GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheet

Balance sheet at June 30, 2019:

	IAC		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			IAC Consolidated
	(In thousands)
Cash and cash equivalents	$	2,133,905	$	—	$	1,018,054	$	—		$	3,151,959
Marketable securities	—		—		161,749		—			161,749
Accounts receivable, net of allowance and reserves	—		90,545		274,950		—			365,495
Other current assets	24,852		38,163		172,650		(781		)	234,884
Intercompany receivables	—		1,414,117		133,953		(1,548,070		)	—
Right-of-use assets	10,861		40,151		155,833		(26,555		)	180,290
Property and equipment, net of accumulated depreciation and amortization	6,962		171,593		182,995		—			361,550
Goodwill	—		412,009		2,480,953		—			2,892,962
Intangible assets, net of accumulated amortization	—		43,712		584,706		—			628,418
Investment in subsidiaries	2,132,545		427,476		—		(2,560,021		)	—
Other non-current assets	294,891		88,523		97,554		(159,170		)	321,798
Total assets	$	4,604,016	$	2,726,289	$	5,263,397	$	(4,294,597	)	$	8,299,105
Current portion of long-term debt	$	—	$	—	$	13,750	$	—		$	13,750
Accounts payable, trade	2,079		43,999		58,314		—			104,392
Other current liabilities	25,552		83,694		731,436		(5,362		)	835,320
Long-term debt, net	34,291		—		3,104,240		—			3,138,531
Income taxes payable	—		1,612		34,921		—			36,533
Intercompany liabilities	1,548,070		—		—		(1,548,070		)	—
Other long-term liabilities	10,563		54,227		362,834		(181,144		)	246,480
Redeemable noncontrolling interests	—		—		80,502		—			80,502
Shareholders' equity	2,983,461		2,542,757		17,264		(2,560,021		)	2,983,461
Noncontrolling interests	—		—		860,136		—			860,136
Total liabilities and shareholders' equity	$	4,604,016	$	2,726,289	$	5,263,397	$	(4,294,597	)	$	8,299,105

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	39,449		29,222		171,682			(12,100		)	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	$	3,334,844	$	2,480,661	$	4,792,483		$	(3,733,403	)	$	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		669,875			(12,100		)	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	414,156		—		1,009,300			(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	$	3,334,844	$	2,480,661	$	4,792,483		$	(3,733,403	)	$	6,874,585

Schedule of Condensed Income Statement

Statement of operations for the three months ended June 30, 2019:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	200,963		$	985,825		$	(130	)	$	1,186,658
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	19			90,383			186,065			(78		)	276,389
Selling and marketing expense	384			55,710			355,086			(78		)	411,102
General and administrative expense	39,634			11,270			174,589			21			225,514
Product development expense	469			13,353			64,787			5			78,614
Depreciation	432			2,914			17,745			—			21,091
Amortization of intangibles	—			1,148			18,490			—			19,638
Total operating costs and expenses	40,938			174,778			816,762			(130		)	1,032,348
Operating (loss) income	(40,938		)	26,185			169,063			—			154,310
Equity in earnings of unconsolidated affiliates	145,997			4,542			—			(150,539		)	—
Interest expense	(424		)	—			(36,782		)	—			(37,206		)
Other (expense) income, net	(7,801		)	12,741			52,755			(11,723		)	45,972
Earnings before income taxes	96,834			43,468			185,036			(162,262		)	163,076
Income tax benefit (provision)	16,633			(4,136		)	(28,782		)	—			(16,285		)
Net earnings	113,467			39,332			156,254			(162,262		)	146,791
Net earnings attributable to noncontrolling interests	—			—			(33,324		)	—			(33,324		)
Net earnings attributable to IAC shareholders	$	113,467		$	39,332		$	122,930		$	(162,262	)	$	113,467
Comprehensive income attributable to IAC shareholders	$	114,558		$	39,117		$	124,408		$	(163,525	)	$	114,558

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

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	207,964		$	851,240		$	(82	)	$	1,059,122
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	75			61,215			156,991			(57		)	218,224
Selling and marketing expense	189			80,302			289,205			(36		)	369,660
General and administrative expense	31,652			14,259			142,441			11			188,363
Product development expense	564			14,151			60,730			—			75,445
Depreciation	266			3,126			15,413			—			18,805
Amortization of intangibles	—			410			19,778			—			20,188
Total operating costs and expenses	32,746			173,463			684,558			(82		)	890,685
Operating (loss) income	(32,746		)	34,501			166,682			—			168,437
Equity in earnings of unconsolidated affiliates	252,102			5,054			—			(257,156		)	—
Interest expense	(423		)	—			(26,933		)	—			(27,356		)
Other income, net (a)	6,436			62,204			153,770			(51,269		)	171,141
Earnings before income taxes	225,369			101,759			293,519			(308,425		)	312,222
Income tax provision	(7,016		)	(12,159		)	(12,193		)	—			(31,368		)
Net earnings	218,353			89,600			281,326			(308,425		)	280,854
Net earnings attributable to noncontrolling interests	—			—			(62,501		)	—			(62,501		)
Net earnings attributable to IAC shareholders	$	218,353		$	89,600		$	218,825		$	(308,425	)	$	218,353
Comprehensive income attributable to IAC shareholders	$	180,909		$	89,304		$	173,337		$	(262,641	)	$	180,909

_____________________

^(a)  During the three months ended June 30, 2018, foreign cash of $50.0 million was repatriated to the U.S.

Statement of operations for the six months ended June 30, 2019:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	399,893		$	1,892,803		$	(195	)	$	2,292,501
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	43			172,529			364,031			(143		)	536,460
Selling and marketing expense	746			113,676			718,648			(108		)	832,962
General and administrative expense	77,893			21,804			339,382			51			439,130
Product development expense	1,116			25,390			140,803			5			167,314
Depreciation	810			5,836			33,416			—			40,062
Amortization of intangibles	—			5,025			37,365			—			42,390
Total operating costs and expenses	80,608			344,260			1,633,645			(195		)	2,058,318
Operating (loss) income	(80,608		)	55,633			259,158			—			234,183
Equity in earnings of unconsolidated affiliates	261,437			5,610			—			(267,047		)	—
Interest expense	(848		)	—			(67,501		)	—			(68,349		)
Other (expense) income, net	(9,698		)	26,592			53,175			(23,446		)	46,623
Earnings before income taxes	170,283			87,835			244,832			(290,493		)	212,457
Income tax benefit (provision)	31,879			(9,259		)	24,699			—			47,319
Net earnings	202,162			78,576			269,531			(290,493		)	259,776
Net earnings attributable to noncontrolling interests	—			—			(57,614		)	—			(57,614		)
Net earnings attributable to IAC shareholders	$	202,162		$	78,576		$	211,917		$	(290,493	)	$	202,162
Comprehensive income attributable to IAC shareholders	$	204,248		$	78,572		$	214,508		$	(293,080	)	$	204,248

Statement of operations for the six months ended June 30, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Revenue	$	—		$	420,853		$	1,633,500		$	(156	)	$	2,054,197
Operating costs and expenses:
Cost of revenue (exclusive of depreciation shown separately below)	151			117,439			302,703			(107		)	420,186
Selling and marketing expense	402			170,440			601,731			(81		)	772,492
General and administrative expense	63,061			29,640			279,814			32			372,547
Product development expense	1,216			28,420			122,746			—			152,382
Depreciation	532			6,466			31,064			—			38,062
Amortization of intangibles	—			919			39,222			—			40,141
Total operating costs and expenses	65,362			353,324			1,377,280			(156		)	1,795,810
Operating (loss) income	(65,362		)	67,529			256,220			—			258,387
Equity in earnings of unconsolidated affiliates	354,852			4,727			—			(359,579		)	—
Interest expense	(852		)	—			(53,009		)	—			(53,861		)
Other (expense) income, net (a)	(10,411		)	349,087			155,960			(328,114		)	166,522
Earnings before income taxes	278,227			421,343			359,171			(687,693		)	371,048
Income tax benefit (provision)	11,208			(23,125		)	9,562			—			(2,355		)
Net earnings	289,435			398,218			368,733			(687,693		)	368,693
Net earnings attributable to noncontrolling interests	—			—			(79,258		)	—			(79,258		)
Net earnings attributable to IAC shareholders	$	289,435		$	398,218		$	289,475		$	(687,693	)	$	289,435
Comprehensive income attributable to IAC shareholders	$	280,348		$	398,265		$	278,664		$	(676,929	)	$	280,348

_____________________

^(a) 

During the six months ended June 30, 2018, foreign cash of $326.0 million was repatriated to the U.S.

Schedule of Condensed Cash Flow Statement

Statement of cash flows for the six months ended June 30, 2019:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(54,883	)	$	92,299		$	341,838		$	(23,446	)	$	355,808
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(7,215		)	(193,811		)	—			(201,026		)
Capital expenditures	(1,408		)	(14,104		)	(61,111		)	—			(76,623		)
Proceeds from maturities of marketable debt securities	138,500			—			25,000			—			163,500
Purchases of marketable debt securities	(39,740		)	—			—			—			(39,740		)
Net proceeds from the sale of businesses and investments	170			39			23,164			—			23,373
Other, net	—			(3,270		)	1,114			—			(2,156		)
Net cash provided by (used in) investing activities	97,522			(24,550		)	(205,644		)	—			(132,672		)
Cash flows from financing activities:
Proceeds from issuance of IAC debt	—			—			1,150,000			—			1,150,000
Purchase of exchangeable note hedges	—			—			(303,428		)	—			(303,428		)
Proceeds from issuance of warrants	166,520			—			—			—			166,520
Borrowings under Match Group Credit Facility	—			—			40,000			—			40,000
Proceeds from Match Group 2019 Senior Notes offering	—			—			350,000			—			350,000
Principal payments on Match Group Credit Facility	—			—			(300,000		)	—			(300,000		)
Principal payments on ANGI Homeservices Term Loan	—			—			(6,875		)	—			(6,875		)
Debt issuance costs	—			—			(26,361		)	—			(26,361		)
Purchase of Match Group treasury stock	—			—			(76,086		)	—			(76,086		)
Proceeds from the exercise of IAC stock options	9,767			—			—			—			9,767
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			573			—			573
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(32,789		)	—			—			—			(32,789		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(164,710		)	—			(164,710		)
Purchase of noncontrolling interests	(3,182		)	—			(2,939		)	—			(6,121		)
Distribution to IAC pursuant to the ANGI tax sharing agreement	11,355			—			(11,355		)	—			—
Intercompany	921,515			(67,749		)	(877,212		)	23,446			—
Other, net	—			—			(3,719		)	—			(3,719		)
Net cash provided by (used in) financing activities	1,073,186			(67,749		)	(232,112		)	23,446			796,771
Total cash provided (used)	1,115,825			—			(95,918		)	—			1,019,907
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(2		)	—			363			—			361
Net increase (decrease) in cash, cash equivalents, and restricted cash	1,115,823			—			(95,555		)	—			1,020,268
Cash, cash equivalents, and restricted cash at beginning of period	1,018,082			—			1,115,603			—			2,133,685
Cash, cash equivalents, and restricted cash at end of period	$	2,133,905		$	—		$	1,020,048		$	—		$	3,153,953

Statement of cash flows for the six months ended June 30, 2018:

	IAC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			IAC Consolidated
	(In thousands)
Net cash (used in) provided by operating activities	$	(24,698	)	$	418,153		$	314,884		$	(328,537	)	$	379,802
Cash flows from investing activities:
Acquisitions, net of cash acquired	(4,142		)	—			(13,371		)	—			(17,513		)
Capital expenditures	(2,200		)	(847		)	(36,649		)	—			(39,696		)
Proceeds from maturities of marketable debt securities	10,000			—			—			—			10,000
Purchases of marketable debt securities	(124,397		)	—			—			—			(124,397		)
Net proceeds from the sale of investments and businesses	408			—			27,132			—			27,540
Purchases of investments	(18,180		)	—			(13,000		)	—			(31,180		)
Other, net	(5,000		)	3,884			10,715			—			9,599
Net cash (used in) provided by investing activities	(143,511		)	3,037			(25,173		)	—			(165,647		)
Cash flows from financing activities:
Principal payments on ANGI Homeservices Term Loan	—			—			(6,875		)	—			(6,875		)
Debt issuance costs	—			—			(532		)	—			(532		)
Purchase of IAC treasury stock	(7,869		)										(7,869		)
Purchase of Match Group treasury stock	—			—			(73,943		)	—			(73,943		)
Proceeds from the exercise of IAC stock options	27,317			—			—			—			27,317
Proceeds from the exercise of Match Group and ANGI Homeservices stock options	—			—			2,125			—			2,125
Withholding taxes paid on behalf of IAC employees on net settled stock-based awards	(495		)	—			—			—			(495		)
Withholding taxes paid on behalf of Match Group and ANGI Homeservices employees on net settled stock-based awards	—			—			(136,727		)	—			(136,727		)
Purchase of noncontrolling interests	—			—			(877		)	—			(877		)
Intercompany	375,167			(421,190		)	(282,514		)	328,537			—
Other, net	2,311			—			(7,140		)	—			(4,829		)
Net cash provided by (used in) financing activities	396,431			(421,190		)	(506,483		)	328,537			(202,705		)
Total cash provided (used)	228,222			—			(216,772		)	—			11,450
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	11			—			33			—			44
Net increase (decrease) in cash, cash equivalents, and restricted cash	228,233			—			(216,739		)	—			11,494
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	$	813,872		$	—		$	831,304		$	—		$	1,645,176