trade names, respectively. The indefinite-lived intangible asset impairment charge at Desktop was due to Google’s policy changes related to its Chrome browser which became effective on September 12, 2018 and have negatively impacted the distribution of our B2C downloadable desktop products. The impairment charge related to the B2C trade name was identified in our annual impairment assessment as of October 1, 2018 and reflects the projected reduction in profits and revenues and the resultant reduction in the assumed royalty rate from these policy changes. The impairment charges are included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The 2017 annual assessments of goodwill and indefinite-lived intangible assets did not identify any impairments.

While the 2016 annual assessment did not identify any material impairments, during the second quarter of 2016, the Company recorded an impairment charge equal to the entire $275.4 million at IAC Publishing. In connection with the Company's realignment of its reportable segments in the fourth quarter of 2018, $198.3 million and $77.0 million was allocated to the Dotdash and the Emerging & Other reportable segments, respectively, based upon their relative fair values as of October 1, 2018. In addition, amortization of intangibles was further impacted by the inclusion of impairment charges in 2016 of $9.0 million and $2.6 million related to certain Dictionary.com and Dotdash indefinite-lived trade names, respectively. The goodwill impairment charges at IAC Publishing was driven by the impact from the Google contract, traffic trends and monetization challenges and the corresponding impact on the then estimate of fair value. The expected cash flows used in the IAC Publishing DCF analysis were based on the Company's most recent forecast for the second half of 2016 and each of the years in the forecast period, which were updated to include the effects of the Google contract, traffic trends and monetization challenges and the cost savings from our restructuring efforts. For years beyond the forecast period, the Company's estimated cash flows were based on forecasted growth rates. The discount rate used in the DCF analysis reflected the risks inherent in the expected future cash flows of the IAC Publishing reporting unit. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple was determined which was applied to financial metrics to estimate the fair value of the IAC Publishing reporting unit. To determine a peer group of companies for IAC Publishing, we considered companies relevant in terms of business model, revenue profile, margin and growth characteristics and brand strength. The indefinite-lived intangible asset impairment charges related to certain trade names and trademarks and were due to reduced level of revenue and profits, which, in turn, also led to a reduction in the assumed royalty rates for these assets. The royalty rates used to value the trade names that were impaired ranged from 2% to 6% and the discount rate that was used reflected the risks inherent in the expected future cash flows of the trade names and trademarks. The impairment charge is included in "Amortization of intangibles" in the accompanying consolidated statement of operations.

The Company’s operating segments are MTCH, ANGI, Vimeo, Dotdash and Applications, which are also reportable segments, and within its Emerging & Other reportable segment, Ask Media Group, BlueCrew, The Daily Beast, College Humor Media and IAC Films. The Company’s reporting units are consistent with its operating segments, with the exception of Desktop and Mosaic Group, which are separate reporting units within the Applications operating segment. Goodwill is tested for impairment at the reporting unit level.

Long-Lived Assets and Intangible Assets with Definite Lives

Long-Lived Assets and Intangible Assets with Definite Lives

Long-lived assets, which consist of property and equipment and intangible assets with definite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized.

Fair Value Measurements

Fair Value Measurements

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 market prices for identical assets and liabilities in active markets.

• Level 2: Other inputs, which are observable directly or indirectly, such as quoted market prices for similar assets or liabilities in active markets, quoted market 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 "Note 6—Financial Instruments" for a discussion of fair value measurements made using Level 3 inputs.

The Company's non-financial assets, such as goodwill, intangible assets and property and equipment are adjusted to fair value only when an impairment is recognized. The Company's financial assets, comprising equity securities without readily determinable fair values, are adjusted to fair value when observable price changes are identified or an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs.

Traffic Acquisition Costs

Traffic Acquisition Costs

Traffic acquisition costs consist of (i) the amortization of fees paid to Apple and Google related to the distribution and the facilitation of in-app purchases and (ii) payments made to partners who distribute our business-to-business customized browser-based applications and who integrate our paid listings into their websites. These payments include amounts based on revenue share and other arrangements. The Company expenses these payments in the period incurred as a component of cost of revenue.

Advertising Costs

Advertising Costs

Advertising costs are expensed in the period incurred (when the advertisement first runs for production costs that are initially capitalized) and represent online marketing, including fees paid to search engines, social media sites and third parties that distribute our B2C downloadable applications, offline marketing, which is primarily television advertising, and partner-related payments to those who direct traffic to the brands within our MTCH and ANGI segments. Advertising expense is $1.2 billion, $1.1 billion and $1.0 billion for the years ended December 31, 2018, 2017 and 2016, respectively.

The Company capitalizes and amortizes the costs associated with certain distribution arrangements that require it to pay a fee per access point delivered. These access points are generally in the form of downloadable applications associated with our direct-to consumer operations. These fees are amortized over the estimated useful lives of the access points to the extent the Company can reasonably estimate a probable future economic benefit and the period over which such benefit will be realized (generally 18 months). Otherwise, the fees are charged to expense as incurred.

Legal Costs

Legal Costs

Legal costs are expensed as incurred.

Income Taxes

Income Taxes

The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense.

The Company evaluates and accounts for uncertain tax positions using a two-step approach. Recognition (step one) occurs when the Company concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustainable upon examination. Measurement (step two) determines the amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. De-recognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act imposes a new minimum tax on global intangible low-taxed income ("GILTI") earned by foreign subsidiaries beginning in 2018. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity may make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company elects to recognize the tax on GILTI as a period expense in the period the tax is incurred.

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net earnings attributable to IAC shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vested resulting in the issuance of common stock that could share in the earnings of the Company.

Foreign Currency Translation and Transaction Gains and Losses

Foreign Currency Translation and Transaction Gains and Losses

The financial position and operating results of foreign entities whose primary economic environment is based on their local currency are consolidated using the local currency as the functional currency. These local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenue and expenses of these operations are translated at average rates of exchange during the period. Translation gains and losses are included in accumulated other comprehensive income as a component of shareholders' equity. Transaction gains and losses resulting from assets and liabilities denominated in a currency other than the functional currency are included in the consolidated statement of operations as a component of other income (expense), net. See "Note 17—Consolidated Financial Statement Details" for additional information regarding foreign currency exchange gains and losses.

Translation gains and losses relating to foreign entities that are liquidated or substantially liquidated are reclassified out of accumulated other comprehensive income (loss) into earnings.

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation is measured at the grant date based on the fair value of the award and is generally expensed over the requisite service period.

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests

Noncontrolling interests in the consolidated subsidiaries of the Company are ordinarily reported on the consolidated balance sheet within shareholders' equity, separately from the Company's equity. However, securities that are redeemable at the option of the holder and not solely within the control of the issuer must be classified outside of shareholders' equity. Accordingly, all noncontrolling interests that are redeemable at the option of the holder are presented outside of shareholders' equity in the accompanying consolidated balance sheet.

In connection with the acquisition of certain subsidiaries, management of these businesses has retained an ownership interest. The Company is party to fair value put and call arrangements with respect to these interests. These put and call arrangements allow management of these businesses to require the Company to purchase their interests or allow the Company to acquire such interests at fair value, respectively. The put arrangements do not meet the definition of a derivative instrument as the put agreements do not provide for net settlement. These put and call arrangements become exercisable by the Company and the counter-party at various dates in the future. Two of these arrangements were exercised during both the years ended December 31, 2018 and 2017 and one of these arrangements was exercised during the year ended December 31, 2016. These put arrangements are exercisable by the counter-party outside the control of the Company. Accordingly, to the extent that the fair value of these interests exceeds the value determined by normal noncontrolling interest accounting, the value of such interests is adjusted to fair value with a corresponding adjustment to additional paid-in capital. During the years ended December 31, 2018, 2017 and 2016, the Company recorded adjustments of $4.1 million, $6.3 million and $7.9 million, respectively, to increase these interests to fair value. Fair value determinations require high levels of judgment and are based on various valuation techniques, including market comparables and discounted cash flow projections.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Pronouncements adopted by the Company

ASU No. 2014-09, Revenue from Contracts with Customers

In May 2014, the FASB issued ASU No. 2014-09, which superseded nearly all previous revenue recognition guidance. The Company adopted ASU No. 2014-09 effective January 1, 2018 using the modified retrospective transition method for open contracts as of the date of initial application. The cumulative effect to the Company's retained earnings at January 1, 2018 was an increase of $40.2 million, of which $3.4 million was related to the noncontrolling interest in ANGI; the adjustment to retained earnings was principally related to the Company’s ANGI and Applications segments.

• Within ANGI, the effect of the adoption of ASU No. 2014-09 is that commissions paid to employees pursuant to certain sales incentive programs, which represent the incremental direct costs of obtaining a service professional contract, are now capitalized and amortized over the estimated life of a service professional (also referred to as the estimated customer relationship period). These costs were expensed as incurred prior to January 1, 2018. The cumulative effect of the adoption of ASU No. 2014-09 was the establishment of a current and non-current asset for capitalized sales commissions of $29.7 million and $4.2 million, respectively, and a related deferred tax liability of $8.0 million, resulting in a net increase to retained earnings of $25.9 million on January 1, 2018.

• Within Applications, the primary effect of the adoption of ASU No. 2014-09 is to accelerate the recognition of the portion of the revenue of certain desktop applications sold by SlimWare that qualifies as functional intellectual property ("functional IP") under ASU No. 2014-09. This revenue was previously deferred and recognized over the applicable subscription term. The cumulative effect of the adoption of ASU No. 2014-09 for SlimWare was a reduction in deferred revenue of $20.3 million and the establishment of a deferred tax liability of $4.9 million, resulting in a net increase to retained earnings of $15.5 million on January 1, 2018.

The Company's disaggregated revenue disclosures are presented in "Note 12—Segment Information."

The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, as reported, and ASC 605, Revenue Recognition, for the year ended December 31, 2018.

	Under ASC 606 (as reported)			Under ASC 605			Effect of adoption of ASU No. 2014-09
	(In thousands)
Revenue by segment:
Match Group	$	1,729,850		$	1,729,850		$	—
ANGI Homeservices	1,132,241			1,132,241			—
Vimeo	159,641			160,931			(1,290		)
Dotdash	130,991			130,991			—
Applications	582,287			581,492			795
Emerging & Other	528,250			528,250			—
Inter-segment eliminations	(368		)	(368		)	—
Total	$	4,262,892		$	4,263,387		$	(495	)
Operating costs and expenses by segment:
Match Group	$	1,176,556		$	1,176,556		$	—
ANGI Homeservices	1,068,335			1,073,275			(4,940		)
Vimeo	195,235			196,212			(977		)
Dotdash	112,213			112,213			—
Applications	487,453			484,644			2,809
Emerging & Other	498,286			498,286			—
Corporate	159,675			159,675			—
Total	$	3,697,753		$	3,700,861		$	(3,108	)
Operating income (loss) by segment:
Match Group	$	553,294		$	553,294		$	—
ANGI Homeservices	63,906			58,966			4,940
Vimeo	(35,594		)	(35,281		)	(313		)
Dotdash	18,778			18,778			—
Applications	94,834			96,848			(2,014		)
Emerging & Other	29,964			29,964			—
Corporate	(160,043		)	(160,043		)	—
Total	$	565,139		$	562,526		$	2,613
Net earnings	$	757,747		$	755,741		$	2,006

ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued ASU No. 2016-01, which updates certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Under ASU No. 2016-01, equity securities, other than those of our consolidated subsidiaries and those accounted for under the equity method, will be measured at fair value with changes in fair value recognized in the statement of operations each reporting period. ASU No. 2016-01 is effective for reporting periods beginning after December 15, 2017. There was no cumulative impact to the Company's consolidated financial statements upon adoption of ASU No. 2016-01 on January 1, 2018. The adoption of ASU No. 2016-01 increases the volatility of the Company's other income (expense), net as a result of the remeasurement of these instruments. For the year ended December 31, 2018, other income (expense), net includes net unrealized gains related to certain equity securities that were adjusted to fair value in the second quarter of 2018 in accordance with ASU No. 2016-01 of $126.4 million. See "Note 6—Financial Instruments" for additional information.

ASU No. 2016-18, Restricted Cash

In November 2016, the FASB issued ASU No. 2016-18, which requires companies to explain the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents are combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. ASU No. 2016-18 also requires companies to disclose the nature of their restricted cash and restricted cash equivalents balances. Additionally, when cash, cash equivalents, restricted cash, and restricted cash equivalents are presented within different captions on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. ASU No. 2016-18 is effective for reporting periods beginning after December 15, 2017. The Company's adoption of ASU No. 2016-18 effective January 1, 2018, on a retrospective basis, did not have a material effect on its consolidated financial statements.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

	December 31, 2018		December 31, 2017		December 31, 2016		December 31, 2015
	(In thousands)
Cash and cash equivalents	$	2,131,632	$	1,630,809	$	1,329,187	$	1,481,447
Restricted cash included in other current assets	1,633		2,873		20,464		126
Restricted cash included in other assets	420		—		10,548		20,100
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows	$	2,133,685	$	1,633,682	$	1,360,199	$	1,501,673

Restricted cash at December 31, 2018 primarily consists of a cash collateralized letter of credit and a deposit related to corporate credit cards.

Restricted cash at December 31, 2017 primarily supports a letter of credit to a supplier, which was released to the Company in the second quarter of 2018.

Restricted cash at December 31, 2016 primarily included funds held in escrow for the redemption and repurchase of IAC Senior Notes and the MyHammer tender offer. In the first quarter of 2017, the Senior Notes were redeemed and repurchased and the funds held in escrow for the MyHammer tender offer were returned to the Company.

Restricted cash at December 31, 2015 primarily includes the repurchase of IAC Senior Notes.

ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

In August 2018, the FASB issued ASU No. 2018-15, which clarifies the accounting for implementation costs in a cloud computing arrangement that is a services contract to follow the internal-use software guidance of ASC 350-40, Intangibles - Goodwill and Other, Internal-use Software. The provisions of ASU No. 2018-15 are effective for reporting periods beginning after December 15, 2019, including interim periods and early adoption is permitted, including adoption in any interim period. The provisions of ASU No. 2018-15 may be adopted prospectively to all implementation costs incurred after the date of adoption or retrospectively. The Company early adopted the provisions of ASU No. 2018-15 on October 1, 2018 prospectively and the adoption of this standard did not have material impact on its consolidated financial statements.

ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting

In June 2018, the FASB issued ASU No. 2018-07, which largely aligns the measurement and classification guidance for share-based payments granted to non-employees with the guidance for share-based payments granted to employees. The new guidance supersedes Subtopic 505-50, Equity - Equity-Based payments to Nonemployees. ASU No. 2018-07 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2018-07 effective April 1, 2018 and its adoption did not have a material effect on its consolidated financial statements. The effect of the adoption of ASU No. 2018-07 will be to minimize the volatility of expense related to stock-based awards to non-employees in the future.

Accounting Pronouncement not yet adopted by the Company

ASU No. 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU No. 2016-02, which supersedes existing guidance on accounting for leases and generally requires all leases to be recognized in the statement of financial position. The provisions of ASU No. 2016-02 are effective for reporting periods beginning after December 15, 2018. The Company will adopt the new lease guidance effective January 1, 2019. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which provides the option of an additional transition method that allows entities to initially apply the new lease guidance at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to implement the transition method option provided by ASU No. 2018-11.

The Company is not a lessor, has no capitalized leases and does not expect to enter into any capitalized leases prior to the adoption of ASU No. 2016-02. Accordingly, the Company does not expect the amount or classification of rent expense in its statement of operations to be affected by the adoption of ASU No. 2016-02. The primary effect of the adoption of ASU No. 2016-02 will be the recognition of a right of use asset and related lease liability to reflect the Company's rights and obligations under its operating leases. The Company will also be required to provide the additional disclosures stipulated in ASU No. 2016-02.

The adoption of ASU No. 2016-02 will not have an impact on the leverage calculation set forth in any of the agreements governing the outstanding debt of the Company or its MTCH and ANGI subsidiaries, or our credit agreement or the credit agreement of MTCH and ANGI because, in each circumstance, the leverage calculations are not affected by the lease liability that will be recorded upon adoption of the new standard.

While the Company's evaluation of the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements continues, outlined below is a summary of the status of the Company's progress:

• the Company has selected a software solution to implement ASU No. 2016-02;

• the Company has input lease summaries into the software solution;

• the Company is assessing the other inputs required in connection with the adoption of ASU No. 2016-02; and

• the Company is developing its accounting policy, procedures and internal controls related to the new standard.

Development of the selected software solution by the third-party vendor is ongoing. While significant progress has been made, certain key deliverables remain, which the Company expects to be delivered in March 2019. The Company's ability to adopt ASU No. 2016-02 in an efficient and effective manner is contingent upon the delivery and testing of these remaining deliverables. The Company has been able to develop a preliminary estimate of the impact of the adoption of ASU No. 2016-02 through the use of the third-party software solution, supplemented by our user acceptance testing. This preliminary estimate is that a $160 million right of use asset and related lease liability will be recognized on the Company's consolidated balance sheet upon adoption. The Company does not expect a material impact on its results of operations or cash flows.

Reclassifications

Reclassifications

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

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

Asset Category	Estimated Useful Lives
Buildings and leasehold improvements	3 to 39 Years
Computer equipment and capitalized software	2 to 3 Years
Furniture and other equipment	3 to 12 Years

	December 31,
	2018			2017
	(In thousands)
Property and equipment, net of accumulated depreciation and amortization:
Buildings and leasehold improvements	$	249,026		$	246,038
Computer equipment and capitalized software	229,083			218,529
Furniture and other equipment	86,694			88,930
Projects in progress	29,204			19,094
Land	11,591			14,390
Property and equipment	605,598			586,981
Accumulated depreciation and amortization	(286,798		)	(271,811		)
Property and equipment, net of accumulated depreciation and amortization	$	318,800		$	315,170

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table presents the impact of the adoption of ASU No. 2014-09 by segment under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, as reported, and ASC 605, Revenue Recognition, for the year ended December 31, 2018.

	Under ASC 606 (as reported)			Under ASC 605			Effect of adoption of ASU No. 2014-09
	(In thousands)
Revenue by segment:
Match Group	$	1,729,850		$	1,729,850		$	—
ANGI Homeservices	1,132,241			1,132,241			—
Vimeo	159,641			160,931			(1,290		)
Dotdash	130,991			130,991			—
Applications	582,287			581,492			795
Emerging & Other	528,250			528,250			—
Inter-segment eliminations	(368		)	(368		)	—
Total	$	4,262,892		$	4,263,387		$	(495	)
Operating costs and expenses by segment:
Match Group	$	1,176,556		$	1,176,556		$	—
ANGI Homeservices	1,068,335			1,073,275			(4,940		)
Vimeo	195,235			196,212			(977		)
Dotdash	112,213			112,213			—
Applications	487,453			484,644			2,809
Emerging & Other	498,286			498,286			—
Corporate	159,675			159,675			—
Total	$	3,697,753		$	3,700,861		$	(3,108	)
Operating income (loss) by segment:
Match Group	$	553,294		$	553,294		$	—
ANGI Homeservices	63,906			58,966			4,940
Vimeo	(35,594		)	(35,281		)	(313		)
Dotdash	18,778			18,778			—
Applications	94,834			96,848			(2,014		)
Emerging & Other	29,964			29,964			—
Corporate	(160,043		)	(160,043		)	—
Total	$	565,139		$	562,526		$	2,613
Net earnings	$	757,747		$	755,741		$	2,006

Schedule of Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

	December 31, 2018		December 31, 2017		December 31, 2016		December 31, 2015
	(In thousands)
Cash and cash equivalents	$	2,131,632	$	1,630,809	$	1,329,187	$	1,481,447
Restricted cash included in other current assets	1,633		2,873		20,464		126
Restricted cash included in other assets	420		—		10,548		20,100
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows	$	2,133,685	$	1,633,682	$	1,360,199	$	1,501,673

Schedule of Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the total amounts shown in the consolidated statement of cash flows:

	December 31, 2018		December 31, 2017		December 31, 2016		December 31, 2015
	(In thousands)
Cash and cash equivalents	$	2,131,632	$	1,630,809	$	1,329,187	$	1,481,447
Restricted cash included in other current assets	1,633		2,873		20,464		126
Restricted cash included in other assets	420		—		10,548		20,100
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows	$	2,133,685	$	1,633,682	$	1,360,199	$	1,501,673

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Income before Income Taxes

U.S. and foreign earnings (loss) before income taxes and noncontrolling interests are as follows:

	Years Ended December 31,
	2018		2017			2016
	(In thousands)
U.S.	$	630,417	$	(52,606	)	$	(248,433	)
Foreign	131,141		119,564			167,348
Total	$	761,558	$	66,958		$	(81,085	)

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax provision (benefit) are as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Current income tax provision (benefit):
Federal	$	(2,849	)	$	(31,844	)	$	23,343
State	2,569			1,964			3,662
Foreign	38,770			24,108			27,242
Current income tax provision (benefit)	38,490			(5,772		)	54,247
Deferred income tax provision (benefit):
Federal	(21,792		)	(255,477		)	(100,798		)
State	172			(28,364		)	(9,518		)
Foreign	(13,059		)	(1,437		)	(8,865		)
Deferred income tax benefit	(34,679		)	(285,278		)	(119,181		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

Schedule of Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets

Income taxes receivable (payable) and deferred tax assets (liabilities) are included in the following captions in the accompanying consolidated balance sheet at December 31, 2018 and 2017:

	December 31,
	2018			2017
	(In thousands)
Income taxes receivable (payable):
Other current assets	$	10,132		$	33,239
Other non-current assets	11,401			1,949
Accrued expenses and other current liabilities	(12,745		)	(11,798		)
Income taxes payable	(37,584		)	(25,624		)
Net income taxes payable	$	(28,796	)	$	(2,234	)
Deferred tax assets (liabilities):
Other non-current assets	$	64,786		$	66,321
Deferred income taxes	(23,600		)	(35,070		)
Net deferred tax assets	$	41,186		$	31,251

Schedule of Deferred Tax Assets and Liabilities

The tax effects of cumulative temporary differences that give rise to significant deferred tax assets and deferred tax liabilities are presented below. The valuation allowance relates to deferred tax assets for which it is more likely than not that the tax benefit will not be realized.

	December 31,
	2018			2017
	(In thousands)
Deferred tax assets:
Accrued expenses	$	23,525		$	22,234
NOL carryforwards	291,639			292,812
Tax credit carryforwards	89,397			78,715
Stock-based compensation	82,698			77,976
Other	30,106			42,331
Total deferred tax assets	517,365			514,068
Less valuation allowance	(115,853		)	(132,598		)
Net deferred tax assets	401,512			381,470
Deferred tax liabilities:
Investment in subsidiaries	(238,650		)	(247,167		)
Intangibles	(77,669		)	(87,811		)
Fair value investment	(22,927		)	—
Other	(21,080		)	(15,241		)
Total deferred tax liabilities	(360,326		)	(350,219		)
Net deferred tax assets	$	41,186		$	31,251

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the income tax provision (benefit) to the amounts computed by applying the statutory federal income tax rate to earnings before income taxes is shown as follows:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Income tax provision (benefit) at the federal statutory rate of 21% (35% for 2017 and 2016)	$	159,927		$	23,435		$	(28,446	)
State income taxes, net of effect of federal tax benefit	14,887			86			(3,880		)
Stock-based compensation	(129,654		)	(358,901		)	3,998
Realization of certain deferred tax assets	(13,200		)	(3,133		)	—
Transition tax	(9,190		)	62,667			—
Deferred tax adjustment for enacted changes in tax laws and rates	(7,488		)	705			(4,594		)
Research credit	(4,023		)	(5,304		)	(2,231		)
Foreign income taxed at a different statutory tax rate	(3,206		)	(14,725		)	(27,115		)
Non-taxable sale and non-deductible goodwill associated with ShoeBuy	—			—			(13,142		)
Goodwill impairment of Dotdash and Emerging & Other	—			—			10,649
Non-deductible impairments for certain cost method investments	—			2,669			3,489
Other, net	(4,242		)	1,451			(3,662		)
Income tax provision (benefit)	$	3,811		$	(291,050	)	$	(64,934	)

Schedule of Income Tax Contingencies

A reconciliation of the beginning and ending amount of unrecognized tax benefits, including penalties but excluding interest, is as follows:

	December 31,
	2018			2017			2016
	(In thousands)
Balance at January 1	$	36,732		$	38,372		$	40,808
Additions based on tax positions related to the current year	10,334			2,050			2,033
Additions for tax positions of prior years	4,716			1,994			2,676
Reductions for tax positions of prior years	(400		)	(3,761		)	(743		)
Settlements	—			—			(5,107		)
Expiration of applicable statutes of limitations	(2,507		)	(1,923		)	(1,295		)
Balance at December 31	$	48,875		$	36,732		$	38,372

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BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of Purchase Price

The table below summarizes the purchase price:

	Angie's List
	(In thousands)
Class A common stock	$	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services	11,749
Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services	4,038
Total purchase price	$	781,384

A summary of the costs incurred, payments made and the related accrual is presented below.

	Years Ended December 31,
	2018		2017
	(In thousands)
Transaction and integration related costs	$	3,584	$	44,101
Stock-based compensation expense	70,645		122,066
Total	$	74,229	$	166,167

	December 31,
	2018			2017
	(In thousands)
Accrual as of January 1	$	8,480		$	—
Costs incurred	3,584			44,101
Payments made	(12,064		)	(35,621		)
Accrual as of December 31	$	—		$	8,480

The costs are allocated as follows in the accompanying consolidated statement of operations:

	Year Ended December 31, 2018
	Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	—		2,161		2,161
General and administrative expense	3,584		61,010		64,594
Product development expense	—		7,474		7,474
Total	$	3,584	$	70,645	$	74,229

	Year Ended December 31, 2017
	Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	7,430		24,416		31,846
General and administrative expense	36,120		83,420		119,540
Product development expense	551		14,230		14,781
Total	$	44,101	$	122,066	$	166,167

Schedule of Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed

The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of combination:

	Angie's List
	(In thousands)
Cash and cash equivalents	$	44,270
Other current assets	11,280
Property and equipment	16,341
Goodwill	543,674
Intangible assets	317,300
Total assets	932,865
Deferred revenue	(32,595		)
Other current liabilities	(46,150		)
Long-term debt—related party	(61,498		)
Deferred income taxes	(9,833		)
Other long-term liabilities	(1,405		)
Net assets acquired	$	781,384

Schedule of Preliminary Estimated Fair Value of Intangible Assets Acquired

The fair values of the identifiable intangible assets acquired at the date of combination are as follows:

	Angie's List
	(In thousands)		Weighted-Average Useful Life (Years)
Indefinite-lived trade name and trademarks	$	137,000	Indefinite
Service professionals	90,500		3
Developed technology	63,900		6
Memberships	15,900		3
User base	10,000		1
Total identifiable intangible assets acquired	$	317,300

Schedule of Pro Forma Financial Information

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Revenue	$	3,529,600	$	3,429,105
Net earnings (loss) attributable to ANGI Homeservices Inc. shareholders	$	364,496	$	(143,133	)
Basic earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.55	$	(1.79	)
Diluted earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders	$	4.27	$	(1.79	)

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GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Assets, Net

Goodwill and intangible assets, net are as follows:

	December 31,
	2018		2017
	(In thousands)
Goodwill	$	2,726,859	$	2,559,066
Intangible assets with indefinite lives	458,104		459,143
Intangible assets with definite lives, net of accumulated amortization	173,318		204,594
Total goodwill and intangible assets, net	$	3,358,281	$	3,222,803

Schedule of Goodwill by Reporting Unit

The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2018:

	Balance at December 31, 2017		Additions		(Deductions)			Transfers In/(Out)			Foreign Exchange Translation			Balance at December 31, 2018
	(In thousands)
Match Group	$	1,247,899	$	11,187	$	—		$	—		$	(14,073	)	$	1,245,013
ANGI Homeservices	768,317		142,768		(14,373		)	—			(3,912		)	892,800
Vimeo	77,303		—		(151		)	—			—			77,152
Applications:
Desktop	265,146		—		—			—			—			265,146
Mosaic Group	182,096		50,784		—			7,323			(457		)	239,746
Total Applications	447,242		50,784		—			7,323			(457		)	504,892
Emerging & Other	18,305		3,684		(7,664		)	(7,323		)	—			7,002
Total	$	2,559,066	$	208,423	$	(22,188	)	$	—		$	(18,442	)	$	2,726,859

The following table presents the balance of goodwill by reportable segment, including the changes in the carrying value of goodwill, for the year ended December 31, 2017:

	Balance at December 31, 2016		Additions		(Deductions)			Foreign Exchange Translation		Balance at December 31, 2017
	(In thousands)
Match Group	$	1,206,538	$	255	$	—		$	41,106	$	1,247,899
ANGI Homeservices	170,611		590,772		—			6,934		768,317
Vimeo	9,649		67,654		—			—		77,303
Applications:
Desktop	265,146		—		—			—		265,146
Mosaic Group	182,096		—		—			—		182,096
Total Applications	447,242		—		—			—		447,242
Emerging & Other	90,012		2,715		(74,430		)	8		18,305
Total	$	1,924,052	$	661,396	$	(74,430	)	$	48,048	$	2,559,066

Schedule of Intangible Assets with Definite Lives

Intangible assets with indefinite lives are trade names and trademarks acquired in various acquisitions. At December 31, 2018 and 2017, intangible assets with definite lives are as follows:

	December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted-Average Useful Life (Years)
	(In thousands)
Technology	$	143,303	$	(53,199	)	$	90,104	4.7
Service professional and contractor relationships	99,528		(44,674		)	54,854		2.9
Customer lists and user base	30,099		(15,126		)	14,973		2.9
Memberships	15,900		(6,640		)	9,260		3.0
Trade names	12,393		(9,393		)	3,000		3.3
Other	8,500		(7,373		)	1,127		4.8
Total	$	309,723	$	(136,405	)	$	173,318	3.8

	December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net		Weighted-Average Useful Life (Years)
	(In thousands)
Technology	$	115,200	$	(37,357	)	$	77,843	4.8
Service professional and contractor relationships	99,497		(11,452		)	88,045		3.0
Customer lists and user base	23,468		(5,401		)	18,067		2.2
Memberships	15,900		(1,340		)	14,560		3.0
Trade names	16,986		(13,634		)	3,352		2.6
Other	8,500		(5,773		)	2,727		4.8
Total	$	279,551	$	(74,957	)	$	204,594	3.7

Schedule of Expected Amortization of Intangible Assets

At December 31, 2018, amortization of intangible assets with definite lives for each of the next five years and thereafter is estimated to be as follows:

Years Ending December 31,	(In thousands)
2019	$	71,155
2020	51,916
2021	19,433
2022	16,310
2023	10,239
Thereafter	4,265
Total	$	173,318

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FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Marketable Securities

At December 31, 2018 and 2017, the fair value of marketable securities are as follows:

	December 31,
	2018		2017
	(In thousands)
Available-for-sale marketable debt securities	$	123,246	$	4,995
Marketable equity security	419		—
Total marketable securities	$	123,665	$	4,995

Schedule of Current Available-for-sale Marketable Securities

At December 31, 2017, current available-for-sale marketable debt securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
Commercial paper	$	4,995	$	—	$	—	$	4,995
Total available-for-sale marketable debt securities	$	4,995	$	—	$	—	$	4,995

At December 31, 2018, current available-for-sale marketable debt securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
Treasury discount notes	$	112,291	$	3	$	(3	)	$	112,291
Commercial paper	10,955		—		—			10,955
Total available-for-sale marketable debt securities	$	123,246	$	3	$	(3	)	$	123,246

Schedule of Proceeds from Maturities and Sales of Current Available-for-sale Marketable Securities

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

	December 31,
	2018		2017		2016
	(In thousands)
Proceeds from maturities and sales of available-for-sale marketable debt securities	$	333,600	$	114,350	$	279,485
Gross realized gains	—		—		3,556

Schedule of Long-term Investments

Long-term investments consist of:

	December 31,
	2018		2017
	(In thousands)
Equity securities without readily determinable fair values	$	235,055	$	—
Equity method investments	—		1,559
Cost method investments	—		63,418
Total long-term investments	$	235,055	$	64,977

Schedule of Realized and Unrealized Gains (Losses) on Investments

The following table presents a summary of realized and unrealized gains and losses recorded in other income (expense), net, as adjustments to the carrying value of equity securities without readily determinable fair values held as of December 31, 2018. The gross unrealized gains principally relate to the Company's remaining investments in an investee following the sale of a portion of the Company's investment during the second quarter of 2018.

	Year Ended December 31, 2018
	(In thousands)
Upward adjustments (gross unrealized gains)	$	128,986
Downward adjustments including impairments (gross unrealized losses)	(4,931		)
Total	$	124,055

Realized and unrealized gains and losses for the Company's marketable equity security and investments without readily determinable fair values for the year ended December 31, 2018 are as follows:

	Year Ended December 31, 2018
	(In thousands)
Realized gains, net, for equity securities sold	$	27,874
Unrealized gains, net, on equity securities held	124,170
Total gains recognized, net, in other income (expense), net	$	152,044

Schedule of Financial Instruments Measured at Fair Value on Recurring Basis

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

	December 31, 2018
	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	$	880,815	$	—	$	—		$	880,815
Treasury discount notes	—		561,733		—			561,733
Commercial paper	—		162,417		—			162,417
Time deposits	—		90,036		—			90,036
Marketable securities:
Treasury discount notes	—		112,291		—			112,291
Commercial paper	—		10,955		—			10,955
Marketable equity security	419		—		—			419
Total	$	881,234	$	937,432	$	—		$	1,818,666
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(28,631	)	$	(28,631	)

	December 31, 2017
	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	$	780,425	$	—	$	—		$	780,425
Commercial paper	—		215,325		—			215,325
Treasury discount notes	—		100,457		—			100,457
Time deposits	—		60,000		—			60,000
Certificates of deposit	—		6,195		—			6,195
Marketable securities:
Commercial paper	—		4,995		—			4,995
Total	$	780,425	$	386,972	$	—		$	1,167,397
Liabilities:
Contingent consideration arrangements	$	—	$	—	$	(2,647	)	$	(2,647	)

Schedule of Unobservable Inputs in Fair Value Measurement

The Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are its contingent consideration arrangements.

	Contingent Consideration Arrangements
	Years Ended December 31,
	2018			2017
	(In thousands)
Balance at January 1	$	(2,647	)	$	(33,871	)
Total net (losses) gains:
Included in earnings:
Fair value adjustments	(1,456		)	(5,801		)
Included in other comprehensive income (loss)	45			(1,404		)
Fair value at date of acquisition	(25,521		)	—
Settlements	948			38,429
Balance at December 31	$	(28,631	)	$	(2,647	)

Schedule of 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:

	December 31, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
	(In thousands)
Current portion of long-term debt	$	(13,750	)	$	(12,753	)	$	(13,750	)	$	(13,802	)
Long-term debt, net(a)	(2,245,548		)	(2,460,204		)	(1,979,469		)	(2,168,108		)

_________________

^(a)  At December 31, 2018 and 2017, the carrying value of long-term debt, net includes unamortized original issue discount and debt issuance costs of $88.9 million and $109.1 million, respectively.

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LONG-TERM DEBT (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of:

	December 31,
	2018		2017
	(In thousands)
MTCH Debt:
MTCH Term Loan due November 16, 2022	$	425,000	$	425,000
MTCH Credit Facility due December 7, 2023	260,000		—
6.375% Senior Notes due June 1, 2024 (the "6.375% MTCH Senior Notes"); interest payable each June 1 and December 1	400,000		400,000
5.00% Senior Notes due December 15, 2027 (the "5.00% MTCH Senior Notes"); interest payable each June 15 and December 15	450,000		450,000
Total MTCH long-term debt	1,535,000		1,275,000
Less: unamortized original issue discount	7,352		8,668
Less: unamortized debt issuance costs	11,737		13,636
Total MTCH debt, net	1,515,911		1,252,696
ANGI Debt:
ANGI Term Loan due November 5, 2023	261,250		275,000
Less: current portion of ANGI Term Loan	13,750		13,750
Less: unamortized debt issuance costs	2,529		2,938
Total ANGI debt, net	244,971		258,312
IAC Debt:
0.875% Exchangeable Senior Notes due October 1, 2022 (the "Exchangeable Notes"); interest payable each April 1 and October 1	517,500		517,500
4.75% Senior Notes due December 15, 2022 (the "4.75% Senior Notes"); interest payable each June 15 and December 15	34,489		34,859
Total IAC long-term debt	551,989		552,359
Less: unamortized original issue discount	54,025		67,158
Less: unamortized debt issuance costs	13,298		16,740
Total IAC debt, net	484,666		468,461
Total long-term debt, net	$	2,245,548	$	1,979,469

Schedule of Debt Instrument Redemption

Thereafter, these notes may be redeemed at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on December 15 of the years indicated below:

Year	Percentage
2022	102.500	%
2023	101.667	%
2024	100.833	%
2025 and thereafter	100.000	%

Thereafter, these notes may be redeemed at the redemption prices set forth below, together with accrued and unpaid interest thereon to the applicable redemption date, if redeemed during the twelve-month period beginning on June 1 of the years indicated below:

Year	Percentage
2019	104.781	%
2020	103.188	%
2021	101.594	%
2022 and thereafter	100.000	%

Schedule of Aggregate Contractual Maturities of Long-term Debt

Long-term debt maturities:

Years Ending December 31,	(In thousands)
2019	$	13,750
2020	13,750
2021	13,750
2022	1,004,489
2023	452,500
2024	400,000
2027	450,000
Total	2,348,239
Less: current portion of long-term debt	13,750
Less: unamortized original issue discount	61,377
Less: unamortized debt issuance costs	27,564
Total long-term debt, net	$	2,245,548

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following tables present the components of accumulated other comprehensive (loss) income and items reclassified out of accumulated other comprehensive loss into earnings:

	Year Ended December 31, 2018
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities		Accumulated Other Comprehensive Loss
	(In thousands)
Balance at January 1	$	(103,568	)	$	—	$	(103,568	)
Other comprehensive (loss) income before reclassifications	(25,106		)	4		(25,102		)
Amounts reclassified to earnings	(52		)	—		(52		)
Net current period other comprehensive (loss) income	(25,158		)	4		(25,154		)
Balance at December 31	$	(128,726	)	$	4	$	(128,722	)

	Year Ended December 31, 2017
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive (Loss) Income
	(In thousands)
Balance at January 1	$	(170,149	)	$	4,026		$	(166,123	)
Other comprehensive income before reclassifications	65,908			7			65,915
Amounts reclassified to earnings	673			(4,033		)	(3,360		)
Net current period other comprehensive income (loss)	66,581			(4,026		)	62,555
Balance at December 31	$	(103,568	)	$	—		$	(103,568	)

	Year Ended December 31, 2016
	Foreign Currency Translation Adjustment			Unrealized Gains On Available-For-Sale Securities			Accumulated Other Comprehensive (Loss) Income
	(In thousands)
Balance at January 1	$	(154,645	)	$	2,542		$	(152,103	)
Other comprehensive (loss) income before reclassifications, net of tax benefit of $0.7 million related to unrealized losses on available-for-sale securities	(46,943		)	4,855			(42,088		)
Amounts reclassified to earnings	9,850			(2,913		)	6,937
Net current period other comprehensive (loss) income	(37,093		)	1,942			(35,151		)
Reallocation of accumulated other comprehensive loss (income) related to the noncontrolling interests created in the Match Group IPO	21,589			(458		)	21,131
Balance at December 31	$	(170,149	)	$	4,026		$	(166,123	)

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EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to IAC shareholders:

	Years Ended December 31,
	2018						2017						2016
	Basic			Diluted			Basic			Diluted			Basic			Diluted
	(In thousands, except per share data)
Numerator:
Net earnings (loss)	$	757,747		$	757,747		$	358,008		$	358,008		$	(16,151	)	$	(16,151	)
Net earnings attributable to noncontrolling interests	(130,786		)	(130,786		)	(53,084		)	(53,084		)	(25,129		)	(25,129		)
Impact from public subsidiaries' dilutive securities (a)(b)	—			(25,228		)	—			(33,531		)	—			—
Net earnings (loss) attributable to IAC shareholders	$	626,961		$	601,733		$	304,924		$	271,393		$	(41,280	)	$	(41,280	)
Denominator:
Weighted average basic shares outstanding	83,407			83,407			80,089			80,089			80,045			80,045
Dilutive securities (a) (b) (c) (d) (e) (f) (g)	—			7,915			—			5,221			—			—
Denominator for earnings per share—weighted average shares(a) (b) (c) (d) (e) (f) (g)	83,407			91,322			80,089			85,310			80,045			80,045
Earnings (loss) per share attributable to IAC shareholders:
Earnings (loss) per share	$	7.52		$	6.59		$	3.81		$	3.18		$	(0.52	)	$	(0.52	)

__________________________________________________________________

(a) For the year ended December 31, 2018, it is more dilutive for IAC to settle certain MTCH equity awards.  For the years ended December 31, 2017 and 2016, it is more dilutive for MTCH to settle certain MTCH equity awards.

(b) For the years ended December 31, 2018 and 2017, it is more dilutive for IAC to settle certain ANGI equity awards. The impact on earnings of ANGI dilutive securities is not applicable for periods prior to the Combination.

(c) 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, warrants and subsidiary denominated equity, exchange of the Company's Exchangeable Notes and vesting of restricted stock units ("RSUs"). For the years ended December 31, 2018 and 2017, 3.5 million and 6.9 million potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

(d) For the year ended December 31, 2016, the Company had a loss from operations; therefore, approximately 11.3 million potentially dilutive securities were excluded from 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.

(e) Market-based awards and performance-based stock units ("PSUs") are considered contingently issuable shares. Shares issuable upon exercise or vesting of market-based awards and PSUs are included in the denominator for earnings per share if (i) the applicable market or performance condition(s) has been met and (ii) the inclusion of the market-based awards and PSUs is dilutive for the respective reporting periods. For both the years ended December 31, 2018 and 2017, 0.1 million shares underlying market-based awards and PSUs were excluded from the calculation of diluted earnings per share because the market or performance conditions had not been met.

(f) It is the Company's intention to settle the Exchangeable Notes through a combination of cash, equal to the face amount of the notes, and shares; therefore, the Exchangeable Notes are only dilutive for periods during which the average price of IAC common stock exceeds the approximate $152.18 per share exchange price per $1,000 principal amount of the Exchangeable Notes. For the year ended December 31, 2018, the average price of IAC common stock exceeded $152.18 and the dilutive impact of the Exchangeable Notes was 0.3 million shares. For the year ended December 31, 2017, the Exchangeable Notes were anti-dilutive.

(g) See "Note 11—Stock-based Compensation" for additional information on equity instruments denominated in the shares of certain subsidiaries.

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STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Changes in Outstanding Stock Options

Stock options outstanding at December 31, 2018 and changes during the year ended December 31, 2018 are as follows:

	December 31, 2018
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
	(Shares and intrinsic value in thousands)
Options outstanding at January 1, 2018	6,586		$	60.57
Granted	80		152.53
Exercised	(774	)	52.56
Forfeited	(72	)	57.52
Expired	(6	)	19.51
Options outstanding at December 31, 2018	5,814		$	62.97	6.1	$	698,128
Options exercisable	3,592		$	59.64	5.3	$	443,293

Schedule of Information for Stock Options Outstanding and Exercisable

The following table summarizes the information about stock options outstanding and exercisable at December 31, 2018:

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Outstanding at December 31, 2018	Weighted- Average Remaining Contractual Life in Years	Weighted- Average Exercise Price		Exercisable at December 31, 2018	Weighted- Average Remaining Contractual Life in Years	Weighted- Average Exercise Price
	(Shares in thousands)
$20.01 to $30.00	30	1.1	$	21.60	30	1.1	$	21.60
$30.01 to $40.00	389	2.3	32.30		389	2.3	32.30
$40.01 to $50.00	1,541	5.8	43.35		961	5.0	44.26
$50.01 to $60.00	246	3.2	59.85		244	3.2	59.86
$60.01 to $70.00	1,173	6.3	65.27		767	6.0	65.62
$70.01 to $80.00	1,840	7.4	75.33		822	6.8	74.72
$80.01 to $90.00	500	6.3	84.31		375	6.3	84.31
Greater than $90.01	95	9.1	148.30		4	8.9	125.08
	5,814	6.1	62.97		3,592	5.3	59.64

Schedule of Weighted Average Assumptions

The following are the weighted average assumptions used in the Black-Scholes option pricing model:

	Years Ended December 31,
	2018		2017		2016
Expected volatility	27	%	29	%	29	%
Risk-free interest rate	2.7	%	2.0	%	1.2	%
Expected term	6.2 years		5.2 years		4.8 years
Dividend yield	—	%	—	%	—	%

Schedule of Outstanding Unvested RSUs and PSUs

Unvested RSUs and PSUs outstanding at December 31, 2018 and changes during the year ended December 31, 2018 are as follows:

	RSUs				PSUs
	Number of shares		Weighted Average Grant Date Fair Value		Number of shares		Weighted Average Grant Date Fair Value
	(Shares in thousands)
Unvested at January 1, 2018	360		$	80.81	130		$	76.00
Granted	153		183.33		30		152.53
Vested	(49	)	78.54		—		—
Forfeited	(5	)	98.81		(17	)	76.00
Unvested at December 31, 2018	459		$	115.12	143		$	92.02

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SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Revenue:
Match Group	$	1,729,850		$	1,330,661		$	1,118,110
ANGI Homeservices	1,132,241			736,386			498,890
Vimeo	159,641			103,332			78,805
Dotdash	130,991			90,890			77,913
Applications	582,287			577,998			604,140
Emerging & Other	528,250			468,589			762,609
Inter-segment elimination	(368		)	(617		)	(585		)
Total	$	4,262,892		$	3,307,239		$	3,139,882

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

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Match Group
Direct revenue:
North America	$	902,478	$	741,334	$	673,944
International	774,693		539,915		393,420
Direct revenue	1,677,171		1,281,249		1,067,364
Indirect revenue (principally advertising revenue)	52,679		49,412		50,746
Total Match Group revenue	$	1,729,850	$	1,330,661	$	1,118,110
Supplemental information on Direct revenue
Tinder	$	805,316	$	403,216	$	168,522
Other brands	871,855		878,033		898,842
Total Direct revenue	$	1,677,171	$	1,281,249	$	1,067,364
ANGI Homeservices
Marketplace:
Consumer connection revenue	$	704,341	$	521,481	$	382,466
Membership subscription revenue	66,214		56,135		43,573
Other revenue	3,940		3,798		2,827
Marketplace revenue	774,495		581,414		428,866
Advertising and other revenue	287,676		97,483		32,981
North America	1,062,171		678,897		461,847
Consumer connection revenue	50,913		40,009		28,124
Membership subscription revenue	17,362		16,596		7,936
Advertising and other revenue	1,795		884		983
Europe	70,070		57,489		37,043
Total ANGI Homeservices revenue	$	1,132,241	$	736,386	$	498,890
Vimeo
Platform revenue	$	146,665	$	99,650	$	78,805
Hardware revenue	12,976		3,682		—

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Total Vimeo revenue	$	159,641	$	103,332	$	78,805
Dotdash
Advertising revenue	$	113,014	$	81,948	$	76,099
Affiliate commerce commission revenue	14,458		7,372		1,685
Other revenue	3,519		1,570		129
Total Dotdash revenue	$	130,991	$	90,890	$	77,913
Applications
Desktop
Advertising revenue:
Google advertising revenue	$	426,964	$	480,774	$	523,335
Other	10,992		6,762		10,037
Advertising revenue	437,956		487,536		533,372
Subscription and other revenue	20,815		34,613		29,943
Total Desktop	458,771		522,149		563,315
Mosaic Group
Subscription and other revenue	104,975		27,980		21,787
Advertising revenue	18,541		27,869		19,038
Total Mosaic Group	123,516		55,849		40,825
Total Applications revenue	$	582,287	$	577,998	$	604,140
Emerging & Other
Advertising revenue:
Google advertising revenue	$	357,752	$	225,576	$	269,192
Other	66,733		53,911		75,008
Advertising revenue	424,485		279,487		344,200
Other revenue	103,765		169,497		160,329
Test preparation revenue	—		19,605		86,517
Product revenue	—		—		171,563
Total Emerging & Other revenue	$	528,250	$	468,589	$	762,609

Schedule of Revenue by Geographic Areas

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Revenue
United States	$	2,824,928	$	2,323,050	$	2,318,976
All other countries	1,437,964		984,189		820,906
Total	$	4,262,892	$	3,307,239	$	3,139,882

Schedule of Long-lived Assets by Geographic Areas

	December 31,
	2018		2017
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	289,756	$	286,541
All other countries	29,044		28,629
Total	$	318,800	$	315,170

Schedule of Reconciliation of Adjusted EBITDA to Operating Income (Loss)

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

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Operating Income (Loss):
Match Group	$	553,294		$	360,517		$	315,549
ANGI Homeservices	63,906			(149,176		)	25,363
Vimeo	(35,594		)	(27,328		)	(25,350		)
Dotdash	18,778			(15,694		)	(248,705		)
Applications	94,834			130,176			109,663
Emerging & Other	29,964			17,412			(99,696		)
Corporate	(160,043		)	(127,441		)	(109,449		)
Total	$	565,139		$	188,466		$	(32,625	)

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Adjusted EBITDA:(a)
Match Group	$	653,931		$	468,941		$	403,380
ANGI Homeservices	$	247,506		$	37,858		$	45,851
Vimeo	$	(28,045	)	$	(23,607	)	$	(20,281	)
Dotdash	$	21,384		$	(2,763	)	$	(16,846	)
Applications	$	131,837		$	136,757		$	132,276
Emerging & Other	$	36,178		$	25,862		$	10,111
Corporate	$	(74,017	)	$	(67,755	)	$	(53,272	)

_______________________________________________________________________________

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

	Year Ended December 31, 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	$	553,294		$	66,031	$	32,968	$	1,318	$	320	$	653,931
ANGI Homeservices	63,906			$	97,078	$	24,310	$	62,212	$	—	$	247,506
Vimeo	(35,594		)	$	—	$	1,200	$	6,349	$	—	$	(28,045	)
Dotdash	18,778			$	—	$	969	$	1,637	$	—	$	21,384
Applications	94,834			$	—	$	2,601	$	33,266	$	1,136	$	131,837
Emerging & Other	29,964			$	919	$	1,678	$	3,617	$	—	$	36,178
Corporate	(160,043		)	$	74,392	$	11,634	$	—	$	—	$	(74,017	)
Total	565,139
Interest expense	(109,327		)
Other income, net	305,746
Earnings before income taxes	761,558
Income tax provision	(3,811		)
Net earnings	757,747
Net earnings attributable to noncontrolling interests	(130,786		)
Net earnings attributable to IAC shareholders	$	626,961

	Year Ended December 31, 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	$	360,517		$	69,090	$	32,613	$	1,468	$	5,253		$	468,941
ANGI Homeservices	(149,176		)	$	149,230	$	14,543	$	23,261	$	—		$	37,858
Vimeo	(27,328		)	$	—	$	1,408	$	2,313	$	—		$	(23,607	)
Dotdash	(15,694		)	$	—	$	2,255	$	10,676	$	—		$	(2,763	)
Applications	130,176			$	—	$	3,863	$	2,170	548		—	$	136,757
Emerging & Other	17,412			$	2,130	$	4,065	$	2,255	$	—		$	25,862
Corporate	(127,441		)	$	44,168	$	15,518	$	—	$	—		$	(67,755	)
Total	188,466
Interest expense	(105,295		)
Other expense, net	(16,213		)
Earnings before income taxes	66,958
Income tax benefit	291,050
Net earnings	358,008
Net earnings attributable to noncontrolling interests	(53,084		)
Net earnings attributable to IAC shareholders	$	304,924

	Year Ended December 31, 2016
	Operating Income (Loss)			Stock-Based Compensation Expense		Depreciation		Amortization of Intangibles		Acquisition-related Contingent Consideration Fair Value Adjustments			Goodwill Impairment		Adjusted EBITDA
	(In thousands)
Match Group	$	315,549		$	52,370	$	27,726	$	16,932	$	(9,197	)	$	—	$	403,380
ANGI Homeservices	25,363			$	8,916	$	8,419	$	3,153	$	—		$	—	$	45,851
Vimeo	(25,350		)	$	—	$	1,085	$	4,176	$	(192	)	$	—	$	(20,281	)
Dotdash	(248,705		)	$	—	$	2,775	$	30,754	$	—		$	198,330	$	(16,846	)
Applications	109,663			$	—	$	5,095	$	5,483	$	12,035		$	—	$	132,276
Emerging & Other	(99,696		)	$	1,258	$	12,675	$	18,928	$	(91	)	$	77,037	$	10,111
Corporate	(109,449		)	$	42,276	$	13,901	$	—	$	—		$	—	$	(53,272	)
Total	(32,625		)
Interest expense	(109,110		)
Other income, net	60,650
Loss before income taxes	(81,085		)
Income tax benefit	64,934
Net loss	(16,151		)
Net earnings attributable to noncontrolling interests	(25,129		)
Net loss attributable to IAC shareholders	$	(41,280	)

Schedule of Reconciliation of Segment Assets to Total Assets

The following tables reconcile segment assets to total assets by reportable segment:

	December 31, 2018
	Segment  Assets (b)		Property and Equipment, Net		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets, Net		Total Assets
	(In thousands)
Match Group	$	377,965	$	58,351	$	1,245,013	$	230,684	$	6,956	$	1,918,969
ANGI Homeservices	497,327		70,859		892,800		171,486		132,809		1,765,281
Vimeo	33,568		1,014		77,152		—		9,442		121,176
Dotdash	39,276		3,229		—		13,500		1,514		57,519
Applications	153,781		4,867		504,892		39,463		22,447		725,450
Emerging & Other	95,858		1,638		7,002		2,971		150		107,619
Corporate (c)	1,934,943		178,842		—		—		—		2,113,785
Total	$	3,132,718	$	318,800	$	2,726,859	$	458,104	$	173,318	6,809,799
Add: Deferred tax assets (d)											64,786
Total Assets											$	6,874,585

	December 31, 2017
	Segment  Assets (b)		Property and Equipment, Net		Goodwill		Indefinite-Lived Intangible Assets		Definite-Lived Intangible Assets, Net		Total Assets
	(In thousands)
Match Group	$	467,338	$	61,620	$	1,247,899	$	228,296	$	2,049	$	2,007,202
ANGI Homeservices	264,450		53,292		768,317		153,447		175,124		1,414,630
Vimeo	30,507		1,972		77,303		—		15,655		125,437
Dotdash	27,190		4,077		—		6,000		3,152		40,419
Applications	345,532		7,004		447,242		60,600		847		861,225
Emerging & Other	255,107		2,377		18,305		10,800		7,767		294,356
Corporate (c)	873,392		184,828		—		—		—		1,058,220
Total	$	2,263,516	$	315,170	$	2,559,066	$	459,143	$	204,594	5,801,489
Add: Deferred tax assets (d)											66,321
Total Assets											$	5,867,810

_____________________________________

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

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

(d) Total segment assets differ from total assets on a consolidated basis as a result of unallocated deferred tax assets.

Schedule of Capital Expenditures by Segment

The following table presents capital expenditures by reportable segment:

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Capital expenditures:
Match Group	$	30,954	$	28,833	$	46,098
ANGI Homeservices	46,976		26,837		16,660
Vimeo	209		109		1,959
Dotdash	102		825		1,671
Applications	111		227		1,196
Emerging & Other	1,119		852		6,683
Corporate	6,163		17,840		3,772
Total	$	85,634	$	75,523	$	78,039

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COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments under Operating Lease Agreements

Future minimum payments under operating lease agreements are as follows:

Years Ending December 31,	(In thousands)
2019	$	38,770
2020	46,440
2021	40,998
2022	34,066
2023	30,567
Thereafter	255,563
Total	$	446,404

Schedule of Commercial Commitments Outstanding

The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or contingent events as follows:

	Amount of Commitment Expiration Per Period
	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total Amounts Committed
	(In thousands)
Purchase obligations	$	40,428	$	23,897	$	—	$	—	$	64,325
Letters of credit and surety bonds	449		—		—		2,272		2,721
Total commercial commitments	$	40,877	$	23,897	$	—	$	2,272	$	67,046

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Information [Abstract]

Schedule of Supplemental Disclosure of Cash Flow Information

Supplemental Disclosure of Cash Flow Information:

	Years Ended December 31,
	2018			2017			2016
	(In thousands)
Cash paid (received) during the year for:
Interest	$	90,485		$	92,461		$	107,360
Income tax payments	45,154			35,598			69,103
Income tax refunds	(33,698		)	(42,025		)	(23,877		)

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CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Current Assets

	December 31,
	2018		2017
	(In thousands)
Other current assets:
Capitalized costs to obtain a contract with a customer	$	69,817	$	—
Prepaid expenses	55,586		49,350
Capitalized downloadable search toolbar costs, net	33,365		31,588
Income taxes receivable	10,132		33,239
Production costs	2,260		18,570
Other	57,093		52,627
Other current assets	$	228,253	$	185,374

Schedule of Property and Equipment, Net

Asset Category	Estimated Useful Lives
Buildings and leasehold improvements	3 to 39 Years
Computer equipment and capitalized software	2 to 3 Years
Furniture and other equipment	3 to 12 Years

	December 31,
	2018			2017
	(In thousands)
Property and equipment, net of accumulated depreciation and amortization:
Buildings and leasehold improvements	$	249,026		$	246,038
Computer equipment and capitalized software	229,083			218,529
Furniture and other equipment	86,694			88,930
Projects in progress	29,204			19,094
Land	11,591			14,390
Property and equipment	605,598			586,981
Accumulated depreciation and amortization	(286,798		)	(271,811		)
Property and equipment, net of accumulated depreciation and amortization	$	318,800		$	315,170

Schedule of Accrued Expenses and Other Current Liabilities

	December 31,
	2018		2017
	(In thousands)
Accrued expenses and other current liabilities:
Accrued employee compensation and benefits	$	137,583	$	108,431
Accrued advertising expense	105,520		96,445
Other	191,783		162,048
Accrued expenses and other current liabilities	$	434,886	$	366,924

Schedule of Revenue

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Revenue:
Service revenue	$	4,249,227	$	3,302,937	$	2,967,474
Product revenue	13,665		4,302		172,408
Revenue	$	4,262,892	$	3,307,239	$	3,139,882

Schedule of Cost of Revenue

	Years Ended December 31,
	2018		2017		2016
	(In thousands)
Cost of revenue:
Cost of service revenue	$	898,736	$	647,226	$	617,058
Cost of product revenue	12,410		3,782		138,672
Cost of revenue	$	911,146	$	651,008	$	755,730

Schedule of Other (Expense) Income, Net

	Years Ended December 31,
	2018		2017			2016
	(In thousands)
Other income (expense), net	$	305,746	$	(16,213	)	$	60,650

XML

TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of Purchase Price

The table below summarizes the purchase price:

	Angie's List
	(In thousands)
Class A common stock	$	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services	11,749
Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services	4,038
Total purchase price	$	781,384

A summary of the costs incurred, payments made and the related accrual is presented below.

	Years Ended December 31,
	2018		2017
	(In thousands)
Transaction and integration related costs	$	3,584	$	44,101
Stock-based compensation expense	70,645		122,066
Total	$	74,229	$	166,167

	December 31,
	2018			2017
	(In thousands)
Accrual as of January 1	$	8,480		$	—
Costs incurred	3,584			44,101
Payments made	(12,064		)	(35,621		)
Accrual as of December 31	$	—		$	8,480

The costs are allocated as follows in the accompanying consolidated statement of operations:

	Year Ended December 31, 2018
	Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	—		2,161		2,161
General and administrative expense	3,584		61,010		64,594
Product development expense	—		7,474		7,474
Total	$	3,584	$	70,645	$	74,229

	Year Ended December 31, 2017
	Transaction and Integration Related Costs		Stock-based Compensation Expense		Total
	(In thousands)
Cost of revenue	$	—	$	—	$	—
Selling and marketing expense	7,430		24,416		31,846
General and administrative expense	36,120		83,420		119,540
Product development expense	551		14,230		14,781
Total	$	44,101	$	122,066	$	166,167

XML

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2018

Guarantor and Nonguarantor Financial Statements [Abstract]

Schedule of Condensed Balance Sheet

Balance sheet at December 31, 2018:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	1,018,082	$	—	$	1,113,550		$	—		$	2,131,632
Marketable securities	98,299		—		25,366			—			123,665
Accounts receivable, net of allowance and reserves	—		99,970		179,219			—			279,189
Other current assets	27,349		29,222		171,682			—			228,253
Intercompany receivables	—		1,423,456		—			(1,423,456		)	—
Property and equipment, net of accumulated depreciation and amortization	6,526		163,281		148,993			—			318,800
Goodwill	—		412,009		2,314,850			—			2,726,859
Intangible assets, net of accumulated amortization	—		43,914		587,508			—			631,422
Investment in subsidiaries	1,897,699		214,519		—			(2,112,218		)	—
Other non-current assets	274,789		94,290		251,315			(185,629		)	434,765
Total assets	$	3,322,744	$	2,480,661	$	4,792,483		$	(3,721,303	)	$	6,874,585
Current portion of long-term debt	$	—	$	—	$	13,750		$	—		$	13,750
Accounts payable, trade	1,304		36,293		37,310			—			74,907
Other current liabilities	41,721		95,405		657,775			—			794,901
Long-term debt, net	34,262		—		2,211,286			—			2,245,548
Income taxes payable	15		1,707		35,862			—			37,584
Intercompany liabilities	402,056		—		1,021,400			(1,423,456		)	—
Other long-term liabilities	261		18,181		257,594			(185,629		)	90,407
Redeemable noncontrolling interests	—		—		65,687			—			65,687
Shareholders' equity (deficit)	2,843,125		2,329,075		(216,857		)	(2,112,218		)	2,843,125
Noncontrolling interests	—		—		708,676			—			708,676
Total liabilities and shareholders' equity	$	3,322,744	$	2,480,661	$	4,792,483		$	(3,721,303	)	$	6,874,585

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 and reserves	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 Statement of Operations

Statement of operations for the year ended December 31, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	850,475		$	3,412,795		$	(378	)	$	4,262,892
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	195			262,912			648,330			(291		)	911,146
Selling and marketing expense	977			313,769			1,204,844			(150		)	1,519,440
General and administrative expense	141,727			49,563			582,720			69			774,079
Product development expense	2,003			56,431			250,901			(6		)	309,329
Depreciation	1,203			12,497			61,660			—			75,360
Amortization of intangibles	—			29,437			78,962			—			108,399
Total operating costs and expenses	146,105			724,609			2,827,417			(378		)	3,697,753
Operating (loss) income	(146,105		)	125,866			585,378			—			565,139
Equity in earnings of unconsolidated affiliates	731,834			20,083			—			(751,917		)	—
Interest expense	(1,700		)	—			(107,627		)	—			(109,327		)
Other (expense) income, net (a)	(18,834		)	503,261			199,757			(378,438		)	305,746
Earnings before income taxes	565,195			649,210			677,508			(1,130,355		)	761,558
Income tax benefit (provision)	61,766			(56,612		)	(8,965		)	—			(3,811		)
Net earnings	626,961			592,598			668,543			(1,130,355		)	757,747
Net earnings attributable to noncontrolling interests	—			—			(130,786		)	—			(130,786		)
Net earnings attributable to IAC shareholders	$	626,961		$	592,598		$	537,757		$	(1,130,355	)	$	626,961
Comprehensive income attributable to IAC shareholders	$	601,683		$	601,232		$	515,766		$	(1,116,998	)	$	601,683

____________________

^(a)  During the year ended December 31, 2018, foreign cash of $396.2 million was repatriated to the U.S, of which $25.2 million was between non-guarantor subsidiaries.

Statement of operations for the year ended December 31, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	753,858		$	2,553,998		$	(617	)	$	3,307,239
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	160			159,488			491,865			(505		)	651,008
Selling and marketing expense	1,250			353,186			1,027,304			(519		)	1,381,221
General and administrative expense	100,237			62,340			556,273			407			719,257
Product development expense	2,421			55,232			193,226			—			250,879
Depreciation	1,564			20,668			52,033			—			74,265
Amortization of intangibles	—			11,213			30,930			—			42,143
Total operating costs and expenses	105,632			662,127			2,351,631			(617		)	3,118,773
Operating (loss) income	(105,632		)	91,731			202,367			—			188,466
Equity in earnings of unconsolidated affiliates	419,149			20,755			—			(439,904		)	—
Interest expense	(20,339		)	—			(84,956		)	—			(105,295		)
Other (expense) income, net	(30,787		)	28,434			(13,860		)	—			(16,213		)
Earnings before income taxes	262,391			140,920			103,551			(439,904		)	66,958
Income tax benefit (provision)	42,533			(119,957		)	368,474			—			291,050
Net earnings	304,924			20,963			472,025			(439,904		)	358,008
Net earnings attributable to noncontrolling interests	—			—			(53,084		)	—			(53,084		)
Net earnings attributable to IAC shareholders	$	304,924		$	20,963		$	418,941		$	(439,904	)	$	304,924
Comprehensive income attributable to IAC shareholders	$	367,370		$	7,629		$	498,032		$	(505,661	)	$	367,370

Statement of operations for the year ended December 31, 2016:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	960,000		$	2,180,487		$	(605	)	$	3,139,882
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	859			297,712			457,571			(412		)	755,730
Selling and marketing expense	2,353			417,051			828,016			(323		)	1,247,097
General and administrative expense	89,583			83,636			357,097			130			530,446
Product development expense	4,807			69,778			138,180			—			212,765
Depreciation	1,610			26,514			43,552			—			71,676
Amortization of intangibles	—			41,157			38,269			—			79,426
Goodwill impairment	—			253,245			22,122			—			275,367
Total operating costs and expenses	99,212			1,189,093			1,884,807			(605		)	3,172,507
Operating (loss) income	(99,212		)	(229,093		)	295,680			—			(32,625		)
Equity in earnings of unconsolidated affiliates	49,545			6,774			—			(56,319		)	—
Interest expense	(26,876		)	—			(82,234		)	—			(109,110		)
Other (expense) income, net	(1,879		)	10,209			52,320			—			60,650
(Loss) earnings before income taxes	(78,422		)	(212,110		)	265,766			(56,319		)	(81,085		)
Income tax benefit (provision)	37,142			77,851			(50,059		)	—			64,934
Net (loss) earnings	(41,280		)	(134,259		)	215,707			(56,319		)	(16,151		)
Net earnings attributable to noncontrolling interests	—			—			(25,129		)	—			(25,129		)
Net (loss) earnings attributable to IAC shareholders	$	(41,280	)	$	(134,259	)	$	190,578		$	(56,319	)	$	(41,280	)
Comprehensive (loss) income attributable to IAC shareholders	$	(76,431	)	$	(142,494	)	$	145,039		$	(2,545	)	$	(76,431	)

Schedule of Condensed Statement of Cash Flows

Statement of cash flows for the year ended December 31, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(38,737	)	$	583,498		$	822,227		$	(378,860	)	$	988,128
Cash flows from investing activities:
Acquisitions, net of cash acquired	(4,142		)	(50,530		)	(9,824		)	—			(64,496		)
Capital expenditures	(5,274		)	(1,396		)	(78,964		)	—			(85,634		)
Proceeds from maturities and sales of marketable debt securities	298,600			—			35,000			—			333,600
Purchases of marketable debt securities	(390,005		)	—			(59,671		)	—			(449,676		)
Net proceeds from the sale of businesses and investments	408			87,254			49,057			—			136,719
Purchases of investments	(39,180		)	—			(13,800		)	—			(52,980		)
Other, net	(5,000		)	7,451			6,576			—			9,027
Net cash (used in) provided by investing activities	(144,593		)	42,779			(71,626		)	—			(173,440		)
Cash flows from financing activities:
Repurchases of IAC debt	(363		)	—			—			—			(363		)
Proceeds from issuance of Match Group debt	—			—			260,000			—			260,000
Principal payments on ANGI Homeservices Term Loan	—			—			(13,750		)	—			(13,750		)
Debt issuance costs	—			—			(5,449		)	—			(5,449		)
Purchase of IAC treasury stock	(82,891		)	—			—			—			(82,891		)
Purchase of Match Group treasury stock	—			—			(133,455		)	—			(133,455		)
Proceeds from the exercise of IAC stock options	41,700			—			—			—			41,700
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			4,705			—			4,705
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(18,982		)	—			—			—			(18,982		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(237,564		)	—			(237,564		)
Dividends paid to Match Group noncontrolling interests	—			—			(105,126		)	—			(105,126		)
Purchase of noncontrolling interests	—			—			(16,063		)	—			(16,063		)
Acquisition-related contingent consideration payments	—			—			(185		)	—			(185		)
Intercompany	673,308			(625,338		)	(426,830		)	378,860			—
Other, net	2,674			(939		)	(7,110		)	—			(5,375		)
Net cash provided by (used in) financing activities	615,446			(626,277		)	(680,827		)	378,860			(312,798		)
Total cash provided	432,116			—			69,774			—			501,890
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	327			—			(2,214		)	—			(1,887		)
Net increase in cash, cash equivalents, and restricted cash	432,443			—			67,560			—			500,003
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	$	1,018,082		$	—		$	1,115,603		$	—		$	2,133,685

Statement of cash flows for the year ended December 31, 2017:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(52,582	)	$	131,700		$	337,581		$	416,699
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(2,550		)	(144,003		)	(146,553		)
Capital expenditures	(337		)	(1,169		)	(74,017		)	(75,523		)
Proceeds from maturities and sales of marketable debt securities	114,350			—			—			114,350
Purchases of marketable debt securities	(29,891		)	—			—			(29,891		)
Net proceeds from the sale of businesses and investments	1,266			—			184,512			185,778
Purchases of investments	—			—			(9,106		)	(9,106		)
Other, net	—			1,944			1,050			2,994
Net cash provided by (used in) investing activities	85,388			(1,775		)	(41,564		)	42,049
Cash flows from financing activities:
Proceeds from issuance of IAC debt	—			—			517,500			517,500
Repurchases of IAC debt	(393,464		)	—			—			(393,464		)
Proceeds from issuance of Match Group debt	—			—			525,000			525,000
Principal payments on Match Group debt	—			—			(445,172		)	(445,172		)
Borrowing under ANGI Homeservices Term Loan	—			—			275,000			275,000
Purchase of exchangeable note hedge	—			—			(74,365		)	(74,365		)
Proceeds from issuance of warrants	23,650			—			—			23,650
Debt issuance costs	—			—			(33,744		)	(33,744		)
Purchase of IAC treasury stock	(56,424		)	—			—			(56,424		)
Proceeds from the exercise of IAC stock options	82,397			—			—			82,397
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			61,095			61,095
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(93,832		)	—			—			(93,832		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(264,323		)	(264,323		)
Purchase of Match Group stock-based awards	—			—			(272,459		)	(272,459		)
Purchase of noncontrolling interests	—			—			(15,439		)	(15,439		)
Acquisition-related contingent consideration payments	—			—			(27,289		)	(27,289		)
Intercompany	416,396			(129,925		)	(286,471		)	—
Other, net	251			—			(5,251		)	(5,000		)
Net cash used in financing activities	(21,026		)	(129,925		)	(45,918		)	(196,869		)
Total cash provided	11,780			—			250,099			261,879
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	75			—			11,529			11,604
Net increase in cash, cash equivalents, and restricted cash	11,855			—			261,628			273,483
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	$	585,639		$	—		$	1,048,043		$	1,633,682

Statement of cash flows for the year ended December 31, 2016:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(62,686	)	$	128,503		$	278,421		$	—		$	344,238
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			—			(18,403		)	—			(18,403		)
Capital expenditures	(479		)	(5,792		)	(71,768		)	—			(78,039		)
Proceeds from maturities and sales of marketable debt securities	252,369			—			—			—			252,369
Purchases of marketable debt securities	(313,943		)	—			—			—			(313,943		)
Investments in time deposits	—			—			(87,500		)	—			(87,500		)
Proceeds from maturities of time deposits	—			—			87,500			—			87,500
Net proceeds from the sale of businesses and investments	73,843			1,779			96,606			—			172,228
Purchases of investments	—			—			(12,565		)	—			(12,565		)
Intercompany	(155,104		)	—			—			155,104			—
Other, net	126			910			10,179			—			11,215
Net cash (used in) provided by investing activities	(143,188		)	(3,103		)	4,049			155,104			12,862
Cash flows from financing activities:
Repurchases of IAC debt	(126,409		)	—			—			—			(126,409		)
Proceeds from issuance of Match Group debt	—			—			400,000			—			400,000
Principal payments on Match Group debt	—			—			(450,000		)	—			(450,000		)
Debt issuance costs	—			—			(7,811		)	—			(7,811		)
Purchase of IAC treasury stock	(308,948		)	—			—			—			(308,948		)
Proceeds from the exercise of IAC stock options	25,821			—			—			—			25,821
Proceeds from the exercise of Match Group stock options	—			—			39,378			—			39,378
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(26,716		)	—			—			—			(26,716		)
Withholding taxes paid on behalf of Match Group employees on net settled stock-based awards	—			—			(29,830		)	—			(29,830		)
Purchase of noncontrolling interests	(1,400		)	—			(1,340		)	—			(2,740		)
Acquisition-related contingent consideration payments	—			(351		)	(1,829		)	—			(2,180		)
Intercompany	122,965			(122,965		)	155,104			(155,104		)	—
Other, net	(313		)	(2,084		)	(308		)	—			(2,705		)
Net cash (used in) provided by financing activities	(315,000		)	(125,400		)	103,364			(155,104		)	(492,140		)
Total cash (used) provided	(520,874		)	—			385,834			—			(135,040		)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	—			—			(6,434		)	—			(6,434		)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(520,874		)	—			379,400			—			(141,474		)
Cash, cash equivalents, and restricted cash at beginning of period	1,094,658			—			407,015			—			1,501,673
Cash, cash equivalents, and restricted cash at end of period	$	573,784		$	—		$	786,415		$	—		$	1,360,199

XML

QUARTERLY RESULTS (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results

	Quarter Ended March 31 (a)		Quarter Ended June 30  (b)		Quarter Ended September 30  (c)			Quarter Ended December 31(d)
	(In thousands, except per share data)
Year Ended December 31, 2018
Revenue	$	995,075	$	1,059,122	$	1,104,592		$	1,104,103
Cost of revenue	201,962		218,224		237,238			253,722
Operating income	89,950		168,437		172,832			133,920
Net earnings	87,839		280,854		171,577			217,477
Net earnings attributable to IAC shareholders	71,082		218,353		145,774			191,752
Per share information attributable to IAC shareholders:
Basic earnings per share(g)	$	0.86	$	2.61	$	1.75		$	2.29
Diluted earnings per share(g)	$	0.71	$	2.32	$	1.49		$	2.04
	Quarter Ended March 31		Quarter Ended June 30		Quarter Ended September 30(e)			Quarter Ended December 31(f)
	(In thousands, except per share data)
Year Ended December 31, 2017
Revenue	$	760,833	$	767,387	$	828,434		$	950,585
Cost of revenue	145,958		139,033		166,290			199,727
Operating income (loss)	37,060		75,635		(18,589		)	94,360
Net earnings	28,463		80,557		225,639			23,349
Net earnings attributable to IAC shareholders	26,209		66,268		179,643			32,804
Per share information attributable to IAC shareholders:
Basic earnings per share(g)	$	0.34	$	0.84	$	2.22		$	0.40
Diluted earnings per share(g)	$	0.29	$	0.70	$	1.79		$	0.37

_______________________________________________________________________________

^(a)  The first quarter of 2018 includes after-tax stock-based compensation expense of $14.6 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $4.1 million related to the Combination (including $2.8 million of deferred revenue write-offs).

^(b)  The second quarter of 2018 includes:

i. after-tax stock-based compensation expense of $12.8 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination, and the acceleration of certain converted equity awards resulting from the termination of Angie's List employees in connection with the Combination, as well as after-tax costs of $2.0 million related to the Combination (including $1.8 million of deferred revenue write-offs).

ii. after-tax realized and unrealized gains of $133.3 million related to the sale of a certain equity investment.

^(c)  The third quarter of 2018 includes after-tax stock-based compensation expense of $12.3 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination.

^(d)  The fourth quarter of 2018 includes:

i. after-tax stock-based compensation expense of $14.4 million related to the modification of previously issued HomeAdvisor equity awards and previously issued Angie's List equity awards, both of which were converted into ANGI Homeservices' equity awards in the Combination.

ii. combined after-tax gains of $92.5 million related to the sales of Dictionary.com, Electus, Felix and CityGrid.

iii. after-tax impairment charges related to indefinite-lived intangible assets of $21.3 million.

^(e)  The third quarter of 2017 includes:

i. after-tax stock-based compensation expense of $60.9 million related to the modification of previously issued HomeAdvisor vested awards, which were converted into ANGI Homeservices equity awards, and the acceleration of certain Angie’s List equity awards in connection with the Combination, as well as after-tax costs of $17.4 million related to the Combination.

ii. a reduction to the income tax provision of $257.0 million related to excess tax benefits generated by the exercise, purchase and settlement of stock-based awards.

^(f)  The fourth quarter of 2017 includes after-tax stock-based compensation expense of $15.8 million related to the modification of previously issued HomeAdvisor unvested awards, which were converted into ANGI Homeservices equity awards, the expense related to previously issued Angie's List equity awards and the acceleration of certain Angie's List equity awards resulting from the termination of employees in connection with the Combination, as well as after-tax costs of $13.9 million related to the Combination (including $7.6 million of deferred revenue write-offs).

^(g)  Quarterly per share amounts may not add to the related annual per share amount because of differences in the average common shares outstanding during each period.

XML

ORGANIZATION - NARRATIVE (Details)	Dec. 31, 2018
Match Group
Noncontrolling Interest [Line Items]
Ownership interest (as a percent)	81.10%
Voting interest (as a percent)	97.60%
ANGI Homeservices
Noncontrolling Interest [Line Items]
Ownership interest (as a percent)	83.90%
Voting interest (as a percent)	98.10%

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)		3 Months Ended									12 Months Ended
	Jan. 01, 2018 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2018 USD ($) arrangement	Dec. 31, 2017 USD ($) arrangement	Dec. 31, 2016 USD ($) arrangement	Jan. 01, 2019 USD ($)	Oct. 01, 2018 USD ($)
Intangible Assets and Goodwill
Amortization of capitalized contract costs											$ 355,300,000
Current capitalized contract costs		$ 69,817,000				$ 0					69,817,000	$ 0
Non-current capitalized contract costs		4,500,000									$ 4,500,000
Period of payment due from customers for accounts receivable											30 days
Deferred revenue	$ 332,200,000
Deferred revenue recognized during period											$ 330,200,000
Current deferred revenue		360,015,000				342,483,000					360,015,000	342,483,000
Non-current deferred revenue		1,700,000									$ 1,700,000
Maturity period at purchase (less than)											91 days
Revenue		1,104,103,000	$ 1,104,592,000	$ 1,059,122,000	$ 995,075,000	950,585,000	$ 828,434,000	$ 767,387,000	$ 760,833,000		$ 4,262,892,000	3,307,239,000	$ 3,139,882,000
Accounts receivable, net of allowance and reserves		279,189,000				304,027,000					$ 279,189,000	304,027,000
Impairment charges on indefinite-lived intangible assets		27,700,000
Estimated weighted-average useful life (in years)											18 months
Property and equipment, net of accumulated depreciation and amortization		$ 318,800,000				315,170,000					$ 318,800,000	315,170,000
Excess of goodwill fair value over carrying value (less than) (as a percent)		110.00%									110.00%
Goodwill		$ 265,100,000									$ 265,100,000
Excess of indefinite-lived intangible asset fair value over carrying value (less than) (as a percent)		110.00%									110.00%
Indefinite-lived intangible assets		$ 131,300,000									$ 131,300,000
Advertising expense											1,200,000,000	1,100,000,000	1,000,000,000
Amounts reclassified to earnings											$ 52,000	$ 3,360,000	$ (6,937,000)
Put and call arrangements exercised | arrangement											2	2	1
Retained earnings		1,258,794,000				595,038,000					$ 1,258,794,000	$ 595,038,000
Deferred income taxes		23,600,000				35,070,000					23,600,000	35,070,000
Increase (decrease) in deferred revenue											49,468,000	39,154,000	$ 35,803,000
Cumulative effect of adoption of new accounting pronouncement	40,205,000
Unrealized gains, net, on equity securities held											124,170,000
Accounting Standards Update 2014-09
Intangible Assets and Goodwill
Retained earnings	40,200,000					3,400,000						3,400,000
Accounting Standards Update 2016-01
Intangible Assets and Goodwill
Cumulative effect of adoption of new accounting pronouncement	0
Unrealized gains, net, on equity securities held				$ 126,400,000
Accounting Standards Update 2016-02 | Forecast
Intangible Assets and Goodwill
Right-of-use asset														$ 160,000,000
Lease liability														$ 160,000,000
Foreign Currency Translation Adjustment
Intangible Assets and Goodwill
Amounts reclassified to earnings											52,000	(673,000)	(9,850,000)
Foreign Currency Translation Adjustment | Other (Expense) Income, Net
Intangible Assets and Goodwill
Amounts reclassified to earnings											(100,000)	700,000	9,900,000
Redeemable Noncontrolling Interest
Intangible Assets and Goodwill
Purchase of noncontrolling interests											4,100,000	6,300,000	7,900,000
Trade Names
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets													$ 9,000,000
Software and software development costs
Intangible Assets and Goodwill
Property and equipment, net of accumulated depreciation and amortization		58,100,000				46,400,000					58,100,000	46,400,000
Google Inc.
Intangible Assets and Goodwill
Accounts receivable, net of allowance and reserves		69,100,000				$ 72,400,000					$ 69,100,000	$ 72,400,000
Google Inc. | Revenue | Customer Concentration Risk
Intangible Assets and Goodwill
Concentration risk (as a percent)											19.00%	22.00%	26.00%
Google Inc. | Revenue | Customer Concentration Risk | Operating Segments
Intangible Assets and Goodwill
Concentration risk (as a percent)											94.00%	96.00%	96.00%
Desktop | Trade Names
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets											$ 27,700,000
College Humor Media | Trade Names
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets											$ 1,100,000
Ask Media Group
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets		$ 77,000,000
Minimum | Discount Rate
Intangible Assets and Goodwill
Measurement input (as a percent)		0.125				0.125					0.125	0.125
Minimum | Discount Rate | Indefinite-lived Intangible Assets
Intangible Assets and Goodwill
Measurement input (as a percent)		0.105				0.11					0.105	0.11
Minimum | Royalty Rate | Trade Names
Intangible Assets and Goodwill
Measurement input (as a percent)		0.02									0.02
Minimum | Royalty Rate | Indefinite-lived Intangible Assets
Intangible Assets and Goodwill
Measurement input (as a percent)		0.0075				0.02					0.0075	0.02
Maximum | Discount Rate
Intangible Assets and Goodwill
Measurement input (as a percent)		0.15				0.175					0.15	0.175
Maximum | Discount Rate | Indefinite-lived Intangible Assets
Intangible Assets and Goodwill
Measurement input (as a percent)		0.35				0.16					0.35	0.16
Maximum | Royalty Rate | Trade Names
Intangible Assets and Goodwill
Measurement input (as a percent)		0.06									0.06
Maximum | Royalty Rate | Indefinite-lived Intangible Assets
Intangible Assets and Goodwill
Measurement input (as a percent)		0.080				0.07					0.080	0.07
Match Group
Intangible Assets and Goodwill
Market capitalization															$ 15,700,000,000
Amount by which market capitalization exceeds carrying value															15,100,000,000
Match Group | Operating Segments
Intangible Assets and Goodwill
Revenue											$ 1,729,850,000	$ 1,330,661,000	$ 1,118,110,000
Property and equipment, net of accumulated depreciation and amortization		$ 58,351,000				$ 61,620,000					$ 58,351,000	61,620,000
Match Group | Minimum
Intangible Assets and Goodwill
Period of membership subscription											1 month
Match Group | Maximum
Intangible Assets and Goodwill
Period of membership subscription											6 months
ANGI Homeservices
Intangible Assets and Goodwill
Period of membership subscription											1 year
Market capitalization															10,700,000,000
Amount by which market capitalization exceeds carrying value															$ 9,600,000,000
ANGI Homeservices | Accounting Standards Update 2014-09
Intangible Assets and Goodwill
Current capitalized contract costs	29,700,000
Non-current capitalized contract costs	4,200,000
Retained earnings	25,900,000
Deferred income taxes	8,000,000
ANGI Homeservices | Operating Segments
Intangible Assets and Goodwill
Revenue											$ 1,132,241,000	736,386,000	498,890,000
Property and equipment, net of accumulated depreciation and amortization		70,859,000				53,292,000					$ 70,859,000	53,292,000
ANGI Homeservices | Angie's List
Intangible Assets and Goodwill
Period of membership subscription											1 year
Vimeo | Operating Segments
Intangible Assets and Goodwill
Revenue											$ 159,641,000	103,332,000	78,805,000
Property and equipment, net of accumulated depreciation and amortization		1,014,000				1,972,000					$ 1,014,000	1,972,000
Vimeo | Minimum
Intangible Assets and Goodwill
Period of membership subscription											1 month
Vimeo | Maximum
Intangible Assets and Goodwill
Period of membership subscription											1 year
Publishing and Applications | Google Inc.
Intangible Assets and Goodwill
Revenue											$ 825,200,000	740,700,000	824,400,000
Applications | Accounting Standards Update 2014-09
Intangible Assets and Goodwill
Retained earnings	15,500,000
Deferred income taxes	4,900,000
Increase (decrease) in deferred revenue	$ (20,300,000)
Applications | Operating Segments
Intangible Assets and Goodwill
Revenue											582,287,000	577,998,000	$ 604,140,000
Property and equipment, net of accumulated depreciation and amortization		4,867,000				7,004,000					$ 4,867,000	$ 7,004,000
Applications | Google Inc. | Revenue | Customer Concentration Risk | Operating Segments
Intangible Assets and Goodwill
Concentration risk (as a percent)											73.00%	83.00%	87.00%
Applications | Mosaic Group | Operating Segments
Intangible Assets and Goodwill
Revenue											$ 123,516,000	$ 55,849,000	$ 40,825,000
Applications | Minimum | Desktop
Intangible Assets and Goodwill
Period of membership subscription											1 year
Applications | Minimum | Mosaic Group
Intangible Assets and Goodwill
Period of membership subscription											1 year
Applications | Maximum | Desktop
Intangible Assets and Goodwill
Period of membership subscription											2 years
Applications | Maximum | Mosaic Group
Intangible Assets and Goodwill
Period of membership subscription											2 years
Publishing
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets										$ 275,400,000
Emerging & Other | Operating Segments
Intangible Assets and Goodwill
Revenue											$ 528,250,000	468,589,000	$ 762,609,000
Property and equipment, net of accumulated depreciation and amortization		1,638,000				2,377,000					$ 1,638,000	$ 2,377,000
Emerging & Other | Google Inc. | Revenue | Customer Concentration Risk | Operating Segments
Intangible Assets and Goodwill
Concentration risk (as a percent)											68.00%	48.00%	35.00%
Dotdash
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets		198,300,000
Dotdash | Trade Names
Intangible Assets and Goodwill
Impairment charges on indefinite-lived intangible assets													$ 2,600,000
Dotdash | Operating Segments
Intangible Assets and Goodwill
Revenue											$ 130,991,000	$ 90,890,000	$ 77,913,000
Property and equipment, net of accumulated depreciation and amortization		$ 3,229,000				$ 4,077,000					$ 3,229,000	$ 4,077,000

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Buildings and leasehold improvements | Minimum
Property and equipment, net of accumulated depreciation and amortization:
Estimated useful lives, minimum (in years)	3 years
Buildings and leasehold improvements | Maximum
Property and equipment, net of accumulated depreciation and amortization:
Estimated useful lives, minimum (in years)	39 years
Computer equipment and capitalized software | Minimum
Property and equipment, net of accumulated depreciation and amortization:
Estimated useful lives, minimum (in years)	2 years
Computer equipment and capitalized software | Maximum
Property and equipment, net of accumulated depreciation and amortization:
Estimated useful lives, minimum (in years)	3 years
Furniture and other equipment | Minimum
Property and equipment, net of accumulated depreciation and amortization:
Estimated useful lives, minimum (in years)	3 years
Furniture and other equipment | Maximum
Property and equipment, net of accumulated depreciation and amortization:
Estimated useful lives, minimum (in years)	12 years

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Effect of Adoption of ASU 2014-09 (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Revenues	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Operating costs and expenses									3,697,753	3,118,773	3,172,507
Operating income (loss)	133,920	172,832	168,437	89,950	94,360	(18,589)	75,635	37,060	565,139	188,466	(32,625)
Net earnings	$ 217,477	$ 171,577	$ 280,854	$ 87,839	$ 23,349	$ 225,639	$ 80,557	$ 28,463	757,747	358,008	(16,151)
Operating segments | Match Group
Disaggregation of Revenue [Line Items]
Revenues									1,729,850	1,330,661	1,118,110
Operating costs and expenses									1,176,556
Operating income (loss)									553,294	360,517	315,549
Operating segments | ANGI Homeservices
Disaggregation of Revenue [Line Items]
Revenues									1,132,241	736,386	498,890
Operating costs and expenses									1,068,335
Operating income (loss)									63,906	(149,176)	25,363
Operating segments | Vimeo
Disaggregation of Revenue [Line Items]
Revenues									159,641	103,332	78,805
Operating costs and expenses									195,235
Operating income (loss)									(35,594)	(27,328)	(25,350)
Operating segments | Dotdash
Disaggregation of Revenue [Line Items]
Revenues									130,991	90,890	77,913
Operating costs and expenses									112,213
Operating income (loss)									18,778	(15,694)	(248,705)
Operating segments | Applications
Disaggregation of Revenue [Line Items]
Revenues									582,287	577,998	604,140
Operating costs and expenses									487,453
Operating income (loss)									94,834	130,176	109,663
Operating segments | Emerging & Other
Disaggregation of Revenue [Line Items]
Revenues									528,250	468,589	762,609
Operating costs and expenses									498,286
Operating income (loss)									29,964	17,412	(99,696)
Inter-segment eliminations
Disaggregation of Revenue [Line Items]
Revenues									(368)	(617)	(585)
Corporate
Disaggregation of Revenue [Line Items]
Operating costs and expenses									159,675
Operating income (loss)									(160,043)	$ (127,441)	$ (109,449)
Under ASC 605
Disaggregation of Revenue [Line Items]
Revenues									4,263,387
Operating costs and expenses									3,700,861
Operating income (loss)									562,526
Net earnings									755,741
Under ASC 605 | Operating segments | Match Group
Disaggregation of Revenue [Line Items]
Revenues									1,729,850
Operating costs and expenses									1,176,556
Operating income (loss)									553,294
Under ASC 605 | Operating segments | ANGI Homeservices
Disaggregation of Revenue [Line Items]
Revenues									1,132,241
Operating costs and expenses									1,073,275
Operating income (loss)									58,966
Under ASC 605 | Operating segments | Vimeo
Disaggregation of Revenue [Line Items]
Revenues									160,931
Operating costs and expenses									196,212
Operating income (loss)									(35,281)
Under ASC 605 | Operating segments | Dotdash
Disaggregation of Revenue [Line Items]
Revenues									130,991
Operating costs and expenses									112,213
Operating income (loss)									18,778
Under ASC 605 | Operating segments | Applications
Disaggregation of Revenue [Line Items]
Revenues									581,492
Operating costs and expenses									484,644
Operating income (loss)									96,848
Under ASC 605 | Operating segments | Emerging & Other
Disaggregation of Revenue [Line Items]
Revenues									528,250
Operating costs and expenses									498,286
Operating income (loss)									29,964
Under ASC 605 | Inter-segment eliminations
Disaggregation of Revenue [Line Items]
Revenues									(368)
Under ASC 605 | Corporate
Disaggregation of Revenue [Line Items]
Operating costs and expenses									159,675
Operating income (loss)									(160,043)
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09
Disaggregation of Revenue [Line Items]
Revenues									(495)
Operating costs and expenses									(3,108)
Operating income (loss)									2,613
Net earnings									2,006
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Match Group
Disaggregation of Revenue [Line Items]
Revenues									0
Operating costs and expenses									0
Operating income (loss)									0
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | ANGI Homeservices
Disaggregation of Revenue [Line Items]
Revenues									0
Operating costs and expenses									(4,940)
Operating income (loss)									4,940
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Vimeo
Disaggregation of Revenue [Line Items]
Revenues									(1,290)
Operating costs and expenses									(977)
Operating income (loss)									(313)
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Dotdash
Disaggregation of Revenue [Line Items]
Revenues									0
Operating costs and expenses									0
Operating income (loss)									0
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Applications
Disaggregation of Revenue [Line Items]
Revenues									795
Operating costs and expenses									2,809
Operating income (loss)									(2,014)
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Operating segments | Emerging & Other
Disaggregation of Revenue [Line Items]
Revenues									0
Operating costs and expenses									0
Operating income (loss)									0
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Inter-segment eliminations
Disaggregation of Revenue [Line Items]
Revenues									0
Accounting Standards Update 2014-09 | Effect of adoption of ASU No. 2014-09 | Corporate
Disaggregation of Revenue [Line Items]
Operating costs and expenses									0
Operating income (loss)									$ 0

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash and cash equivalents	$ 2,131,632	$ 1,630,809	$ 1,329,187	$ 1,481,447
Restricted cash included in other current assets	1,633	2,873	20,464	126
Restricted cash included in other assets	420	0	10,548	20,100
Total cash, cash equivalents and restricted cash as shown on the consolidated statement of cash flows	$ 2,133,685	$ 1,633,682	$ 1,360,199	$ 1,501,673

XML

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax Credit Carryforwards
Excess tax benefit attributable to stock-based compensation		$ 143.3	$ 361.8
Excess tax benefit attributable to stock-based compensation that reduces income taxes payable		142.2
Excess tax benefit attributable to stock-based compensation that increases deferred tax asset		1.1
Excess tax benefits from stock-based awards				$ 51.8
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract]
Income tax benefit related to net operating loss carryforwards		9.5
Tax credit carryforwards		105.4
Tax credit carryforwards that can be carried forward indefinitely		24.2
Tax credit carryforwards expiring primarily by 2018 and 2037		81.2
Valuation Allowance
Decrease in valuation allowance		16.7
Valuation allowance at end of period		115.9
Income Taxes Paid, Net [Abstract]
Interest on income taxes accrued		3.4	3.0
Income tax penalties accrued		1.4	1.7
Unrecognized tax benefits including tax interest accrued		52.3	39.7
Tax positions for which the ultimate deductibility is highly certain but timing is uncertain		49.1	37.2
Change in unrecognized tax benefits unrelated to Federal income taxes statute of limitations expiring within twelve months of current reporting period		21.6
Tax benefits that would impact effective tax rate		21.6
Reduction in the Transition Tax	$ 9.2
Tax on earnings of foreign subsidiaries		1.0
Earnings of foreign subsidiaries		103.1
Federal Tax Authority
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract]
Net operating loss carryforwards		856.0
Net operating loss carryforwards not subject to expiration		13.9
Net operating loss carryforwards without restrictions		569.9
State Tax Authority
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract]
Net operating loss carryforwards		698.7
Net operating loss carryforwards without restrictions		350.4
Tax credit carryforwards		3.9
Foreign Tax Authority
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract]
Net operating loss carryforwards		383.4
Net operating loss carryforwards not subject to expiration		352.0
Net operating loss carryforwards subject to expiration within 20 years		31.4
Tax credit carryforwards		53.2
Tax credit carryforwards related to research and development		48.3
Continuing Operations
Income Taxes Paid, Net [Abstract]
Unrecognized tax (benefit) expense net of related deferred taxes		0.3	(0.1)	0.4
Deferred taxes for interest on unrecognized tax benefits (continuing operations)		$ 0.1	$ 0.1	$ 0.2

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INCOME TAXES - Income before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
U.S.	$ 630,417	$ (52,606)	$ (248,433)
Foreign	131,141	119,564	167,348
Earnings (loss) before income taxes	$ 761,558	$ 66,958	$ (81,085)

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INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current income tax provision (benefit):
Federal		$ (2,849)	$ (31,844)	$ 23,343
State		2,569	1,964	3,662
Foreign		38,770	24,108	27,242
Current income tax provision (benefit)		38,490	(5,772)	54,247
Deferred income tax provision (benefit):
Federal		(21,792)	(255,477)	(100,798)
State		172	(28,364)	(9,518)
Foreign		(13,059)	(1,437)	(8,865)
Deferred income tax benefit		(34,679)	(285,278)	(119,181)
Income tax provision (benefit)	$ 257,000	$ 3,811	$ (291,050)	$ (64,934)

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INCOME TAXES - Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets
Other current assets	$ 10,132	$ 33,239
Income taxes payable	(37,584)	(25,624)
Net income taxes payable	(28,796)	(2,234)
Other non-current assets	64,786	66,321
Deferred income taxes	(23,600)	(35,070)
Net deferred tax assets	41,186	31,251
Other current assets
Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets
Other current assets	10,132	33,239
Other non-current assets
Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets
Other non-current assets	11,401	1,949
Other non-current assets	64,786	66,321
Accrued expenses and other current liabilities
Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets
Accrued expenses and other current liabilities	(12,745)	(11,798)
Income taxes payable
Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets
Income taxes payable	(37,584)	(25,624)
Deferred income taxes
Income Taxes (Payable) Receivable and Deferred Tax (Liabilities) Assets
Deferred income taxes	$ (23,600)	$ (35,070)

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INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Accrued expenses	$ 23,525	$ 22,234
NOL carryforwards	291,639	292,812
Tax credit carryforwards	89,397	78,715
Stock-based compensation	82,698	77,976
Other	30,106	42,331
Total deferred tax assets	517,365	514,068
Less valuation allowance	(115,853)	(132,598)
Net deferred tax assets	401,512	381,470
Deferred tax liabilities:
Investment in subsidiaries	(238,650)	(247,167)
Intangibles	(77,669)	(87,811)
Fair value investment	(22,927)
Other	(21,080)	(15,241)
Total deferred tax liabilities	(360,326)	(350,219)
Net deferred tax assets	$ 41,186	$ 31,251

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INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax provision (benefit) at the federal statutory rate of 21% (35% for 2017 and 2016)		$ 159,927	$ 23,435	$ (28,446)
State income taxes, net of effect of federal tax benefit		14,887	86	(3,880)
Deferred tax adjustment for enacted changes in tax laws and rates		(129,654)	(358,901)	3,998
Realization of certain deferred tax assets		(13,200)	(3,133)	0
Transition tax		(9,190)	62,667	0
Deferred tax adjustment for enacted changes in tax laws and rates		(7,488)	705	(4,594)
Research credit		(4,023)	(5,304)	(2,231)
Foreign income taxed at a different statutory tax rate		(3,206)	(14,725)	(27,115)
Non-taxable sale and non-deductible goodwill associated with ShoeBuy		0	0	(13,142)
Goodwill impairment of Dotdash and Emerging & Other		0	0	10,649
Non-deductible impairments for certain cost method investments			2,669	3,489
Other, net		(4,242)	1,451	(3,662)
Income tax provision (benefit)	$ 257,000	$ 3,811	$ (291,050)	$ (64,934)

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INCOME TAXES - Income Tax Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns
Balance at beginning of the period	$ 36,732	$ 38,372	$ 40,808
Additions based on tax positions related to the current year	10,334	2,050	2,033
Additions for tax positions of prior years	4,716	1,994	2,676
Reductions for tax positions of prior years	(400)	(3,761)	(743)
Settlements	0	0	(5,107)
Expiration of applicable statutes of limitations	(2,507)	(1,923)	(1,295)
Balance at end of the period	$ 48,875	$ 36,732	$ 38,372

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BUSINESS COMBINATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		12 Months Ended
	Sep. 29, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Angie's List
Business Acquisition [Line Items]
Proportion of voting interests acquired (as a percent)	100.00%
Total purchase price	$ 781,384
Basis of purchase price (shares)	61.3
Share price (USD per share)	$ 12.46
Cash acquisition price	$ 1,900
Cash per share paid to acquiree shareholders' who elected payout (USD per share)	$ 8.50
Revenue		$ 58,900
Net earnings (loss)		(21,800)
One-Time Acquisition-related Costs
Business Acquisition [Line Items]
Severance costs		28,700
Severance and retention costs		19,800
Write-off due to deferred revenue		$ 7,800
Adjustment to decrease in transaction related costs			$ 34,100
Modification of Equity Awards
Business Acquisition [Line Items]
Adjustment to increase (decrease) in share-based compensation			77,100	$ (81,400)
Amortization Adjustment
Business Acquisition [Line Items]
Adjustment to decrease in amortization of intangible assets			$ (31,900)	(56,100)
Deferred Revenue Write Off Adjustment
Business Acquisition [Line Items]
Adjustment to decrease in revenues				$ (34,100)

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BUSINESS COMBINATION - Purchase Price (Details) - Angie's List $ in Thousands	Sep. 29, 2017 USD ($)
Business Acquisition [Line Items]
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	$ 1,900
Total purchase price	781,384
Common Stock
Business Acquisition [Line Items]
Consideration transferred, equity interests	763,684
Cash consideration for holders who elected to receive $8.50 in cash per share of Angie's List common stock	1,913
Common Stock | Fair value of vested and pro rata portion of unvested stock options attributable to pre-combination services
Business Acquisition [Line Items]
Consideration transferred, equity interests	11,749
Common Stock | Fair value of the pro rata portion of unvested restricted stock units attributable to pre-combination services
Business Acquisition [Line Items]
Consideration transferred, equity interests	$ 4,038

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BUSINESS COMBINATION - Preliminary Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Sep. 29, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 2,726,859	$ 2,559,066		$ 1,924,052
Angie's List
Business Acquisition [Line Items]
Cash and cash equivalents			$ 44,270
Other current assets			11,280
Property and equipment			16,341
Goodwill			543,674
Intangible assets			317,300
Total assets			932,865
Deferred revenue			(32,595)
Other current liabilities			(46,150)
Long-term debt—related party			(61,498)
Deferred income taxes			(9,833)
Other long-term liabilities			(1,405)
Net assets acquired			$ 781,384

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BUSINESS COMBINATION - Preliminary Estimated Fair Value of Intangible Assets Acquired (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 29, 2017	Dec. 31, 2018
Acquired Intangible Assets [Line Items]
Weighted-Average Useful Life (Years)		18 months
Angie's List
Acquired Intangible Assets [Line Items]
Total identifiable intangible assets acquired	$ 317,300
Angie's List | Service providers
Acquired Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 90,500
Weighted-Average Useful Life (Years)	3 years
Angie's List | Developed technology
Acquired Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 63,900
Weighted-Average Useful Life (Years)	6 years
Angie's List | Memberships
Acquired Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 15,900
Weighted-Average Useful Life (Years)	3 years
Angie's List | User base
Acquired Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 10,000
Weighted-Average Useful Life (Years)	1 year
Angie's List | Indefinite-lived trade names and trademarks
Acquired Intangible Assets [Line Items]
Indefinite-lived trade name and trademarks	$ 137,000

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BUSINESS COMBINATION - Pro-Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition, Pro Forma Information [Abstract]
Revenue	$ 3,529,600	$ 3,429,105
Net earnings (loss) attributable to ANGI Homeservices Inc. shareholders	$ 364,496	$ (143,133)
Basic earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders (USD per share)	$ 4.55	$ (1.79)
Diluted earnings (loss) per share attributable to ANGI Homeservices Inc. shareholders (USD per share)	$ 4.27	$ (1.79)

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GOODWILL AND INTANGIBLE ASSETS - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 2,726,859	$ 2,559,066	$ 1,924,052
Intangible assets with indefinite lives	458,104	459,143
Intangible assets with definite lives, net of accumulated amortization	173,318	204,594
Total goodwill and intangible assets, net	$ 3,358,281	$ 3,222,803

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GOODWILL AND INTANGIBLE ASSETS - Goodwill by Reporting Unit (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($) operating_segment reportingunit	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Goodwill
Balance at beginning of period	$ 2,559,066	$ 2,559,066	$ 1,924,052
Additions		208,423	661,396
(Deductions)		(22,188)	(74,430)
Foreign Exchange Translation		(18,442)	48,048
Balance at end of period		2,726,859	2,559,066
Match Group
Goodwill
Balance at beginning of period	1,247,899	1,247,899	1,206,538
Additions		11,187	255
(Deductions)		0	0
Foreign Exchange Translation		(14,073)	41,106
Balance at end of period		1,245,013	1,247,899
ANGI Homeservices
Goodwill
Balance at beginning of period	768,317	768,317	170,611
Additions		142,768	590,772
(Deductions)		(14,373)	0
Transfers In/(Out)		0
Foreign Exchange Translation		(3,912)	6,934
Balance at end of period		892,800	768,317
Vimeo
Goodwill
Balance at beginning of period	77,303	77,303	9,649
Additions		0	67,654
(Deductions)		(151)	0
Transfers In/(Out)		0
Foreign Exchange Translation		0	0
Balance at end of period		77,152	77,303
Applications
Goodwill
Balance at beginning of period	447,242	447,242	447,242
Additions		50,784	0
(Deductions)		0	0
Transfers In/(Out)		7,323
Foreign Exchange Translation		(457)	0
Balance at end of period		504,892	447,242
Accumulated goodwill impairment loss		529,100
Applications | Desktop
Goodwill
Balance at beginning of period	265,146	265,146	265,146
Additions		0	0
(Deductions)		0	0
Transfers In/(Out)		0
Foreign Exchange Translation		0	0
Balance at end of period		265,146	265,146
Applications | Mosaic Group
Goodwill
Balance at beginning of period	182,096	182,096	182,096
Additions		50,784	0
(Deductions)		0	0
Transfers In/(Out)		7,323
Foreign Exchange Translation		(457)	0
Balance at end of period		239,746	182,096
Emerging & Other
Goodwill
Balance at beginning of period	$ 18,305	18,305	90,012
Additions		3,684	2,715
(Deductions)		(7,664)	(74,430)
Transfers In/(Out)		(7,323)
Foreign Exchange Translation			8
Balance at end of period		7,002	$ 18,305
Emerging & Other | Ask Media Group
Goodwill
Accumulated goodwill impairment loss		399,700
Emerging & Other | College Humor Media
Goodwill
Accumulated goodwill impairment loss		11,600
Dotdash
Goodwill
Accumulated goodwill impairment loss		$ 198,300
Publishing
Goodwill
Number of operating segments | operating_segment	1
Number of reporting units | reportingunit	1

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GOODWILL AND INTANGIBLE ASSETS - Intangible Assets with Definite Lives (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Intangible assets with definite lives
Gross Carrying Amount	$ 309,723	$ 279,551
Accumulated Amortization	(136,405)	(74,957)
Total	$ 173,318	$ 204,594
Weighted-Average Useful Life (Years)	3 years 9 months 18 days	3 years 8 months 12 days
Technology
Intangible assets with definite lives
Gross Carrying Amount	$ 143,303	$ 115,200
Accumulated Amortization	(53,199)	(37,357)
Total	$ 90,104	$ 77,843
Weighted-Average Useful Life (Years)	4 years 8 months 12 days	4 years 9 months 18 days
Service professional and contractor relationships
Intangible assets with definite lives
Gross Carrying Amount	$ 99,528	$ 99,497
Accumulated Amortization	(44,674)	(11,452)
Total	$ 54,854	$ 88,045
Weighted-Average Useful Life (Years)	2 years 10 months 24 days	3 years
Customer lists and user base
Intangible assets with definite lives
Gross Carrying Amount	$ 30,099	$ 23,468
Accumulated Amortization	(15,126)	(5,401)
Total	$ 14,973	$ 18,067
Weighted-Average Useful Life (Years)	2 years 10 months 24 days	2 years 2 months 12 days
Memberships
Intangible assets with definite lives
Gross Carrying Amount	$ 15,900	$ 15,900
Accumulated Amortization	(6,640)	(1,340)
Total	$ 9,260	$ 14,560
Weighted-Average Useful Life (Years)	3 years	3 years
Trade names
Intangible assets with definite lives
Gross Carrying Amount	$ 12,393	$ 16,986
Accumulated Amortization	(9,393)	(13,634)
Total	$ 3,000	$ 3,352
Weighted-Average Useful Life (Years)	3 years 3 months 18 days	2 years 7 months 6 days
Other
Intangible assets with definite lives
Gross Carrying Amount	$ 8,500	$ 8,500
Accumulated Amortization	(7,373)	(5,773)
Total	$ 1,127	$ 2,727
Weighted-Average Useful Life (Years)	4 years 9 months 18 days	4 years 9 months 18 days

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GOODWILL AND INTANGIBLE ASSETS - Expected Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 71,155
2020	51,916
2021	19,433
2022	16,310
2023	10,239
Thereafter	4,265
Total	$ 173,318	$ 204,594

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FINANCIAL INSTRUMENTS - Narrative (Details)		12 Months Ended
	Oct. 23, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Mar. 31, 2019 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contractual maturity of current available-for-sale debt securities		1 year
Available-for-sale marketable debt securities in a continuous unrealized loss position for longer than twelve months		$ 0
Gross realized losses from available-for-sale marketable debt securities		0	$ 0	$ 0
Other-than-temporary impairment charges on equity method investments		600,000	2,700,000
Other-than-temporary impairment charges on cost-method investments			9,500,000	$ 10,000,000
Proceeds from sale of cost-method investment	$ 60,200,000
Gain (loss) from sale of cost-method investment	$ 9,100,000
Maximum contingent payment		45,000,000
Gross fair value of contingent consideration arrangement		44,000,000
Current portion of contingent consideration arrangement liability		2,000,000	600,000
Non-current portion of contingent consideration arrangement liability		$ 26,600,000	$ 2,000,000
Subsequent Event
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maximum contingent payment					$ 2,000,000
Discount Rate | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input (as a percent)		0.125	0.125
Discount Rate | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input (as a percent)		0.15	0.175
Discount Rate | Contingent Consideration Arrangements
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input (as a percent)		0.12
Discount Rate | Contingent Consideration Arrangements | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input (as a percent)		0.12
Discount Rate | Contingent Consideration Arrangements | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input (as a percent)		0.25

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FINANCIAL INSTRUMENTS - Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Available-for-sale marketable debt securities	$ 123,246	$ 4,995
Marketable equity security	419	0
Total marketable securities	$ 123,665	$ 4,995

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FINANCIAL INSTRUMENTS - Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 123,246	$ 4,995
Gross Unrealized Gains	3	0
Gross Unrealized Losses	(3)	0
Fair Value	123,246	4,995
Treasury discount notes
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	112,291
Gross Unrealized Gains	3
Gross Unrealized Losses	(3)
Fair Value	112,291
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,955	4,995
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 10,955	$ 4,995

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FINANCIAL INSTRUMENTS - Proceeds from Maturities and Sales of Current Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Proceeds from maturities and sales of available-for-sale marketable debt securities	$ 333,600	$ 114,350	$ 279,485
Gross realized gains	$ 0	$ 0	$ 3,556

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FINANCIAL INSTRUMENTS - Long-Term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Equity securities without readily determinable fair values	$ 235,055	$ 0
Equity method investments	0	1,559
Cost method investments	0	63,418
Total long-term investments	$ 235,055	$ 64,977

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FINANCIAL INSTRUMENTS - Realized and Unrealized Gains and Losses (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Adjustments to Carrying Value of Equity Securities without Readily Determinable Fair Value [Abstract]
Upward adjustments (gross unrealized gains)	$ 128,986
Downward adjustments including impairments (gross unrealized losses)	(4,931)
Total	124,055
Adjustments to Carrying Value of Non-Marketable Equity Securities [Abstract]
Realized gains, net, for equity securities sold	27,874
Unrealized gains, net, on equity securities held	124,170
Total gains recognized, net, in other income (expense), net	$ 152,044

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FINANCIAL INSTRUMENTS - Financial Instruments Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 123,246	$ 4,995
Marketable equity security	419	0
Total	1,818,666	1,167,397
Contingent consideration arrangements	(28,631)	(2,647)
Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	881,234	780,425
Contingent consideration arrangements	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	937,432	386,972
Contingent consideration arrangements	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	0	0
Contingent consideration arrangements	(28,631)	(2,647)
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	880,815	780,425
Money market funds | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	880,815	780,425
Money market funds | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Money market funds | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Treasury discount notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	561,733	100,457
Marketable securities	112,291
Treasury discount notes | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0
Treasury discount notes | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	561,733	100,457
Marketable securities	112,291
Treasury discount notes | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	162,417	215,325
Marketable securities	10,955	4,995
Commercial paper | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Commercial paper | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	162,417	215,325
Marketable securities	10,955	4,995
Commercial paper | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	90,036	60,000
Time deposits | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Time deposits | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	90,036	60,000
Time deposits | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		6,195
Certificates of deposit | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		0
Certificates of deposit | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		6,195
Certificates of deposit | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		$ 0
Marketable equity security
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity security	419
Marketable equity security | Quoted Market Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity security	419
Marketable equity security | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity security	0
Marketable equity security | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity security	$ 0

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FINANCIAL INSTRUMENTS - Unobservable Inputs of Fair Value Measurements (Details) - Contingent Consideration Arrangements - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Contingent Consideration Arrangement [Roll Forward]
Balance at January 1	$ (2,647)	$ (33,871)
Fair value adjustments	(1,456)	(5,801)
Included in other comprehensive income (loss)	45	(1,404)
Fair value at date of acquisition	(25,521)	0
Settlements	948	38,429
Balance at December 31	$ (28,631)	$ (2,647)

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FINANCIAL INSTRUMENTS - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current portion of long-term debt	$ (13,750)	$ (13,750)
Long-term debt, net	(2,245,548)	(1,979,469)
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current portion of long-term debt	(13,750)	(13,750)
Long-term debt, net	(2,245,548)	(1,979,469)
Unamortized original issue discount and debt issuance costs	(88,900)	(109,100)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current portion of long-term debt	(12,753)	(13,802)
Long-term debt, net	$ (2,460,204)	$ (2,168,108)

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LONG-TERM DEBT - Narrative (Details)				3 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares	Nov. 05, 2018 USD ($)	Oct. 02, 2017 USD ($) $ / shares shares	Sep. 30, 2018	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($)	Dec. 04, 2017	Nov. 01, 2017 USD ($)	Jun. 01, 2016 USD ($)
Debt Instrument
Long-term debt	$ 2,348,239,000				$ 2,348,239,000
Exchange price (USD per share) | $ / shares					$ 152.18
Proceeds from issuance of warrants			$ 23,600,000		$ 0	$ 23,650,000	$ 0
Unamortized discount	$ 61,377,000				$ 61,377,000
Purchase of exchangeable note hedge						$ 74,365,000
Senior Notes | 4.875% Senior Notes due November 30, 2018 (the 4.875% Senior Notes); interest payable each May 30 and November 30
Debt Instrument
Stated interest rate (as a percent)	4.75%				4.75%	4.875%	4.875%
Revolving Credit Facility | IAC Credit Facility
Debt Instrument
Maximum borrowing capacity		$ 250,000,000				$ 300,000,000
Credit facility, borrowings outstanding	$ 0				$ 0	$ 0
Commitment fee rate (as a percent)					0.20%	0.25%
Revolving Credit Facility | IAC Credit Facility | Maximum
Debt Instrument
Maximum leverage ratio (not more than)	2.75				3.25
IAC
Debt Instrument
Long-term debt	$ 551,989,000				$ 551,989,000	$ 552,359,000
Unamortized discount	54,025,000				54,025,000	67,158,000
IAC | Senior Notes
Debt Instrument
Long-term debt	$ 463,500,000		$ 517,500,000.0		$ 463,500,000	$ 450,300,000
Exchangeable shares (shares) | shares			6.5713
Exchange price (USD per share) | $ / shares			$ 152.18		$ 152.18
Period of reported sale price of common stock			20 days	5 days
Period of consecutive reported sale price of common stock			30 days	5 days
Percentage of exchange price on applicable trading day			130.00%
Percentage of product of last reported price			98.00%
Proceeds from issuance of debt			$ 499,500,000
Repayment of net premium on exchangeable note hedge and warrants			50,700,000
Amount of debt discount and increase to additional paid in capital			70,400,000
Transaction costs allocated to liability and equity			18,000,000
Class of warrant outstanding (shares) | shares	3,400,000				3,400,000	3,400,000
Exercise price of warrants (USD per share) | $ / shares	$ 229.70				$ 229.70	$ 229.70
Proceeds from issuance of warrants			23,600,000
Unamortized discount	$ 54,000,000				$ 54,000,000	$ 67,200,000
If-converted value in excess of principal					105,000,000
Purchase of exchangeable note hedge			$ 74,400,000
Debt interest expense					21,200,000	5,200,000
Amortization of debt discount (premium)					13,100,000	3,200,000
Amortization of debt issuance costs					$ 3,500,000	$ 900,000
IAC | Senior Notes | 0.875% Exchangeable Senior Notes due October 1, 2022 (the Exchangeable Notes); interest payable each April 1 and October 1
Debt Instrument
Stated interest rate (as a percent)	0.875%		0.875%		0.875%	0.875%
Long-term debt	$ 517,500,000				$ 517,500,000	$ 517,500,000
IAC | Senior Notes | 0.875% Exchangeable Senior Notes due October 1, 2022 (the Exchangeable Notes); interest payable each April 1 and October 1 | Minimum
Debt Instrument
Stated interest rate (as a percent)	0.875%				0.875%
IAC | Senior Notes | 0.875% Exchangeable Senior Notes due October 1, 2022 (the Exchangeable Notes); interest payable each April 1 and October 1 | Maximum
Debt Instrument
Stated interest rate (as a percent)	3.88%				3.88%
IAC | Senior Notes | 4.75% Senior Notes due December 15, 2022 (the 4.75% Senior Notes); interest payable each June 15 and December 15
Debt Instrument
Stated interest rate (as a percent)	4.75%				4.75%	4.75%
Long-term debt	$ 34,489,000				$ 34,489,000	$ 34,859,000
Match Group
Debt Instrument
Long-term debt	1,535,000,000				1,535,000,000	1,275,000,000
Proceeds from issuance of IAC debt					260,000,000	525,000,000	$ 400,000,000
Unamortized discount	$ 7,352,000				$ 7,352,000	$ 8,668,000
Match Group | Senior Notes | 6.75% Senior Notes due December 15, 2022 (the Match Group 6.75% Senior Notes); interest payable each June 15 and December 15
Debt Instrument
Stated interest rate (as a percent)						6.75%		6.75%
Long-term debt							445,200,000
Match Group | Senior Notes | 5.00% Senior Notes due December 15, 2027 (the 5.00% MTCH Senior Notes); interest payable each June 15 and December 15
Debt Instrument
Stated interest rate (as a percent)	5.00%				5.00%	5.00%		5.00%
Long-term debt	$ 450,000,000				$ 450,000,000	$ 450,000,000
Match Group | Senior Notes | 6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1
Debt Instrument
Stated interest rate (as a percent)	6.375%				6.375%	6.375%				6.375%
Long-term debt	$ 400,000,000				$ 400,000,000	$ 400,000,000
Face amount of debt instrument										$ 400,000,000.0
Match Group | Senior Notes | 6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1 | Maximum
Debt Instrument
Maximum leverage ratio (not more than)						5.0
Match Group | Term Loan | MTCH Term Loan due November 16, 2022
Debt Instrument
Long-term debt	$ 425,000,000				$ 425,000,000	$ 425,000,000
Match Group | Term Loan | Match Group Term Loan due November 16, 2022
Debt Instrument
Repayment of debt							$ 440,000,000
Effective interest rate (as a percent)	5.09%				5.09%	3.85%
Match Group | Term Loan | Match Group Term Loan due November 16, 2022 | LIBOR
Debt Instrument
Basis spread on variable rate (as a percent)					2.50%
Match Group | Revolving Credit Facility | MTCH Term Loan due November 16, 2022 | Maximum
Debt Instrument
Net leverage ratio affecting ability to pay dividends, make distributions, or repurchase stock					4.0
Match Group | Revolving Credit Facility | Match Group Credit Agreement
Debt Instrument
Effective interest rate (as a percent)	4.00%				4.00%
Maximum borrowing capacity	$ 500,000,000.0				$ 500,000,000.0
Credit facility, borrowings outstanding	260,000,000.0				$ 260,000,000.0	$ 0
Commitment fee rate (as a percent)					0.25%	0.30%
Match Group | Revolving Credit Facility | Match Group Credit Agreement | Minimum
Debt Instrument
Minimum interest coverage ratio (not less than)					2.0
Match Group | Revolving Credit Facility | Match Group Credit Agreement | Maximum
Debt Instrument
Maximum leverage ratio (not more than)					5.0
Net leverage ratio affecting ability to pay dividends, make distributions, or repurchase stock					2.0
Match Group | Revolving Credit Facility | Match Group Credit Agreement | LIBOR
Debt Instrument
Basis spread on variable rate (as a percent)					1.50%
ANGI Homeservices | Term Loan
Debt Instrument
Face amount of debt instrument									$ 275,000,000
ANGI Homeservices | Term Loan | Quarterly Payments for First Three Years
Debt Instrument
Stated interest rate (as a percent)									1.25%
ANGI Homeservices | Term Loan | Quarterly Payments in Fourth Year
Debt Instrument
Stated interest rate (as a percent)									2.50%
ANGI Homeservices | Term Loan | Quarterly Payments in Fifth Year
Debt Instrument
Stated interest rate (as a percent)									3.75%
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023
Debt Instrument
Long-term debt	261,250,000				$ 261,250,000	$ 275,000,000
Basis spread on variable rate (as a percent)					4.00%	3.38%
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023 | Minimum
Debt Instrument
Minimum interest coverage ratio (not less than)					2.0
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023 | Maximum
Debt Instrument
Maximum leverage ratio (not more than)					4.5
Net leverage ratio affecting ability to pay dividends, make distributions, or repurchase stock					4.25
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023 | LIBOR
Debt Instrument
Basis spread on variable rate (as a percent)					1.50%	2.00%
ANGI Homeservices | Revolving Credit Facility | ANGI Homeservices Credit Facility
Debt Instrument
Maximum borrowing capacity		$ 250,000,000
Credit facility, borrowings outstanding	$ 0				$ 0
Term of debt instrument		5 years
Commitment fee rate (as a percent)					0.25%

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LONG-TERM DEBT - Summary (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 04, 2017	Oct. 02, 2017	Jun. 01, 2016
Debt Instrument
Total long-term debt	$ 2,348,239,000
Less: unamortized original issue discount	61,377,000
Less: unamortized debt issuance costs	27,564,000
Less: Current portion of long-term debt	13,750,000	$ 13,750,000
Long-term debt, net	2,245,548,000	1,979,469,000
IAC
Debt Instrument
Total long-term debt	551,989,000	552,359,000
Less: unamortized original issue discount	54,025,000	67,158,000
Less: unamortized debt issuance costs	13,298,000	16,740,000
Long-term debt, net	484,666,000	468,461,000
IAC | Senior Notes
Debt Instrument
Total long-term debt	463,500,000	450,300,000		$ 517,500,000.0
Less: unamortized original issue discount	54,000,000	67,200,000
IAC | Senior Notes | 0.875% Exchangeable Senior Notes due October 1, 2022 (the Exchangeable Notes); interest payable each April 1 and October 1
Debt Instrument
Total long-term debt	$ 517,500,000	$ 517,500,000
Stated interest rate (as a percent)	0.875%	0.875%		0.875%
IAC | Senior Notes | 4.75% Senior Notes due December 15, 2022 (the 4.75% Senior Notes); interest payable each June 15 and December 15
Debt Instrument
Total long-term debt	$ 34,489,000	$ 34,859,000
Stated interest rate (as a percent)	4.75%	4.75%
Match Group
Debt Instrument
Total long-term debt	$ 1,535,000,000	$ 1,275,000,000
Less: unamortized original issue discount	7,352,000	8,668,000
Less: unamortized debt issuance costs	11,737,000	13,636,000
Long-term debt, net	1,515,911,000	1,252,696,000
Match Group | Senior Notes | 6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1
Debt Instrument
Total long-term debt	$ 400,000,000	$ 400,000,000
Stated interest rate (as a percent)	6.375%	6.375%			6.375%
Match Group | Senior Notes | 5.00% Senior Notes due December 15, 2027 (the 5.00% MTCH Senior Notes); interest payable each June 15 and December 15
Debt Instrument
Total long-term debt	$ 450,000,000	$ 450,000,000
Stated interest rate (as a percent)	5.00%	5.00%	5.00%
Match Group | Term Loan | MTCH Term Loan due November 16, 2022
Debt Instrument
Total long-term debt	$ 425,000,000	$ 425,000,000
Match Group | Credit Facility | MTCH Credit Facility due December 7, 2023
Debt Instrument
Total long-term debt	260,000,000	0
ANGI Homeservices
Debt Instrument
Less: unamortized debt issuance costs	2,529,000	2,938,000
Less: Current portion of long-term debt	13,750,000	13,750,000
Long-term debt, net	244,971,000	258,312,000
ANGI Homeservices | Term Loan | ANGI Term Loan due November 5, 2023
Debt Instrument
Total long-term debt	$ 261,250,000	$ 275,000,000

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LONG-TERM DEBT - Debt Instrument Redemption (Details) - Senior Notes	12 Months Ended
	Dec. 31, 2018
6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1 | Period One
Debt Instrument
Redemption rate (as a percent)	104.781%
6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1 | Period Two
Debt Instrument
Redemption rate (as a percent)	103.188%
6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1 | Period Three
Debt Instrument
Redemption rate (as a percent)	101.594%
6.375% Senior Notes due June 1, 2024 (the 6.375% MTCH Senior Notes); interest payable each June 1 and December 1 | Period Four
Debt Instrument
Redemption rate (as a percent)	100.00%
5.00% Senior Notes due December 15, 2027 (the Match Group 5.00% Senior Notes); interest payable each June 15 and December 15, which commences on June 15, 2018 | Period One
Debt Instrument
Redemption rate (as a percent)	102.50%
5.00% Senior Notes due December 15, 2027 (the Match Group 5.00% Senior Notes); interest payable each June 15 and December 15, which commences on June 15, 2018 | Period Two
Debt Instrument
Redemption rate (as a percent)	101.667%
5.00% Senior Notes due December 15, 2027 (the Match Group 5.00% Senior Notes); interest payable each June 15 and December 15, which commences on June 15, 2018 | Period Three
Debt Instrument
Redemption rate (as a percent)	100.833%
5.00% Senior Notes due December 15, 2027 (the Match Group 5.00% Senior Notes); interest payable each June 15 and December 15, which commences on June 15, 2018 | Period Four
Debt Instrument
Redemption rate (as a percent)	100.00%
4.75% Senior Notes due December 15, 2022 (the 4.75% Senior Notes); interest payable each June 15 and December 15 | Period One
Debt Instrument
Redemption rate (as a percent)	101.583%
4.75% Senior Notes due December 15, 2022 (the 4.75% Senior Notes); interest payable each June 15 and December 15 | Period Two
Debt Instrument
Redemption rate (as a percent)	100.792%
4.75% Senior Notes due December 15, 2022 (the 4.75% Senior Notes); interest payable each June 15 and December 15 | Period Three
Debt Instrument
Redemption rate (as a percent)	100.00%

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LONG-TERM DEBT - Aggregate Contractual Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2019	$ 13,750
2020	13,750
2021	13,750
2022	1,004,489
2023	452,500
2024	400,000
2027	450,000
Total long-term debt	2,348,239
Less: Current portion of long-term debt	13,750	$ 13,750
Less: unamortized original issue discount	61,377
Less: unamortized debt issuance costs	27,564
Long-term debt, net	$ 2,245,548	$ 1,979,469

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SHAREHOLDERS' EQUITY - Narrative (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Oct. 02, 2017 USD ($)	Dec. 31, 2018 USD ($) warrant exchangeable_note vote $ / shares shares	Dec. 31, 2017 USD ($) warrant exchangeable_note $ / shares shares	Dec. 31, 2016 USD ($) shares	May 03, 2016 shares
Class of Stock
Directors elected (as a percent)		25.00%
Proceeds from issuance of warrants | $	$ 23,600	$ 0	$ 23,650	$ 0
Warrants exercised during period | warrant		0	0
Exchangeable notes exchanged during period | exchangeable_note		0	0
Trade date fair value of shares acquired during period | $		$ 82,891	$ 50,121	$ 315,250
Class B Convertible Common Stock
Class of Stock
Number of votes | vote		10
Common Stock
Class of Stock
Number of votes | vote		1
Common stock reserved (shares)		28,000,000
Treasury stock acquired during period (shares)		500,000	700,000	6,300,000
Trade date fair value of shares acquired during period | $		$ 82,900	$ 50,100	$ 315,300
Number of shares authorized to be repurchased (shares)					10,000,000
Remaining number of shares authorized to be repurchased (shares)		8,000,000
Senior Notes | IAC
Class of Stock
Class of warrant outstanding (shares)		3,400,000	3,400,000
Exercise price of warrants (USD per share) | $ / shares		$ 229.70	$ 229.70
Proceeds from issuance of warrants | $	$ 23,600

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ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Loss
Balance at beginning of period	$ 2,946,823	$ 2,010,670	$ 2,215,825
Other comprehensive income (loss) before reclassifications, net of tax (provision) benefit related to unrealized gains (losses) on available-for-sale securities	(25,102)	65,915	(42,088)
Amounts reclassified to earnings	(52)	(3,360)	6,937
Net current period other comprehensive (loss) income	(25,154)	62,555	(35,151)
Reallocation of accumulated other comprehensive loss (income) related to the noncontrolling interests created in the Match Group IPO			21,131
Balance at end of period	3,551,801	2,946,823	2,010,670
Tax benefit related to unrealized losses on available-for-sale securities			700
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Loss
Balance at beginning of period	(103,568)	(170,149)	(154,645)
Other comprehensive income (loss) before reclassifications, net of tax (provision) benefit related to unrealized gains (losses) on available-for-sale securities	(25,106)	65,908	(46,943)
Amounts reclassified to earnings	(52)	673	9,850
Net current period other comprehensive (loss) income	(25,158)	66,581	(37,093)
Reallocation of accumulated other comprehensive loss (income) related to the noncontrolling interests created in the Match Group IPO			21,589
Balance at end of period	(128,726)	(103,568)	(170,149)
Unrealized Gains On Available-For-Sale Securities
Accumulated Other Comprehensive Loss
Balance at beginning of period	0	4,026	2,542
Other comprehensive income (loss) before reclassifications, net of tax (provision) benefit related to unrealized gains (losses) on available-for-sale securities	4	7	4,855
Amounts reclassified to earnings	0	(4,033)	(2,913)
Net current period other comprehensive (loss) income	4	(4,026)	1,942
Reallocation of accumulated other comprehensive loss (income) related to the noncontrolling interests created in the Match Group IPO			(458)
Balance at end of period	4	0	4,026
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Balance at beginning of period	(103,568)	(166,123)	(152,103)
Balance at end of period	$ (128,722)	$ (103,568)	$ (166,123)

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ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Tax (benefit) provision related to unrealized gains/losses on available-for-sale securities	$ 3.8	$ 0.2

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EARNINGS (LOSS) PER SHARE - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended								12 Months Ended
	Oct. 02, 2017	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Net earnings (loss)										$ 757,747	$ 358,008	$ (16,151)
Net earnings attributable to noncontrolling interests										(130,786)	(53,084)	(25,129)
Impact from public subsidiaries' dilutive securities										(25,228)	(33,531)	0
Net earnings (loss) attributable to IAC shareholders		$ 191,752	$ 145,774	$ 218,353	$ 71,082	$ 32,804	$ 179,643	$ 66,268	$ 26,209	626,961	304,924	(41,280)
Net earnings (loss) attributable to IAC shareholders										$ 601,733	$ 271,393	$ (41,280)
Weighted average basic shares outstanding (shares)										83,407	80,089	80,045
Dilutive securities including subsidiary denominated equity, stock options and RSUs (shares)										7,915	5,221	0
Weighted average diluted shares outstanding (shares)										91,322	85,310	80,045
Earnings (loss) per share attributable to IAC shareholders: Basic
Basic earnings (loss) per share (USD per share)		$ 2.29	$ 1.75	$ 2.61	$ 0.86	$ 0.40	$ 2.22	$ 0.84	$ 0.34	$ 7.52	$ 3.81	$ (0.52)
Earnings (loss) per share attributable to IAC shareholders: Diluted
Diluted earnings (loss) per share (USD per share)		$ 2.04	$ 1.49	$ 2.32	$ 0.71	$ 0.37	$ 1.79	$ 0.70	$ 0.29	6.59	$ 3.18	$ (0.52)
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares)												11,300
Exchange price (USD per share)										$ 152.18
RSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares)										3,500	6,900
PSUs
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares)										100	100
Exchangeable Notes
Anti-dilutive weighted average common shares
Potentially dilutive securities excluded from calculation of diluted earnings per share (shares)										300
IAC | Senior Notes
Anti-dilutive weighted average common shares
Exchange price (USD per share)	$ 152.18									$ 152.18

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STOCK-BASED COMPENSATION - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2018 USD ($) plan installment $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 installment	Dec. 31, 2014	Dec. 31, 2008	Jul. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award
Number of active stock-based compensation plans | plan				2
Shares available for grant (shares) | shares	11,500			11,500
Unrecognized compensation cost, net of estimated forfeitures	$ 326,000			$ 326,000
Weighted-average period over which cost is expected to be recognized				2 years 3 months 18 days
Income tax benefit		$ (257,000)		$ (3,811)	$ 291,050	$ 64,934
Intrinsic value of stock options exercised				$ 83,700	$ 164,600	$ 17,100
Stock options granted in period (shares) | shares				80	1,200	1,700
Weighted average grant date fair value of stock options granted (USD per share) | $ / shares	$ 53.94			$ 53.94	$ 22.94	$ 12.34
Number of shares required to settle vested and unvested interests at fair value (shares) | shares				100
Cash required to settle vested and unvested interests at fair value				$ 16,000
Withholding rate (as a percent)				50.00%
Excess tax benefit attributable to stock-based compensation				$ 143,300	$ 361,800
Incremental compensation cost		6,600				$ 7,300
Incremental compensation cost from modification recognized in year of modification				$ 100	700	6,300
Modification forfeitures						7,100
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Stated term (in years)									10 years
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Stated term (in years)								10 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period				4 years
Number of installments | installment				3
Proportion of installments (as a percent)				33.00%
Income tax benefit				$ 189,000	$ 423,000	$ 34,800
Expected volatility (as a percent)				27.00%	29.00%	29.00%
Risk-free interest rate (as a percent)				2.70%	2.00%	1.20%
Dividend yield (as a percent)				0.00%
Expected term				6 years 2 months 12 days	5 years 2 months 18 days	4 years 9 months 18 days
Cash received from stock option exercises				$ 41,700	$ 82,400	$ 25,800
Employee Stock Options, Net Settled
Share-based Compensation Arrangement by Share-based Payment Award
Income tax benefit				$ (169,000)	$ (411,600)	$ (63,400)
Market-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Number of installments | installment				2
Proportion of installments (as a percent)				50.00%
Vesting requirement, consecutive days above price threshold						20 days
Number of annual vesting installments | installment							2
Expected volatility (as a percent)						29.00%
Risk-free interest rate (as a percent)						2.80%
Dividend yield (as a percent)							0.00%
Expected term						1 year 9 months 18 days
Withholding rate (as a percent)				50.00%
Excess tax benefit attributable to stock-based compensation				$ 349,100
Market-Based Stock Options - Vested
Share-based Compensation Arrangement by Share-based Payment Award
Excess tax benefit attributable to stock-based compensation				221,600
Market-Based Stock Options - Unvested
Share-based Compensation Arrangement by Share-based Payment Award
Excess tax benefit attributable to stock-based compensation				$ 127,400
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average grant date fair value of RSUs and PSUs granted (USD per share) | $ / shares				$ 178.29	$ 90.04	$ 46.92
Fair value of RSUs and PSUs that vested during the period				$ 8,900	$ 32,500	$ 13,500
RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period				3 years
Weighted average grant date fair value of RSUs and PSUs granted (USD per share) | $ / shares				$ 183.33
PSUs
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average grant date fair value of RSUs and PSUs granted (USD per share) | $ / shares				$ 152.53
Vesting period one | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				25.00%
Vesting period one | RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				33.00%
Vesting period two | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				25.00%
Vesting period two | RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				33.00%
Vesting period three | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				25.00%
Vesting period three | RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				33.00%
Vesting period four | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting rights rate (as a percent)				25.00%
IAC
Share-based Compensation Arrangement by Share-based Payment Award
Common stock issued (shares) | shares	700			700						2,000
IAC | Tandem Awards
Share-based Compensation Arrangement by Share-based Payment Award
Common stock issued (shares) | shares	300			300
Match Group
Share-based Compensation Arrangement by Share-based Payment Award
Common stock issued (shares) | shares	2,500			2,500						11,300
Cash payments made to cover withholding taxes and exercise of awards					520,000
Vested equity awards settled in cash		$ 33,900	$ 13,400
Match Group | Market Based Awards
Share-based Compensation Arrangement by Share-based Payment Award
Withholding rate (as a percent)				50.00%
Stock issued in conversion (shares) | shares				9,700
Excess tax benefit attributable to stock-based compensation				$ 416,200
Match Group | Market Based Awards - Vested
Share-based Compensation Arrangement by Share-based Payment Award
Stock issued in conversion (shares) | shares				1,700
Excess tax benefit attributable to stock-based compensation				$ 75,000
Match Group | Market Based Awards - Unvested
Share-based Compensation Arrangement by Share-based Payment Award
Stock issued in conversion (shares) | shares				8,000
Excess tax benefit attributable to stock-based compensation				$ 341,200
Match Group | Tandem Awards
Share-based Compensation Arrangement by Share-based Payment Award
Common stock issued (shares) | shares	1,400			1,400
ANGI Homeservices
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares required to settle vested and unvested interests at fair value (shares) | shares	1,100
Cash required to settle vested and unvested interests at fair value	$ 205,900
Withholding rate (as a percent)	50.00%
Common stock issued (shares) | shares	12,800			12,800
Cash withholding obligation	$ 36,500			$ 36,500
Cash withholding obligation equivalent (shares) | shares	2,300			2,300
Incremental compensation cost				$ 7,900
Incremental compensation cost from modification recognized in year of modification				$ 3,900
ANGI Homeservices | PSUs
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares required to settle vested and unvested interests at fair value (shares) | shares				100
Cash required to settle vested and unvested interests at fair value				$ 10,400
Common stock issued (shares) | shares	600			600
ANGI Homeservices | Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award
Incremental compensation cost				$ 217,700
Incremental compensation cost from modification recognized in year of modification				$ 56,900	$ 93,400

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STOCK-BASED COMPENSATION - Changes in Outstanding Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of Shares
Balance at beginning of period (shares)	6,586
Granted (shares)	80	1,200	1,700
Exercised (shares)	(774)
Forfeited (shares)	(72)
Expired (shares)	(6)
Balance at end of period (shares)	5,814	6,586
Options exercisable (shares)	3,592
Weighted Average Exercise Price
Balance at beginning of period (USD per share)	$ 60.57
Granted (USD per share)	152.53
Exercised (USD per share)	52.56
Forfeited (USD per share)	57.52
Expired (USD per share)	19.51
Balance at end of period (USD per share)	62.97	$ 60.57
Options exercisable (USD per share)	$ 59.64
Weighted Average Remaining Contractual Term (In Years)
Remaining term at end of period	6 years 1 month 6 days
Term of options exercisable	5 years 3 months 18 days
Aggregate Intrinsic Value
Balance at end of period	$ 698,128
Options exercisable	$ 443,293

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STOCK-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Options Outstanding
Options outstanding (shares) | shares	5,814
Weighted- Average Remaining Contractual Life in Years	6 years 1 month 6 days
Weighted-average exercise price (USD per share)	$ 62.97
Options Exercisable
Options exercisable (shares) | shares	3,592
Weighted- Average Remaining Contractual Life in Years	5 years 3 months 18 days
Weighted-average exercise price (USD per share)	$ 59.64
$20.01 to $30.00
Options Outstanding
Options outstanding (shares) | shares	30
Weighted- Average Remaining Contractual Life in Years	1 year 1 month 6 days
Weighted-average exercise price (USD per share)	$ 21.60
Options Exercisable
Options exercisable (shares) | shares	30
Weighted- Average Remaining Contractual Life in Years	1 year 1 month 6 days
Weighted-average exercise price (USD per share)	$ 21.60
$30.01 to $40.00
Options Outstanding
Options outstanding (shares) | shares	389
Weighted- Average Remaining Contractual Life in Years	2 years 3 months 18 days
Weighted-average exercise price (USD per share)	$ 32.30
Options Exercisable
Options exercisable (shares) | shares	389
Weighted- Average Remaining Contractual Life in Years	2 years 3 months 18 days
Weighted-average exercise price (USD per share)	$ 32.30
$40.01 to $50.00
Options Outstanding
Options outstanding (shares) | shares	1,541
Weighted- Average Remaining Contractual Life in Years	5 years 9 months 18 days
Weighted-average exercise price (USD per share)	$ 43.35
Options Exercisable
Options exercisable (shares) | shares	961
Weighted- Average Remaining Contractual Life in Years	5 years
Weighted-average exercise price (USD per share)	$ 44.26
$50.01 to $60.00
Options Outstanding
Options outstanding (shares) | shares	246
Weighted- Average Remaining Contractual Life in Years	3 years 2 months 12 days
Weighted-average exercise price (USD per share)	$ 59.85
Options Exercisable
Options exercisable (shares) | shares	244
Weighted- Average Remaining Contractual Life in Years	3 years 2 months 12 days
Weighted-average exercise price (USD per share)	$ 59.86
$60.01 to $70.00
Options Outstanding
Options outstanding (shares) | shares	1,173
Weighted- Average Remaining Contractual Life in Years	6 years 3 months 18 days
Weighted-average exercise price (USD per share)	$ 65.27
Options Exercisable
Options exercisable (shares) | shares	767
Weighted- Average Remaining Contractual Life in Years	6 years
Weighted-average exercise price (USD per share)	$ 65.62
$70.01 to $80.00
Options Outstanding
Options outstanding (shares) | shares	1,840
Weighted- Average Remaining Contractual Life in Years	7 years 4 months 24 days
Weighted-average exercise price (USD per share)	$ 75.33
Options Exercisable
Options exercisable (shares) | shares	822
Weighted- Average Remaining Contractual Life in Years	6 years 9 months 18 days
Weighted-average exercise price (USD per share)	$ 74.72
$80.01 to $90.00
Options Outstanding
Options outstanding (shares) | shares	500
Weighted- Average Remaining Contractual Life in Years	6 years 3 months 18 days
Weighted-average exercise price (USD per share)	$ 84.31
Options Exercisable
Options exercisable (shares) | shares	375
Weighted- Average Remaining Contractual Life in Years	6 years 3 months 18 days
Weighted-average exercise price (USD per share)	$ 84.31
Greater than $90.01
Options Outstanding
Options outstanding (shares) | shares	95
Weighted- Average Remaining Contractual Life in Years	9 years 1 month 6 days
Weighted-average exercise price (USD per share)	$ 148.30
Options Exercisable
Options exercisable (shares) | shares	4
Weighted- Average Remaining Contractual Life in Years	8 years 10 months 24 days
Weighted-average exercise price (USD per share)	$ 125.08
Minimum | $20.01 to $30.00
Options Exercisable
Exercise price range, lower limit (USD per share)	20.01
Minimum | $30.01 to $40.00
Options Exercisable
Exercise price range, lower limit (USD per share)	30.01
Minimum | $40.01 to $50.00
Options Exercisable
Exercise price range, lower limit (USD per share)	40.01
Minimum | $50.01 to $60.00
Options Exercisable
Exercise price range, lower limit (USD per share)	50.01
Minimum | $60.01 to $70.00
Options Exercisable
Exercise price range, lower limit (USD per share)	60.01
Minimum | $70.01 to $80.00
Options Exercisable
Exercise price range, lower limit (USD per share)	70.01
Minimum | $80.01 to $90.00
Options Exercisable
Exercise price range, lower limit (USD per share)	80.01
Minimum | Greater than $90.01
Options Exercisable
Exercise price range, lower limit (USD per share)	90.01
Maximum | $20.01 to $30.00
Options Exercisable
Exercise price range, upper limit (USD per share)	30
Maximum | $30.01 to $40.00
Options Exercisable
Exercise price range, upper limit (USD per share)	40
Maximum | $40.01 to $50.00
Options Exercisable
Exercise price range, upper limit (USD per share)	50
Maximum | $50.01 to $60.00
Options Exercisable
Exercise price range, upper limit (USD per share)	60.00
Maximum | $60.01 to $70.00
Options Exercisable
Exercise price range, upper limit (USD per share)	70.00
Maximum | $70.01 to $80.00
Options Exercisable
Exercise price range, upper limit (USD per share)	80.00
Maximum | $80.01 to $90.00
Options Exercisable
Exercise price range, upper limit (USD per share)	$ 90.00

XML

STOCK-BASED COMPENSATION - Weighted-Average Assumptions (Details) - Stock Options	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Expected volatility (as a percent)	27.00%	29.00%	29.00%
Risk-free interest rate (as a percent)	2.70%	2.00%	1.20%
Expected term	6 years 2 months 12 days	5 years 2 months 18 days	4 years 9 months 18 days
Dividend yield (as a percent)	0.00%

XML

STOCK-BASED COMPENSATION - Outstanding and Unvested RSUs and PSUs (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2018 $ / shares shares
RSUs
Number of Shares
Balance at beginning of the period (shares) | shares	360
Granted (shares) | shares	153
Vested (shares) | shares	(49)
Forfeited (shares) | shares	(5)
Balance at end of the period (shares) | shares	459
Weighted Average Grant Date Fair Value
Balance at beginning of the period (USD per share) | $ / shares	$ 80.81
Granted (USD per share) | $ / shares	183.33
Vested (USD per share) | $ / shares	78.54
Forfeited (USD per share) | $ / shares	98.81
Balance at end of the period (USD per share) | $ / shares	$ 115.12
Vesting period	3 years
PSUs
Number of Shares
Balance at beginning of the period (shares) | shares	130
Granted (shares) | shares	30
Vested (shares) | shares	0
Forfeited (shares) | shares	(17)
Balance at end of the period (shares) | shares	143
Weighted Average Grant Date Fair Value
Balance at beginning of the period (USD per share) | $ / shares	$ 76.00
Granted (USD per share) | $ / shares	152.53
Vested (USD per share) | $ / shares	0.00
Forfeited (USD per share) | $ / shares	76.00
Balance at end of the period (USD per share) | $ / shares	$ 92.02

XML

SEGMENT INFORMATION - Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenue	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Operating Segments | Match Group
Segment Reporting Information [Line Items]
Revenue									1,729,850	1,330,661	1,118,110
Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenue									1,132,241	736,386	498,890
Operating Segments | Vimeo
Segment Reporting Information [Line Items]
Revenue									159,641	103,332	78,805
Operating Segments | Dotdash
Segment Reporting Information [Line Items]
Revenue									130,991	90,890	77,913
Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenue									582,287	577,998	604,140
Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenue									528,250	468,589	762,609
Inter-segment elimination
Segment Reporting Information [Line Items]
Revenue									$ (368)	$ (617)	$ (585)

XML

SEGMENT INFORMATION - Revenue Disaggregated by Service (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenues	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Operating Segments | Match Group
Segment Reporting Information [Line Items]
Revenues									1,729,850	1,330,661	1,118,110
Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									1,132,241	736,386	498,890
Operating Segments | Vimeo
Segment Reporting Information [Line Items]
Revenues									159,641	103,332	78,805
Operating Segments | Dotdash
Segment Reporting Information [Line Items]
Revenues									130,991	90,890	77,913
Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenues									582,287	577,998	604,140
Operating Segments | Applications | Mosaic Group
Segment Reporting Information [Line Items]
Revenues									123,516	55,849	40,825
Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									528,250	468,589	762,609
North America | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									1,062,171	678,897	461,847
Europe | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									70,070	57,489	37,043
Direct | Operating Segments | Match Group
Segment Reporting Information [Line Items]
Revenues									1,677,171	1,281,249	1,067,364
Direct | Operating Segments | Match Group | Tinder
Segment Reporting Information [Line Items]
Revenues									805,316	403,216	168,522
Direct | Operating Segments | Match Group | Other brands
Segment Reporting Information [Line Items]
Revenues									871,855	878,033	898,842
Direct | North America | Operating Segments | Match Group
Segment Reporting Information [Line Items]
Revenues									902,478	741,334	673,944
Direct | All Other Countries | Operating Segments | Match Group
Segment Reporting Information [Line Items]
Revenues									774,693	539,915	393,420
Indirect | Operating Segments | Match Group
Segment Reporting Information [Line Items]
Revenues									52,679	49,412	50,746
Marketplace | North America | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									774,495	581,414	428,866
Consumer Connection | North America | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									704,341	521,481	382,466
Membership Subscription | North America | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									66,214	56,135	43,573
Other | North America | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									3,940	3,798	2,827
Advertising and Other | North America | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									287,676	97,483	32,981
Advertising and Other | Europe | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									1,795	884	983
Consumer Connection | Europe | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									50,913	40,009	28,124
Membership Subscription | Europe | Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Revenues									17,362	16,596	7,936
Platform | Operating Segments | Vimeo
Segment Reporting Information [Line Items]
Revenues									146,665	99,650	78,805
Hardware | Operating Segments | Vimeo
Segment Reporting Information [Line Items]
Revenues									12,976	3,682	0
Advertising | Operating Segments | Dotdash
Segment Reporting Information [Line Items]
Revenues									113,014	81,948	76,099
Advertising | Operating Segments | Applications | Mosaic Group
Segment Reporting Information [Line Items]
Revenues									18,541	27,869	19,038
Advertising | Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									424,485	279,487	344,200
Google Advertising | Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									357,752	225,576	269,192
Other | Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									66,733	53,911	75,008
Affiliate Commerce Commission | Operating Segments | Dotdash
Segment Reporting Information [Line Items]
Revenues									14,458	7,372	1,685
Other | Operating Segments | Dotdash
Segment Reporting Information [Line Items]
Revenues									3,519	1,570	129
Other | Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									103,765	169,497	160,329
Desktop | Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenues									458,771	522,149	563,315
Advertising | Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenues									437,956	487,536	533,372
Google Advertising | Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenues									426,964	480,774	523,335
Other | Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenues									10,992	6,762	10,037
Subscription and Other | Operating Segments | Applications
Segment Reporting Information [Line Items]
Revenues									20,815	34,613	29,943
Subscription and Other | Operating Segments | Applications | Mosaic Group
Segment Reporting Information [Line Items]
Revenues									104,975	27,980	21,787
Test Preparation | Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									0	19,605	86,517
Product
Segment Reporting Information [Line Items]
Revenues									13,665	4,302	172,408
Product | Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Revenues									$ 0	$ 0	$ 171,563

XML

SEGMENT INFORMATION - Revenue and Long-Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue and Long-lived Assets by Geography
Revenue	$ 4,262,892	$ 3,307,239	$ 3,139,882
Long-lived assets (excluding goodwill and intangible assets)	318,800	315,170
United States
Revenue and Long-lived Assets by Geography
Revenue	2,824,928	2,323,050	2,318,976
Long-lived assets (excluding goodwill and intangible assets)	289,756	286,541
All other countries
Revenue and Long-lived Assets by Geography
Revenue	1,437,964	984,189	$ 820,906
Long-lived assets (excluding goodwill and intangible assets)	$ 29,044	$ 28,629

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SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting, Other Significant Reconciling Item
Operating income	$ 133,920	$ 172,832	$ 168,437	$ 89,950	$ 94,360	$ (18,589)	$ 75,635	$ 37,060	$ 565,139	$ 188,466	$ (32,625)
Stock-based compensation expense									238,420	264,618	104,820
Depreciation									75,360	74,265	71,676
Amortization of intangibles									108,399	42,143	79,426
Goodwill Impairment									0	0	275,367
Interest expense									(109,327)	(105,295)	(109,110)
Other expense, net									305,746	(16,213)	60,650
Earnings (loss) before income taxes									761,558	66,958	(81,085)
Income tax benefit						(257,000)			(3,811)	291,050	64,934
Net earnings (loss)	217,477	171,577	280,854	87,839	23,349	225,639	80,557	28,463	757,747	358,008	(16,151)
Net earnings attributable to noncontrolling interests									(130,786)	(53,084)	(25,129)
Net earnings (loss) attributable to IAC shareholders	$ 191,752	$ 145,774	$ 218,353	$ 71,082	$ 32,804	$ 179,643	$ 66,268	$ 26,209	626,961	304,924	(41,280)
Operating Segments | Match Group
Segment Reporting, Other Significant Reconciling Item
Operating income									553,294	360,517	315,549
Stock-based compensation expense									66,031	69,090	52,370
Depreciation									32,968	32,613	27,726
Amortization of intangibles									1,318	1,468	16,932
Acquisition-related Contingent Consideration Fair Value Adjustments									320	5,253	(9,197)
Adjusted EBITDA									653,931	468,941	403,380
Goodwill Impairment											0
Operating Segments | ANGI Homeservices
Segment Reporting, Other Significant Reconciling Item
Operating income									63,906	(149,176)	25,363
Stock-based compensation expense									97,078	149,230	8,916
Depreciation									24,310	14,543	8,419
Amortization of intangibles									62,212	23,261	3,153
Acquisition-related Contingent Consideration Fair Value Adjustments									0	0	0
Adjusted EBITDA									247,506	37,858	45,851
Goodwill Impairment											0
Operating Segments | Vimeo
Segment Reporting, Other Significant Reconciling Item
Operating income									(35,594)	(27,328)	(25,350)
Stock-based compensation expense									0	0	0
Depreciation									1,200	1,408	1,085
Amortization of intangibles									6,349	2,313	4,176
Acquisition-related Contingent Consideration Fair Value Adjustments									0	0	(192)
Adjusted EBITDA									(28,045)	(23,607)	(20,281)
Goodwill Impairment											0
Operating Segments | Dotdash
Segment Reporting, Other Significant Reconciling Item
Operating income									18,778	(15,694)	(248,705)
Stock-based compensation expense									0	0	0
Depreciation									969	2,255	2,775
Amortization of intangibles									1,637	10,676	30,754
Acquisition-related Contingent Consideration Fair Value Adjustments									0	0	0
Adjusted EBITDA									21,384	(2,763)	(16,846)
Goodwill Impairment											198,330
Operating Segments | Applications
Segment Reporting, Other Significant Reconciling Item
Operating income									94,834	130,176	109,663
Stock-based compensation expense									0	0	0
Depreciation									2,601	3,863	5,095
Amortization of intangibles									33,266	2,170	5,483
Acquisition-related Contingent Consideration Fair Value Adjustments									1,136	548	12,035
Adjusted EBITDA									131,837	136,757	132,276
Goodwill Impairment											0
Operating Segments | Emerging & Other
Segment Reporting, Other Significant Reconciling Item
Operating income									29,964	17,412	(99,696)
Stock-based compensation expense									919	2,130	1,258
Depreciation									1,678	4,065	12,675
Amortization of intangibles									3,617	2,255	18,928
Acquisition-related Contingent Consideration Fair Value Adjustments									0	0	(91)
Adjusted EBITDA									36,178	25,862	10,111
Goodwill Impairment											77,037
Corporate
Segment Reporting, Other Significant Reconciling Item
Operating income									(160,043)	(127,441)	(109,449)
Stock-based compensation expense									74,392	44,168	42,276
Depreciation									11,634	15,518	13,901
Amortization of intangibles									0	0	0
Acquisition-related Contingent Consideration Fair Value Adjustments									0	0	0
Adjusted EBITDA									$ (74,017)	$ (67,755)	(53,272)
Goodwill Impairment											$ 0

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SEGMENT INFORMATION - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting, Asset Reconciling Item
Segment Assets	$ 3,132,718	$ 2,263,516
Long-lived assets (excluding goodwill and intangible assets)	318,800	315,170
Goodwill	2,726,859	2,559,066	$ 1,924,052
Indefinite-Lived Intangible Assets	458,104	459,143
Definite-Lived Intangible Assets, Net	173,318	204,594
Assets before deferred tax assets	6,809,799	5,801,489
Add: Deferred tax assets	64,786	66,321
TOTAL ASSETS	6,874,585	5,867,810
Match Group
Segment Reporting, Asset Reconciling Item
Goodwill	1,245,013	1,247,899	1,206,538
ANGI Homeservices
Segment Reporting, Asset Reconciling Item
Goodwill	892,800	768,317	170,611
Applications
Segment Reporting, Asset Reconciling Item
Goodwill	504,892	447,242	447,242
Emerging & Other
Segment Reporting, Asset Reconciling Item
Goodwill	7,002	18,305	$ 90,012
Operating Segments | Match Group
Segment Reporting, Asset Reconciling Item
Segment Assets	377,965	467,338
Long-lived assets (excluding goodwill and intangible assets)	58,351	61,620
Goodwill	1,245,013	1,247,899
Indefinite-Lived Intangible Assets	230,684	228,296
Definite-Lived Intangible Assets, Net	6,956	2,049
Assets before deferred tax assets	1,918,969	2,007,202
Operating Segments | ANGI Homeservices
Segment Reporting, Asset Reconciling Item
Segment Assets	497,327	264,450
Long-lived assets (excluding goodwill and intangible assets)	70,859	53,292
Goodwill	892,800	768,317
Indefinite-Lived Intangible Assets	171,486	153,447
Definite-Lived Intangible Assets, Net	132,809	175,124
Assets before deferred tax assets	1,765,281	1,414,630
Operating Segments | Vimeo
Segment Reporting, Asset Reconciling Item
Segment Assets	33,568	30,507
Long-lived assets (excluding goodwill and intangible assets)	1,014	1,972
Goodwill	77,152	77,303
Indefinite-Lived Intangible Assets	0	0
Definite-Lived Intangible Assets, Net	9,442	15,655
Assets before deferred tax assets	121,176	125,437
Operating Segments | Dotdash
Segment Reporting, Asset Reconciling Item
Segment Assets	39,276	27,190
Long-lived assets (excluding goodwill and intangible assets)	3,229	4,077
Goodwill	0	0
Indefinite-Lived Intangible Assets	13,500	6,000
Definite-Lived Intangible Assets, Net	1,514	3,152
Assets before deferred tax assets	57,519	40,419
Operating Segments | Applications
Segment Reporting, Asset Reconciling Item
Segment Assets	153,781	345,532
Long-lived assets (excluding goodwill and intangible assets)	4,867	7,004
Goodwill	504,892	447,242
Indefinite-Lived Intangible Assets	39,463	60,600
Definite-Lived Intangible Assets, Net	22,447	847
Assets before deferred tax assets	725,450	861,225
Operating Segments | Emerging & Other
Segment Reporting, Asset Reconciling Item
Segment Assets	95,858	255,107
Long-lived assets (excluding goodwill and intangible assets)	1,638	2,377
Goodwill	7,002	18,305
Indefinite-Lived Intangible Assets	2,971	10,800
Definite-Lived Intangible Assets, Net	150	7,767
Assets before deferred tax assets	107,619	294,356
Corporate
Segment Reporting, Asset Reconciling Item
Segment Assets	1,934,943	873,392
Long-lived assets (excluding goodwill and intangible assets)	178,842	184,828
Goodwill	0	0
Indefinite-Lived Intangible Assets	0	0
Definite-Lived Intangible Assets, Net	0	0
Assets before deferred tax assets	$ 2,113,785	$ 1,058,220

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SEGMENT INFORMATION - Capital Expenditures by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Capital expenditures	$ 85,634	$ 75,523	$ 78,039
Operating Segments | Match Group
Segment Reporting Information [Line Items]
Capital expenditures	30,954	28,833	46,098
Operating Segments | ANGI Homeservices
Segment Reporting Information [Line Items]
Capital expenditures	46,976	26,837	16,660
Operating Segments | Vimeo
Segment Reporting Information [Line Items]
Capital expenditures	209	109	1,959
Operating Segments | Dotdash
Segment Reporting Information [Line Items]
Capital expenditures	102	825	1,671
Operating Segments | Applications
Segment Reporting Information [Line Items]
Capital expenditures	111	227	1,196
Operating Segments | Emerging & Other
Segment Reporting Information [Line Items]
Capital expenditures	1,119	852	6,683
Corporate
Segment Reporting Information [Line Items]
Capital expenditures	$ 6,163	$ 17,840	$ 3,772

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COMMITMENTS AND CONTINGENCIES - Future Minimum Payments under Operation Lease Agreements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Future Minimum Payments Under Operating Lease Agreements
2019	$ 38,770
2020	46,440
2021	40,998
2022	34,066
2023	30,567
Thereafter	255,563
Total	446,404
Expenses charged to operations under operating lease agreements	$ 42,000	$ 37,900	$ 50,800
Proportion of most significant operating leases (as a percent)	61.00%

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COMMITMENTS AND CONTINGENCIES - Commercial Commitments Outstanding (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Other Commitments
Less Than 1 Year	$ 40,877
1-3 Years	23,897
3-5 Years	0
More Than 5 Years	2,272
Total Amounts Committed	67,046
Purchase obligations
Other Commitments
Less Than 1 Year	40,428
1-3 Years	23,897
3-5 Years	0
More Than 5 Years	0
Total Amounts Committed	64,325
Letters of credit and surety bonds
Other Commitments
Less Than 1 Year	449
1-3 Years	0
3-5 Years	0
More Than 5 Years	2,272
Total Amounts Committed	$ 2,721

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) - Tinder Optionholder Litigation $ in Billions	Aug. 31, 2018 plaintiff	Aug. 14, 2018 USD ($) plaintiff
Loss Contingencies [Line Items]
Number of plaintiffs	6	10
Number of plaintiffs who filed a discontinuance of claims	4
Pending Litigation
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value | $		$ 2

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SUPPLEMENTAL CASH FLOW INFORMATION - Summary (Details) - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Oct. 19, 2018	Sep. 29, 2017
Debt Instrument
Fair value of contingent consideration liabilities	$ 25,500,000	$ 0	$ 200,000
Cash paid (received) during the year for:
Interest	90,485,000	92,461,000	107,360,000
Income tax payments	45,154,000	35,598,000	69,103,000
Income tax refunds	$ (33,698,000)	$ (42,025,000)	$ (23,877,000)
Common Stock
Debt Instrument
Common stock issued (shares)	262,303	260,624
Common stock	$ 262,000	$ 261,000
ANGI Homeservices
Debt Instrument
Common stock issued (shares)	12,800
ANGI Homeservices | Common Stock
Debt Instrument
Common stock issued (shares)				8,600	61,300
Common stock				$ 165,800,000	$ 763,700,000

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RELATED PARTY TRANSACTIONS - Narrative (Details) shares in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($) shares	Dec. 31, 2018 USD ($) aircraft shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($) shares	Sep. 29, 2017 USD ($) intercompany_note
Match Group | Employee Matters Agreement
Related Party Transaction [Line Items]
Shares received from related party pursuant to employee matters agreement (in shares) | shares			3.0	11.9	1.0
Shares received from related party as reimbursement for exercise and settlement of equity awards denominated in shares of subsidiary (in shares) | shares			2.5	11.3	0.5
Shares received from related party as reimbursement for exercise and vesting of equity awards denominated in shares of parent (in shares) | shares			0.5	0.6	0.4
Match Group | Services Agreement
Related Party Transaction [Line Items]
Payments received from related parties			$ 7,600,000	$ 9,900,000	$ 11,800,000
Match Group | Leased Office Space
Related Party Transaction [Line Items]
Expenses from transactions with related parties			5,200,000	5,100,000	$ 4,300,000
Match Group | Tax Sharing Agreement
Related Party Transaction [Line Items]
Payments received from related parties			7,000,000	10,900,000
Amounts due to related parties		$ 7,300,000	0	7,300,000
Match Group | Net Operating Loss Sold
Related Party Transaction [Line Items]
Expenses from transactions with related parties			900,000
ANGI Homeservices
Related Party Transaction [Line Items]
Current accounts receivable due from related party		$ 2,000,000	$ 0	2,000,000
ANGI Homeservices | Employee Matters Agreement
Related Party Transaction [Line Items]
Shares received from related party pursuant to employee matters agreement (in shares) | shares		0.4	0.9
ANGI Homeservices | Services Agreement
Related Party Transaction [Line Items]
Payments received from related parties		$ 1,700,000	$ 5,700,000	$ 400,000
Amounts due to related parties			100,000
ANGI Homeservices | Tax Sharing Agreement
Related Party Transaction [Line Items]
Current notes receivable due from related party			12,100,000
Payments received from related party tax expense			$ 0
ANGI Homeservices | Intercompany Notes
Related Party Transaction [Line Items]
Number of related party debt instruments | intercompany_note						2
ANGI Homeservices | Payoff Intercompany Note
Related Party Transaction [Line Items]
Current notes receivable due from related party						$ 61,500,000
ANGI Homeservices | Working Capital Intercompany Note
Related Party Transaction [Line Items]
Current notes receivable due from related party						$ 15,000,000
Other Affiliates
Related Party Transaction [Line Items]
Ownership interest held by each of the Company and Expedia in aircraft (as a percent)			50.00%
Number of aircraft operated | aircraft			2
IAC's total purchase price and refurbish costs in aircraft	$ 17,400,000
Percentage of total purchase price and refurbish costs paid in related party transaction	50.00%
Ownership interest held by each of the Company and Expedia in an entity employing aircraft flight crew (as a percent)			50.00%
Class B Common Stock | ANGI Homeservices | Angie's List Merger Agreement
Related Party Transaction [Line Items]
Stock received from related party (shares) | shares			5.1

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BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Employee contribution limit per calendar year (up to) (as a percent of pre-tax earnings)	50.00%
Employer contribution limit per calendar year (as a percent of compensation)	3.00%
Employer contribution per dollar employee contributes up to contribution limit	50.00%
United States
Defined Contribution Plan Disclosure
Defined contribution plan contributions	$ 12.9	$ 11.1	$ 10.0
All Other Countries
Defined Contribution Plan Disclosure
Defined contribution plan contributions	$ 3.4	$ 2.5	$ 2.1

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 04, 2017
Additional consolidated financial statement details
Unrealized gains, net, on equity securities held		$ 124,170
Term Loan | Match Group | Match Group Term Loan due November 16, 2022
Additional consolidated financial statement details
Repayment of debt				$ 440,000
Senior Notes | 4.875% Senior Notes due November 30, 2018 (the 4.875% Senior Notes); interest payable each May 30 and November 30
Additional consolidated financial statement details
Stated interest rate (as a percent)	4.75%	4.75%	4.875%	4.875%
Senior Notes | 4.75% Senior Notes due December 15, 2022 (the 4.75% Senior Notes); interest payable each June 15 and December 15
Additional consolidated financial statement details
Stated interest rate (as a percent)	4.75%	4.75%
Senior Notes | Match Group | 6.75% Senior Notes due December 15, 2022 (the Match Group 6.75% Senior Notes); interest payable each June 15 and December 15
Additional consolidated financial statement details
Stated interest rate (as a percent)			6.75%		6.75%
Other Income (Expense)
Additional consolidated financial statement details
Interest income		$ 30,400	$ 11,400	$ 5,100
Gain on sale of long-term investments		27,900	34,900	3,600
Foreign currency exchange gain (loss)		5,300	16,800	34,400
Cost of repricing debt			(15,400)
Gain (loss) on mark-to-market adjustment			13,000	(2,500)
Write-off of proportionate share of original issue discount and deferred financing costs			(1,200)	(12,100)
Other Income (Expense) | Senior Notes
Additional consolidated financial statement details
Loss on redemption and repurchase of 2012 and 2013 Senior Notes				(3,600)
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dictionary.com, Electus, Felix, and CityGrid
Additional consolidated financial statement details
Gain on sale of business	$ 92,500
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dictionary.com, Electus, Felix, and CityGrid | Other Income (Expense)
Additional consolidated financial statement details
Gain on sale of business		$ 120,600
Disposal Group, Disposed of by Sale, Not Discontinued Operations | The Princeton Review | Other Income (Expense)
Additional consolidated financial statement details
Gain on other-than-temporary impairment charges			$ 12,200
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ShoeBuy | Other Income (Expense)
Additional consolidated financial statement details
Gain on sale of business				37,500
Disposal Group, Disposed of by Sale, Not Discontinued Operations | PriceRunner | Other Income (Expense)
Additional consolidated financial statement details
Gain on sale of business				12,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ASKfm | Other Income (Expense)
Additional consolidated financial statement details
Gain on other-than-temporary impairment charges				(10,700)
Gain on sale of business				$ 3,800

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other current assets:
Capitalized costs to obtain a contract with a customer	$ 69,817	$ 0
Prepaid expenses	55,586	49,350
Capitalized downloadable search toolbar costs, net	33,365	31,588
Income taxes receivable	10,132	33,239
Production costs	2,260	18,570
Other	57,093	52,627
Other current assets	$ 228,253	$ 185,374

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property and equipment, net of accumulated depreciation and amortization:
Property and equipment, gross	$ 605,598	$ 586,981
Accumulated depreciation and amortization	(286,798)	(271,811)
Property and equipment, net of accumulated depreciation and amortization	318,800	315,170
Buildings and leasehold improvements
Property and equipment, net of accumulated depreciation and amortization:
Property and equipment, gross	249,026	246,038
Computer equipment and capitalized software
Property and equipment, net of accumulated depreciation and amortization:
Property and equipment, gross	229,083	218,529
Furniture and other equipment
Property and equipment, net of accumulated depreciation and amortization:
Property and equipment, gross	86,694	88,930
Projects in progress
Property and equipment, net of accumulated depreciation and amortization:
Property and equipment, gross	29,204	19,094
Land
Property and equipment, net of accumulated depreciation and amortization:
Property and equipment, gross	$ 11,591	$ 14,390

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accrued expenses and other current liabilities:
Accrued employee compensation and benefits	$ 137,583	$ 108,431
Accrued advertising expense	105,520	96,445
Other	191,783	162,048
Accrued expenses and other current liabilities	$ 434,886	$ 366,924

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Revenue	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Service revenue
Disaggregation of Revenue [Line Items]
Revenue									4,249,227	3,302,937	2,967,474
Product revenue
Disaggregation of Revenue [Line Items]
Revenue									$ 13,665	$ 4,302	$ 172,408

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cost of revenue:
Cost of service revenue									$ 898,736	$ 647,226	$ 617,058
Cost of product revenue									12,410	3,782	138,672
Cost of revenue	$ 253,722	$ 237,238	$ 218,224	$ 201,962	$ 199,727	$ 166,290	$ 139,033	$ 145,958	$ 911,146	$ 651,008	$ 755,730

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CONSOLIDATED FINANCIAL STATEMENT DETAILS - Other (Expense) Income, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other income (expense), net:
Other income (expense), net	$ 305,746	$ (16,213)	$ 60,650

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TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Stock-based compensation expense	$ 238,420	$ 264,618	$ 104,820
ANGI Homeservices
Business Acquisition [Line Items]
Transaction and integration related costs	3,584	44,101
Write-off due to deferred revenue	5,500	7,800
Stock-based compensation expense	$ 70,645	$ 122,066

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TRANSACTION AND INTEGRATION RELATED COSTS IN CONNECTION WITH THE COMBINATION - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Stock-based compensation expense	$ 238,420	$ 264,618	$ 104,820
Cost of revenue
Business Acquisition [Line Items]
Stock-based compensation expense	2,482	1,881	2,305
Selling and marketing expense
Business Acquisition [Line Items]
Stock-based compensation expense	7,943	31,318	6,000
General and administrative expense
Business Acquisition [Line Items]
Stock-based compensation expense	188,510	192,957	77,151
Product development expense
Business Acquisition [Line Items]
Stock-based compensation expense	39,485	38,462	19,364
ANGI Homeservices
Business Acquisition [Line Items]
Transaction and integration related costs	3,584	44,101
Stock-based compensation expense	70,645	122,066
Total	74,229	166,167
Accrual for Business Combination [Roll Forward]
Accrual as of January 1	8,480	0
Costs incurred	3,584	44,101
Payments made	(12,064)	(35,621)
Accrual as of December 31	0	8,480	$ 0
ANGI Homeservices | Cost of revenue
Business Acquisition [Line Items]
Transaction and integration related costs	0	0
Stock-based compensation expense	0	0
Total	0	0
ANGI Homeservices | Selling and marketing expense
Business Acquisition [Line Items]
Transaction and integration related costs	0	7,430
Stock-based compensation expense	2,161	24,416
Total	2,161	31,846
ANGI Homeservices | General and administrative expense
Business Acquisition [Line Items]
Transaction and integration related costs	3,584	36,120
Stock-based compensation expense	61,010	83,420
Total	64,594	119,540
ANGI Homeservices | Product development expense
Business Acquisition [Line Items]
Transaction and integration related costs	0	551
Stock-based compensation expense	7,474	14,230
Total	$ 7,474	$ 14,781

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Narrative (Details) - Senior Notes - 4.875% Senior Notes due November 30, 2018 (the 4.875% Senior Notes); interest payable each May 30 and November 30	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Stated interest rate (as a percent)	4.75%	4.875%	4.875%
Proportion of voting interests acquired (as a percent)	100.00%

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Balance Sheet
Cash and cash equivalents	$ 2,131,632	$ 1,630,809	$ 1,329,187	$ 1,481,447
Marketable securities	123,665	4,995
Accounts receivable, net of allowance and reserves	279,189	304,027
Other current assets	228,253	185,374
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization	318,800	315,170
Goodwill	2,726,859	2,559,066	$ 1,924,052
Intangible assets, net of accumulated amortization	631,422	663,737
Investment in subsidiaries	0	0
Other non-current assets	434,765	204,632
TOTAL ASSETS	6,874,585	5,867,810
Current portion of long-term debt	13,750	13,750
Accounts payable, trade	74,907	76,571
Other current liabilities	794,901	709,407
Long-term debt, net	2,245,548	1,979,469
Income taxes payable	37,584	25,624
Intercompany liabilities	0	0
Other long-term liabilities	90,407	73,299
Redeemable noncontrolling interests	65,687	42,867
Shareholders' equity (deficit)	2,843,125	2,430,028
Noncontrolling interests	708,676	516,795
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	6,874,585	5,867,810
Eliminations
Condensed Balance Sheet
Cash and cash equivalents	0	0
Marketable securities	0	0
Accounts receivable, net of allowance and reserves	0	0
Other current assets	0	0
Intercompany receivables	(1,423,456)	(668,703)
Property and equipment, net of accumulated depreciation and amortization	0	0
Goodwill	0	0
Intangible assets, net of accumulated amortization	0	0
Investment in subsidiaries	(2,112,218)	(2,632,896)
Other non-current assets	(185,629)	(132,435)
TOTAL ASSETS	(3,721,303)	(3,434,034)
Current portion of long-term debt	0	0
Accounts payable, trade	0	0
Other current liabilities	0	0
Long-term debt, net	0	0
Income taxes payable	0	0
Intercompany liabilities	(1,423,456)	(668,703)
Other long-term liabilities	(185,629)	(132,435)
Redeemable noncontrolling interests	0	0
Shareholders' equity (deficit)	(2,112,218)	(2,632,896)
Noncontrolling interests	0	0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(3,721,303)	(3,434,034)
IAC
Condensed Balance Sheet
Long-term debt, net	484,666	468,461
IAC | Reportable Legal Entities
Condensed Balance Sheet
Cash and cash equivalents	1,018,082	585,639
Marketable securities	98,299	4,995
Accounts receivable, net of allowance and reserves	0	31
Other current assets	27,349	49,159
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization	6,526	2,811
Goodwill	0	0
Intangible assets, net of accumulated amortization	0	0
Investment in subsidiaries	1,897,699	2,077,898
Other non-current assets	274,789	170,073
TOTAL ASSETS	3,322,744	2,890,606
Current portion of long-term debt	0	0
Accounts payable, trade	1,304	5,163
Other current liabilities	41,721	29,489
Long-term debt, net	34,262	34,572
Income taxes payable	15	16
Intercompany liabilities	402,056	390,827
Other long-term liabilities	261	511
Redeemable noncontrolling interests	0	0
Shareholders' equity (deficit)	2,843,125	2,430,028
Noncontrolling interests	0	0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	3,322,744	2,890,606
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Balance Sheet
Cash and cash equivalents	0	0
Marketable securities	0	0
Accounts receivable, net of allowance and reserves	99,970	109,289
Other current assets	29,222	33,387
Intercompany receivables	1,423,456	668,703
Property and equipment, net of accumulated depreciation and amortization	163,281	174,323
Goodwill	412,009	412,010
Intangible assets, net of accumulated amortization	43,914	74,852
Investment in subsidiaries	214,519	554,998
Other non-current assets	94,290	87,306
TOTAL ASSETS	2,480,661	2,114,868
Current portion of long-term debt	0	0
Accounts payable, trade	36,293	30,469
Other current liabilities	95,405	88,050
Long-term debt, net	0	0
Income taxes payable	1,707	1,605
Intercompany liabilities	0	0
Other long-term liabilities	18,181	18,613
Redeemable noncontrolling interests	0	0
Shareholders' equity (deficit)	2,329,075	1,976,131
Noncontrolling interests	0	0
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,480,661	2,114,868
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Balance Sheet
Cash and cash equivalents	1,113,550	1,045,170
Marketable securities	25,366	0
Accounts receivable, net of allowance and reserves	179,219	194,707
Other current assets	171,682	102,828
Intercompany receivables	0	0
Property and equipment, net of accumulated depreciation and amortization	148,993	138,036
Goodwill	2,314,850	2,147,056
Intangible assets, net of accumulated amortization	587,508	588,885
Investment in subsidiaries	0	0
Other non-current assets	251,315	79,688
TOTAL ASSETS	4,792,483	4,296,370
Current portion of long-term debt	13,750	13,750
Accounts payable, trade	37,310	40,939
Other current liabilities	657,775	591,868
Long-term debt, net	2,211,286	1,944,897
Income taxes payable	35,862	24,003
Intercompany liabilities	1,021,400	277,876
Other long-term liabilities	257,594	186,610
Redeemable noncontrolling interests	65,687	42,867
Shareholders' equity (deficit)	(216,857)	656,765
Noncontrolling interests	708,676	516,795
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 4,792,483	$ 4,296,370

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GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Condensed Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Statements of Operations
Revenue	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	253,722	237,238	218,224	201,962	199,727	166,290	139,033	145,958	911,146	651,008	755,730
Selling and marketing expense									1,519,440	1,381,221	1,247,097
General and administrative expense									774,079	719,257	530,446
Product development expense									309,329	250,879	212,765
Depreciation									75,360	74,265	71,676
Amortization of intangibles									108,399	42,143	79,426
Goodwill impairment									0	0	275,367
Total operating costs and expenses									3,697,753	3,118,773	3,172,507
Operating income (loss)	133,920	172,832	168,437	89,950	94,360	(18,589)	75,635	37,060	565,139	188,466	(32,625)
Equity in earnings of unconsolidated affiliates									0	0	0
Interest expense									(109,327)	(105,295)	(109,110)
Other income (expense), net									305,746	(16,213)	60,650
Earnings (loss) before income taxes									761,558	66,958	(81,085)
Income tax (provision) benefit						(257,000)			(3,811)	291,050	64,934
Net earnings (loss)	217,477	171,577	280,854	87,839	23,349	225,639	80,557	28,463	757,747	358,008	(16,151)
Net earnings attributable to noncontrolling interests									(130,786)	(53,084)	(25,129)
Net earnings (loss) attributable to IAC shareholders	$ 191,752	$ 145,774	$ 218,353	$ 71,082	$ 32,804	$ 179,643	$ 66,268	$ 26,209	626,961	304,924	(41,280)
Comprehensive income attributable to IAC shareholders									601,683	367,370	(76,431)
Foreign cash repatriated									396,200
Eliminations
Condensed Statements of Operations
Revenue									(378)	(617)	(605)
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)									(291)	(505)	(412)
Selling and marketing expense									(150)	(519)	(323)
General and administrative expense									69	407	130
Product development expense									(6)	0	0
Depreciation									0	0	0
Amortization of intangibles									0	0	0
Goodwill impairment											0
Total operating costs and expenses									(378)	(617)	(605)
Operating income (loss)									0	0	0
Equity in earnings of unconsolidated affiliates									(751,917)	(439,904)	(56,319)
Interest expense									0	0	0
Other income (expense), net									(378,438)	0	0
Earnings (loss) before income taxes									(1,130,355)	(439,904)	(56,319)
Income tax (provision) benefit									0	0	0
Net earnings (loss)									(1,130,355)	(439,904)	(56,319)
Net earnings attributable to noncontrolling interests									0	0	0
Net earnings (loss) attributable to IAC shareholders									(1,130,355)	(439,904)	(56,319)
Comprehensive income attributable to IAC shareholders									(1,116,998)	(505,661)	(2,545)
IAC | Reportable Legal Entities
Condensed Statements of Operations
Revenue									0	0	0
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)									195	160	859
Selling and marketing expense									977	1,250	2,353
General and administrative expense									141,727	100,237	89,583
Product development expense									2,003	2,421	4,807
Depreciation									1,203	1,564	1,610
Amortization of intangibles									0	0	0
Goodwill impairment											0
Total operating costs and expenses									146,105	105,632	99,212
Operating income (loss)									(146,105)	(105,632)	(99,212)
Equity in earnings of unconsolidated affiliates									731,834	419,149	49,545
Interest expense									(1,700)	(20,339)	(26,876)
Other income (expense), net									(18,834)	(30,787)	(1,879)
Earnings (loss) before income taxes									565,195	262,391	(78,422)
Income tax (provision) benefit									61,766	42,533	37,142
Net earnings (loss)									626,961	304,924	(41,280)
Net earnings attributable to noncontrolling interests									0	0	0
Net earnings (loss) attributable to IAC shareholders									626,961	304,924	(41,280)
Comprehensive income attributable to IAC shareholders									601,683	367,370	(76,431)
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Statements of Operations
Revenue									850,475	753,858	960,000
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)									262,912	159,488	297,712
Selling and marketing expense									313,769	353,186	417,051
General and administrative expense									49,563	62,340	83,636
Product development expense									56,431	55,232	69,778
Depreciation									12,497	20,668	26,514
Amortization of intangibles									29,437	11,213	41,157
Goodwill impairment											253,245
Total operating costs and expenses									724,609	662,127	1,189,093
Operating income (loss)									125,866	91,731	(229,093)
Equity in earnings of unconsolidated affiliates									20,083	20,755	6,774
Interest expense									0	0	0
Other income (expense), net									503,261	28,434	10,209
Earnings (loss) before income taxes									649,210	140,920	(212,110)
Income tax (provision) benefit									(56,612)	(119,957)	77,851
Net earnings (loss)									592,598	20,963	(134,259)
Net earnings attributable to noncontrolling interests									0	0	0
Net earnings (loss) attributable to IAC shareholders									592,598	20,963	(134,259)
Comprehensive income attributable to IAC shareholders									601,232	7,629	(142,494)
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Statements of Operations
Revenue									3,412,795	2,553,998	2,180,487
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)									648,330	491,865	457,571
Selling and marketing expense									1,204,844	1,027,304	828,016
General and administrative expense									582,720	556,273	357,097
Product development expense									250,901	193,226	138,180
Depreciation									61,660	52,033	43,552
Amortization of intangibles									78,962	30,930	38,269
Goodwill impairment											22,122
Total operating costs and expenses									2,827,417	2,351,631	1,884,807
Operating income (loss)									585,378	202,367	295,680
Equity in earnings of unconsolidated affiliates									0	0	0
Interest expense									(107,627)	(84,956)	(82,234)
Other income (expense), net									199,757	(13,860)	52,320
Earnings (loss) before income taxes									677,508	103,551	265,766
Income tax (provision) benefit									(8,965)	368,474	(50,059)
Net earnings (loss)									668,543	472,025	215,707
Net earnings attributable to noncontrolling interests									(130,786)	(53,084)	(25,129)
Net earnings (loss) attributable to IAC shareholders									537,757	418,941	190,578
Comprehensive income attributable to IAC shareholders									515,766	$ 498,032	$ 145,039
Foreign cash repatriated									$ 25,200

XML

GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 02, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Statement of Cash Flows
Net cash (used in) provided by operating activities		$ 988,128	$ 416,699	$ 344,238
Cash flows from investing activities:
Acquisitions, net of cash acquired		(64,496)	(146,553)	(18,403)
Capital expenditures		(85,634)	(75,523)	(78,039)
Proceeds from maturities and sales of marketable debt securities		333,600	114,350	252,369
Purchases of marketable debt securities		(449,676)	(29,891)	(313,943)
Investments in time deposits		0	0	(87,500)
Proceeds from maturities of time deposits		0	0	87,500
Net proceeds from the sale of businesses and investments		136,719	185,778	172,228
Purchases of investments		(52,980)	(9,106)	(12,565)
Intercompany				0
Other, net		9,027	2,994	11,215
Net cash (used in) provided by investing activities		(173,440)	42,049	12,862
Cash flows from financing activities:
Purchase of exchangeable note hedge		0	(74,365)	0
Proceeds from issuance of warrants	$ 23,600	0	23,650	0
Debt issuance costs		(5,449)	(33,744)	(7,811)
Dividends paid to Match Group noncontrolling interests		(105,126)	0	0
Purchase of noncontrolling interests		(16,063)	(15,439)	(2,740)
Acquisition-related contingent consideration payments		(185)	(27,289)	(2,180)
Intercompany		0	0	0
Other, net		(5,375)	(5,000)	(2,705)
Net cash used in financing activities		(312,798)	(196,869)	(492,140)
Total cash provided (used)		501,890	261,879	(135,040)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(1,887)	11,604	(6,434)
Net increase (decrease) in cash, cash equivalents, and restricted cash		500,003	273,483	(141,474)
Cash, cash equivalents, and restricted cash at beginning of period		1,633,682	1,360,199	1,501,673
Cash, cash equivalents, and restricted cash at end of period		2,133,685	1,633,682	1,360,199
Eliminations
Condensed Statement of Cash Flows
Net cash (used in) provided by operating activities		(378,860)		0
Cash flows from investing activities:
Acquisitions, net of cash acquired		0		0
Capital expenditures		0		0
Proceeds from maturities and sales of marketable debt securities		0		0
Purchases of marketable debt securities		0		0
Investments in time deposits				0
Proceeds from maturities of time deposits				0
Net proceeds from the sale of businesses and investments		0		0
Purchases of investments		0		0
Intercompany				155,104
Other, net		0		0
Net cash (used in) provided by investing activities		0		155,104
Cash flows from financing activities:
Debt issuance costs		0		0
Dividends paid to Match Group noncontrolling interests		0
Acquisition-related contingent consideration payments		0		0
Intercompany		378,860		(155,104)
Other, net		0		0
Net cash used in financing activities		378,860		(155,104)
Total cash provided (used)		0
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		0		0
Net increase (decrease) in cash, cash equivalents, and restricted cash		0		0
Cash, cash equivalents, and restricted cash at beginning of period		0	0	0
Cash, cash equivalents, and restricted cash at end of period		0	0	0
IAC | Reportable Legal Entities
Condensed Statement of Cash Flows
Net cash (used in) provided by operating activities		(38,737)	(52,582)	(62,686)
Cash flows from investing activities:
Acquisitions, net of cash acquired		(4,142)	0	0
Capital expenditures		(5,274)	(337)	(479)
Proceeds from maturities and sales of marketable debt securities		298,600	114,350	252,369
Purchases of marketable debt securities		(390,005)	(29,891)	(313,943)
Investments in time deposits				0
Proceeds from maturities of time deposits				0
Net proceeds from the sale of businesses and investments		408	1,266	73,843
Purchases of investments		(39,180)	0	0
Intercompany				(155,104)
Other, net		(5,000)	0	126
Net cash (used in) provided by investing activities		(144,593)	85,388	(143,188)
Cash flows from financing activities:
Purchase of exchangeable note hedge			0
Proceeds from issuance of warrants			23,650
Debt issuance costs		0	0	0
Dividends paid to Match Group noncontrolling interests		0
Purchase of noncontrolling interests				(1,400)
Acquisition-related contingent consideration payments		0	0	0
Intercompany		673,308	416,396	122,965
Other, net		2,674	251	(313)
Net cash used in financing activities		615,446	(21,026)	(315,000)
Total cash provided (used)		432,116	11,780	(520,874)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		327	75	0
Net increase (decrease) in cash, cash equivalents, and restricted cash		432,443	11,855	(520,874)
Cash, cash equivalents, and restricted cash at beginning of period		585,639	573,784	1,094,658
Cash, cash equivalents, and restricted cash at end of period		1,018,082	585,639	573,784
Guarantor Subsidiaries | Reportable Legal Entities
Condensed Statement of Cash Flows
Net cash (used in) provided by operating activities		583,498	131,700	128,503
Cash flows from investing activities:
Acquisitions, net of cash acquired		(50,530)	(2,550)	0
Capital expenditures		(1,396)	(1,169)	(5,792)
Proceeds from maturities and sales of marketable debt securities		0	0	0
Purchases of marketable debt securities		0	0	0
Investments in time deposits				0
Proceeds from maturities of time deposits				0
Net proceeds from the sale of businesses and investments		87,254	0	1,779
Purchases of investments		0	0	0
Intercompany				0
Other, net		7,451	1,944	910
Net cash (used in) provided by investing activities		42,779	(1,775)	(3,103)
Cash flows from financing activities:
Purchase of exchangeable note hedge			0
Proceeds from issuance of warrants			0
Debt issuance costs		0	0	0
Dividends paid to Match Group noncontrolling interests		0
Acquisition-related contingent consideration payments		0	0	(351)
Intercompany		(625,338)	(129,925)	(122,965)
Other, net		(939)	0	(2,084)
Net cash used in financing activities		(626,277)	(129,925)	(125,400)
Total cash provided (used)		0
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		0	0	0
Net increase (decrease) in cash, cash equivalents, and restricted cash		0	0	0
Cash, cash equivalents, and restricted cash at beginning of period		0	0	0
Cash, cash equivalents, and restricted cash at end of period		0	0	0
Non-Guarantor Subsidiaries | Reportable Legal Entities
Condensed Statement of Cash Flows
Net cash (used in) provided by operating activities		822,227	337,581	278,421
Cash flows from investing activities:
Acquisitions, net of cash acquired		(9,824)	(144,003)	(18,403)
Capital expenditures		(78,964)	(74,017)	(71,768)
Proceeds from maturities and sales of marketable debt securities		35,000	0	0
Purchases of marketable debt securities		(59,671)	0	0
Investments in time deposits				(87,500)
Proceeds from maturities of time deposits				87,500
Net proceeds from the sale of businesses and investments		49,057	184,512	96,606
Purchases of investments		(13,800)	(9,106)	(12,565)
Intercompany				0
Other, net		6,576	1,050	10,179
Net cash (used in) provided by investing activities		(71,626)	(41,564)	4,049
Cash flows from financing activities:
Purchase of exchangeable note hedge			(74,365)
Proceeds from issuance of warrants			0
Debt issuance costs		(5,449)	(33,744)	(7,811)
Dividends paid to Match Group noncontrolling interests		(105,126)
Purchase of noncontrolling interests		(16,063)	(15,439)	(1,340)
Acquisition-related contingent consideration payments		(185)	(27,289)	(1,829)
Intercompany		(426,830)	(286,471)	155,104
Other, net		(7,110)	(5,251)	(308)
Net cash used in financing activities		(680,827)	(45,918)	103,364
Total cash provided (used)		69,774	250,099	385,834
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(2,214)	11,529	(6,434)
Net increase (decrease) in cash, cash equivalents, and restricted cash		67,560	261,628	379,400
Cash, cash equivalents, and restricted cash at beginning of period		1,048,043	786,415	407,015
Cash, cash equivalents, and restricted cash at end of period		1,115,603	1,048,043	786,415
IAC/InterActiveCorp
Cash flows from financing activities:
Proceeds from issuance of debt		0	517,500	0
Repurchases of IAC debt		(363)	(393,464)	(126,409)
Purchase of treasury stock		(82,891)	(56,424)	(308,948)
Proceeds from the exercise of stock options		41,700	82,397	25,821
Withholding taxes paid on behalf of employees on net settled stock-based awards		(18,982)	(93,832)	(26,716)
IAC/InterActiveCorp | Eliminations
Cash flows from financing activities:
Repurchases of IAC debt		0		0
Purchase of treasury stock		0		0
Proceeds from the exercise of stock options		0		0
Withholding taxes paid on behalf of employees on net settled stock-based awards		0		0
IAC/InterActiveCorp | IAC | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from issuance of debt			0
Repurchases of IAC debt		(363)	(393,464)	(126,409)
Purchase of treasury stock		(82,891)	(56,424)	(308,948)
Proceeds from the exercise of stock options		41,700	82,397	25,821
Withholding taxes paid on behalf of employees on net settled stock-based awards		(18,982)	(93,832)	(26,716)
IAC/InterActiveCorp | Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from issuance of debt			0
Repurchases of IAC debt		0	0	0
Purchase of treasury stock		0	0	0
Proceeds from the exercise of stock options		0	0	0
Withholding taxes paid on behalf of employees on net settled stock-based awards		0	0	0
IAC/InterActiveCorp | Non-Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from issuance of debt			517,500
Repurchases of IAC debt		0	0	0
Purchase of treasury stock		0	0	0
Proceeds from the exercise of stock options		0	0	0
Withholding taxes paid on behalf of employees on net settled stock-based awards		0	0	0
Match Group and ANGI Homeservices
Cash flows from financing activities:
Proceeds from the exercise of stock options		4,705	61,095	39,378
Withholding taxes paid on behalf of employees on net settled stock-based awards		(237,564)	(264,323)	(29,830)
Match Group and ANGI Homeservices | Eliminations
Cash flows from financing activities:
Proceeds from the exercise of stock options		0
Withholding taxes paid on behalf of employees on net settled stock-based awards		0
Match Group and ANGI Homeservices | IAC | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from the exercise of stock options		0	0
Withholding taxes paid on behalf of employees on net settled stock-based awards		0	0
Match Group and ANGI Homeservices | Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from the exercise of stock options		0	0
Withholding taxes paid on behalf of employees on net settled stock-based awards		0	0
Match Group and ANGI Homeservices | Non-Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from the exercise of stock options		4,705	61,095
Withholding taxes paid on behalf of employees on net settled stock-based awards		(237,564)	(264,323)
Match Group
Cash flows from financing activities:
Proceeds from issuance of debt		260,000	525,000	400,000
Principal payments on debt		0	(445,172)	(450,000)
Purchase of treasury stock		(133,455)	0	0
Proceeds from the exercise of stock options				39,378
Withholding taxes paid on behalf of employees on net settled stock-based awards				(29,830)
Purchase of Match Group stock-based awards		0	(272,459)	0
Match Group | Eliminations
Cash flows from financing activities:
Proceeds from issuance of debt		0		0
Principal payments on debt				0
Purchase of treasury stock		0
Proceeds from the exercise of stock options				0
Withholding taxes paid on behalf of employees on net settled stock-based awards				0
Match Group | IAC | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from issuance of debt		0	0	0
Principal payments on debt			0	0
Purchase of treasury stock		0
Proceeds from the exercise of stock options				0
Withholding taxes paid on behalf of employees on net settled stock-based awards				0
Purchase of Match Group stock-based awards			0
Match Group | Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from issuance of debt		0	0	0
Principal payments on debt			0	0
Purchase of treasury stock		0
Proceeds from the exercise of stock options				0
Withholding taxes paid on behalf of employees on net settled stock-based awards				0
Purchase of Match Group stock-based awards			0
Match Group | Non-Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Proceeds from issuance of debt		260,000	525,000	400,000
Principal payments on debt			(445,172)	(450,000)
Purchase of treasury stock		(133,455)
Proceeds from the exercise of stock options				39,378
Withholding taxes paid on behalf of employees on net settled stock-based awards				(29,830)
Purchase of Match Group stock-based awards			(272,459)
ANGI Homeservices
Cash flows from financing activities:
Principal payments on debt		(13,750)	0	$ 0
Borrowing under ANGI Homeservices Term Loan			275,000
ANGI Homeservices | Eliminations
Cash flows from financing activities:
Principal payments on debt		0
ANGI Homeservices | IAC | Reportable Legal Entities
Cash flows from financing activities:
Principal payments on debt		0
Borrowing under ANGI Homeservices Term Loan			0
ANGI Homeservices | Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Principal payments on debt		0
Borrowing under ANGI Homeservices Term Loan			0
ANGI Homeservices | Non-Guarantor Subsidiaries | Reportable Legal Entities
Cash flows from financing activities:
Principal payments on debt		$ (13,750)
Borrowing under ANGI Homeservices Term Loan			$ 275,000

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QUARTERLY RESULTS (UNAUDITED) - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Data [Abstract]
Revenue	$ 1,104,103	$ 1,104,592	$ 1,059,122	$ 995,075	$ 950,585	$ 828,434	$ 767,387	$ 760,833	$ 4,262,892	$ 3,307,239	$ 3,139,882
Cost of revenue	253,722	237,238	218,224	201,962	199,727	166,290	139,033	145,958	911,146	651,008	755,730
Operating income	133,920	172,832	168,437	89,950	94,360	(18,589)	75,635	37,060	565,139	188,466	(32,625)
Net earnings	217,477	171,577	280,854	87,839	23,349	225,639	80,557	28,463	757,747	358,008	(16,151)
Net earnings attributable to IAC shareholders	$ 191,752	$ 145,774	$ 218,353	$ 71,082	$ 32,804	$ 179,643	$ 66,268	$ 26,209	$ 626,961	$ 304,924	$ (41,280)
Per share information attributable to IAC shareholders:
Basic earnings per share (USD per share)	$ 2.29	$ 1.75	$ 2.61	$ 0.86	$ 0.40	$ 2.22	$ 0.84	$ 0.34	$ 7.52	$ 3.81	$ (0.52)
Diluted earnings per share (USD per share)	$ 2.04	$ 1.49	$ 2.32	$ 0.71	$ 0.37	$ 1.79	$ 0.70	$ 0.29	$ 6.59	$ 3.18	$ (0.52)
Stock-based compensation expense									$ 238,420	$ 264,618	$ 104,820
Gain (loss) on sale of equity investments			$ 133,300
Impairment of intangible assets	$ 21,300
Income tax expense (benefit)						$ 257,000			$ 3,811	(291,050)	$ (64,934)
Dictionary.com, Electus, Felix, and CityGrid | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Per share information attributable to IAC shareholders:
Gain on sale of business	92,500
HomeAdvisor
Per share information attributable to IAC shareholders:
Stock-based compensation expense	$ 14,400	$ 12,300	12,800	$ 14,600	$ 15,800	60,900
Angie's List
Per share information attributable to IAC shareholders:
After-tax costs			2,000	4,100	13,900	$ 17,400				$ 13,900
Write-off due to deferred revenue			$ 1,800	$ 2,800	$ 7,600

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SUBSEQUENT EVENTS (UNAUDITED) - Narrative (Details) - Senior Notes - Match Group Senior Notes due 2029 - Match Group - Subsequent Event $ in Millions	Feb. 15, 2019 USD ($)
Subsequent Event [Line Items]
Face amount of debt instrument	$ 350
Stated interest rate (as a percent)	5.625%

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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts and revenue reserves
Movement in Valuation Allowances and Reserves
Balance at beginning of period	$ 11,489	$ 16,405	$ 16,528
Charges to Earnings	48,445	28,930	17,733
Charges to Other Accounts	(573)	(1,006)	(695)
Deductions	(40,501)	(32,840)	(17,161)
Balance at end of period	18,860	11,489	16,405
Sales returns accrual
Movement in Valuation Allowances and Reserves
Balance at beginning of period	0	80	828
Charges to Earnings		0	14,998
Charges to Other Accounts		(80)	(962)
Deductions		0	(14,784)
Balance at end of period		0	80
Deferred tax valuation allowance
Movement in Valuation Allowances and Reserves
Balance at beginning of period	132,598	88,170	90,482
Charges to Earnings	(20,746)	38,144	(837)
Charges to Other Accounts	4,001	6,284	(1,475)
Deductions	0	0	0
Balance at end of period	115,853	132,598	88,170
Other reserves
Movement in Valuation Allowances and Reserves
Balance at beginning of period	2,544	2,822	2,801
Balance at end of period	$ 7,734	$ 2,544	$ 2,822

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Label	Element	Value
Noncontrolling Interest [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 3,410,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	36,795,000
Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 36,795,000