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