SEGMENT INFORMATION

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
		2011			2010			2011			2010
		(In thousands)
Revenue:
	Search	$	273,345		$	205,075		$	774,385		$	601,230
	Match		132,328			106,197			360,354			292,433
	ServiceMagic		55,061			48,397			157,458			140,128
	Media & Other		56,384			54,029			171,431			153,158
	Inter-segment elimination		(234	)		(732	)		(1,127	)		(1,561	)
	Total	$	516,884		$	412,966		$	1,462,501		$	1,185,388

		Three Months Ended September 30,						Nine Months Ended September 30,
		2011			2010			2011			2010
		(In thousands)
Operating Income (Loss):
	Search	$	45,023		$	28,872		$	144,420		$	91,546
	Match		36,677			38,126			101,105			77,318
	ServiceMagic		7,041			6,205			19,088			14,349
	Media & Other		(3,717	)		(2,824	)		(10,680	)		(9,662	)
	Corporate		(38,284	)		(32,695	)		(111,626	)		(102,309	)
	Total	$	46,740		$	37,684		$	142,307		$	71,242

		Three Months Ended September 30,						Nine Months Ended September 30,
		2011			2010			2011			2010
		(In thousands)
Operating Income Before Amortization:
	Search	$	45,848		$	29,268		$	145,802		$	92,852
	Match		40,207			39,354			107,530			83,264
	ServiceMagic		7,425			6,692			20,224			15,676
	Media & Other		(3,216	)		(2,161	)		(9,719	)		(7,175	)
	Corporate		(16,101	)		(16,109	)		(46,282	)		(43,492	)
	Total	$	74,163		$	57,044		$	217,555		$	141,125

		Three Months Ended September 30,				Nine Months Ended September 30,
		2011		2010		2011		2010
		(In thousands)
Depreciation:
	Search	$	11,170	$	8,249	$	24,518	$	27,264
	Match		2,481		2,612		7,059		8,518
	ServiceMagic		1,092		1,005		3,276		3,001
	Media & Other		662		576		2,089		1,682
	Corporate		2,079		2,156		6,431		6,551
	Total	$	17,484	$	14,598	$	43,373	$	47,016

        Revenue by geography is based on where the customer is located. Geographic information about revenue and long-lived assets is presented below:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2011		2010		2011		2010
		(In thousands)
Revenue:
	United States	$	393,398	$	345,259	$	1,150,895	$	989,930
	All other countries		123,486		67,707		311,606		195,458
	Total	$	516,884	$	412,966	$	1,462,501	$	1,185,388

		September 30, 2011		December 31, 2010
		(In thousands)
Long-lived assets (excluding goodwill and intangible assets):
	United States	$	250,117	$	267,060
	All other countries		9,886		868
	Total	$	260,003	$	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, and (4) 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 (in thousands):

	Three Months Ended September 30, 2011
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search	$	45,848		$	—		$	(825	)	$	45,023
Match		40,207			(423	)		(3,107	)		36,677
ServiceMagic		7,425			—			(384	)		7,041
Media & Other		(3,216	)		(279	)		(222	)		(3,717	)
Corporate		(16,101	)		(22,183	)		—			(38,284	)
Total	$	74,163		$	(22,885	)	$	(4,538	)	$	46,740

	Three Months Ended September 30, 2010
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search	$	29,268		$	(59	)	$	(337	)	$	28,872
Match		39,354			—			(1,228	)		38,126
ServiceMagic		6,692			—			(487	)		6,205
Media & Other		(2,161	)		(413	)		(250	)		(2,824	)
Corporate		(16,109	)		(16,586	)		—			(32,695	)
Total	$	57,044		$	(17,058	)	$	(2,302	)	$	37,684

	Nine Months Ended September 30, 2011
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search	$	145,802		$	—		$	(1,382	)	$	144,420
Match		107,530			(423	)		(6,002	)		101,105
ServiceMagic		20,224			—			(1,136	)		19,088
Media & Other		(9,719	)		(286	)		(675	)		(10,680	)
Corporate		(46,282	)		(65,344	)		—			(111,626	)
Total	$	217,555		$	(66,053	)	$	(9,195	)	$	142,307

	Nine Months Ended September 30, 2010
	Operating Income Before Amortization			Non-Cash Compensation Expense			Amortization of Intangibles			Operating Income (Loss)
Search	$	92,852		$	(295	)	$	(1,011	)	$	91,546
Match		83,264			153			(6,099	)		77,318
ServiceMagic		15,676			—			(1,327	)		14,349
Media & Other		(7,175	)		(692	)		(1,795	)		(9,662	)
Corporate		(43,492	)		(58,817	)		—			(102,309	)
Total	$	141,125		$	(59,651	)	$	(10,232	)	$	71,242