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GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2011

NOTE 5—GOODWILL AND INTANGIBLE ASSETS

The balance of goodwill and intangible assets, net is as follows (in thousands):

		September 30, 2011		December 31, 2010

Goodwill		$	1,337,889	$	989,493
Intangible assets with indefinite lives			360,060		237,021
Intangible assets with definite lives, net			37,980		8,023

	Total goodwill and intangible assets, net	$	1,735,929	$	1,234,537

The following table presents the balance of goodwill by reporting unit, including the changes in the carrying value of goodwill, for the nine months ended September 30, 2011 (in thousands):

		Balance as of January 1, 2011		Additions		(Deductions)			Foreign Exchange Translation			Balance as of September 30, 2011

	IAC Search & Media	$	534,004	$	—	$	(93	)	$	—		$	533,911
	CityGrid Media		17,450		301		—			—			17,751

Search			551,454		301		(93	)		—			551,662
Match			297,974		369,596		—			(21,806	)		645,764
ServiceMagic			109,917		—		—			531			110,448
	Shoebuy		21,712		36		—			—			21,748
	Connected Ventures		8,436		—		(169	)		—			8,267

Media & Other			30,148		36		(169	)		—			30,015

	Total	$	989,493	$	369,933	$	(262	)	$	(21,275	)	$	1,337,889

Additions principally relate to the acquisitions of Meetic and OkCupid. Both the January 1, 2011 and September 30, 2011 goodwill balances include accumulated impairment losses of $916.9 million, $28.0 million and $11.6 million at IAC Search & Media, Shoebuy and Connected Ventures, respectively.

Intangible assets with indefinite lives relate to trade names and trademarks acquired in various acquisitions. At September 30, 2011, intangible assets with definite lives relate to the following (in thousands):

		Cost		Accumulated Amortization			Net

Customer lists		$	18,571	$	(2,834	)	$	15,737	1.0
Technology			16,574		(1,970	)		14,604	2.2
Supplier agreements			10,053		(5,471	)		4,582	6.2
Other			9,503		(6,446	)		3,057	3.6

	Total	$	54,701	$	(16,721	)	$	37,980

At December 31, 2010, intangible assets with definite lives relate to the following (in thousands):

		Cost		Accumulated Amortization			Net

Supplier agreements		$	7,100	$	(4,668	)	$	2,432	6.7
Customer lists			5,534		(5,298	)		236	1.3
Technology			3,100		(1,817	)		1,283	3.0
Other			8,871		(4,799	)		4,072	4.2

	Total	$	24,605	$	(16,582	)	$	8,023

Amortization of intangible assets with definite lives is computed either on a straight-line basis or based on the period in which the economic benefits of the asset will be realized. At September 30, 2011, amortization of intangible assets with definite lives for each of the next five years is estimated to be as follows (in thousands):

Years Ending September 30,

2012	$	26,794
2013		8,843
2014		1,085
2015		629
2016		629

	$	37,980

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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