SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 10—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 and executive management view 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. Entities included in discontinued operations are excluded from the tables below. 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 Media & Other, do not meet the quantitative thresholds that require presentation as separate operating segments.

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
		(In thousands)
Revenue:
	Search	$	252,436		$	197,194		$	501,040		$	396,155
	Match		116,429			96,961			228,026			186,236
	ServiceMagic		56,104			49,519			102,397			91,731
	Media & Other		60,767			51,014			115,047			99,129
	Inter-segment elimination		(332	)		(444	)		(893	)		(829	)
	Total	$	485,404		$	394,244		$	945,617		$	772,422

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
		(In thousands)
Operating Income (Loss):
	Search	$	50,309		$	31,617		$	99,397		$	62,674
	Match		40,999			25,490			64,428			39,192
	ServiceMagic		8,239			5,748			12,047			8,144
	Media & Other		(3,239	)		(3,026	)		(6,963	)		(6,838	)
	Corporate		(38,077	)		(35,196	)		(73,342	)		(69,614	)
	Total	$	58,231		$	24,633		$	95,567		$	33,558

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
		(In thousands)
Operating Income Before Amortization:
	Search	$	50,568		$	32,043		$	99,954		$	63,584
	Match		42,335			29,104			67,323			43,910
	ServiceMagic		8,622			6,125			12,799			8,984
	Media & Other		(3,137	)		(2,618	)		(6,503	)		(5,014	)
	Corporate		(14,950	)		(14,217	)		(30,181	)		(27,383	)
	Total	$	83,438		$	50,437		$	143,392		$	84,081

		Three Months Ended June 30,				Six Months Ended June 30,
		2011		2010		2011		2010
		(In thousands)
Depreciation:
	Search	$	6,367	$	9,952	$	13,348	$	19,015
	Match		2,278		2,878		4,578		5,906
	ServiceMagic		1,114		1,078		2,184		1,996
	Media & Other		618		566		1,427		1,106
	Corporate		2,073		2,151		4,352		4,395
	Total	$	12,450	$	16,625	$	25,889	$	32,418

        Revenue by geography is based on where the customer is located. Geographic information about the United States and international territories is presented below:

		Three Months Ended June 30,				Six Months Ended June 30,
		2011		2010		2010		2010
		(In thousands)
Revenue:
	United States	$	384,835	$	330,229	$	757,497	$	644,671
	All other countries		100,569		64,015		188,120		127,751
	Total	$	485,404	$	394,244	$	945,617	$	772,422

		June 30, 2011		December 31, 2010
		(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
	United States	$	259,862	$	267,060
	All other countries		1,256		868
	Total	$	261,118	$	267,928

        The Company's primary metric is Operating Income Before Amortization, which is defined as operating income excluding, if applicable: (1) non-cash compensation expense, (2) amortization and impairment of intangibles, (3) goodwill impairment, (4) pro forma adjustments for significant acquisitions, and (5) one-time items. The Company believes this measure is useful to investors because it represents the operating results from IAC's segments, taking into account depreciation, which it believes is an ongoing cost of doing business, but excluding the effects of any other non-cash expenses. Operating Income Before Amortization has certain limitations in that it does not take into account the impact to IAC's statement of operations of certain expenses, including non-cash compensation and acquisition related accounting. IAC endeavors to compensate for the limitations of the non-U.S. GAAP measure presented by providing the comparable U.S. GAAP measure with equal or greater prominence, financial statements prepared in accordance with U.S. GAAP, and descriptions of the reconciling items, including quantifying such items, to derive the non-U.S. GAAP measure.

        The following tables reconcile Operating Income Before Amortization to operating income (loss) for the Company's reportable segments and to net earnings (loss) attributable to IAC shareholders in total (in thousands):

		Three Months Ended June 30, 2011
		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	50,568		$	—		$	(259	)	$	50,309
Match			42,335			—			(1,336	)		40,999
ServiceMagic			8,622			—			(383	)		8,239
Media & Other			(3,137	)		120			(222	)		(3,239	)
Corporate			(14,950	)		(23,127	)		—			(38,077	)
	Total	$	83,438		$	(23,007	)	$	(2,200	)		58,231
Equity in losses of unconsolidated affiliates												(8,720	)
Other income, net												5,637
Earnings from continuing operations before income taxes												55,148
Income tax provision												(9,518	)
Earnings from continuing operations												45,630
Loss from discontinued operations, net of tax												(2,488	)
Net earnings												43,142
Net earnings attributable to noncontrolling interests												(718	)
Net earnings attributable to IAC shareholders											$	42,424

		Three Months Ended June 30, 2010
		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	32,043		$	(89	)	$	(337	)	$	31,617
Match			29,104			179			(3,793	)		25,490
ServiceMagic			6,125			—			(377	)		5,748
Media & Other			(2,618	)		(159	)		(249	)		(3,026	)
Corporate			(14,217	)		(20,979	)		—			(35,196	)
	Total	$	50,437		$	(21,048	)	$	(4,756	)		24,633
Equity in losses of unconsolidated affiliates												(4,002	)
Other income, net												103
Earnings from continuing operations before income taxes												20,734
Income tax provision												(5,313	)
Earnings from continuing operations												15,421
Loss from discontinued operations, net of tax												(2,586	)
Net earnings												12,835
Net loss attributable to noncontrolling interests												756
Net earnings attributable to IAC shareholders											$	13,591

		Six Months Ended June 30, 2011
		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	99,954		$	—		$	(557	)	$	99,397
Match			67,323			—			(2,895	)		64,428
ServiceMagic			12,799			—			(752	)		12,047
Media & Other			(6,503	)		(7	)		(453	)		(6,963	)
Corporate			(30,181	)		(43,161	)		—			(73,342	)
	Total	$	143,392		$	(43,168	)	$	(4,657	)		95,567
Equity in losses of unconsolidated affiliates												(10,599	)
Other income, net												6,389
Earnings from continuing operations before income taxes												91,357
Income tax provision												(25,559	)
Earnings from continuing operations												65,798
Loss from discontinued operations, net of tax												(4,436	)
Net earnings												61,362
Net earnings attributable to noncontrolling interests												(868	)
Net earnings attributable to IAC shareholders											$	60,494

		Six Months Ended June 30, 2010
		Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search		$	63,584		$	(236	)	$	(674	)	$	62,674
Match			43,910			153			(4,871	)		39,192
ServiceMagic			8,984			—			(840	)		8,144
Media & Other			(5,014	)		(279	)		(1,545	)		(6,838	)
Corporate			(27,383	)		(42,231	)		—			(69,614	)
	Total	$	84,081		$	(42,593	)	$	(7,930	)		33,558
Equity in losses of unconsolidated affiliates												(26,615	)
Other income, net												5,339
Earnings from continuing operations before income taxes												12,282
Income tax provision												(11,458	)
Earnings from continuing operations												824
Loss from discontinued operations, net of tax												(7,313	)
Net loss												(6,489	)
Net loss attributable to noncontrolling interests												1,375
Net loss attributable to IAC shareholders											$	(5,114	)