SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2010

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE 14—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, as described in Note 15, are excluded from the tables below except for the schedule of assets, in which they are included in corporate. 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.

	Years Ended December 31,
	2010			2009			2008
	(In thousands)
Revenue:
Search	$	837,134		$	681,781		$	753,075
Match		400,723			342,598			365,505
ServiceMagic		181,423			155,813			123,914
Media & Other		219,896			168,787			182,116
Inter-segment elimination		(2,361	)		(2,284	)		(14,532	)
Total	$	1,636,815		$	1,346,695		$	1,410,078

	Years Ended December 31,
	2010			2009			2008
	(In thousands)
Operating Income (Loss):
Search	$	112,867		$	(980,231	)	$	106,085
Match		115,367			84,655			75,490
ServiceMagic		16,448			13,383			23,983
Media & Other		(47,539	)		(22,061	)		(44,180	)
Corporate		(147,348	)		(133,733	)		(205,632	)
Total	$	49,795		$	(1,037,987	)	$	(44,254	)

	Years Ended December 31,
	2010			2009			2008
	(In thousands)
Operating Income Before Amortization(a):
Search	$	125,549		$	91,615		$	144,940
Match		122,057			94,124			91,266
ServiceMagic		18,165			21,286			26,244
Media & Other		(12,009	)		(19,699	)		(25,334	)
Corporate		(64,183	)		(65,465	)		(120,942	)
Total	$	189,579		$	121,861		$	116,174

	December 31,
	2010		2009
	(As Restated)		(As Restated)
	(In thousands)
Segment Assets(b):
Search	$	280,773	$	250,475
Match		196,177		233,919
ServiceMagic		13,834		21,607
Media & Other		43,674		23,973
Corporate		1,560,084		2,154,956
Total	$	2,094,542	$	2,684,930

	Years Ended December 31,
	2010		2009		2008
	(In thousands)
Depreciation:
Search	$	38,341	$	33,118	$	35,822
Match		11,042		9,821		8,825
ServiceMagic		3,986		3,344		3,249
Media & Other		2,285		3,936		6,987
Corporate		8,243		11,172		12,833
Total	$	63,897	$	61,391	$	67,716

	Years Ended December 31,
	2010		2009		2008
	(In thousands)
Capital expenditures:
Search	$	21,934	$	19,590	$	29,524
Match		10,087		7,814		10,989
ServiceMagic		4,884		3,565		2,516
Media & Other		2,289		2,734		7,927
Corporate		635		235		8,027
Total	$	39,829	$	33,938	$	58,983

(a)

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 of non-cash marketing, (3) amortization and impairment of intangibles, (4) goodwill impairment, (5) pro forma adjustments for significant acquisitions, and (6) 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, non-cash marketing, 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.

(b)

Consistent with the Company's primary metric (described in (a) above), the Company excludes, if applicable, goodwill, intangible assets and unamortized non-cash marketing from the measure of segment assets presented above.

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

	Years Ended December 31,
	2010		2009		2008
	(In thousands)
Revenue
United States	$	1,359,655	$	1,138,820	$	1,134,649
All other countries		277,160		207,875		275,429
Total	$	1,636,815	$	1,346,695	$	1,410,078

	December 31,
	2010		2009
	(In thousands)
Long-lived assets (excluding goodwill and intangible assets)
United States	$	267,060	$	289,464
All other countries		868		869
Total	$	267,928	$	290,333

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

	Year Ended December 31, 2010
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Goodwill Impairment			Operating Income (Loss)
Search	$	125,549		$	(334	)	$	(12,348	)	$	—		$	112,867
Match		122,057			153			(6,843	)		—			115,367
ServiceMagic		18,165			—			(1,717	)		—			16,448
Media & Other		(12,009	)		(934	)		(6,564	)		(28,032	)		(47,539	)
Corporate		(64,183	)		(83,165	)		—			—			(147,348	)
Total	$	189,579		$	(84,280	)	$	(27,472	)	$	(28,032	)		49,795
Other expense, net														(27,109	)
Earnings from continuing operations before income taxes														22,686
Income tax provision														(32,079	)
Loss from continuing operations														(9,393	)
Gain on Liberty Exchange														140,768
Loss from discontinued operations, net of tax														(37,023	)
Net earnings														94,352
Net loss attributable to noncontrolling interests														5,007
Net earnings attributable to IAC shareholders													$	99,359

	Year Ended December 31, 2009
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Amortization of Non-Cash Marketing			Goodwill Impairment			Operating (Loss) Income
Search	$	91,615		$	(588	)	$	(147,896	)	$	(6,494	)	$	(916,868	)	$	(980,231	)
Match		94,124			(154	)		(4,940	)		(4,375	)		—			84,655
ServiceMagic		21,286			(150	)		(2,754	)		(4,999	)		—			13,383
Media & Other		(19,699	)		(921	)		(1,441	)		—			—			(22,061	)
Corporate		(65,465	)		(68,268	)		—			—			—			(133,733	)
Total	$	121,861		$	(70,081	)	$	(157,031	)	$	(15,868	)	$	(916,868	)		(1,037,987	)
Other income, net																	90,988
Loss from continuing operations before income taxes																	(946,999	)
Income tax provision																	(9,474	)
Loss from continuing operations																	(956,473	)
Loss from discontinued operations, net of tax																	(23,439	)
Net loss																	(979,912	)
Net loss attributable to noncontrolling interests																	1,090
Net loss attributable to IAC shareholders																$	(978,822	)

	Year Ended December 31, 2008
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Amortization of Non-Cash Marketing			Goodwill Impairment			Operating Income (Loss)
Search	$	144,940		$	—		$	(33,956	)	$	(4,899	)	$	—		$	106,085
Match		91,266			—			(673	)		(15,103	)		—			75,490
ServiceMagic		26,244			(727	)		(1,534	)		—			—			23,983
Media & Other		(25,334	)		(356	)		(6,890	)		—			(11,600	)		(44,180	)
Corporate		(120,942	)		(84,690	)		—			—			—			(205,632	)
Total	$	116,174		$	(85,773	)	$	(43,053	)	$	(20,002	)	$	(11,600	)		(44,254	)
Other income, net																	155,494
Earnings from continuing operations before income taxes																	111,240
Income tax benefit																	30,695
Earnings from continuing operations																	141,935
Gain on sale of discontinued operations, net of tax																	23,314
Loss from discontinued operations, net of tax																	(329,410	)
Net loss																	(164,161	)
Net loss attributable to noncontrolling interests																	7,960
Net loss attributable to IAC shareholders																$	(156,201	)

        The following tables reconcile segment assets to total assets (in thousands):

	December 31, 2010
	Segment Assets		Goodwill		Indefinite-lived Intangibles		Definite-lived Intangibles		Total Assets
	(As Restated)								(As Restated)
Search	$	280,773	$	551,454	$	168,500	$	1,941	$	1,002,668
Match(c)		196,177		297,974		42,118		979		537,248
ServiceMagic		13,834		109,917		12,823		3,231		139,805
Media & Other		43,674		30,148		13,580		1,872		89,274
Corporate(d)		1,560,084		—		—		—		1,560,084
Total	$	2,094,542	$	989,493	$	237,021	$	8,023	$	3,329,079

	December 31, 2009
	Segment Assets		Goodwill		Indefinite-lived Intangibles		Definite-lived Intangibles		Total Assets
	(As Restated)								(As Restated)
Search	$	250,475	$	545,054	$	179,500	$	3,290	$	978,319
Match(c)		233,919		253,812		35,314		2,765		525,810
ServiceMagic		21,607		110,689		12,823		5,253		150,372
Media & Other		23,973		58,180		18,100		3,887		104,140
Corporate(d)		2,154,956		—		—		—		2,154,956
Total	$	2,684,930	$	967,735	$	245,737	$	15,195	$	3,913,597

(c)

Included in the segment assets of Match is its investment in Meetic, which is accounted for as an equity method investment.

(d)

Corporate assets consist primarily of cash and cash equivalents, marketable securities and IAC's headquarters building.